Ethanol industry contributed $2.1 billion to Minnesota’s economy in 2024
Minnesota’s ethanol industry contributed $2.1 billion to the state’s GDP in 2024, according to a University of Minnesota Extension study. The state produced 1.4 billion gallons of ethanol, generating $5.2 billion in economic activity and supporting 18,434 jobs. In addition, the industry produced 4.13 million tons of dried distillers’ grains (DDGS) for animal feed and 463.8 million pounds of corn oil for biodiesel. The ethanol sector also generated $1.2 billion in income and $157.6 million in state and local taxes.
Minnesota’s ethanol industry contributed $2.1 billion to the state’s gross domestic product in 2024, according to a new study by the University of Minnesota Extension.
The study said 1.4 billion gallons of ethanol was produced in Minnesota last year, which in turn, generated $5.2 billion in economic activity and supported 18,434 jobs in the state.
“We know that ethanol produced in Minnesota is making our state more energy secure by displacing foreign imports and cleaning up our air because ethanol lowers greenhouse gas emissions. This report makes clear that the ethanol industry is also contributing to our economy through crop purchases, job creation, and state and local taxes,” said Brian Werner, executive director of the Minnesota Bio-Fuels Association.
In addition to ethanol, the industry also produced several valuable co-products including 4.13 million tons of dried distillers’ grains with solubles (DDGS) and 463.8 million pounds of corn oil.
DDGS are a major co-product from ethanol production and are typically used as a high-protein animal feed. According to the report, last year’s DDGS production in Minnesota from ethanol was enough to feed 2 million cattle, 2.5 million pigs, and 61.9 million turkeys and chickens.
For context, according to the United States Department of Agriculture (USDA), Minnesota’s farms have 2.1 million head of cattle, 8.9 million pigs, and 39 million heads of turkey the study said.
“This research provides another data point to debunk the ‘food vs. fuel’ debate that’s unfairly associated with ethanol production. The DDGS production by the industry last year was enough to feed nearly all the livestock in Minnesota. Our farmers don’t need to choose one or the other – they can simultaneously feed and fuel our state,” Werner said.
As for corn oil, the study said most of the corn oil produced by Minnesota’s ethanol industry is used to produce biodiesel, adding the 463.8 million pounds of corn oil produced in 2024 would have produced 60.2 million gallons of biodiesel.
“This represents 70 percent of Minnesota’s 85.5 million gallons of biodiesel production capacity,” the study concluded.
Of the $5.2 billion in economic activity generated in 2024, the study said $2.8 billion was generated from ethanol plants. The remaining $2.4 billion in economic activity, it said, were realized by industries in Minnesota involved in wholesale trade, crop production, real estate, utilities, professional and technical services.
The study said Minnesota’s ethanol industry generated $1.2 billion in income for Minnesota’s residents and paid $157.6 million in state and local taxes in 2024.
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Source : Ethanol Producer Magazine
