Ethanol Facts: Economy
The economic impact of domestic ethanol production is felt far outside the biorefinery. In hundreds of communities across the nation, ethanol production is creating well paying jobs where jobs are too often few and far between.
FACT: In 2012, the production of 13.3 billion gallons of ethanol directly employed 87,292 Americans. An additional 295,969 Americans found work in positions indirectly affiliated with or induced by ethanol production.
Source: Contribution of the Ethanol Industry to the Economy of the United States
These are quality jobs in fields like engineering, chemistry, and accounting, that provide a good wage and important benefits.
FACT: In 2012, ethanol contributed $43.4 billion to the national Gross Domestic Product (GDP) and added $30.2 billion to household income.
Source: Contribution of the Ethanol Industry to the Economy of the United States
The production of ethanol, distillers grains, corn oil, and other products at the nation's ethanol biorefinieries create tens of billions of dollars in value. Moreover, the value-added market for grains and other feedstocks helped strengthen those markets for farmers. Additionally, these products represent a growing export opportunity.
FACT: The ethanol industry generates jobs, raises revenues and helps revive rural America.
A 2010 Ethanol Producer Magazine survey of the industry found that 73% of industry employees have either a two or four year college degree. 83% reported earning at least $40,000 per year, and 99% reported receiving health care and other benefits, which is well above the national average of 71%. The ethanol industry also contributed $7.9 billion in federal, state and lcoal taxes,helping communities support their public schools, roads and police and fire departments.
FACT: Ethanol refineries serve as local economic power houses.
While the national economic impact of ethanol production is impressive, small and rural communities with ethanol facilities nearby see a much more dramatic economic boost. An 85 million gallon per year ethanol biorefinery provides the following economic benefits to the local economy:
- The goods and services bought and sold as a result of the operation of the ethanol facility add $274 million to the local GDP.
- The economic activity resulting from the ethanol biorefinery help create 1,540 new jobs across all sectors. Those include nearly 40 at the biorefinery and more than 1,500 in the agricultural sector.
- The increase in good paying jobs as a result of the facility boosts local household incomes by $49 million.
Source: Contribution of the Ethanol Industry to the Economy of the United States, LECG, LLC, February 2010.
The rapid rate of innovation and evolution within U.S. ethanol production is bringing new technologies to the market that will increase efficiencies, create new markets for energy crops and waste materials, and employ hundreds of thousands of Americans in innovative new careers, creating a wide range of biofuels using a wide range of sources. The Abengoa Bioenergy cellulosic ethanol biorefinery under construction in Hugoson, Kansas, will employ 300 people during construction and 65 full time employees once operational. The Guardian Lima, LLC ethanol biorefinery in Lima, Ohio, is now open for business. More than 600 applications came in to fill the 33 full time jobs. For a town of nearly 40,000 people, this means a great deal.
Last updated: March 2013
