Minnesota’s ethanol industry contributed $2.7 billion to the state’s gross domestic product (GDP) in 2022, according to a new study by the University of Minnesota Extension. 

In 2022, the industry produced 1.34 billion gallons of ethanol, up from 1.27 billion gallons in 2021. This resulted in $8 billion in economic activity through sales and supported 25,820 jobs in Minnesota, the study said.

The study said the ethanol industry also contributed $1.9 billion in income for Minnesota residents and paid $183.8 million in state and local taxes in 2022.

“This economic impact report from the University of Minnesota Extension shows that the ethanol industry continues to play a major role in Minnesota’s economy. Among other critical findings, the report notes that last year ethanol plants across the state purchased 479 million bushels of corn from Minnesota farmers, employed nearly 26,000 Minnesotans, produced 3.95 million tons of dried distillers grains for Minnesota livestock, and 409 million pounds of corn oil for biodiesel and sustainable aviation fuel applications. The takeaway, as the report so succinctly states, is that ‘ethanol production creates economic activity in Minnesota’,” said Brian Werner, executive director at the Minnesota Bio-Fuels Association (MN Bio-Fuels).

The study said the 3.95 million tons of dried distillers grains produced in 2022 was enough to support 1.9 million cows, 2.4 million pigs and 59.3 million turkeys and chickens.

“For context, Minnesota farms have 2.2 million cattle, 8.6 million pigs, and 37.5 million head of turkeys,” the study said. 

In addition, the study said the 409 million pounds of corn oil produced by Minnesota’s ethanol industry in 2022 was sufficient to produce 53.1 million gallons of biodiesel. Minnesota’s biodiesel production capacity is 85.5 million gallons. 

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