ANKENY, IOWA (April 16, 2025) — Blends of 20% biodiesel (B20) and higher more than doubled in Iowa’s on-road diesel sales last year, growing to 35% in 2024, up from 15% in 2023. That’s according to the latest Retailers Fuel Gallons Annual Report from the Iowa Department of Revenue.
The report, which keeps track of annual biofuels sales through a survey of fuel retailers, shows fuel retailers sold 78.3 million gallons for the year — a record number of pure biodiesel gallons. It represents almost a fifth of the state industry's capacity.The overall amount of biodiesel-blended gallons sold or dispensed in 2024 equaled 484 million gallons, or 71% of total clear (on-road) diesel. B20 or higher blends made up the lion’s share of sales, at 240 million gallons of blended fuel.
“This report offers encouraging news during tough times for the biodiesel industry nationwide,” said Grant Kimberley, executive director of the Iowa Biodiesel Board. “Despite market volatility and ongoing uncertainty around key federal policies, proactive state leadership helped boost demand at the pump last year.”
While many of Iowa’s biodiesel plants are currently operating below capacity or temporarily offline due to federal policy delays — such as the pending biodiesel tax credit and updates to the Renewable Fuel Standard — state-level action has helped maintain momentum and preserve market demand.
Kimberley credited the state’s fuel retailer incentive and fuel tax differential as key drivers of the growth last year. The Iowa Renewable Fuel Infrastructure Program has also helped ensure up-to-date infrastructure in the state. The results are showing up at the pump: 921 retail locations — about 60% of diesel outlets in the state — now offer some level of biodiesel, the highest number ever reported. That includes major convenience store chains and reflects expanding consumer access to clean fuel options.
Kimberley thanked Governor Kim Reynolds for her leadership on this issue, and the state legislature for recognizing the value biodiesel brings to the economy, soybean farmers and American-made energy.
“State and federal policies working together will be key to a full recovery,” Kimberley said. “The progress we’re seeing in Iowa reflects the potential that can be unlocked when all levels of government support renewable fuels.”
About the Iowa Biodiesel Board
The Iowa Biodiesel Board (IBB) represents the biodiesel industry in Iowa, from the farmers who grow the feedstock, to production, through distribution to end users. Founded by the Iowa Soybean Association, IBB operates an independent organization and board. For more, visit IowaBiodiesel.org.
