A southeast Iowa biodiesel plant is shutting down.
The Iowa Capital Dispatch reports managers of the W2Fuel biodiesel plant in Crawfordsville have notified the state that the plant is closing. The biodiesel refinery shut down back in 2019, but production resumed in mid-2021.
The federal tax credit for biodiesel production is worth a dollar per gallon, but the debt deal congress and the president just agreed to will end the credit on December 31st of next year. W2Fuel needed to buy new equipment to test for carbon emissions from its southeast Iowa plant, but company executives say the investment probably wouldn’t pay off if the biodiesel credit ends.
There are 10 other plants in Iowa producing biodiesel.