Iowa Biodiesel Retailers Get Large Share of $1.12M Grants
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Iowa biodiesel retailers were awarded the lion’s share of $1.12 million in state grants to boost their biofuel capacity through new and expanded infrastructure projects.
Iowa Secretary of Agriculture Mike Naig recently announced the 24 funding awards from the . The state provides these financial incentives to share infrastructure project costs at fuel retail sites and biodiesel terminal facilities to sell more renewable fuel in Iowa.
“Biofuels provide consumers with more fuel choices, all while supporting Iowa farmers and jobs in rural communities,” Naig said. “As the nation’s leader in both ethanol and biodiesel production, Iowa is uniquely positioned to use more of the fuel we produce right here at home. These investments strengthen our economy and keep us moving forward with more affordable, homegrown energy.”
Iowa has invested more than $63 million to expand its renewable fuels infrastructure since the grant program started nearly two decades ago. Private industry’s matching investments have totaled $270 million in biofuel infrastructure improvements at Iowa convenience stores and fuel retailer locations.
Iowa’s Renewable Fuels Infrastructure Program awards $1.12 million to 24 projects statewide, expanding access to renewable fuels. Read the full story: — Iowa Renewable Fuels Association (@iowafuel)
In the latest round of funding announced in July, state biofuel grants will be distributed to 17 of Iowa’s 99 counties. Biodiesel projects nabbed 88% of the funding ($988,812) for 20 projects. The remaining grants worth $135,938 were allocated to ethanol fuel projects in four locations.
Dubuque County will receive the highest amount of state biodiesel funds in six grants totaling $300,000. The easternmost county borders the Mississippi River as well as Wisconsin and Iowa.
Headquartered in the county, Rainbo Oil Co. will receive four grants of $50,000 each for three biodiesel retail projects in the city of Dubuque and one in the suburb called Peosta. SNK Gas & Food in Zwingle and McDermott Oil Co. in Epworth were awarded $50,000 biodiesel grants.
Delaware County, near the state’s eastern border with Wisconsin, will receive a pair of $50,000 biodiesel retail project grants in the town of Edgewood.
B11 Blend More Readily Available
applauded the state grants that enable companies to add retail station equipment to sell higher biofuel blends.
“We are pleased to see more retailers making B11 biodiesel blends available to their customers,” IRFA Executive Director Monte Shaw said. “Iowa is a leader in biodiesel use, so having these options available is a win for drivers and Iowa’s economy.”
IRFA said the grant program mandates that biodiesel retailers must spend the state dollars on infrastructure to offer biodiesel blended as B11 (11% biodiesel) or higher except during colder months when retailers can offer B5 biodiesel blends.
Meanwhile, Iowa recently opened its first above-ground B99 fueling pump offering a blend of 99% biodiesel and 1% diesel. State officials joined other stakeholders for an opening ceremony at a Pilot Travel Center close to a PepsiCo plant in Urbandale outside of Des Moines.
'A Milestone Worth Celebrating'
“This ribbon cutting isn’t just for a new pump — it’s a milestone worth celebrating for what it represents: real, on-the-ground progress in America’s transition to cleaner fuels,” says Dave Walton, a farmer and board member of both the Iowa Biodiesel Board and Iowa Soybean Association. He also is secretary of the American Soybean Association.
“Biodiesel is critical to Iowa’s farm economy,” Walton said. “It adds real value to every bushel of soybeans we grow — up to 13% — supporting local jobs, driving demand and giving us an economic edge.”
According to the U.S. Energy Information Administration’s latest figure through June, Iowa had 348 fuel stations selling biodiesel, compressed natural gas and other alternative fuels representing nearly a 10% share in the nation. Its ethanol retailers selling E85 blends numbered 330 stations.
In 2024, Iowa biodiesel production rose by 3 million gallons annually to 353 million compared with the previous year.
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