Climate of Opportunity

2011 Ethanol Industry Outlook
RFA board of Directors

Chuck Woodside, Chairman

KAAPA Ethanol, LLC

www.kaapaethanol.com

Neill McKinstray, Vice Chairman

The Andersons Inc.

www.andersonsinc.com

Walter Wendland, Secretary

Golden Grain Energy, LLC

www.goldengrainenergy.com

Randall Doyal, Treasurer

Al-Corn Clean Fuel

www.al-corn.com

Bob Dinneen, President

Renewable Fuels Association

www.ethanolrfa.org

Abengoa Bioenergy Corp.

Chris Standlee

www.abengoabioenergy.com

Absolute Energy

Rick Schwarck

www.absenergy.org

Ace Ethanol, LLC

Bob Sather

www.aceethanol.com

Adkins Energy, LLC

Scott Trainum

www.adkinsenergy.com

Archer Daniels Midland Co.

Matt Bruns

www.admworld.com

Aventine Renewable Energy Holdings, LLC

Tom Manuel

www.aventinerei.com

Big River Resources West Burlington, LLC

Raymond Defenbaugh

www.bigriverresources.com

Blue Flint Ethanol

Jeff Zueger

www.blueflintethanol.com

Central Indiana Ethanol, LLC

Gary Drook

www.cie.us

Central MN Ethanol Coop

Kerry Nixon

www.centralmnethanol.com

Chippewa Valley Ethanol Co.

Mike Jerke

www.cvec.com

Commonwealth Agri-Energy, LLC

Mick Henderson

www.commonwealthagrienergy.com

Coskata, Inc.

Wes Bolsen

www.coskata.com

Dakota Ethanol, LLC

Scott Mundt

www.dakotaethanol.com

Didion Ethanol, LLC

John Didion

www.didionmilling.com

East Kansas Agri-Energy, LLC

Steven Gardner

www.ekaellc.com

Gevo 

Jack Huttner

www.gevo.com

Glacial Lakes Energy, LLC

Jim Seurer

www.glaciallakesenergy.com

Granite Falls Energy, LLC

Tracey Olson

www.granitefallsenergy.com

GTL Resources, USA

Richard Ruebe

www.gtlresources.com

Guardian Energy

Don Gales

www.guardiannrg.com

Heartland Corn Products

Ben Brown

Homeland Energy Solutions, LLC

Jim Boeding

www.homelandenergysolutions.com

Iroquois Bio-Energy Company, LLC

Keith Gibson

Lincolnland Agri-Energy, LLC

Eric Mosbey

www.lincolnlandagrienergy.com

Little Sioux Corn Processors, LP

Steve Roe

www.littlesiouxcornprocessors.com

Louis Dreyfus Commodities

Sean Martin

www.ldcommodities.com

Merrick & Company 

Steven Wagner

www.merrick.com

Mid America Bio Energy and Commodities, LLC

Robert Lundeen

www.standard-ethanol.com

Mid-Missouri Energy, Inc.

Ryland Utlaut

www.midmissourienergy.com

New Energy Corp.

Todd Allsop

Pacific Ethanol Inc. 

Neil Koehler

www.pacificethanol.net

Parallel Products

Jim Rottman

www.parallelproducts.com

Patriot Renewable Fuels LLC

Gene Griffith

www.patriotrenewablefuels.com

Plymouth Energy

Dave Hoffman

www.plymouth-energy.com

Quad County Corn Processors

Jeff Nelson

www.quad-county.com

Reeve Agri Energy, Inc.

Lee Reeve

Siouxland Ethanol LLC

Chuck Hofland

www.siouxlandethanol.com

Tate & Lyle

Tim Meinhold

www.tateandlyle.com

Trenton Agri Products, LLC

Charles Wilson

www.trentonagriproducts.com

Western New York Energy, LLC

Michael Sawyer

www.wnyenergy.com

Western Wisconsin Energy, LLC

Steve Christensen

www.westernwisconsinenergy.com
2010 Ethanol Industry OUTLOOK 

FEBRUARY 2011

America’s ethanol industry is many things, but one thing it is not is stale. Ethanol producers continue to innovate, expand, and improve 

the process by which they now provide the nation with 10 percent of its gasoline demand. New technologies are on the cusp of commercialization, promising to dramatically expand this industry’s ability to meet the nation’s growing need for energy with a renewable 

alternative. The momentum is on our side.

Indeed, 2010 witnessed American ethanol production soar to 13 billion gallons, replacing the gasoline produced from some 445 million 

barrels of imported oil. Domestic ethanol production aided a struggling economy, especially in rural areas, by helping support more than 

400,000 jobs across the country which cannot be outsourced. 

Even in the face of manufactured angst over ethanol’s growing role in the market, this industry came together to advocate for the extension of key tax policies that help ensure developing technologies like ethanol can compete with entrenched interests for America’s energy 

future.

