News

Clock ticking for idled biodiesel plants

A number of biodiesel plants remain idled across Iowa.

Eastern Iowa farmer Dave Walton serves on the board of directors for the Iowa Soybean Association and American Soybean Association. He tells Brownfield the industry is seeking tax policy that provides incentive for production.

“They lost the blenders tax credit January 1^st,” Walton said. “We’re still waiting on guidance for 45Z. Until those things are settled, these plants will remain idled because they don’t have any policy in place that gives them assurance that they can price their fuel.”

Iowa Ag Secretary Mike Naig says updated Renewable Volume Obligation volumes could help get the idled plants back online.

“What we’re asking for is a very strong (RVO) number that gets set by EPA,” Naig said. “You’ve got to send the right signals to the marketplace. Certainly, an RVO would do that.”

Clean Fuels Alliance America recently sent a letter to EPA administrator Lee Zeldin asking for RVOs to be set at no less than 5.25 billion gallons in 2026.

Naig says there also needs to be a usage commitment from transportation companies.

“Putting their money where their mouth is, so to speak,” Naig said. “Actually running fleets on B99 is a great example of how you can build demand.”

Bradley Wilson, president of Western Iowa Energy, recently told Brownfield operations at his facility have been on-hold for several months. He says if conditions don’t improve soon, it will be detrimental to the entire industry.