Iowa Ethanol Production Stagnant Over Three Years at 4.6 Billion Gallons

Iowa Ethanol Plants Need Advanced Technology to Boost Production and the State Economy

WEST DES MOINES, IOWA – Iowa’s ethanol plants produced 4.6 billion gallons of ethanol in 2025, matching its output level from the past two years. Iowa accounts for 28% of total U.S. ethanol production, which hit 16.4 billion gallons in 2025, the fifth straight annual increase. Iowa processed over 1.5 billion bushels of corn into ethanol, corn oil, high-protein livestock feed, and biogenic CO2.

Over the last three years, while Iowa production levels remained stagnant, national ethanol production increased by 850 million gallons. Media reports have indicated planned and completed ethanol plant expansions in states such as Indiana, Illinois, North Dakota, and Nebraska.

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“Investment dollars flow to areas with a perceived competitive advantage,” said Monte Shaw, Executive Director of the Iowa Renewable Fuels Association (IRFA). “The states attracting significant investment have one thing in common – the ability to sequester carbon either locally or via pipeline infrastructure. While Iowa remains the largest ethanol-producing state, we are behind in the race to maximize the incentive and market benefits from producing ultra-low carbon ethanol.”

If Iowa’s 4.6 billion gallons of ethanol production utilized CCS technology, it would bring over $3 billion in 45Z tax credits back to the state and strengthen its competitive position by making its ethanol more attractive to emerging domestic and export markets.

“There is no reason why Iowa plants won’t grow in the near future if we maintain their access to the tools and technologies to compete,” Shaw added. “Emerging markets like marine fuel and sustainable aviation fuel present huge opportunities. These markets are demanding ultra-low carbon ethanol. Iowa needs carbon capture and sequestration (CCS) and conservation-smart agriculture practices to be attractive. IRFA will continue to support legislation that enhances landowner rights, streamlines the permitting process, and maintains a viable path forward for CCS. Our future depends on it.”

The Iowa Renewable Fuels Association represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 42 ethanol refineries capable of producing over 5 billion gallons annually – including 34 million gallons of annual cellulosic ethanol production capacity – and 8 biodiesel facilities with the capacity to produce 408 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org.