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IOWA BIODIESEL PLANT CEASES OPERATION, CITES UNCERTAINTY OF TAX CREDITS
Jun. 19, 2023
by Jared Strong, Iowa Capital Dispatch
A biodiesel refinery in Crawfordsville that was capable of producing about 10 million gallons of the fuel each year has ceased operation.
"We would have loved to have kept it going, and we really tried -- we just need more certainty," said Roy Strom, chief executive of W2Fuel.
To keep the facility in operation would require investments in equipment that might not pay off, he said, depending on how federal policy changes toward the industry. Specifically, it's unclear how long a $1-per-gallon federal tax credit for biodiesel production might be extended into future years and whether federal mandates for the use of biofuels will expand.
The facility is among 11 biodiesel refineries in the state that last year produced a total of about 349 million gallons of the fuel, according to the Iowa Renewable Fuels Association. That was a production increase of about 3% over the previous year but was less than the 365 million gallons produced in 2018.
That year, the per-gallon tax credit for biodiesel production lapsed. The Crawfordsville facility ceased production temporarily in September 2019, according to Iowa Department of Natural Resources records.
However, later in 2019 the tax credit was reinstated and retroactively applied to the fuel produced in 2018 and 2019.
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