Iowa Renewable Fuels Association Executive Director Monte Shaw says the state’s biodiesel producers are facing dire circumstances.
Shaw says many biodiesel plants that were idled in 2025 have not restarted and are on the brink of running out of cash. The industry is awaiting federal guidance on tax credits for low-carbon fuels that could be worth up to $1 per gallon.
Shaw says some biodiesel plants likely have between $1 million and $2 million in credits they are unable to claim.
The national trade association for biodiesel producers also says delays by the Environmental Protection Agency in releasing the 2026 Renewable Fuel Standard obligations have created significant uncertainty. The group says the lack of clarity is affecting biodiesel producers, soybean processors and farmers as they make decisions about how many acres of soybeans to plant this spring.
