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Iowa ethanol production stagnant as other states invest in expansion, Shaw says

A biofuels leader says Iowa is the largest ethanol producing state in the country, but there’s room for growth.

Monte Shaw is the executive director of the Iowa Renewable Fuels Association…

“We have been stagnant at 4.6 billion gallons of ethanol production for each of the last three years,” he said. “That’s not what we would like to see.”

He tells Brownfield the state’s ethanol plants need advanced technology to help boost production.

“We need to get our carbon sequestration and use situation figured out so that we can be, not just the largest producer of ethanol, but we want to regain that crown of being the most attractive place to produce ethanol – the most profitable place.”

Shaw says while Iowa production levels have remained stagnant the last three years, national ethanol production increased by 850 million gallons. He says several Midwestern facilities have some upcoming expansions.

“We’re seeing investments in plants in places where they perceive there is a competitive advantage. Plants hooked up to the Trailblazer Pipeline in Nebraska, they are talking about expanding. We’re seeing expansions in Indiana where they have the ability to go straight down and sequester carbon in Illinois to do that. Even in North Dakota.”

Shaw says if Iowa’s 4.6 billion gallons of ethanol production utilized carbon capture and sequestration technologies, it would bring over $3 billion in 45Z tax credits back to the state.