Biodiesel sales in Iowa have more than tripled over the last two years, according to a report from the Iowa Renewable Fuels Association. Monte Shaw, the group’s executive director, says biodiesel sales have increased from around seven-million gallons to more than 23-million gallons. Shaw says most of that is due to higher blend levels.
“We saw the average blend go up from about 3% to just over 8%,” Shaw says. “That means we’re selling an awful lot of B-5 where biodiesel is being offered, and then some B-10 and B-20.”
Shaw says it’s a remarkable feat considering only 19-percent of Iowa’s diesel retailers offer biodiesel blends. He says they are looking at policy changes that could further push sales. Shaw says, “We’re continuing to look at options, like a fuel tax differential that could boost B-10, get us from that B-5 range to the B-10 range, so that’s number-one, where we’re blending biodiesel, let’s blend more biodiesel, sell those higher blends.”
He says there are incentives in place for selling biodiesel. One is a state tax credit for retailers and the other is through the federal Renewable Fuel Standard.
By Jerry Oster, WNAX, Yankton