But, then again, this industry has never stood still. In 2011, the Renewable Fuels Association celebratES 30 years of

advocacy on behalf of American ethanol producers, farmers, and consumers eager to embrace a domestic, cost-effective alternative to 

imported oil. In these 30 years, the RFA and its members have seen the industry grow from just 215 million gallons of annual production 

– today the equivalent of three average ethanol biofineries – to become the world’s largest ethanol producer.

We have seen the industry battle back its critics time and again with the facts about ethanol’s importance to the nation’s economic, 

environmental and energy future. All of this institutional knowledge and understanding of how markets and Capitol Hill work will be 

invaluable in the year to come.

Many of the battles wageD in 2010 are poised to repeat again in 2011. The industry must come together once more to present a unified vision for what ethanol policy should be in the 21st century. We must partner with our customers to install more ethanol 

blending infrastructure and incentivize the production of flex-fuel vehicles that allow us to fully realize the goals of the Renewable Fuel 

Standard. We must recognize the importance of emerging advanced and cellulosic ethanol technologies and work to ensure they are 

given every opportunity to succeed. 

There is no shortage of work to be done. The decision to allow the use of E15 in 2001 and newer vehicles is a positive development, but 

does create regulatory and market hurdles as well. States like California continue to pursue policies that could limit ethanol access to that 

market, just as EPA has granted the use of more ethanol.

I have every confidence 2011 will be a success, just as every year before it, because this industry understands what it takes to be successful.

We will build bridges to those opponents of our industry willing to hear our side. We will reach out to those critics of our industry with 

the facts. We will support our champions in Congress and state capitals who share our vision of America’s energy future. 

Together, this industry will span the divide between success and failure. The future of this industry is very bright indeed. 

Thanks for 30 years of support. The best years are still ahead of us!

Sincerely,

Bob Dinneen, President & CEO
2010 Sets Another Record

From 1.6 billion gallons of production at the start of the decade, 

American ethanol producers provided an estimated 13 billion 

gallons of domestic renewable fuel in 2010 – an 800 percent increase 

and another annual production record. Year over year, ethanol 

production increased more than 20 percent. This increase was 

achieved through improvements in ethanol production technologies, 

increased awareness of the need for renewable alternatives to oil, 

and thoughtful public policy that seeks to level the playing field for 

renewable fuels in a market nearly monopolized by petroleum. 

Mirroring the rise in production, America’s use of ethanol also 

soared, driven by both the demands of the Renewable Fuel Standard 

(RFS) and the economic value of ethanol as a blending component in 

gasoline. Today, well over 90 percent of all gasoline sold in the U.S. is 

blended with ethanol. According to data estimated and calculated by 

the RFA, ethanol demand averaged 860,000 barrels per day in 2010, 

for a total of 13.1 billion gallons. 

In addition to domestic demands, the U.S. was also on pace for 

record exports of ethanol as well. Based upon RFA projections using 

U.S. federal government trade data, the ethanol industry exported a 

record 350 million gallons of ethanol in 2010.

U.S. Ethanol Production CAPACITY BY STATE

In Millions of Gallons

Nameplate Operating

Under Construction/ 

Expansion

Total

Iowa 3,595.0 3,595.0 0 3,595.0

Nebraska 1,864.0 1,839.0 113 1,977.0

Illinois 1,480.0 1,480.0 5 1,485.0

Minnesota 1,136.6 1,118.6 0 1,136.6

Indiana 998.0 906.0 113 1,111.0

South Dakota 1,016.0 1,016.0 33 1,049.0

Ohio 538.0 424.0 0 538.0

Kansas 491.5 436.5 20 511.5

Wisconsin 498.0 498.0 3 501.0

Texas 250.0 250.0 115 365.0

North Dakota 353.0 343.0 0 353.0

Michigan 265.0 265.0 0 265.0

Missouri 261.0 261.0 0 261.0

California 199.5 123.0 50 249.5

Tennessee 177.0 177.0 38 215.0

New York 164.0 164.0 0 164.0

Oregon 148.0 40.0 0 148.0

Colorado 125.0 125.0 0 125.0

Georgia 100.4 100.4 10 110.4

Pennsylvania 110.0 110.0 0 110.0

Virginia 65.0 0 0 65.0

North Carolina 0 0 60 60.0

Arizona 55.0 55.0 0 55.0

Idaho 54.0 54.0 0 54.0

Mississippi 54.0 54.0 0 54.0

Kentucky 35.4 35.4 0 35.4

New Mexico 30.0 30.0 0 30.0

Wyoming 6.5 6.5 0 6.5

Louisiana 1.5 1.5 0 1.5

Total 14,071.4 13,507.9 560 14,631.4

Building a Broader Industry

Domestic ethanol production is truly an American success story. Built with the help of American farmers, ethanol 

production and use in the U.S. has gone from a mere blip on the national energy radar to nearly 10 percent of 

the nation’s gasoline supply. With the growth of the industry and evolution in ethanol production technologies, 

2010 has set the stage for incredible innovation and expansion in the years to come.

