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2021 POCKET GUIDE TO ETHANOL
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ETHANOL EXPLAINEDEthanol is a renewable, biodegradable, high-octane and low-carbon motor fuel primarily derived from the sugars, starches, and cellulosic matter found in plants. Most U.S. ethanol is made from corn and processed through dry milling.
THE POCKET GUIDE TO ETHANOL is a quick reference of significant statistics
for the U.S. ethanol industry. It is a compan-
ion to the Renewable Fuels Association’s
more comprehensive Ethanol Industry Out-
look, found at EthanolRFA.org/publications/
outlook.
THE RFA has been the leading trade asso-
ciation for the U.S. ethanol industry for 40
years! We are focused on driving expand-
ed demand for Ameri-
can-made renewable fuels
and bioproducts world-
wide. Membership includes
grain-based and advanced
ethanol producers, the
ethanol value chain, aca-
demia, and other industry
advocates.
Geoff CooperPresident & CEO
RFA—Helping the world breathe easier
with the power of renewable fuels.
Corn Starch93.5%
Corn/Sorghum/Cellulosic Biomass 3.7%
Corn/Sorghum 2.2%
Cellulosic Biomass 0.4%
Waste Sugars/Alcohol/Starch 0.2%
U.S. ETHANOL PRODUCTION CAPACITY BY FEEDSTOCK TYPE
Source: RFA
Grain Receiving and Storage Milling Cooking Liquefaction Fermentation
Syrup Tank Evaporator Liquids
Dried Distillers Grains Dryer Bottling, Dry Ice and Other Uses
Centrifuge
Distillation
Corn Distillers Oil
Feed
Biodiesel
Distillers Grains to Market
Distillers Grains to Livestock and Poultry
Wet Distillers Grains Solids Denaturant
Molecular SieveEthanol Storage Ethanol to Market Ethanol-Blended Gasoline to Consumer
DRY MILL ETHANOL PROCESS
Source: RFA
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519
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199
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010
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012
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018
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02
0*
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Millio
n G
allo
ns
13,800HISTORIC U.S. ETHANOL PRODUCTION
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Twenty-five states are home to 209 biorefineries. Half of total nameplate capacity is based in Iowa, Nebraska, and Illinois—the leading producers of corn.
U.S. ETHANOL BIOREFINERIES BY STATE
WHERE IS ETHANOL MADE?Global ethanol production fell to 26 billion gallons in 2020 as a result of the coronavirus pandemic. The United States remained the largest producer, accounting for over half of global output.
European Union1,250; 5%
China880; 3%
India480; 2%
Canada460; 2%
Thailand400; 2%
Argentina230; 1%
Rest of World500; 2%
Brazil7,930; 31%
United States13,800; 53%
2020 GLOBAL ETHANOL PRODUCTION BY COUNTRY(Country, million gallons, share of global production)
Installed Ethanol BiorefineryNew Biorefinery under Construction
RI
VT
NJ
DEDC
CT
NH
MA
MD
ID
NMAZ
CA
OR
NV
WA
MT NDMN
WI
LATX
COUT
WYSD
NE
KS
OK AR
MO
IA
FL
MI NY
PA
WVVA
NC
SC
GA
ALMS
IL IN
OH
KY
TN
ME
Installed Ethanol
Biorefineries
Existing Production Capacity
(mgy)
Biorefiner-ies Under Constr./
Expansion
Capacity Under
Constr./ Expansion
(mgy)
Iowa 43 4,593 - -
Nebraska 26 2,296 - -
Illinois 14 1,867 - -
Minnesota 19 1,384 - -
Indiana 15 1,337 - -
South Dakota 16 1,223 - -
Ohio 7 676 - -
Kansas 14 615 - -
Wisconsin 9 603 - -
North Dakota 6 542 1 16
Other 15 states 39 2,300 - -
TOTAL U.S. 209 17,436 1 16
HISTORIC U.S. FUEL ETHANOL PRODUCTION
Source: RFA analysis of public and private data sources
Source: RFA and U.S. Energy Information Administration * Estimated
2
Source: RFA
54
VALUE OF OUTPUTS PER BUSHEL
Ethanol..........................................$3.48
Distillers Grains.............................$1.03
Corn Distillers Oil..........................$0.18
TOTAL $4.69
Ethanol’s Value-Added PropositionBased on average prices and product yields in 2020, a typical dry mill ethanol plant was adding approx-imately $1.27 of additional value—or 37%—to every bushel of corn processed.
