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Biodiesel Industry Welcomes USDA Higher Blends Infrastructure Grants

October 8, 2020

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ANKENY, IA – Today, the National Biodiesel Board, Iowa Biodiesel Board, and Iowa Soybean Association welcomed Agriculture Secretary Sonny Perdue’s announcement of cost-sharing grants to support infrastructure that will increase consumer access to higher blends of renewable fuels. Leaders of the groups joined Secretary Perdue in Ankeny, Iowa, as he announced the grant awards.

NBB CEO Donnell Rehagen stated, “On behalf of NBB’s members across the country, I want to thank Secretary Sonny Perdue for following through on this commitment to biodiesel producers and farmers. The biodiesel industry is pursuing a vision for sustainable growth to more than 6 billion gallons by the end of this decade. The cost-sharing grants USDA is beginning to announce will help us bring consumers the better, cleaner transportation and heating fuels they are looking for.”

Grant Kimberley, executive director of the Iowa Biodiesel Board, said, “Infrastructure is the key to ensuring we can deliver low carbon fuels to the nation, and these grants will help take us to the next level with that in Iowa and beyond. As the top biodiesel-producing state, Iowa sits at the heart of this energy transformation and our producers and farmers stand ready to grow. We thank USDA for leading this infrastructure effort.”

Iowa Soybean Association President Jeff Jorgenson said, “Today’s announcement is encouraging for soybean farmers. Efforts to make homegrown, soy-based biodiesel more readily available is a win for farmers and consumers. Biodiesel provides an important domestic market for our soybeans and consumers an environmentally friendly fuel choice. As farmers harvest another soybean crop, we’re mindful of the critical demand and price impact of biodiesel, accounting for nearly $1.15 of the current market price for soybeans.”

Of the $100 million USDA has provided for this program, $14 is intended to support infrastructure for biodiesel blends above 5%, such as B20. The grants will be matched by private and state investments.

Iowa’s biodiesel plants produced about 345 million gallons of biodiesel in 2019, making it the number one biodiesel-producing state. About half of on-road diesel fuel gallons sold in Iowa contain B11 or higher, according to the state Department of Revenue. A study by ABF Economics shows biodiesel supports about 3,875 full time equivalent jobs and contributes $489 million to the state’s Gross Domestic Product annually. 

Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel and renewable diesel are better, cleaner fuels that are available now for use in existing diesel engines without modification. NBB is the U.S. trade association representing the entire biodiesel and renewable diesel value chain, including producers, feedstock suppliers, and fuel distributors.

The Iowa Biodiesel Board is a state trade association representing all aspects of the Iowa biodiesel industry.

The Iowa Soybean Association is Driven To Deliver market demand, production research, information and insights and regulatory action benefiting Iowa's 38,000 soybean farmers and the industry. For more information, visit Not Funded by the soybean checkoff.

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