DES MOINES, IOWA, U.S. — Iowa biodiesel producers said on Feb. 13 that the state, which is the leading biodiesel producer in the U.S., could play a major role in a new effort to have biodiesel make up 10% of the nation’s on-road diesel supply by 2022.
“As the nation’s leading biodiesel producer, Iowa is poised to play a major role in this bold new effort, and would benefit from the increased production,” said Randy Olson, Iowa Biodiesel Board (IBB) executive director. “Under the 10 by 22 plan, we estimate Iowa could double its production, which would mean current plants would operate at or near full capacity. This would enhance Iowa’s economic development.”
The National Biodiesel Board (NBB) recently unveiled the new goal: “10 by 22,” which means biodiesel would make up 10% of the nation’s on-road diesel supply by 2022.
Successful state policies, such as the current incentive for fuel retailers to blend biodiesel and a producer’s credit, help keep Iowa competitive with surrounding states, Olson said.
Recent economic studies show Iowa biodiesel supported nearly 5,000 jobs in the state in 2012. The industry’s contribution to Iowa’s GDP was nearly $400 million in 2012. Also, corn, soybean and livestock producers all benefit from biodiesel production, according to economic analysis.
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