BioFuels Journal

by Jerry Perkins, BioFuels Journal editor

Des Moines, IA—A new study showing the economic impact of renewable fuels production on Iowa’s economy was released Tuesday at the 6th Annual Iowa Renewable Fuels Summit, organized by the Iowa Renewable Fuels Association (IRFA).

Speaking to 550 attendees at the summit, Monte Shaw, executive director of the IRFA, said that the study shows that Iowa’s ethanol and biodiesel industries are “revived and ready.”

According to the report, ethanol and biodiesel production accounts for nearly $6 billion, or 4%, of Iowa GDP; generates $3.7 billion in Iowa household income in Iowa; and supports more than 82,000 jobs throughout Iowa’s economy.

Economist John Urbanchuk, technical director of Cardno ENTRIX, conducted the study.

“2011 was a revival year for renewable fuels,” Urbanchuk said in a press release announcing the study’s results.

“Both the ethanol and biodiesel industries experienced continued growth in 2011 despite high feedstock and input prices.

"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 Iowa economy.”

Shaw said that one of the reasons Iowa’s economy has performed better than other states during the economic downturn is its strong agricultural economy and its renewable fuels sector.

“While not being insensitive to our friends and neighbors who are looking for work, we should celebrate the success of renewable fuels and the profoundly positive impact that success has had on Iowa’s economy and rural communities,” Shaw said.

“No one should question that Iowa has done better than many other states during this long recession.

"And the reason for that is our strong agricultural economy with renewable fuels playing a leading role.”

Iowa is the leading ethanol and biodiesel producing state with 41 ethanol refineries capable of producing 3.7 billion gallons a year and 13 biodiesel plants with the capacity to produce 320 million gallons annually.

The complete study can be found online at: www.IowaRFA.org/documents/2012IowaEconomicImpact.pdf

Also speaking at the summit was Joe Jobe, executive director of the National Biodiesel Board, Jefferson City, MO.

Jobe said U.S. dependence of foreign oil has made the country poorer, weaker, and less safe.

That dependence has been countered by the use of renewable fuels made in the United States, such as biodiesel, he said.

Production of biodiesel topped 1 billion gallons in 2011, Jobe said, the first year it has reached that level.

See Related Websites/Articles:

• IRFA

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