A new report from the Iowa Department of Revenue shows biodiesel sales and use rose more than 60 percent in 2012. The Iowa Biodiesel Board said the increase demonstrates that energy policies are working to replace foreign oil with Iowa-grown fuels like biodiesel.  

The 2012 Retailers Motor Fuel Gallons Annual Report shows the total number of pure biodiesel (B100) gallons sold by fuel retailers increased from 13.9 million gallons in 2011 to 23.27 million gallons in 2012.  

“These numbers show Iowa’s fuel retailers are realizing the biodiesel incentives in place make economic sense for them, while giving more Iowans the choice to use a homegrown fuel,” said Randy Olson, executive director of the Iowa Biodiesel Board. Olson credited a combination of state legislation providing infrastructure and incentives to retailers, the federal biodiesel tax incentive and the federal renewable fuel standard.

Of particular room for growth is the on-farm usage of biodiesel, Olson said. Just 30 percent of distributors reported carrying biodiesel.  

“We’re encouraging our state’s farmers to demand biodiesel as they head into spring planting, and we believe distributors will respond to their customers,” Olson said. “Economic research shows soybean, corn, livestock and hog farmers all stand to gain from biodiesel production. It is in their best interest to use their own product.”  

Iowa’s 12 biodiesel plants supported nearly 5,000 jobs in the state and contributed nearly $400 million to the state’s GDP in 2012.  

Biodiesel is an advanced biofuel made from agricultural byproducts and coproducts, such as soybean oil. The Iowa Biodiesel Board is a state trade association representing the biodiesel industry.