Ethanol Industry Contributed $2.5 Billion To Minnesota’s Economy In 2023

  • Wednesday, 14 February 2024 10:30

Econ Report 2023 web

Burnsville, Feb 15 - A new study by the University of Minnesota Extension shows the ethanol industry contributed $2.5 billion to Minnesota’s gross domestic product (GDP) in 2023.

It said the industry produced 1.35 billion gallons of ethanol in 2023, which in turn resulted in $6.6 billion of economic activity and supported 20,914 jobs.

The industry also generated $1.3 billion in income for Minnesota residents and paid $182.9 million in state and local taxes last year.

“In 2023, Minnesota’s ethanol industry generated $6.6 billion of economic activity, supported over 20,000 jobs that provided $1.3 billion of income to Minnesotans, and contributed $2.5 billion to the state’s GDP. This 2023 economic report puts real data behind what rural communities, farmers, and workers across our state already know: the ethanol industry is a critical piece of our diverse economy. As state and federal legislators consider policy approaches to ease prices at the pump, reduce greenhouse gas emissions, and create good-paying jobs, we urge them to turn to the ethanol industry and its proven track record in strengthening Minnesota’s economy and environment,” said Brian Werner, executive director at the Minnesota Bio-Fuels Association (MN Bio-Fuels).

In 2023, the industry also produced 3.99 million tons of dried distillers grains with solubles (DDGS) - a high-protein animal feed - and 426 million pounds of corn oil, which is used to produce biodiesel and renewable diesel.

The study said the 3.99 million tons of DDGS produced by Minnesota’s ethanol industry was sufficient to supply nearly 2 million cows, 2.4 million pigs and 59.8 million turkeys. Minnesota farms have 2.2 million cattle, 9.1 million pigs and 39 million head of turkeys.

As for corn oil, the 426 million pounds produced in 2023 was sufficient to produce 55.3 million gallons of biodiesel - nearly two thirds of Minnesota’s 85.5 million gallon biodiesel production capacity.

The study by the University of Minnesota extension was sponsored by MN Bio-Fuels.