BioFuels Journal

By M.D. Brading, Biofuels Journal Associate Editor

In a recent interview with Biofuels Journal, Monte Shaw, Executive Director of IRFA, gives an overview of Iowa’s ethanol industry growth and future.

IRFA was formed in 2002 to represent the state’s biodiesel and ethanol producers.

The trade group fosters the development and growth of the renewable fuels industry in Iowa through legislative and regulatory efforts, education and promotion, and infrastructure development.

How many ethanol and biodiesel plants are operating or in the planning stages in Iowa? How does that compare to last year?

Shaw: Iowa is the leader in renewable fuels production. Currently, Iowa has 6 biodiesel refineries in operation and 7 biodiesel refineries under construction with a combined annual capacity of over 250 million gallons. Last year we only had 4 in operation and two under construction.

In addition, Iowa has 25 ethanol refineries with the capacity to produce over 1.5 billion gallons annually. There are 4 ethanol refineries and two expansions under construction with a combined annual capacity of 425 million gallons. Last year we had 21 ethanol refineries.

There are probably three dozen ethanol and biodiesel projects in various stages of development at this time, but it’s impossible to know how many will ultimately be built.

Iowa has a very robust renewable fuels market and recently passed aggressive legislation. What can other states learn from Iowa’s example?

Shaw: We feel the 25% Iowa Renewable Fuels Standard is a great alternative for states that don’t want to enact mandates or that want to focus on going “above” the E10 blend. It is also a way to promote both biodiesel and ethanol/E85.

We have been contacted by groups in states from Idaho to Wisconsin to learn about the program. Shortly, we’ll be sharing the 25% Iowa RFS plan with a national audience during ACE’s annual conference August 8-10 in Kansas City.

Do you have any concerns about the number of plants in the state? Are there too many and will there be enough corn for all?

Shaw: There seems to be more talk of this lately and that’s good. An industry should be asking these questions. The answers have more to do with your outlook than any universal “truth.”

Iowa farmers are quite capable of increasing the corn crop to supply Iowa’s ethanol refineries. I hope that one day Iowa doesn’t send a single kernel of corn out of state without first adding value through the production of livestock, biofuels, or other value-added products.

The other issue is how much ethanol production do we need. In commodity markets like biofuels, there will always be the issue of supply/demand imbalances in the short term.

Looking long term, there is so much growth potential even if we target replacing only 10% of the petroleum fuels. And I see no reason we can’t go further then that over time and with new technologies.

What has Iowa done to increase usage of ethanol within the state, particularly E85?

Shaw: Iowa has just started getting serious about promoting E85 and biodiesel blends. New retail tax credits should make the fuels attract to both retailers and consumers. Further, a program that provides grants to offset the cost of installing the equipment necessary for biodiesel and E85 is hugely popular.

For example, the number of E85 stations has gone from 16 to 44 in less than two years and could go to 400 or 500 over the next five years. It takes funding, but Iowa has made a commitment to be #1 not just in the production of biofuels, but in the consumption of biofuels as well.

With the passage of the Iowa’s renewable fuels legislation, what’s the next step?

Shaw: We need to give the program time to work. There are already forces at work that want to delay or reduce Iowa’s 25% RFS or who want to reduce funding for the infrastructure grants.

So we much first hold on to the proactive policies Iowa just put in place. Then, there’s more the state can do to help consumers know where biofuels are for sale. And the state can use its purchasing power to promote the sale of biofuels and vehicles designed to run on biofuels.

We’ll also work with Iowa’s federal delegation to promote the production of flexible fuel vehicles and vehicles endorsed to use B20. Much progress has been made in this area, but we’re really only scratching the surface.

For more information, contact Monte Shaw, Iowa Renewable Fuels Association, at 515-252-6249 or visit www.iowarfa.org.

See Related Websites/Articles:

• Iowa Renewable Fuels Association

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