January 2, 2017
Iowa’s 43 ethanol plants had another record-breaking year, producing 4.1 billion gallons in 2016. The slight uptick in production from 4 billion gallons in 2015 is largely due to an increase in gasoline demand, allowing more E10 blending and increased ethanol export opportunities.
“Setting another annual ethanol production record is a testament to the efficiency and hard work of Iowa’s ethanol plants,” says Monte Shaw, Iowa Renewable Fuels Association executive director. “However, Iowa has the resources, both in the amount of corn available and in ethanol manufacturing plant capabilities, to do much more.”
Shaw says Iowa can unlock a “wealth of untapped potential.” To do this, “we need to move beyond E10 and ensure that all consumers have access to higher blends of ethanol at the pump, like E15. The federal government needs to break down regulatory barriers to higher blends that serve no purpose other than to protect petroleum.”
Lobbying to secure cost-share funding
IRFA’s top state policy priority for 2017 is securing funding for the Iowa Renewable Fuels Infrastructure Program to ensure more fuel retailers have the equipment necessary to offer higher blends of ethanol now and in the future. State funding for that grant program expired in 2016.
“The recently released Iowa Energy Plan by the governor and other state officials highlighted the blender pump program as efficient, effective and necessary to securing Iowa’s energy future,” says Shaw. “Homegrown ethanol is better for our environment, our economy and our national security. But we can’t maximize all those benefits if the petroleum industry is allowed to monopolize access to the consumer.”
New ethanol plant to be built at Atlantic
Ethanol production in Iowa will continue to increase with the addition of a new production plant to be built at Atlantic in western Iowa. The plant, announced recently and known as Elite Octane, is expected to hire at least 49 people once it is up and running. Ground-breaking to begin construction is planned for 2017. The nearly $200 million plant will produce 120 million gallons of ethanol annually.
The Cass County Board of Supervisors will issue a $4 million bond to install new roads and other infrastructure to the 102-acre site just outside of Atlantic. The plant is expected to be in operation by June 2018.
IRFA welcomes Kum & Go
In other ethanol-related news, IRFA announced that Kum & Go is its newest associate member. Kum & Go has been a leader among fuel retailers offering renewable fuels at the pump for nearly 20 years. The Iowa-based organization offers biofuel options such as E15, E85 and biodiesel at stores across 11 states; more locations are added each year.
“We’ve seen clear and consistent consumer demand for fuels that are better for our economy, environment and national security,” says Jim Pirolli, Kum & Go vice president for fuels. “Joining IRFA only further solidifies our commitment to expanding access to biofuels and giving our customers the option to choose a fuel that meets the demands.”
In Iowa, Kum & Go is the state’s largest retailer of E85 and E15.The company has worked with IRFA for a number of years to expand and promote access to renewable fuels across the state.
“Kum & Go has been a great partner in the effort to expand consumer access to renewable fuels, and it’s a pleasure to welcome them as a member,” says IRFA’s Monte Shaw. “Kum & Go is the recognized leader in giving their customers choices at the pump, not just in Iowa but around the country. No other retailer has done more to promote E15, E85 and biodiesel.”
The Iowa Renewable Fuels Association represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 43 ethanol refineries capable of producing 4 billion gallons annually including nearly 55 million gallons of annual cellulosic ethanol production capacity and 12 biodiesel facilities with the capacity to produce over 350 million gallons annually. For more information visit the IRFA website.
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