U.S. Ethanol BIOrefinery locations

RI

VT

NJ

DE

DC

CT

NH

MA

MD

ID

AZ NM

CA

OR

NV

WA

MT ND

WI

LA TX

CO

UT

WY

SD

NE

KS

OK AR

MO

IA

FL

MI NY

PA

WV VA

NC

SC

AL GA MS

IL IN OH

TN

ME

S

S

Source: Renewable Fuels Association, January 2011

Biorefineries (204)

Biorefineries under construction (9)

Source: Renewable Fuels Association, 

January 2011
2011 Ethanol Industry OUTLOOK

Source: Renewable Fuels Association, January 2011 *Estimated

RECENT Ethanol INDUSTRY EXPANSIONS

* This figure represents operating ethanol biorefineries as of January 2011. For a complete list visit www.EthanolRFA.org.

S

0

2,000

4,000

6,000

8,000

10,000

1980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007200820092010

175

215

350

375

430

610

710

830

845

870

900

950

1,100

1,200

1,350

1,400

1,100

1,300

1,400

1,470

1,630

1,770

2,130

2,810

3,410

3,905

4,855

6,485

9,235

10,935

13,000*

12,000

,

Bridging the Present with the Future

The future of American ethanol is diverse. Corn will continue 

to be the basis upon which the industry grows. 2011 predictions 

for starch-based ethanol production approach and very possibly 

surpass 13.5 billion gallons as processes to convert grain into fuel 

and feed improve. New demand from higher level ethanol blends 

like E15, E20, and E85 as well as the potential for continued 

export opportunities show promise for starch-based ethanol 

use to exceed the 2011 RFS “renewable biofuel” requirement 

of 12.6 billion gallons.

Additionally, efforts to accelerate the commercialization 

of cellulosic and advanced ethanol are seeing greater 

support than ever before. Specifically, the newly 

minted Renewable Fuels Association’s Advanced and 

Cellulosic Ethanol Council is dedicated to 

establishing advanced and cellulosic ethanol 

production and ensuring the goals of the RFS 

are met. 

S HIstoric U.S. fuel 

Ethanol production

S

Millions of gallons

Jan 2000 Jan 2001 Jan 2002 Jan 2003 Jan 2004 Jan 2005 Jan 2006 Jan 2007 Jan 2008 Jan 2009 Jan 2010 Jan 2011

Biorefineries Online 54 56 61 68 72 81 95 110 139 170 189 204

Capacity (mgy) 1,748.7 1,921.9 2,347.3 2,706.8 3,100.8 3,643.7 4,336.4 5,493.4 7,888.4 10,569.4 11,877.4 13,507.9

Industry Snapshot

At year’s end, America’s ethanol industry comprised 204

ethanol biorefineries in 29 states. Continuing a trend, ethanol 

production expanded beyond the Corn Belt with new 

biorefineries beginning production or finalizing construction in 

states like Virginia and North Carolina.

Importantly, ethanol production resumed at many of the plants 

that were forced to suspend operations in the aftermath of the 

economic collapse in the fall of 2008. Plants in Minnesota, Ohio, 

Nebraska, and the Dakotas, to name a few, were all purchased 

and are once again providing fuel and feed derived in part from 

corn grown and delivered by local farmers.

The industry has also seen new companies join traditional 

ethanol producers in expanding American ethanol production. 

Major oil refiners such as Valero, Flint Hills, Murphy Oil, and 

Sunoco have made large investments in ethanol production, 

joining Marathon Oil Company, which currently operates 

ethanol facilities with The Andersons, Inc.

Traditional ethanol producers like Abengoa Bioenergy, Archer 

Daniels Midland and Aventine Renewable Energy, Inc. brought 

new facilities online in 2010, while a group of farmer-owned 

plants purchased previously idled ethanol plants and brought 

them back into production.

Likewise, new companies and technologies utilizing grasses, 

woody biomass, garbage, algae and other feedstocks continue to 

make strides toward commercialization. Though hampered by 

a lack of available capital and federal loan guarantee programs 

wrapped in the proverbial red tape, these companies continue to 

refine their processes and are poised for rapid deployment when 

capital challenges are resolved. 
It’s All About Jobs

The political focus of 2010 was squarely on job creation. America’s 

ethanol industry certainly did its part. According to an economic 

analysis by respected renewable fuel economist John Urbanchuk, the 

production and use of an estimated 13 billion gallons of fuel ethanol 

in 2010 helped employ 400,677 Americans. Of these, nearly 70,400 

jobs were directly involved in the production of ethanol and the 

delivery of goods and services to ethanol producers. The remaining 

jobs were indirect and induced, encompassing jobs on Main Streets 

that support those who directly supply goods and services to ethanol 

producers. 

All of these jobs are good paying jobs. For example, a 2010 Ethanol 

Producer Magazine survey of the industry found that 83 percent 

of employees earned wages in excess of $40,000 and 99 percent 

reported receiving health care and other benefits.

In addition to jobs, the ethanol industry added $36 billion to 

household income and contributed $53.6 billion to the Gross 

Domestic Product (GDP), a measure of U.S. economic activity 

in 2010. 



Bridging the Economic Abyss

2010 was not the economic calamity of 2008 and 2009, but it still proved challenging for the nation as a whole. 

