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Iowa leads the country in biodiesel production. (Nati Harnik/Associated Press)

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Iowa’s biodiesel consumption doubled in the state despite uncertain federal regulation that constrained the biofuel industry, according to a new state report.

The good news for biofuel producers and consumers was contained in the Iowa Department of Revenue’s “.” The about statistics for gallons of diesel, biodiesel, gasoline and ethanol sold and dispensed in Iowa last year at 2,263 retail locations.

The report tracked annual biofuels sales through a survey of fuel retailers. It noted fuel retailers sold 77.3 million gallons during 2024. It also broke down biodiesel types sold into categories: clear diesel, six types of clear biodiesel in blends ranging from 1%-4% (B1-B4) to 50%-100% (B50-B100), dyed diesel, and six dyed biodiesel blends (from D1-D4 to D50-D100). Biodiesel is made from agricultural byproducts and co-products, such as soybean oil.

The total biodiesel-blended gallons sold and dispensed in 2024 was 484 million gallons. Of all kinds of blended biodiesel sold, more drivers opted to purchase B20 or higher blends — which made up 50% of all blended biodiesel sold in Iowa.

“This report offers encouraging news during a tough time for the biodiesel industry nationwide,” said Grant Kimberley, executive director of the Iowa Biodiesel Board. “Despite market volatility and ongoing uncertainty around key federal policies, proactive state leadership helped boost demand at the pump last year.”

Kimberley credited the state’s fuel retailer incentive and fuel tax differential for .

“The Iowa Renewable Fuel Infrastructure Program has also helped ensure up-to-date infrastructure in the state. The results are showing up at the pump: 921 retail locations — about 60% of diesel outlets in the state — now offer some level of biodiesel, the highest number ever reported. That includes major convenience store chains and reflects expanding consumer access to clean fuel options,” the Iowa Biodiesel Board noted.

Kimberley praised Gov. Kim Reynolds for her leadership on biofuels as well as state lawmakers for recognizing the value biodiesel brings to the economy, soybean farmers and American-made energy.

“State and federal policies working together will be key to a full recovery,” Kimberley said. “The progress we’re seeing in Iowa reflects the potential that can be unlocked when all levels of government support renewable fuels.”

The Iowa Biodiesel Board represents the biodiesel industry in Iowa, from farmers who grow the feedstock to producers and distributors to end users.

Iowa leads the country in biodiesel production. Its annual production capacity rose 1% last year to 353 million gallons from 2023’s 350 million gallons, according to the Iowa Renewable Fuels Association.

“Iowa biodiesel plants managed to power through being undercut by a drastically low Renewable Fuel Standard blending level for 2024, but could not escape uncertainty surrounding tax policy as the longtime biodiesel blenders credit expired while the rules for the new 45Z Clean Fuel Production Credit remain in flux. By the end of 2024, multiple Iowa biodiesel plants were not producing,” the association stated in January.

The tax issue uncertainty remains due to a lack of specificity in the 45Z credit, which already is in effect.

On April 10, to the U.S. Treasury for rules for the clean fuel credit.

“Biofuels are essential to U.S. farm security. The unfinished rules for the Clean Fuel Production Credit are creating intolerable uncertainty for U.S. farmers and biodiesel and renewable diesel producers, putting jobs, economic opportunity and growth in domestic energy production at risk. Clean Fuels asks that Treasury and Congress level the playing field for farmers and fuel producers, supporting continued growth and innovation in domestic energy production,” Kurt Kovarik, Clean Fuels’ federal affairs vice president, said.