FOR MORE INFORMATION:
Monte, 515-252-6249

FOR IMMEDIATE RELEASE
January 25, 2010

New Study: Renewable Fuels Are
Backbone of Resilient Iowa Economy

Biodiesel Needs Policy/Market Boost to Reach Potential

JOHNSTON, IA – At its 4th Annual Iowa Renewable Fuels Summit today, the Iowa Renewable Fuels Association (IRFA) released a new study detailing the vital impact the renewable fuels industry has on Iowa’s resilient economy.  Even as Iowa struggles to emerge from this economic downturn, the production of biodiesel and ethanol is boosting the agriculture sector of Iowa’s economy.  Additionally, bringing idled biodiesel capacity back into production could create green collar jobs and further grow Iowa’s economy.

“2009 was a year of recovery for the renewable fuels industry,” said economist John Urbanchuk, a director with LECG, LLC. “While all of the Iowa ethanol plants idled in 2008 were brought back on line, the biodiesel industry was particularly hard hit during 2009 and the industry outlook is clouded by the failure of Congress to reauthorize the biodiesel excise tax credit that expired on December 31.”

According to the report, “Contribution of the Biofuels Industry to the Economy of Iowa,” Urbanchuk found that ethanol and biodiesel producers are part of a manufacturing sector that adds substantial value to agricultural commodities produced in Iowa and makes a significant contribution to the state’s economy. Based on the size of the renewable fuels industry at year-end 2009, ethanol and biodiesel:

• Accounts for nearly $11.5 billion, or about 8 percent, to Iowa GDP;
• Generates $2.3 billion of household income for Iowa households;
• Supports more than 70,000 jobs through the entire Iowa economy (or 4.6% of private, non-farm employment); and,
• Boosts state tax revenue by $532 million.

“Despite the challenges, 2009 proved the staying power of Iowa’s ethanol producers,” said IRFA Executive Director Monte Shaw. “Iowa plants have created more green collar jobs than ever.  Iowa ethanol production hit a record 3.1 billion gallons.  On the other hand, 2009 proved extremely challenging for Iowa’s biodiesel producers.  With the lapse of the federal blenders tax credit, the industry has ground to a near halt.  If Iowa took the needed steps to get the biodiesel industry producing again, this report shows it could result in thousands of new jobs and millions in new household earnings and state tax revenue.”

Iowa is the leader in renewable fuels production.  Iowa has 39 ethanol refineries capable of producing nearly 3.3 billion gallons annually. In addition, Iowa has 15 biodiesel facilities with the capacity to produce over 322 million gallons annually.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.

###

For more information, visit the Iowa Renewable Fuels Association website at:  www.IowaRFA.org.