Minnesota ethanol industry contributes $1.9 billion to state GDP in 2025, supports over 16,500 jobs

Minnesota’s ethanol industry remained a significant contributor to the state economy in 2025, adding $1.9 billion to the state’s gross domestic product and generating total economic activity of $4.9 billion, according to a new study by the University of Minnesota Extension, Ethanol Producer Magazine reported.

The study found that 17 ethanol plants across Minnesota produced 1.36 billion gallons of ethanol during the year, supporting 16,573 jobs and delivering $975 million in labour income to state residents. The industry also contributed $152.9 million in state and local tax collections.

Brian Werner, executive director of the Minnesota Bio-Fuels Association, said the findings demonstrated the multiple ways renewable fuel production benefited the state, including job creation, broader economic activity, expanded markets for agricultural commodities, and lower fuel costs for consumers.

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

According to the study, the 4 million tons of DDGS produced in 2025 was sufficient to feed 1.8 million cattle, 3.5 million pigs, and 60.2 million poultry — covering nearly the full livestock population raised by Minnesota farmers. Werner said the co-production data countered what he described as misinformation from critics who argue that renewable fuel production forces a choice between food and fuel.
The 485.6 million pounds of corn oil produced during the year was sufficient to generate 63 million gallons of biodiesel, representing 77 per cent of Minnesota’s total biodiesel production capacity, the study noted.

A separate study released earlier in 2025 highlighted the role of E15 — a blend containing 15 per cent ethanol — in delivering savings to consumers at the pump and supporting local economies across the state.