Unemployment remained near 10 percent while underemployment numbers were higher still. One bright spot, 

particularly for hundreds of often overlooked rural communities, was the continued growth of domestic 

ethanol production.

Making America’s ethanol industry go takes the cooperative work of a variety of professionals. From PhDs 

and MBA graduates to hard-working blue collar men 

and women, the more than 200 American ethanol biorefineries and the companies that service them employ 

a broad section of Americans, paying a good wage and 

providing desirable benefits. 

Who works at an

American ethanol plant?

All ethanol industry economic data from “Contributions of the Ethanol Industry to the Economy of the United States,” Cardno ENTRIX. January 2011.
I would tell someone who knows very little about 

our industry that we are an essential answer to high 

priced petroleum from foreign sources that are too 

often hostile to the U.S. We are better for the U.S. 

economy, better for the environment, better for the 

rural economy, and when all costs are on the table, 

the lowest cost for the consumer. 

Mick Henderson, General Manager, 

Commonwealth Agri-Energy and RFA Board Member

Paying As You Go

The past year was also defined by the debate over tax incentives for 

ethanol use. In 2010, the ethanol industry contributed $7 billion in 

tax revenue to the federal Treasury and an additional $4 billion to 

the coffers of state and local governments. The $11 billion in tax 

revenue contributions far outpace the cost of federal tax incentives 

for ethanol in 2010, estimated at $6 billion. 

Taking on OPEC

Harder to fully appreciate but no less important, the growth 

of ethanol production and use in the U.S. directly translates to 

reductions in the amount of oil the nation needs to import. The 13 

billion gallons of estimated ethanol production in 2010 displaced 

the gasoline refined from 445 million barrels of crude oil – 55 

million barrels more than the total estimated crude oil imports 

from Saudi Arabia last year. This reduction in oil imports saved 

the U.S. economy $34 billion dollars. 

2010 Ethanol Industry OUTLOOK 

Here are some of the key facts from the 2010 U.S. Ethanol 

Industry Salary Survey:

n 73 percent of ethanol industry employees have either a 

2 or 4 year college degree.

n 83 percent of respondents report earning an average 

salary of at least $40,000 per year. 

n On top of better than average pay, 99 percent report 

receiving benefits from their employer, including health 

care and retirement plans. That is well above the national 

average of 71 percent. 

HISTORIC OIL IMPORT DISPLACEMENT

BY ETHANOL

S

0

 100

200

300

400

500

2004200520062007200820092010

143

170

206

 228

321

364

445*

Source: Cardno ENTRIX *EstimatedMillions of barrels annually

2011 Ethanol Industry OUTLOOK 

In Their

WORDS
Fuel and Feed to Meet Growing 

World Demand

The ethanol industry’s role as a major producer of fuel and feed 

was on display again in 2010, as producers converted 4.65 billion 

bushels of corn into 13 billion gallons of fuel and nearly 32.5 million 

metric tons of high-value feed. The distillers grains, corn gluten 

feed and corn gluten meal that U.S. ethanol plants produced in 

2010 nourished everything from the cattle at the feedlot next 

door to poultry in Southeast Asia and hogs in Canada. In fact, 

distillers grains were exported to more than 50 countries in 2010, 

demonstrating the global appeal of this nutrient-dense feed 

ingredient. Distillers grains exports were worth an estimated $1.6 

billion in 2010, highlighting the importance of co-products to the 

ethanol producer’s bottom line.

International markets became particularly important to the U.S. 

industry in 2010, as domestic co-product markets inched closer to 

saturation. While the industry fought to break through the “blend 

wall” for ethanol in 2010, it avoided hitting a “feed wall” by exporting 

record quantities of feed co-products and opening new international 

markets. Distillers grains exports topped 8 million metric tons in 

2010, up more than 40 percent from 2009 and nearly double the 

amount exported in 2008. Thanks to a voracious appetite for protein 

and energy feeds, China emerged as the top destination of U.S. 

distillers grains in 2010. One out of every four tons of distillers grains 

exports was bound for China in 2010, with Mexico and Canada 

following as other top destinations. 

Fostering new export relationships and broadening co-product 

utilization rates will continue to be critical to the future of the 

ethanol industry. Despite rapid growth in co-product use both 

domestically and internationally, there is still room to grow. RFA 

is working diligently to open new markets and expand existing 

opportunities. In 2010, the RFA joined with the U.S. Grains Council 

to co-sponsor the Export Exchange, a forum attended by more than 

500 producers, exporters, and buyers of ethanol co-products and 

coarse grains from 25 countries.

Building Value in Rural Markets

Demand for corn and other grains has helped add value to the commodities produced by American farmers and 

provides them a better return from the market and not the government. In addition to fuel, American ethanol 

producers are increasingly feeding domestic livestock flocks and herds while opening up new markets overseas. 

