Biodiesel consumption in Iowa doubled in 2024 even as the industry faced challenges from unclear federal regulations, according to a revised report from the Iowa Department of Revenue. The 2024 Retailers Fuel Gallons Annual Report, released in April, reveals a strong year for the biofuel sector, with 484 million gallons of biodiesel blends sold across the state, reported Transport Topics.
The report, based on fuel sales data from 2,263 retail locations, tracked the sale of various fuel types including diesel, biodiesel, gasoline, and ethanol. It found that Iowa drivers increasingly opted for higher biodiesel blends, with B20 or higher accounting for half of all biodiesel sold. Biodiesel is typically made from agricultural byproducts like soybean oil.
“This report offers encouraging news during a tough time for the biodiesel industry nationwide,” said Grant Kimberley, executive director of the Iowa Biodiesel Board. “Despite market volatility and ongoing uncertainty around key federal policies, proactive state leadership helped boost demand at the pump last year.”
According to Kimberley, Iowa’s biofuel-friendly policies—including a fuel retailer incentive, a fuel tax differential, and the Renewable Fuel Infrastructure Program—played a critical role in the increase. As a result, 921 retail sites, or about 60% of diesel outlets in Iowa, now offer some level of biodiesel—the highest number ever recorded in the state.
Kimberley also praised Governor Kim Reynolds and Iowa lawmakers for their ongoing support of renewable fuels. “The progress we’re seeing in Iowa reflects the potential that can be unlocked when all levels of government support renewable fuels,” he added.
Iowa remains the national leader in biodiesel production, with annual capacity increasing slightly to 353 million gallons in 2024, up from 350 million gallons in 2023, according to the Iowa Renewable Fuels Association.
However, despite the growth in consumption, industry groups warned of ongoing challenges. The Iowa Renewable Fuels Association noted that several plants stopped production by the end of the year due to policy uncertainties, including the expiration of the long-standing federal biodiesel blenders tax credit and unresolved guidelines for the new 45Z Clean Fuel Production Credit.
On April 10, Clean Fuels Alliance America submitted comments urging the U.S. Treasury to finalize the rules for the clean fuel credit. “The unfinished rules are creating intolerable uncertainty,” said Kurt Kovarik, the group’s vice president of federal affairs. “Jobs, economic growth, and domestic energy production are at risk. We urge Treasury and Congress to support farmers and fuel producers by leveling the playing field.”