CORN COST PER BUSHEL
The impact of this value-added proposition ripples throughout rural America in terms of higher tax rev-enues and GDP as job creation and higher household incomes.
ESSENTIAL FOR THE ECONOMYThe economic disruptions following both the spread of COVID-19 and the associated economic shutdowns were especially hard on rural economies, exacerbating the challenges facing U.S. farmers following several years of trying production and market conditions. Fortunately, the ethanol industry remains a major driver fueling the rural economy.
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
Millio
n D
ollars
Ethanol Co-products
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*
$6,428
$16,596
GROSS VALUE OF U.S. ETHANOL INDUSTRY OUTPUT
In 2020, the production of ethanol and coproducts—a $23 billion market—had substantial economic impacts, including:
62,180 direct jobs
242,600 indirect and induced jobs
$34.7 billion contribution to GDP
$18.6 billion in household income
Ethanol biorefineries offer skilled jobs and good wages in rural communities where attractive employment opportunities are often hard to find.
Notably, 1 in 5 employees is a military veteran—more than triple the national average.
Source: RFA based on U.S. Dept. of Agriculture data *Estimated
76
EFFICIENT PRODUCERS American farmers are becoming more efficient at growing corn, harvesting a robust 172 bushels per acre in 2020 for a total production of 14.2 billion bushels.
Corn producers have been implementing conserva-tion practices and innovative technologies to reduce their footprint. These favorable farming practices combined with minor land use change have signifi-cantly lowered the carbon intensity of today’s corn ethanol.
THE PANDEMIC PIVOT The spread of COVID-19 early in 2020 upended the ethanol industry. At the peak of the crisis in late April, more than half of ethanol capacity was idled and less than a quarter of the nation’s biorefineries were running at full capacity.
From just March through November, more than 2 billion gallons of ethanol demand had been forgone. This represents more than 700 million bushels of lost corn demand and revenue losses to the U.S. ethanol industry of more than $3.8 billion.
But the U.S. ethanol industry is nothing if not resilient. Many plants pivoted to add technolo-gy allowing them to produce the high-purity eth-anol used in hand sanitizers and expanded CO2 capture to meet the rising demand for dry ice for the transport and storage of the COVID-19 vaccine.
0%
200%
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600%
800%
1000%
1200%
1400%
1600%
$-
$10
$20
$30
$40
$50
$60
$70
Dollar Sales (millions) Year-Over-Year % Change
1/5
/2
01/
12/2
01/
19/2
01/
26
/2
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/2
/2
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/2
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/2
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Mil
lio
n D
oll
ars
RETAIL HAND SANITIZER SALES, REPORTED WEEKLY
Source: Information Resources, Inc.
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Bu
she
ls/A
cre
Millio
n P
lante
d A
cre
s
Acres (Left) Yield (Right)
U.S CORN ACREAGE AND AVERAGE YIELD
Source: U.S. Dept. of Agriculture
98
COPRODUCTS ON THE RISE
If there was a silver lining to COVID-19 for U.S. ethanol producers, it was that the pandemic brought focus to the fact that the industry makes more than renewable fuel—a lot more.
On average, 1 bushel of corn (56 pounds) processed by a dry mill ethanol biorefinery produces: n 2.9 gallons of denatured fuel ethanol
n 15.2 pounds of distillers grains animal feed (10 percent moisture)
n 0.8 pounds of corn distillers oil
n 1.1 pounds of captured biogenic carbon dioxide
In 2020, ethanol biorefineries captured roughly 2.3 million tons of CO2, which was used for dry ice production, bottling, food processing, and other uses.
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Th
ou
san
d M
etr
ic T
on
s
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*
Distillers GrainsCorn Gluten FeedCorn Gluten Meal
605
3,08729,437
U.S. ETHANOL INDUSTRY COPRODUCT ANIMAL FEED OUTPUT
Source: RFA and U.S. Dept. of Agriculture. Note: All co-products converted to 10% moisture basis *Estimated
Beef Cattle, 47%
Dairy, 31%
Swine, 15%
Poultry, 6%Other, 1%
DISTILLERS GRAINS CONSUMPTION BY SPECIES
Source: Distillers grains marketing companies
Ethanol plants also extracted 3.3 billion pounds of corn distillers oil—a $940 million market underpinning the production of biodiesel and animal feed.
