Ethanol Industry Contributed Nearly $2 Billion To Minnesota's Economy In 2025

Minnesota's ethanol industry remained a major economic driver in 2025, contributing $1.9 billion to the state's gross domestic product, according to a new study by the University of Minnesota Extension.

Total economic activity brought on by the ethanol industry in Minnesota totaled $4.9 billion in 2025 with 16,573 jobs supported across the state.

The study noted that Minnesota's 17 ethanol plants produced 1.36 billion gallons of ethanol in 2025, resulting in $975 million in labor income for Minnesotans and $152.9 million in state and local taxes.

"Renewable fuel production in Minnesota has a multitude of benefits for our state's economy, as this study makes clear. Whether it's creating jobs, driving economic activity, expanding markets for agricultural commodities, or saving consumers money at the pump, ethanol is delivering for Minnesota," said Brian Werner, executive director of the Minnesota Bio-Fuels Association.

Beyond ethanol production, the industry also produced 4 million tons of dried distillers grains with solubles (DDGS) - a high-protein animal feed - and 485.6 million pounds of corn oil, which is used to produce biodiesel and renewable diesel, and added as a supplement to poultry feed.

The 4 million tons of DDGS, the study said, was sufficient to feed 1.8 million cattle, 3.5 million pigs and 60.2 million poultry.

"Ethanol detractors continue to peddle misinformation about how renewable fuels create a false choice between food and fuel. This study's findings on high protein animal feed co-production at Minnesota biorefineries, which is enough to feed nearly all the livestock farmers raise in our state, prove that we can do both," Werner said.

The 485.6 million pounds of corn oil produced last year, the study said, was sufficient to generate 63 million gallons of biodiesel, representing 77 percent of Minnesota's biodiesel production capacity.

Complementing these broader economic impacts, a separate study released earlier this year highlighted E15's role in delivering savings to consumers in Minnesota and boosting local economies.

It said E15 sales in Minnesota generates $166.3 million in annual economic output and supports 1,081 jobs, adding E15 has saved Minnesotans $79.5 million at the pump since 2013.This figure, the study said, is projected to reach $272 million by 2030.

Read the University of Minnesota Extension's study on the ethanol industry's contribution to Minnesota's economy here.