A new white paper released Thursday says Iowa is better positioned than many domestic competitors to capitalize on the next frontier of bioprocessing in the United States. How well it achieves its full potential will depend greatly upon legislative action this session, say Iowa biotech industry officials.  

The report, titled “Biobased Chemicals: The Iowa Opportunity,” was released Thursday at the Iowa Statehouse by Iowa’s Cultivation Corridor and the Iowa Biotechnology Association. The report is based on research by several Iowa State University professors.

The U.S. market for chemicals is more than $250 billion per year, and more than 50,000 jobs related to biobased chemicals and materials are projected to be created in the United States by 2020, according to the report.

Brent Willett, executive director of the Cultivation Corridor, said: “Iowa is very well-positioned to capitalize on the next frontier of bioprocessing in the United States, which will help our state economy grow, create jobs and position us as a worldwide leader. We can and must capitalize on this opportunity, and we’ve got to work together to do so.”

The opportunity exists to be even more of a leader in this space due to Iowa’s ability to bring the right people to the table, said Joe Hrdlicka, executive director of the Iowa Biotechnology Association.

“To take the next step, we need support from our state legislature in the form of a statewide economic development incentive tailored to address the unique needs of the burgeoning biorenewables industry,” he said. 

The report could also aid the state in making its pitch to the merger partners Dow Chemical Co. and DuPont Co. to maintain a significant presence in the state as company officials are determining where the headquarters for the parent company of Johnston-based seed genetics DuPont Pioneer will be located.

Among the report’s findings:

• First-generation biofuels have been important economic drivers for the state of Iowa. Ethanol production alone in Iowa accounts for $2.23 billion per year in state gross domestic product and supports more than 8,693 jobs.
• At least five potential biobased chemical production projects were identified through an industry interview process as part of the report. Representatives of each project indicated that a biorenewable chemical production tax credit would be fundamental to the ultimate location decision in or outside Iowa.
• Using income tax data, the payback period on the $61.7 million the state invested in the ethanol industry was just two years.

View the full report and the executive summary online.