Advantage Iowa

State officials are looking at the production of ethanol fuel as a future growth industry for Iowa's cornfields. In April, Gov. Vilsack urged Congress to support a federal energy bill that will require 5 billion gallons of ethanol to be blended with gasoline as renewable fuels are phased in and the use of the controversial additive MTBE is phased out.
        "The economic advantages to Iowans include the reduction of this country's reliance on foreign oil and providing farmers with another market for their crops," he testified.
        The agreement calls for a gradual phase-in of the use of renewable fuels, beginning with 2.3 billion gallons in 2004 and growing to 5 billion gallons in 2012. The U.S. ethanol industry has the capacity today to produce 2.3 billion gallons of ethanol per year, and plants currently under construction will increase capacity to 2.7 billion gallons by the end of 2002.
        "By the end of 2003, Iowa alone will be home to at least 11 new ethanol plants, doubling the number of Iowa ethanol plants since 1999," Vilsack said. " When completed, they will add 187 million gallons of ethanol capacity while providing economic opportunity for Iowa farmers."
        Vilsack also urged lawmakers to support the inclusion of soy-based biodiesel tax incentives to promote the use of the soybean-based diesel fuel and the expansion of the domestic soy-based biodiesel industry. The Dept. of Economic Development awarded a loan this spring to BioIndustries, based in Cedar Rapids, which will produce biodiesel fuels and chemicals from agricultural residual products.
        "Iowa is home to over 50,000 soybean farmers and two of the largest manufacturers of biodiesel," Vilsack said. "The tax incentives would accomplish expansion of usage and this industry in Iowa to the benefit of Iowa and U.S. farmers."
        Thus does the state pursue a mission to quite literally fuel a new wave of business expansion. At the same time, by offering tax credits and academic alliances, Iowa officials hope to build on the state's traditional strengths by attracting high-tech industries that draw on that wealth of agricultural and life sciences knowledge.
        The latest example was the approval of New Jobs and Income Program (NJIP) credits for a $30-million Cargill bioprocessing expansion at its 400-worker Eddyville plant, in order to produce glucosamine from corn. The facility already processes some 85 million bushels a year into value-added products.
        "The Cargill investment represents important growth for a key life sciences cluster of industries in southeastern Iowa," said Dr. Pam Sessions of the Iowa Dept. of Economic Development.
        "To ensure a vibrant economic future for our state, we must continue to focus on the creation of high-skill, high-wage jobs," notes Vilsack.

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