Iowa Biodiesel Production Ticked Up in 2024, but Hits Headwinds Entering 2025

Some Plants Sit Idle as Federal Policy Leaves Market in Uncertainty

Contact: Emma Koehler
515-252-6249

JOHNSTON, IA - In 2024, Iowa biodiesel production ticked up to 353 million gallons, up from 350 in 2023. Iowa biodiesel plants managed to power through being undercut by a drastically low Renewable Fuel Standard (RFS) blending level for 2024, but could not escape uncertainty surrounding tax policy as the long-time biodiesel blenders credit expired while the rules for the new 45Z Clean Fuel Production Credit remain in flux. By the end of 2024, multiple Iowa biodiesel plants were not producing.

"Iowa biodiesel producers powered through most of 2024, but the end of the year brought a time of uncomfortable uncertainty," said Iowa Renewable Fuels Association Executive Director Monte Shaw. "We need quick action in Washington to prevent 2025 from being worse. Multiple plants are sitting at idle waiting and hoping for the Treasury Department to finalize the rules for the new 45Z Clean Fuel Production Tax Credit. Tax credit uncertainty has tied the entire biodiesel supply chain up in knots. We need action now. Biodiesel remains a key part of ensuring domestic energy security while boosting rural communities and farmers."

When it comes to Iowa biodiesel production, soybean oil remains the king, accounting for 77 percent of the production in 2024. Animal fats accounted for nearly 9 percent, while canola oil, distillers corn oil, and used cooking oil (UCO) each made up over 4 percent of feedstocks.

Iowa's ten biodiesel plants have the capacity to produce 416 gallons annually. The IRFA compiled production information from a confidential industry survey.

The Iowa Renewable Fuels Association represents the state's liquid renewable fuels industry and works to foster its growth. Iowa is the nation's leader in renewable fuels production with 42 ethanol refineries capable of producing 4.7 billion gallons annually - including 34 million gallons of annual cellulosic ethanol production capacity - and 10 biodiesel facilities with the capacity to produce 416 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org .

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