Iowa biodiesel production up slightly in 2024

Western Iowa Energy in Wall Lake, Iowa. (Photo: Iowa Biodiesel Board)

Iowa biodiesel production hit 353 million gallons in 2024, up 3 million gallons from 2023, according to the Iowa Renewable Fuels Association.

When it comes to Iowa biodiesel manufacturing, soybean oil remains the king, accounting for 77 percent of 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.

The IRFA compiled production information from a confidential industry survey.

Iowa biodiesel plants managed to power through being undercut by a drastically low Renewable Fuel Standard blending level for 2024, IRFA noted.

Despite this, the association pointed out how biodiesel production facilities could not escape uncertainty surrounding tax policy as the longtime biodiesel blenders credit expired while rules for the new 45Z clean fuel production credit remain in flux.

By the end of 2024, multiple Iowa biodiesel plants were not producing, according to IRFA.

“Iowa biodiesel producers powered through most of 2024, but the end of the year brought a time of uncomfortable uncertainty,” said Monte Shaw, IRFA’s executive director.

“We need quick action in Washington to prevent 2025 from being worse,” Shaw added.

“Multiple plants are sitting idle waiting and hoping for the treasury department to finalize the rules for the new 45Z clean fuel production tax credit,” he said.

Iowa’s 10 biodiesel plants have the capacity to produce 416 gallons annually.

“Tax credit uncertainty has tied the entire biodiesel supply chain up in knots—we need action now,” Shaw said.

“Biodiesel remains a key part of ensuring domestic energy security while boosting rural communities and farmers,” he added.

IRFA 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.