A Partnership with American Farmers

Continuing to produce record amounts of ethanol and livestock 

feed would not be possible without the increasing productivity of 

American farmers. In 2010, despite truly challenging growing and 

harvesting conditions, farmers produced the third-largest corn 

crop in history. Farmers battled unfavorable weather conditions 

to produce 12.45 billion bushels based on 152.8 bushels per acre, 

the fourth-highest average yield on the books. The 2010 crop was 

the fourth in a row and the fourth in history larger than 12 billion 

bushels. Further, the 2010 crop was produced on virtually the same 

amount of acres used in the mid-1970s to produce crops half the 

size, attesting to the tremendous growth in productivity being 

harnessed on American farms.



Thousand Metric Tons

90-91

91-92

92-93

93-94

94-95

95-96

96-97

97-98

98-99

99-00

00-01

01-02

02-03

03-04

04-05

05-06

06-07

07-08

08-09

09-10

10-11*

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Distillers Grains Corn Gluten Feed Corn Gluten Meal

PRODUCTION OF

U.s. Ethanol

Feed co-products

S

Source: RFA *Estimated

 
170

160

150

140

130

120

110

100

90

80

70

60

50

1980198219841986198819901992199419961998200020022004200620082010*

S U.S. AVERAGE CORN YIELD, 1980-2010

Source: USDA *Estimated

DISTILLERS GRAINS 

EXPORTS

S1995 1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010*

9,000,000

8,500,000

8,000,000

7,500,000

7,000,000

6,500,000

6,000,000

5,500,000

5,000,000

4,500,000

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

Metric Tons

Source: USDA-FAS *Estimated 

2011 Ethanol Industry OUTLOOK

DISTILLERS GRAINS CONSUMPTION

BY TYPE, 2010*

S

Dried

61%

Wet or 

Modified 

39%

DISTILLERS GRAINS CONSUMPTION

BY SPECIES, 2010*

S

Source: CHS and RFA *Estimated 

Dairy 39%

Beef 41%

Swine

10%

Poultry

9%

Other

 1%

Source: RFA *Estimated 

Bushels/Acre
Commercializing the Next Gen

The American ethanol industry is one of the most dynamic energy industries anywhere in the world. 

Breakthroughs in process technologies are harnessing the potential of a wide variety of feedstocks from which 

ethanol can be made. Likewise, advancements in the cultivation of energy-specific feedstocks, such as fast 

growing trees, perennial grasses, and algae will ensure adequate volumes of feedstocks are available to meet 

America’s growing need for renewable, biodegradable fuel sources.

Proving New Technologies

Today, more than 20 demonstration and pilot-scale operations utilize 

a wide array of technologies to turn woody biomass, algae, grasses, 

corn cobs, sugar waste, and even garbage into ethanol. 

Operating in at least 17 states, these facilities are the proving ground 

for advanced and cellulosic ethanol technologies. They will provide 

the necessary data, feedback, and experience for companies to take 

these technologies from demonstration scale to the commercial 

level. Despite having proven technologies, many companies 

are facing a lack of availability in investment capital to begin 

construction on commercial-scale, multi-million gallon per year 

biorefineries. 

Why Advanced and Cellulosic 

Ethanol Must Be Successful

The success of new ethanol technologies is not simply 

important to the future of the domestic ethanol industry. It is 

a key component of the nation’s long term strategy to reduce 

our dependence on foreign oil. The largest component of the 

Renewable Fuel Standard (RFS) is the advanced and cellulosic 

biofuels requirement, which by 2022 mandates that 21 billion 

gallons of the required 36 billion gallons of renewable fuel use 

be from non-corn starch feedstocks.

Analyses have suggested that if America could harness the 

waste streams from American agriculture such as corn stalks, 

cobs and wheat straw, the nation could produce enough 

ethanol to eliminate the need for oil imports from the 

Persian Gulf. Additionally, because many of the feedstocks 

being developed for ethanol production require little or no 

cultivation because they are waste products, the initial fossil 

fuel requirements to produce the feedstocks are dramatically 

reduced. The U.S. Department of Energy’s Argonne National 

Laboratory suggests that production of cellulosic ethanol 

could reduce fossil fuel input needs compared to gasoline by 

70 percent.

Renewable Fuels 

Association’s Advanced 

and Cellulosic Ethanol

Council

The Renewable Fuels Association’s Advanced and Cellulosic 

Ethanol Council is the leading voice promoting and advocating policies that will accelerate the commercialization of 

advanced and cellulosic ethanol technologies. Technologies 

exist today to effectively and efficiently convert a wide 

range of biomass feedstocks – including woody biomass, 

corn cobs, grasses, algae, municipal solid waste, and agriculture waste – into renewable fuels like ethanol. 
eration

2011 Ethanol Industry OUTLOOK

The Council will work to foster commercialization of 

advanced technologies, develop proactive federal 

and state policies, ensure proper accounting of 

greenhouse gas emissions and other environmental 

concerns, and expand the market for all ethanol 

sources.

What is advanced and cellulosic 

ethanol?

