Iowa biodiesel output grows in Q2 2013

Aug 9, 2013 - Iowa's biodiesel output in the second quarter of 2013 reached the record-high 56.7 million gallons (215 million litres), rising from 54.9 million gallons a year ago, the Iowa Renewable Fuels Association (IRFA) said Thursday.

Total biodiesel production in Iowa in the first half of 2013 totalled 99.5 million gallons, which is also a record for the first half of any year. The figures, released by the Iowa Department of Revenue, show that nine of the state's 12 biodiesel plants reported their output.

“With a strong RFS [Federal Renewable Fuel Standard] and the biodiesel tax incentive helping to level the playing field against long standing petroleum subsidies, biodiesel is successfully competing in the marketplace," said IRFA Communications Director TJ Page. This year, biodiesel output is seen to be steady as more stations are offering higher blends of biodiesel, Page added. However, the outlook for 2014 is not as bright and the market will face a range of challenges as the biodiesel tax credit will expire at end-2013, IFRA noted.

The state of Iowa has 12 biodiesel refineries with a combined capacity of some 315 million gallons per year. It also has 41 ethanol refineries with a combined capacity of some 3.7 billion gallons of ethanol annually. One wet mill and two cellulosic ethanol facilities are currently under construction, IFRA said.

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