Report Shows Carbon Sequestration Vital to Iowa Ethanol

The Iowa Renewable Fuels Association (IRFA) released a new study this week that found without viable access to carbon capture and sequestration (CCS), Iowa could see 75 percent of its ethanol production migrate to states that facilitate sequestration.

The study, conducted by Decision Innovation Solutions (DIS), determined that current market and policy dynamics would results in Iowa ethanol production becoming noncompetitive with catastrophic results for Iowa ethanol producers, Iowa farmers and the Iowa economy.

The study found that without carbon sequestration, ethanol production will move out of state and by the end of the decade Iowa ethanol production could drop as much as 3.5 billion gallons per year, which would lead many plants to shut down. That would cause Iowa farmers to lose local markets for over 1 billion bushels of corn annually, depressing local corn prices and Iowa would realize an eventual decline in revenues from ethanol plants of more than $10 billion per year.

Read the study

Listen to a press conference with IRFA president Al Giese, Quad County Corn Processors; IRFA Executive Director Monte Shaw, and study author David Miller, Consulting Chief Economist, Decision Innovation Solutions (DIS).
Iowa RFA Study release (23:48)