Iowa awards 25 biofuels infrastructure grants

By Lindsey Irwin | June 21, 2007
On May 24, Iowa's Renewable Fuels Infrastructure Board (RFIB) announced the latest recipients of grants that would go toward the cost of installing biodiesel fuel pumps, biodiesel-blending equipment and tank wagons with dedicated compartments for biodiesel used in farm deliveries. Under the Iowa Department of Economic Development (IDED) umbrella, the program was able to provide 25 awards totaling $541,600 to 20 Iowa biofuels retailers in its effort to expand consumer access to renewable fuels.

Star Energy, a biodiesel retailer with several locations throughout central and western Iowa, has tentatively been approved to receive $30,000 from the state, said Matt Litwiller, cardtrol and marketing manager. For the past two years, Star Energy has been upgrading an estimated 40 tanks at its nine bulk fuel sites across the state, and it plans to use the state grant funds to cover some of the incurred costs. The tanks will now be able to hold anything from B2 to B100, Litwiller said. "[This grant is] huge for us because we are making a five-year commitment to having soy in all these different tanks," he said. "It's a nice deal what [the RFIB] is doing because it encourages other companies to do what we did and use more biodiesel."

Seven of Star Energy's proposals-prepared in January-were approved during this selection, and two other proposals were approved in March. Other biodiesel companies that received the latest round of funding included Agriland FS Inc. and Raccoon Valley Biodiesel LLC. The IDED allocated $13 million in funds to distribute over a three-year period, and since July 2006, more than $2.2 million has been awarded, according to the IDED. Owners or operators of retail motor fuel sites or biodiesel terminals are eligible to submit applications to the IDED. More applications are scheduled to be considered Aug. 21.

For a complete list of recipients, visit www.iowalifechanging.com/business/renewablefuels.html.
 
 
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