Contribution of the ethanol industry to the economy of the United States

Feb 2007

The ethanol industry is one of the most significant success stories in American manufacturing over the past quarter century.
From a cottage industry that produced 175 million gallons in 1980, the American ethanol industry has grown to include 113 manufacturing facilities with an annual capacity of nearly 5.6 billion gallons. Renewable fuels have captured the public imagination as a consequence of continued high petroleum prices, voluntary removal of MTBE from the nation’s motor fuel supply, and efforts by the auto industry to increase the supply of flexible fuel vehicles.
These developments have spurred a surge in ethanol plant investment and development. According to the Renewable Fuels Association 78 new plants and 7 major plant expansions representing an additional 6.2 billion gallons of capacity currently are under construction and more are planned. Total ethanol production for 2006 is estimated at nearly five billion gallons on a yearend capacity base of 5.5 billion gallons.
This study estimates the contribution of the ethanol industry to the American economy in 2006.

 
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