0
500
1 ,000
1 ,500
2,000
2,500
3,000
3,500
4,000
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Millio
n P
ou
nd
s
20
20
*
3,301
Sources: U.S. Dept. of Agriculture and RFA *Estimated
CORN DISTILLERS OIL PRODUCTION
The U.S. ethanol industry generated 33.1 million metric tons of distillers grains and gluten feed/meal. These bioproducts are valuable corn and soybean meal substi-tutes in animal rations around the world.
Source: RFA based on U.S. Dept. of Agriculture data
10 11
EXPANDING GLOBAL DEMAND
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*
1,8001,6001,4001,2001,000
800600400200
0200400600800
Millio
n G
allo
ns
Exports Imports Net Exports
U.S. ETHANOL EXPORTS AND IMPORTS
Sources: U.S. Dept. of Commerce, U.S. Census Bureau, Foreign Trade Statistics *Estimated based on Jan.-Nov. 2020 data
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
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*Th
ou
san
d M
etr
ic T
on
s11,030
U.S. DISTILLERS GRAINS EXPORTS
Sources: U.S. Dept. of Commerce, U.S. Census Bureau, Foreign Trade Statistics *2020 estimated based on Jan.-Nov. 2020
U.S. biorefineries satisfied growing domestic animal food needs while also exporting one of every three tons of distillers grains produced, or 11.0 million metric tons. In 2020, four countries purchased roughly half of all U.S. DDGS exports, while remaining volumes shipped to another 50 around the globe.
In 2020, the United States remained the world leader in producing and exporting ethanol despite pandemic impacts on fuel consumption and prices and a further ratcheting up of trade restrictions. Exports fell 9 per-cent from 2019 to an estimated 1.3 billion gallons worth $2.3 billion.
TOP DESTINATIONS FOR U.S. ETHANOL:
1. Canada2. Brazil3. India4. European Union5. South Korea
TOP DESTINATIONS FOR U.S. DISTILLERS GRAINS:
1. Mexico2. Vietnam3. South Korea4. Indonesia5. Thailand
12 13
THE POWER OF OCTANEAutomakers are increasingly using turbocharged, high-er-compression engines requiring the use of high-oc-tane gasoline. And as the pandemic hit U.S. and global fuel markets, the need for ethanol as a clean, affordable source of octane became even more apparent. While the price of regular unleaded gasoline fell, the price of premium gasoline remained elevated. As a result, the price spread between premium and regular gasoline spiked to the highest level in at least 25 years.
A fuel’s OCTANE RATING is the measure of its ability to resist “knocking” in the engine, which is caused when the air/fuel mixture detonates prematurely during combustion. Using a lower octane fuel than required can cause the engine to run poorly and can damage the engine and emissions control system over time. It may also void your warranty.
PREMIUM GASOLINE: SHARE OF SALES AND PRICE DIFFERENCE VS. REGULAR
0%
5%
10%
15%
20%
25%
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35%
40%
5%6%7%8%9%
10%11%12%13%14%15%
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twe
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P
rem
ium
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aso
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miu
m S
hare
of
Gaso
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ale
s
Premium Share of Gasoline Sales
Wholesale Price Spread: Premium vs. Regular
Retail Price Spread: Premium vs. Regular
Ethanol has a blending octane rating of 114 AKI—the highest value of any competing octane source. Addi-tionally, aromatic hydrocarbons like benzene are toxic and worsen air pollution.
Refiners have largely optimized their processes to reduce hydrocarbon-based octane production to take advantage of ethanol’s properties. Today, most regular gasoline in the U.S. is produced using lower cost blend-stock with an octane rating of 84, which is then upgrad-ed to a rating of 87 by adding 10 percent ethanol. Higher blends like E15 and E30 offer an even greater octane boost when blended on top of today’s regular gasoline.
9395
101
104107
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Gaso
line
Ble
nd
stock
n-B
uta
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Alk
yla
te
Ben
zen
e
To
luen
e
Xyle
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MT
BE
Eth
an
ol
Meth
an
ol
Octa
ne
Rati
ng
84
114
Source: U.S. Department of Energy
BLENDING OCTANE RATINGS OF VARIOUS GASOLINE OCTANE BOOSTERS
Source: Argus Media; *Based on Jan.-Aug. 2020 data
1514
ABOVE AND BEYOND E10E15 typically has an octane rating of 88 but costs less than regular unleaded.
