Iowa ethanol production slows as E10 market becomes saturated

By Iowa Renewable Fuels Association | December 28, 2011

The Iowa Renewable Fuels Association (Iannounced that Iowa’s ethanol production ticked up in 2011, but the rate of annual growth slowed as the domestic E10 market became saturated.  Forty-one Iowa ethanol plants produced 3.7 billion gallons in 2011, up from 3.5 billion gallons in 2010.  This represents 27 percent of the estimated 13.8 billion gallons of nationwide ethanol production.

“2011 was certainly a good year for Iowa ethanol producers with increased production and profitability,” said IRFA Executive Director Monte Shaw.  “However, we relied on export markets for growth.  We’re also facing the expiration of ethanol’s tax credit.  Those factors place a premium on pushing the rapid commercialization of E15.  Higher blends like E15 are the only way to guarantee increased ethanol production in the future and the jobs and foreign oil displacement that comes with it.  We are waiting for final federal approvals, but Iowa will be a leader in E15.”

Iowa is the leader in renewable fuels production with 41 ethanol refineries capable of producing 3.7 billion gallons annually. In addition, Iowa has 13 biodiesel facilities with the capacity to produce 320 million gallons annually.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.