Iowa increased biodiesel production in 2018


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About 296 gallons of soy biodiesel were produced in Iowa last year (flickr).

Julia Poska | January 4, 2019

Iowa produced about 80 million more gallons of biodiesel in 2018 than 2017, bringing the total up to about 365 million gallons. The Iowa Renewable Fuels Association estimates that Iowa generated about one fifth of total biodiesel produced in the U.S. last year.

Monte Shaw, the director of the IRFA, attributed the increase in production to reduced foreign imports of biodiesel. Last spring, the United States International Trade Commission determined that Argentina and Indonesia were selling biodiesel in the U.S. at unfairly low rates, harming the domestic industry. Subsequent tariffs increased demand for U.S.-produced biodiesel.

Much of the demand was met with soybean oil, which totaled about 81 percent of the market share, up from 2017. Corn oil comprised 10 percent, while animal fat dropped to 5 percent, and used cooking oil contributed about 4 percent of the share.

Shaw believes Iowa could produce even more biodiesel, up to 400 million gallons in its 12 facilities, if nationwide Renewable Fuel Standard levels were higher. These levels determine the minimum quantity of biofuel that U.S. transportation fuels must contain and are administered by the Environmental Protection Agency. Levels increase each year. In 2019, 2.1 billion gallons of biodiesel should be mixed into U.S. diesel. By 2020, the amount should increase to 2.43 billion gallons.

 

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