Johnston, Iowa — The Iowa Renewable Fuels Association has released an economic study that says using carbon dioxide pipelines at ethanol plants will increase profits and keep most of the industry from leaving the state.
Dave Miller of Decision Innovation Solutions wrote the report which says taking advantage of federal tax credits for reducing carbon in ethanol would dramatically improve margins.
The carbon dioxide has to be taken out to make ethanol more carbon-friendly to compete with other fuels. Miller says without carbon sequestration, ethanol production in Iowa would move out to another state who would take advantage of the tax credits.
Iowa Renewable Fuels Association president, Monte Shaw, says Iowa farmers could still sell their corn to ethanol plants but would have to pay to ship it.
Miller says pipelines are the best way to ship the carbon dioxide to keep the costs down and allow the plants to expand.
But he says the second impact would exist and stimulate substantial economic activity within the state. Shaw says other carbon capture options for ethanol plants take time to develop and Iowa could lose 75 percent of its plants without the pipelines.
Shaw says he understands the concerns about pipelines but says overall pipelines have an incredibly safe track record. And when it comes to payment for easements, Shaw says the pipeline companies are willing to negotiate.
Shaw says he’s familiar with one negotiation near his hometown and wishes the pipeline was running across his land because it would have been about the best way for his farm to make money for the next five years. Shaw says landowners should see what they can get for their easements.
Shaw says if we can’t have low-carbon biofuels, we’re going to be stuck with no choice other than electronic vehicles, and he says there should be competition and options for consumers.