EPA issued a rule in 2019 allowing E15 to be sold year-round nationwide. Sales have since grown significantly, fueled by an uptick in stations offering E15 and wide-spread automaker approval. Remarkable increases in infrastructure have largely been driven by USDA’s High-er Blends Infrastructure Incentive Program, through which RFA helped many retailers secure grant funding.
2020 NATIONAL AVERAGE RETAIL PRICES FOR E10 & E85
Source: RFA based on data from E85prices.com
$1.40
$1.60
$1.80
$2.00
$2.20
$2.40
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Pri
ce
pe
r G
allo
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E10 E85
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No
. o
f S
tati
on
s
E15 E85
2,150
5,040
EXPANSION OF U.S. RETAIL STATIONS
OFFERING E15 AND E85
ESSENTIAL FOR ENERGY SECURITYIn 2020, several events threatened the security and stability of U.S. energy markets. First came a “race-to-the-bottom” crude oil price war between Saudi Arabia and Russia. Then in April, government restric-tions and other precautions related to the pandemic caused U.S. ethanol and gasoline consumption to be cut nearly in half. Yet, the U.S. remained a significant net importer of crude oil, sending some $13 billion—or $100 per American household—to OPEC nations to pay for crude oil imports.
Fortunately, the addition of 13.8 billion gallons of ethanol to the U.S. fuel supply displaced nearly 500 million barrels of foreign oil.
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*Millio
n B
arr
els
of
Oil D
isp
lace
d700
600
500
400
300
200
100
-
231
330387
471494
468 471507 525 543 564 569
558
489
Source: RFA based on U.S. Dept. of Energy data *Estimated
HISTORIC OIL IMPORT DISPLACEMENT
BY ETHANOL
Source: RFA
16
ESSENTIAL FOR CUTTING CARBON
The Renewable Fuel Standard has been an essential pol-icy for our climate, reducing CO2-equivalent GHGs from the transportation sector by 47.3 million metric tons. The Low Carbon Fuel Standard policy model already has a decade of success in California, where ethanol has provided more than 40 percent of the carbon reduc-tions achieved under the program—more than any other low carbon fuel.
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
90
85
80
75
70
65
60
55
50
Carb
on
In
ten
sity
(g
CO
2e
/MJ)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
62.13
CARBON INTENSITY OF STARCH-BASED
ETHANOL IN CALIFORNIA GASOLINE
Source: RFA using California Air Resources Board data
RFA STAFF: ST. LOUIS / MIDWEST
Geoff Cooper, President and CEO
Ken Colombini, Director, Communications
Kelly Davis, Vice President, Technical & Regulatory Affairs
Marylou Hoffman, Office Manager
Ann Lewis, Senior Analyst
Cassie Mullen, Director, Market Development
Jackie Pohlman, Manager, Member Relations
Scott Richman, Chief Economist
Missy Ruff, Director, Safety & Technical Programs
Robert White, Vice President, Industry Relations
WASHINGTON, DC
Troy Bredenkamp, Senior Vice President, Government & Public Affairs
Gidel Dawson, Manager, Government Affairs & Communications
Bob Dinneen, Senior Strategic Advisor
Mary Giglio, Director, Special Projects & Events
Connor Hamburg, Director, Government Affairs
Edward S. Hubbard, Jr., General Counsel & Vice President, Government Affairs
RFA OFFICERS
CHAIRMAN Jeanne McCaherty, Guardian Energy LLC
VICE CHAIR Erik Huschitt, Badger State Ethanol LLC
SECRETARY Rick Schwarck, Absolute Energy LLC
TREASURER Charles Wilson, Trenton Agri Products LLC
PRESIDENT Geoff Cooper, Renewable Fuels Association
Corn ethanol from a typical dry mill has roughly half the GHG emissions of gasoline.
We don’t have to wait and hope for major technological or economic breakthroughs to drive decarbonization of our liquid fuels—ethanol is available now at a low cost.
Ethanol is also the best tool available to reduce tailpipe emissions of harmful pollutants such as carbon monox-ide, exhaust hydrocarbons, air toxics like benzene, and fine particulate matter.
WASHINGTON, DC
425 3rd Street, SW
Suite 1150
Washington, DC 20024
202-289-3835
ST. LOUIS
16024 Manchester Road
Suite 101
Ellisville, MO 63011
636-594-2284
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THE ESSENTIALS
