Chevron Renewable Energy Group announced today that its plant in Ralston will be idled indefinitely. The shutdown of the biodiesel plant comes from poor market conditions resulting from weak biodiesel volumes under the federal Renewable Fuel Standard (RFS). On June 21 last year, the EPA announced a final rule on establishing biofuel volume requirements and setting percentage standards on fuels created to eliminate greenhouse gases. Grant Kimberly, Iowa Biodiesel Board Executive Director, says the industry warned EPA about the possibility of plant closures when it set the federal RSF volume obligations well below our overall capacity. Kimberly has not heard of any more Iowa plants to be shut down. Suzanne Shirbroun, Iowa Soybean Association (ISA) president and a soybean farmer from Farmersburg, says low biodiesel sales further put the farm economy at risk; a strong Iowa biodiesel market helps farmers and supports the thriving agriculture industry. Shirbroun thanks ISA advocates for continuing engagement with lawmakers to help grow biofuels and better position the industry moving forward. The Ralston plant opened in 2002, being the first biodiesel plant for the REG, and can produce 30 million gallons per year. In 2018, Chevron spent $32 million on expanding and upgrading the plant. With this closure, two dozen workers will be laid off; the plant will be closing slowly and safely over the next few weeks to comply with federal, state and local regulations.
