Biodiesel Projects Win $1.85 Million in Iowa Grants | Transport Topics

Staff Reporter

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Iowa is incentivizing biodiesel production with $1.85 million in new biofuel grants announced by state Agriculture Secretary Mike Naig to support rural jobs and uplift the market for cleaner fuels.

“We want to keep the Iowa biofuels momentum going because it not only saves drivers money, but it also supports rural jobs, expands markets for farmers, burns cleaner, and enhances our energy security,” Naig noted recently.

He revealed that the Iowa Renewable Fuels Infrastructure Program board meetings in August and September approved awarding nearly $6.35 million to 126 project applications by state gas stations to offer new and expanded biodiesel and ethanol infrastructure projects in 61 counties.

The board approved 38 biodiesel retail cost-share grants for $1.85 million and new ethanol fueling infrastructure through 88 gas station cost-share grants worth $4.5 million. While the Iowa Department of Agriculture and Land Stewardship manages the program, a board appointed by the governor and confirmed by the state determines grant allocations on a quarterly basis.

Sec. @MikeNaigIA announced the Iowa Renewable Fuels Infrastructure Program Board approved 126 applications from IA gas stations for E15, E85 & biodiesel projects. The record investment will expand access to homegrown biofuels & save drivers money. https://t.co/5xSsyiC25X pic.twitter.com/ft26n3sP0d — Iowa Dept of Agriculture & Land Stewardship (@IADeptAg) October 9, 2024

“It’s exciting to see the momentum within our state’s renewable fuels industry as we see record ethanol production by our plants, record ethanol and biodiesel consumption by our drivers, and now record cost-share investment in ethanol and biodiesel infrastructure by our gas stations,” Naig remarked. “Iowa drivers gain another opportunity to save money every time a new pump is installed or upgraded at an Iowa gas station to dispense E15 and other higher biofuel blends.”

RFIP helps fuel retailers offer higher blends of homegrown and more affordable fuel options by incentivizing the installation, replacement and conversion of ethanol and biodiesel dispensing and storage infrastructure. The program also provides funds to upgrade biodiesel terminal and storage facilities.

Iowa Sec of Ag @MikeNaigIA announced that the Iowa Renewable Fuels Infrastructure Program Board recently approved 126 project applications from Iowa gas stations for new and expanded E15, E85, and #biodiesel infrastructure projects! https://t.co/sL0TsJV1V2 @IowaSoybeans pic.twitter.com/B9WQhBQfLy — Iowa Biodiesel Board (@IowaBiodiesel) October 10, 2024

The program gives state dollars to repay up to 70% of a fuel retailer’s costs, not to exceed $50,000 for specific project components, with a five-year commitment to store and sell biodiesel-blended fuels. Projects focused on heated biodiesel terminal equipment and infrastructure can receive a 50% grant for up to $100,000 per project.

For the latest round of grants, Casey’s General Store will receive a total of $836,400 for 17 fuel stations, while Kwik Star was granted $550,000 in grants of $50,000 each to stations in Bettendorf, Clive, Dubuque, Johnston, Milford, Mitchellville, North Liberty, Norwalk, Spencer, Stuart and Webster City.

Single $50,000 grants will go to the Farmers Union Cooperative in Ossian, H&A Easy Mart in Ames, J&D Mart in New Vienna, KSl Investments in Pocahontas, Nading Service & Sporting Goods in Strawberry Point, Southside Fuels in Bloomfield, and Sport Wade Inc.-Sinclair in Leon. The lowest grant ($19,000) is for Konvenience Korner in Centerville.

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The RFIP program received a $4 million boost as of July 1 after Gov. Kim Reynolds enacted legislation to increase the annual funding from $10 million to $14 million that is specifically meant for biodiesel and ethanol projects.

After the funding legislation was approved in May, Suzanne Shirbroun, Iowa Soybean Association president and a farmer, said, “Increasing demand and accessibility for biodiesel is a top priority for Iowa farmers.”

Grant Kimberley, executive director of the Iowa Biodiesel Board, commented that the “more infrastructure we have available, the more biodiesel is accessible to consumers and utilized in the market.”