United Group Insurance

IRFA exec says Iowa no longer #1 place to make ethanol

Ag/Outdoor, News

October 8th, 2025 by Ric Hanson

(Radio Iowa) – The head of a trade association for biofuel producers says Iowa is no longer the best place to produce ethanol. Iowa Renewable Fuels Association executive director Monte Shaw says Nebraska has that position now because a pipeline started capturing carbon from Nebraska ethanol plants last Friday. “Iowa has worn the crown,” Shaw says. “We have been the world’s best place to turn corn into ethanol and we’ve held that crown for 25 years and last week we got knocked off. The world’s best place to turn corn into ethanol is now the plants hooked up to the Trailblazer Pipeline.”

That pipeline had been used to transport natural gas through Nebraska, but has been converted to collect carbon and ship it to underground storage in Wyoming. Shaw says it’s just Econ 101 that investments will shift to Nebraska if Iowa officials slam the door here on the Summit Carbon Solutions pipeline. “We are asking the Iowa legislature…to help avert what I personally feel is a pending farm crisis,” Shaw says, “…and all we’re asking for is to have access to the tools we need, like carbon capture and sequestration.”

The Iowa House has passed several bills since 2021 that would have affected the operation of Summit’s project, but only one has gotten Senate approval. It’s the bill Governor Reynolds vetoed in June. This past weekend group of G-O-P lawmakers said they’d introduce more pipeline-related legislation in 2026. Seth Harder is C-E-O of Husker AG, an ethanol plant in northeast Nebraska that may connect to the Trailblazer Pipeline. Harder says ethanol production will shift to Nebraska if it has the only carbon sequestration pipeline in the Midwest.

“Watching some plants farther east start to struggle…I think that could get worse and some of those plants I know are on the cusp of shuttering,” he says. “Some have…and that’s going to bring the production down in Iowa.” Harder is also the C-E-O of the Lincolnway Energy plant near Nevada.

The Trailblazer Pipeline project in Nebraska is currently designed to collect carbon from up to 11 ethanol plants, one of which is near Council Bluffs. In May, Southwest Iowa Renewable Energy’s manager said the company had secured voluntary agreements from local property owners so the plant can connect to the Trailblazer pipeline.