In 2021, the U.S. ethanol industry “recovered substantially” from pandemic conditions, with ethanol and gasoline use approaching pre-COVID-19 levels in the second half of the year. That according to a study on the industry by ABF Economics for the Renewable Fuels Association that was released this week.
With higher demand and value, ethanol’s contribution to U.S. gross domestic product in 2021 was the second-highest ever. In 2021, more than 73,000 U.S. jobs were directly associated with the ethanol industry, which supported an additional 334,200 indirect and induced jobs across all sectors of the economy.
The industry created $28.7 billion in household income and contributed just over $52 billion to gross domestic product. Compared to 2020, this represented a 55 percent increase in income generated and a 50 percent increase in the contribution to GDP.
The new report also shows that the ethanol industry spent nearly $38 billion on raw materials and goods and services to produce ethanol during 2021, with corn purchases alone accounting for more than $30 billion.