Ethanol Blog

DDGS Play Vital Role in Nebraska Ethanol Impact

Cheryl Anderson
By  Cheryl Anderson , DTN Staff Reporter

A recently released study shows that Nebraska's ethanol industry has added more than $5 billion to the state's economy each year since 2012. The production and sale of dried distillers grains with solubles has played an important role in that contribution, according to an article by the Grand Island Independent (http://bit.ly/…).

The study, written by agricultural economics professors Kathleen Brooks, Dennis Conley and Cory Walters and Eric Thompson, UNL economics professor and Bureau of Business Research director, examines how Nebraska's ethanol industry has affected the state's economy in the past five years.

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Nebraska's ethanol production capacity is currently about 2.08 billion gallons per year, and has increased in value from just less than $4 billion in 2010 to more than $6.6 billion in 2011. From that total, about 1.8 billion gallons are shipped out of state, in addition to about 58% of the DDGS the state produces.

According to the study, Nebraska processed 657 million bushels of corn into more than 2 billion gallons of ethanol. From that amount of corn, it also produced 11.826 billion pounds, or 5.4 million metric tons, of DDGS.

With demand for DDGS increasing from export markets, the state ethanol industry benefits from DDGS, setting a record export year in 2014 for both ethanol and DDGS. However, Nebraska could net even more profit in the future from emerging trends, such as recovering carbon dioxide, corn oil extraction and world export markets, the report said.

Cheryl Anderson can be reached at Cheryl.anderson@dtn.com

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