Studies Outline State-Level Benefits of the Ethanol Industry
by Erin Voegele (Ethanol Producer Magazine) Two new studies were released this week, highlighting the positive effects the renewable fuel standard (RFS) has had in Minnesota and Ohio. One study, titled the “Minnesota Ethanol Industry: Ethanol Plants in Minnesota,” was published by the Minnesota Department of Agriculture, and provides an overview of the status of the state’s ethanol industry and the economic benefits it has created. The second study, titled the “Economic Impact Analysis of the Ethanol Industry in Ohio for the Ohio Ethanol Producers Association,” was completed by the Ohio State University Extension Community Development and provides an overview of the employment benefits ethanol production has brought to Ohio.
The Minnesota study estimated that the return on investment on the state’s ethanol industry was 813% percent from 1990-2011. That means that every dollar invested in building an ethanol plant resulted in more than $8 generated for the state economy. The report also pointed out that 10 of Minnesota’s 21 ethanol plants are farmer-owned cooperatives that bring direct economic returns to farmers and rural communities.
…According to the analysis, new construction and additional upgrades of Ohio’s six ethanol plant represented $825 million in capital investment. The ongoing operation of those six facilities has resulted in 273 fulltime jobs and an annual payroll of $9.36 million per year. READ MORE and MORE (Renewable Fuels Association)
Excerpt from Renewable Fuels Association: Meanwhile, in Georgia, a recent study by the University of Georgia’s Selig Center for Economic Growth, takes a new look at biofuels as part of the state’s fast-growing “life sciences industry,” also including agriculture, pharmaceuticals, biotech and bioenergy. Jobs in this industry increased by 1.5 percent from 2007-2010 in Georgia, while statewide employment dropped by 7.9 percent during the same period. Wages paid by companies in this sector also increased at a faster rate (4.4 percent) than those for other companies within the state (4.2 percent).
While ethanol production has yet to reach its full potential in the state, the report identifies eight biofuel companies active within Georgia, with six having been in business for 10 years or less. READ MORE and MORE
