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Biodiesel plants shut down across Iowa
Photo by Brent Barnett/Brownfield
The head of the Iowa Renewable Fuels Association says several biodiesel plants have idled across the state.
Monte Shaw tells Brownfield the plants stopped production after the blenders tax credit ended on December 31st. “They were going to have all of these tax credits expire and then go into this new catch-all 45Z tax credit that people talk about. Well, the rules for that aren’t out, so people can’t claim it. It’s got the whole supply chain in flux.”
He says he’s disappointed in the lack of 45Z guidance from the federal government. “Right now when nobody knows how that program is going to work or what the incentive will be, nobody knows how to price their feedstock or how to price their biodiesel. Our best estimate right now is 5 out of our 10 plants in Iowa are shut down. It could be higher than that, but that’s where we think we are now.”
Shaw says he hopes the temporary shutdowns don’t become permanent.
INTERVIEW: Monte Shaw, Iowa Renewable Fuels Association
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