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'Ethanol and biodiesel are the best fuels on the road today' Tuesday, February 5, 2008
Agri News staff writer
DES MOINES -- "Ethanol and biodiesel are the best fuels on the road today, and we're just getting started.''
That is Monte Shaw's, executive director of the Iowa Renewable Fuels Association, take on the ethanol and biofuels industry
Shaw talked about the state of the renewable fuels industry and his group's legislative wish list at last week's Iowa Renewable Fuels Summit. The Des Moines event attracted more than 800 people from 16 states.
Iowa is the ethanol and biodiesel leader, Shaw said. The state's 28 ethanol plants produce 2.1 billion gallons of ethanol with 16 plants expanding or under construction which will produce another 1.5 billion gallons. Fourteen biodiesel plants produce 315 million gallons. Two more plants are under construction and will produce another 35 million gallons.
"This is making a profound impact on Iowa's economy," Shaw said.
Passage of the federal renewable fuels standard, which requires that 36 billion gallons of the nation's fuel needs come from renewable fuels by 2022, will give a big boost to the industry. It will also create the need for new markets.
Iowa and the nation need to look at mid-level blends of ethanol, E15, E20, E30, and biodiesel blends of B20 to B100 for specialized applications.
"E10 was a political number," Shaw said. "It's not based on science and we know that we can move beyond that number."
Shaw said E85 will continue to grow, but it's moving too slowly to keep up with industry and RFS demand.
The Iowa Renewable Fuels Association wants the Legislature to enhance the grant program for retailers adding E85 and biodiesel infrastructure. Shaw wants higher cost-share levels and a higher hard cap so that retailers can afford to install pumps and infrastructure.
The association wants the Legislature to allow the installation of blender pumps for dispensing fuel. With blender pumps, retailers would have a tank of gasoline and a tank of ethanol and consumers would dial the blend they wanted. When the EPA approves mid-level ethanol blends, retailers will be ready to tap into those markets with blender pumps.
Shaw is asking Iowa to partner with MInnesota to provide the data necessary for EPA approval of mid-level ethanol blends.
"Minnesota has led the charge, and they should be congratulated, but Iowa should not sit idly by and let them do all the work," Shaw said. "I urge Governor Culver and the Legislature to help fill the research gaps. If we can get that mid-level blend request over the finish line, that might do more to enhance Iowa's energy independence than any other thing. Besides, we don't want Minnesota to get all the credit."
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