Cellulose refers to the material comprising the cell 

walls of any green plant and is the most common 

organic compound found on Earth. Cellulosic 

ethanol is ethanol produced by turning the sugars 

in cellulose into alcohol fuel. Advanced ethanol, by 

comparison, is sourced from feedstocks that are not 

cellulose and are not starch found in grains such 

as corn. All sources for ethanol will be required to 

provide the nation with the kind of energy choices 

we need.

The future of American ethanol production will also include 

non-conventional feedstocks like algae. The Department of 

Energy estimates that biofuel production from algae could yield 

between 4,000 – 6,000 gallons per acre. In the very near future, 

estimates suggest production could reach 10,000 gallons per acre, 

substantially increasing America’s ability to provide a steady and 

abundant supply of renewable, biodegradable, cleaner burning 

ethanol. 

Reaching Full Potential

Like countless other industries that are successful commercial 

enterprises today, the development of cellulosic and advanced 

ethanol production will require a partnership with the federal 

government. Current policies, such as the RFS, are designed 

to ensure a market exists for these fuels. However, due to 

economic challenges that have hamstrung early efforts to 

develop commercial-scale biorefineries, the requirements for 

cellulosic ethanol use have been repeatedly reduced by the U.S. 

Environmental Protection Agency (EPA). While EPA has rightfully 

recognized production is well below required demands and 

subsequently lowered the RFS requirements, EPA must also be 

careful not to be overly pessimistic about the chances for these 

technologies and ensure the advanced and cellulosic mandates 

remain ambitious.

Equally important are federal government efforts to assist 

ethanol producers in building the first generation of advanced 

and cellulosic ethanol biorefineries. The U.S. Department of 

Agriculture (USDA) has awarded three loan guarantees to 

advanced and cellulosic ethanol producers to begin construction 

on commercial facilities in Florida, Alabama, and Mississippi. 

Unfortunately, far too few producers have been able to 

successfully navigate the federal bureaucracy and obtain grants 

and loan guarantees, especially from the Department of Energy 

(DOE). Access to these programs has been limited due to 

discriminatory requirements that skew more toward electric 

generation than liquid transportation fuel production. The 

continued work of USDA to provide these important guarantees 

and reform of similar programs at DOE is vital to help build the 

first commercial-scale facilities and commercialize these very 

promising technologies.
Solutions to these demand pressures are numerous – but none are 

simple. One solution is the use of ethanol blends higher than 10 

percent. Blends such as E15 (15 percent ethanol/85 percent gasoline) 

hold promise to help expand the market. Ultimately, we will need 

a variety of blend levels – 20 percent, 30 percent, 50 percent, 85 

percent, and so on – to not only achieve the goals laid forth in the 

RFS but to ensure markets for ethanol production from cellulose and 

other feedstocks.

Finding Every Gallon

Currently, the standard blend for ethanol is E10, which is a safe 

and effective fuel for all engine platforms. As the maps on the 

following page demonstrate, market saturation of E10 has progressed 

significantly as ethanol producers provide greater volumes of 

fuel and state regulations are adjusted to incorporate the unique 

properties of ethanol fuel. 

In 2011, the RFS requirement of 12.6 billion gallons of “renewable 

biofuel” used together with continued favorable blending economics 

will likely see the market for E10 blends become saturated. The 

remaining markets likely to convert to E10 will see that conversion 

occur in 2011.

Building New Markets

The combination of thoughtful public policy and diligent attention to state regulation by the industry has helped 

open up every corner of the nation to ethanol use. Today, ethanol is blended in well over 90 percent of the 

nation’s gasoline supply. The success of tax incentives, the Renewable Fuel Standard (RFS), and efforts to adjust 

state fuel regulation has been so dramatic that the industry is finding it difficult to identify new domestic markets. 

Bridging Today’s Markets with 

Tomorrow’s Opportunities

Ethanol as a blending component in gasoline, such as E10 blends, 

is a safe and widely adopted use of the fuel. Technologies are 

rapidly becoming available that allow ethanol to replace even larger 

volumes of oil in domestic gasoline. Ethanol blends, such as E20, 

E30, and even E50 (known as mid-level ethanol blends or MLEBs) 

are gaining in popularity as consumers seek affordable alternatives 

to imported oil. Blends such as E85, which have been the focus of 

infrastructure discussions for the past decade, offer an opportunity 

to provide ethanol as a truer replacement fuel to gasoline. 

Consumers have shown a willingness to migrate toward these 

blends, but the confines of vehicle technologies and fuel dispensing 

infrastructure have hampered sales of these blends. To use MLEBs 

and higher level ethanol blends, a vehicle must be fitted with 

flexible fuel vehicle (FFV) technology. Today, nearly 9 million FFVs 

are on the road, representing approximately 3 percent of the total 

light duty vehicle fleet.

Likewise, fuel pumps must be equipped with the technology 

to offer higher concentrations of ethanol. Technologies such as 

blender pumps offer the ability to dispense a variety of ethanol 

blends from E10 for use in all vehicles up to E85 for use in FFVs. 

E85-specific pumps offer a choice for drivers of FFVs. Today, more 

than 2,600 stations offer E85-specific pumps and an additional 900 

stations have installed blender pumps. Approximately 300 of those 

900 stations offer MLEBs. Comparatively, there are approximately 

160,000 gas stations in America.

