Corn Growers Disappointed by Iowa's Anti-Carbon Capture Legislation

By Andi Anderson

The Iowa Senate recently passed anti-pipeline bill HF 639 with a vote of 27-22, effectively banning carbon capture and sequestration (CCS) projects within the state. This decision significantly impacts Iowa corn growers and ethanol producers, who had hoped to tap into new markets for ultra-low carbon ethanol.

Stu Swanson, President of the Iowa Corn Growers Association (ICGA) and a farmer from Galt, Iowa, expressed disappointment over the decision, noting its detrimental effects on Iowa’s competitive edge. "The decision to ban carbon capture projects cuts off our ability to tap into markets for ultra-low carbon ethanol and puts Iowa corn growers at a disadvantage compared to states pursuing CCS projects," Swanson said.

He also emphasized that this move harms Iowa's ability to stay competitive as other regions, both domestically and internationally, embrace this technology.

As the nation’s leading corn producer, Iowa faces an excess of corn production, with USDA projections indicating 1.8 billion bushels of excess corn by the end of the 2025-26 crop year. If signed into law, this bill would close off significant opportunities, such as the emerging market for Sustainable Aviation Fuel (SAF).

With global jet fuel demand projected to reach 120 billion gallons by 2035, a 10% share of this market, derived from ethanol, would create nearly 6.5 billion bushels of new corn demand — far exceeding Iowa’s current corn production.

Furthermore, other states in the U.S. and countries in South America are implementing CCS technology, gaining a competitive advantage in producing low-carbon ethanol. South America already benefits from a lower carbon score for corn ethanol and is considering further adoption of CCS.

Without this technology, Iowa risks losing its position as the top producer of ethanol, potentially halting plant expansions and reducing corn prices, ultimately lowering profits for Iowa’s farmers.

Despite the setback, Swanson acknowledged the support of Senate members who voted in favor of the interests of Iowa’s farmers. "Our farmers deserve increased market access, not increased barriers," he added.

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