Iowa’s biodiesel product hit 25% in 2025 but ethanol remained strong
In Iowa, a new study for the Iowa Renewable Fuels Association by Decision Innovation Solutions says Iowa biodiesel facilities produced just 266 million gallons in 2025, down nearly 25% from 2024. The state’s biodiesel plants have the capacity to produce 400 million gallons per year, underscoring the difficulties facing producers. Iowa previously was home to 11 biodiesel plants, but just eight remain. Specifically, low renewable fuel volume obligations and uncertainty around federal tax credits have been major pain points in biodiesel production nationwide.
Iowa ethanol plants produced 4.6 billion gallons of ethanol and continued to lead the nation in ethanol production.
Category: Fuels
