2022 Was Another Record Year For Iowa Farmers And Drivers

It’s no secret that Iowa is a leader when it comes to biofuels.

As biofuels become more available to drivers across the country, there is a need to ramp up production as well. Iowa did just that in 2022.

In 2022, Iowa broke records by producing 4.5 billion gallons of ethanol. This new record tops the one set in 2021 of 4.4 billion gallons.

Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw credits the increase to the gas price spike many people faced in 2022.

Iowa continues to set the pace for ethanol production around the world. The attractive price of E15 and E85 drove sales during the 2022 gas price spike. Barring a recession, we expect ethanol demand to grow each year as Iowa and other states make progress in increasing access to E15, often marketed as Unleaded 88.

Then in April 2022, President Joe Biden announced an E15 waiver that allowed the sale of ethanol blends during a time its sale is restricted.  This was followed by a new law in Iowa that require more gas stations to sell E15 blends.

The Governor’s E15 access bill was a large step forward in increasing access to cheaper, cleaner fuel for Iowans. As demand grows, Iowa ethanol plants are well-positioned to continue breaking records.

Ethanol isn’t the only biofuel seeing increased production.

In 2022, a survey by IRFA found that the state’s 11 biodiesel plants produced 349 million gallons of biodiesel.

While this is an increase from the 340 million gallons produced in 2021, it doe not break the record set in 2018 of 365 million gallons.

Even with growing renewable diesel production around the country, we see exciting new opportunities for biodiesel in addition to traditional on-road and agricultural markets. Home-heating oil, rail, and even marine applications are emerging that we believe will grow biodiesel demand in future years.

As of January 1, 2022, biofuel production capacity in the United States reached 21 billion gallons per year.