Iowa is a leader in renewable energies in the U.S.: the state ranks first in Ethanol production, second in Biodiesel production and leads the nation in the production of raw biomass. Iowa is the fourth largest U.S. producer of wind energy.
Iowa’s Governor and State Legislature strengthened the state’s bio-energy and other renewable energy industries through a variety of incentives. Measures like the use of E-85 (a mixture of 85 percent ethanol and 15 percent gasoline), sales tax exemptions for the purchase of solar equipment, tax credits for wind energy production and tax credits for utilities using soy-based fluids in electric transformers are proactive steps that will ensure Iowa remains a national leader in renewable energy.
Wind
Iowa is the fourth largest U.S. producer of wind energy. Iowa’s topography and electric transmission lines combine for a wind energy friendly environment. Iowa has the 10th highest wind potential but the fourth highest installed capacity at 1,273 MW.
An April 2007 independent study projected the installation of 1,690 megawatts per year of new wind generation within a 600 mile radius of Iowa through the year 2013 resulting in $3.2 billion invested in turbine installations each year.
Iowa is uniquely positioned in the heart of the nation’s wind generation natural resource and at the gateway to the demand of renewable energy. With major international companies like Siemens Windpower A/S, Clipper Windpower, TPI Composites, ACCIONA Energy and Hendricks Industries, establishing their operations in Iowa, the state is positioned to remain at the top of the wind energy generation industry.
A combination of progressive public policy, logistic and supply chain efficiencies, competitive business climate and a heritage of manufacturing excellence give Iowa unmatched strategic advantage to firms selecting a North American facility location.
Please see more information at the Iowa Business Sphere Wind Energy
Ethanol
Ethanol is a major driver of the overall renewable energy industry and Iowa leads the nation in its production with more than 63 facilities in production, currently producing over 1.7 billion gallons, with an additional 1.5 billion gallons under construction/ expansion.
Iowa planted 12.6 million acres of grain and corn in 2006, producing approximately two billion bushels according to the USDA National Agricultural Statistical Service. In 2006, 25 percent of the harvest (about 550 million bushels of Iowa corn) was processed into ethanol. Iowa alone produced over 30 percent of the entire U.S. ethanol production.
The future of alternative and biofuels looks even brighter as research on byproducts grows and new discoveries are made. Current ethanol byproducts include carbon dioxide, which is sold to soft drink companies and dried distiller’s grains, a highly nutritious livestock feed that is increasingly complementary to the livestock, cattle, pork and poultry industries in the state, the nation and the world.
Biodiesel
Iowa is the second in the nation in biodiesel production and was one of the first states with commercial biodiesel production facilities. Biodiesel is a very clean burning, biodegradable fuel made from soybeans. Iowa’s major biodiesel refineries – West Central Ralston, Soy Solutions in Milford, Cargill in Iowa Falls, Western Iowa Energy Company in Wall Lake and AGP’s plant in Sergeant Bluff – produced 60 million gallons in 2006, using 40 million bushels of soybeans – a 240 percent increase from the 25 million in 2005. At 2006 levels, Iowa produced 25 to 30 percent of the total U.S. biodiesel, according to the Iowa Renewable Fuels Association.
With seven more biodiesel plants currently under construction and more on the drawing board, Iowa’s leadership in biodiesel is strong. Supporting the burgeoning biodiesel market, there are 52 biodiesel retail-fueling sites and more than 350 biodiesel fuel distributors in the state.
Biomass
Iowa leads the nation in production of raw biomass with over 2.75 billion bushels in 2004. Iowa currently has the ability to harvest 32.7 million dry tons of biomass a year, of which 23.9 million dry tons are agricultural residue. Biomass is used for both biofuels and electricity production. According to the USDA, fuels created from biomass will increase to 10 percent in 2020 and 20 percent in 2030.
Please see more information at the Iowa Business Sphere Biofuels & Biosciences