DES MOINES, Iowa — Iowa continues to strengthen its reputation as America’s renewable energy leader, ranking first in the nation for biodiesel production and playing a critical role in supplying cleaner-burning fuel across the United States.
For businesses, manufacturers, agricultural entrepreneurs, and families considering a move to Iowa, the state’s leadership in biodiesel reflects a thriving economy built on innovation, agriculture, and sustainable energy.
Iowa Produces More Biodiesel Than Any Other State
According to the U.S. Energy Information Administration (EIA), Iowa is home to eight biodiesel refineries with a combined annual production capacity of approximately 427 million gallons.
That production represents roughly 22% of the nation’s total biodiesel production capacity, making Iowa the country’s largest producer of biodiesel.
The state’s leadership is supported by its abundant soybean production, strong agricultural infrastructure, and long-standing investment in renewable fuels.
Two Decades of Remarkable Growth
Iowa’s biodiesel industry has experienced extraordinary expansion over the past 20 years.
According to the Iowa Renewable Fuels Association, annual biodiesel production has grown from just 20,000 gallons in 2005 to approximately 427 million gallons in 2025.
That dramatic increase highlights both rising demand for renewable fuels and Iowa’s ability to scale production while supporting farmers, processors, transportation companies, and manufacturers throughout the state.
Supporting Agriculture and Rural Communities
Biodiesel production creates value well beyond fuel manufacturing.
The industry supports:
• Iowa soybean farmers
• Processing and manufacturing jobs
• Transportation and logistics companies
• Equipment suppliers
• Rural economic development
• Renewable energy innovation
By converting soybean oil and other renewable feedstocks into biodiesel, Iowa adds value to one of its largest agricultural commodities while helping diversify farm income.
Tax Incentives Encourage Investment
Iowa also offers financial incentives designed to encourage biodiesel production and continued industry growth.
Under the state’s biodiesel producer tax credit, eligible producers may receive a refund on sales and use taxes paid during biodiesel production. The incentive provides up to 4 cents per gallon for the first 25 million gallons of biodiesel produced.
Programs like this help Iowa remain competitive as companies evaluate locations for expanding renewable fuel operations and investing in new technologies.
A Leader in America’s Renewable Energy Economy
Biodiesel is one part of Iowa’s broader renewable energy portfolio, which also includes leadership in ethanol production and wind energy generation.
Together, these industries have helped establish Iowa as a national destination for clean energy manufacturing and agricultural innovation.
The renewable fuels sector contributes billions of dollars to Iowa’s economy while supporting thousands of jobs throughout the state’s urban and rural communities.
Why It Matters for Businesses Relocating to Iowa
For companies in agriculture, advanced manufacturing, transportation, logistics, and clean energy, Iowa offers an established ecosystem with experienced workers, reliable infrastructure, and access to major agricultural resources.
Businesses benefit from:
• A nationally recognized renewable fuels industry
• Strong agricultural supply chains
• Competitive operating costs
• State incentives for qualifying producers
• Strategic Midwest location with national transportation access
These advantages continue to attract investment from companies looking to grow within one of the country’s most established biofuels markets.
Why It Matters for People Moving to Iowa
For individuals and families considering relocation, Iowa’s biodiesel industry represents more than renewable energy—it reflects a stable economy built on innovation and long-term investment.
The sector supports high-quality careers in engineering, manufacturing, agriculture, transportation, environmental science, and skilled trades while strengthening local communities across the state.
As demand for cleaner fuels continues to grow nationwide, Iowa remains well-positioned to lead the next chapter of renewable energy development.
Whether you’re launching a business, pursuing a career in advanced manufacturing, or looking for opportunities in agriculture and clean energy, Iowa’s position as the nation’s top biodiesel producer underscores why the state continues to be a destination for growth and innovation.