2011: The Year of MLEBs?

Given the size of the nation’s convenience store and gasoline 

station industry, deploying sufficient numbers of blender pumps 

will be a challenge that will not be met overnight. It will take a 

committed effort to educate, and in some cases incentivize, fuel 

retailers on the merits of these technologies. Efforts like the Blend 

Your Own (BYO) Ethanol campaign from the RFA, the American 

Coalition for Ethanol, the National Corn Growers Association, 

and state corn grower associations as well as pledges from the U.S. 

Department of Agriculture (USDA) to provide some funding for 

blender pumps are important first steps to establishing a MLEBs 

beachhead in today’s fuel market. 

10

50

85
2010 Ethanol Industry OUTLOOK

Oregon

Washington Montana

Idaho

Nevada Utah

Arizona

Alaska

New Mexico

Texas

Oklahoma

Kansas Missouri

Illinois Indiana Ohio

West Virginia

Virginia

Kentucky

Arkansas

Tennessee

Mississippi

Alabama

Georgia

Florida

North Carolina

South

Carolina

Louisiana

Pennsylvania

New York

Maine

Vermont

New Hampshire

Massachusetts

Rhode Island

Washington DC

Maryland

Delaware

New Jersey

Connecticut Nebraska

Colorado

California

Wyoming

North Dakota

Minnesota

Wisconsin

Michigan

Iowa

South Dakota

Hawaii

90% 

Oregon

90% Washington70% 

Montana

60% 

Idaho

70% 

Nevada

60% 

Utah

80% 

Arizona

65% 

Alaska

95% New Mexico

95% 

Texas

80% 

Oklahoma

90% 

Kansas

90% 

Missouri

95% 

Illinois

95% 

Indiana

90% 

Ohio

80% West Virginia

90% 

Virginia

95% 

Kentucky

80% 

Arkansas

85% 

Tennessee

95% 

Mississippi

95% 

Alabama

85% 

Georgia

90% 

Florida

85% North Carolina

85% 

South

Carolina

95% 

Louisiana

90% Pennsylvania

100% 

New York

80% 

Maine

90% 

Vermont

95% New Hampshire

100% Massachusetts

100% Rhode Island

100% Washington DC

100% 

Maryland

100% 

Delaware

100% 

New Jersey

100% 

Connecticut

80% 

Nebraska

85%

Colorado

100% 

California

65% 

Wyoming

95% North Dakota 100% 

Minnesota

95% 

Wisconsin

90% 

Michigan

70% 

Iowa

95% South Dakota

90% 

Hawaii

S E10 market estimation, 2010

S FFV market concentration

Source: RFA 

76-100%

51-75%

>300

225-300

150-225

75-150

0-75

2011 Ethanol Industry OUTLOOK 11

FFV Population

(Thousands)

Source: R.L. Polk & Company 

Vehicles in Operation 

Database, July 1, 2009 
Company Location Feedstock

Nameplate Capacity 

(mgy)

Operating 

Production (mgy)

Under Construction/

Expansion Capacity 

(mgy)

Abengoa Bioenergy Corp. (Total)

378 378

Colwich, KS corn/milo

Mt. Vernon, IN corn

Madison, IL corn

Ravenna, NE corn

York, NE corn

Portales, NM corn

Absolute Energy* St. Ansgar, IA corn 110 110

ACE Ethanol, LLC Stanley, WI corn 41 41

Adkins Energy, LLC* Lena, IL corn 40 40

Advanced BioEnergy, LLC (Total)

198 198

Fairmont, NE corn

Aberdeen, SD corn

Huron, SD corn

AE Biofuels/Cilion Keyes, CA corn 50

Ag Energy Resources, Inc. Benton, IL corn 5

AGP* Hastings, NE corn 52 52

Al-Corn Clean Fuel* Claremont, MN corn 42 42

Alchem Ltd. LLP Grafton, ND corn 10 0

AltraBiofuels Coshocton Ethanol, LLC Coshocton, OH corn 60 0

AltraBiofuels Phoenix Bio Industries, LLC Goshen, CA corn 31.5 0

Amaizing Energy, LLC* Denison, IA corn 55 55

Appomattox Bio Energy Hopewell, VA corn 65 0

Archer Daniels Midland (Total)

