After tripling in ’11, what’s up for Iowa biodiesel in 2012?

In Iowa, producers more than tripled their biodiesel output in 2011, producing a total of 169 million gallons. The increased demand was credited to the reinstatement of the biodiesel tax credit and the renewable fuels standard. Despite the lapse of the biodiesel tax credit on Dec. 31, 2011, producers hope demand will remain steady under the renewable fuels standard.

In 2011, after reinstatement of the tax credit, several plants reopened, with 10 of the state’s 13 plants producing biodiesel fuel. When fully operational, Iowa’s 13 plants are capable of producing 320 million gallons a year.