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DowDuPont closes its Iowa cellulosic ethanol plant

DowDupont is closing its cellulosic ethanol plant in Nevada, Iowa, part of the newly-merged company’s move to cut costs by three billion dollars.

The 30-million gallon, 225 million dollar facility opened to much fanfare in 2015, but DowDuPont says the operation no longer fits its strategic plan. The company says it hopes to find a buyer for the plant, which used corn residue as its feedstock.

Monte Shaw, executive director of the Iowa Renewable Fuels Association, says while they’re disappointed by the move, it doesn’t change the positive outlook for cellulosic ethanol.

“I think in 2018 we’ll have more cellulosic ethanol production in that year that we have probably had in all the previous years combined,” Shaw says. “In Iowa alone we’ve got 12 plants that are seeking approval from the EPA to produce cellulosic ethanol from corn kernel fiber that will add several million—maybe 20 to 30 million—gallons of production.”

Shaw says cellulosic is growing despite uncertainty involving the Renewable Fuel Standard and federal tax credits.

“I’m actually pretty impressed with how far we’ve come given the mixed signals we’ve been getting out of Washington, D.C.,” he says. “Some of these technologies—some of this innovation—has certainly taken longer than we hoped. Given the policy headwinds, I guess that’s to be expected. But we’re now seeing it go into that commercial production stage in a meaningful way.”

Ninety workers are affected by the closing of the Nevada cellulosic plant. The adjacent Lincolnway Energy corn ethanol plant in Nevada is not impacted by the announcement.

AUDIO: Monte Shaw