By Blake Jackson
Ethanol has become a key part of America’s energy strategy. Initially used in vehicles in the 1920s, ethanol demand grew in the early 2000s due to oil import concerns and environmental issues with gasoline additives. In 2007, a major energy act set goals for renewable fuel, boosting ethanol’s growth.
By 2024, the US produced 16 billion gallons of ethanol, with Iowa leading in production. Most gasoline in the country contains 10% ethanol (E10), and special vehicles can use up to 85% ethanol (E85). Canada is the largest importer of US ethanol, receiving nearly half of US exports.
Although the number of ethanol plants peaked in 2011, production has increased due to technology and efficiency. Farmers now grow more corn per acre, and plants produce more ethanol from each bushel. One example is POET’s plant in Missouri, which improved output from 50 to 80 million gallons in just over a decade.
Direct federal subsidies for ethanol ended in 2011, but some tax incentives remain. States like Missouri offer credits for blending ethanol, supporting production indirectly.
The US mainly uses corn for ethanol, while Brazil uses sugarcane but is now investing in corn ethanol too. Cellulosic ethanol, made from plant waste, remains limited due to high costs, but new projects are exploring its potential.
Modern ethanol plants make more than fuel. They also produce animal feed, corn oil, dry ice, and electricity, improving their economic value.
In 2023, the ethanol industry supported 72,400 direct jobs and over 322,000 indirect jobs in the US. It generated $32.5 billion in income and added $54.2 billion to the GDP, proving its strong impact on rural America.
Photo Credit: vista-mipan
Categories: National