1,750 1,750

Cedar Rapids, IA corn

Clinton, IA corn

Decatur, IL corn

Peoria, IL corn

Marshall, MN corn

Wallhalla, ND corn/barley

Columbus, NE corn

Arkalon Energy, LLC Liberal, KS 110 110

Aventine Renewable Energy, LLC

244 244 226

Pekin, IL corn

Canton, IL corn

Aurora, NE corn

Mt. Vernon, IN corn

Badger State Ethanol, LLC* Monroe, WI corn 48 48

Big River Resources Galva, LLC Galva, IL corn 100 100

Big River Resources West Burlington, LLC* West Burlington, IA corn 100 100

Big River United Energy Dyersville, IA corn 110 110

BioFuel Energy - Buffalo Lake Energy, LLC Fairmont, MN corn 115 115

BioFuel Energy - Pioneer Trail Energy, LLC Wood River, NE corn 115 115

Bional Clearfield Clearfield, PA corn 110 110

Blue Flint Ethanol Underwood, ND corn 50 50

Bonanza Energy, LLC Garden City, KS corn/milo 55 55

BP Biofuels North America Jennings, LA sugar cane bagasse 1.5 1.5

Bridgeport Ethanol Bridgeport, NE corn 54 54

Bunge-Ergon Vicksburg Vicksburg, MS corn 54 54

Bushmills Ethanol, Inc.* Atwater, MN corn 50 50

Calgren Renewable Fuels, LLC Pixley, CA corn 60 60

Carbon Green Bioenergy Lake Odessa, MI corn 50 50

U.S. Fuel Ethanol Industry Biorefineries and Capacity
Cardinal Ethanol Union City, IN corn 100 100

Cargill, Inc. Eddyville, IA corn 35 35

Cargill, Inc. Blair, NE corn 85 85

Cascade Grain Clatskanie, OR corn 1080

Center Ethanol Company. LLC Sauget, IL corn 54 54

Central Indiana Ethanol, LLC Marion, IN corn 40 40

Central MN Ethanol Coop Little Falls, MN corn 21.5 21.5

Chief Ethanol Hastings, NE corn 62 62

Chippewa Valley Ethanol Co.* Benson, MN corn 45 45

Clean Burn Fuels, LLC Raeford, NC corn 60

Commonwealth Agri-Energy, LLC* Hopkinsville, KY corn 33 33

Corn Plus, LLP* Winnebago, MN corn 44 44

Corn, LP Goldfield, IA corn 60 60

Cornhusker Energy Lexington, LLC Lexington, NE corn 40 40

Dakota Ethanol, LLC* Wentworth, SD corn 50 50

DENCO, LLC Morris, MN corn 24 24

Didion Ethanol Cambria, WI corn 40 40

Dubay Biofuels Greenwood Greenwood, WI cheese whey3

E Caruso (Goodland Energy Center) Goodland, KS corn 20

E Energy Adams, LLC Adams, NE corn 50 50

East Kansas Agri-Energy, LLC* Garnett, KS corn 35 35

ESE Alcohol Inc. Leoti, KS seed corn 1.5 1.5

Flint Hills Resources Menlo, IA corn 110 110

Flint Hills Resources Shell Rock, IA corn 110 110

Flint Hills Resources Fairbank, IA corn 110 110

Flint Hills Resources Iowa Falls, IA corn 90 90

Front Range Energy, LLC Windsor, CO corn 40 40

Gateway Ethanol Pratt, KS corn 550

Gevo Luverne, MN corn 21 21

Glacial Lakes Energy, LLC - Mina Mina, SD corn 107 107

Glacial Lakes Energy, LLC - Watertown* Watertown, SD corn 100 100

Golden Cheese Company of California* Corona, CA cheese whey50

Golden Grain Energy, LLC* Mason City, IA corn 115 115

Golden Triangle Energy, LLC* Craig, MO corn 20 20

Grain Processing Corp. Muscatine, IA corn 20 20

Granite Falls Energy, LLC* Granite Falls, MN corn 52 52

Greater Ohio Ethanol, LLC Lima, OH corn 540

Green Plains Renewable Energy Lakota, IA corn 100 100

Green Plains Renewable Energy Riga, IA corn 57 57

Green Plains Renewable Energy Shenandoah, IA corn 65 65

Green Plains Renewable Energy Obion, TN corn 115 115

Green Plains Renewable Energy Bluffton, IN corn 115 115

Green Plains Renewable Energy Superior, IA corn 55 55

Green Plains Renewable Energy Central City, NE corn 100 100

Green Plains Renewable Energy Ord, NE corn 50 50

Guardian Energy Janesville, MN corn 110 110

Hankinson Renewable Energy, LLC Hankinson, ND corn 110 110

Heartland Corn Products* Winthrop, MN corn 100 100

Heron Lake BioEnergy, LLC Heron Lake, MN corn 50 50

Highwater Ethanol, LLC Lamberton, MN corn 55 55

Homeland Energy Solutions New Hampton, IA corn 100 100

Husker Ag, LLC* Plainview, NE corn 75 75

Idaho Ethanol Processing, LLC Caldwell, ID potato waste44

Illinois River Energy, LLC Rochelle, IL corn 100 100

Iroquois Bio-Energy Company, LLC Rensselaer, IN corn 40 40

KAAPA Ethanol, LLC* Minden, NE corn 60 60
Kansas Ethanol, LLC Lyons, KS corn 55 55

KL Process Design Group Upton, WY wood waste 1.5 1.5

Land O’ Lakes* Melrose, MN cheese whey 2.6 2.6

Levelland/Hockley County Ethanol, LLC Levelland, TX corn 40 40

Lifeline Foods, LLC St. Joseph, MO corn 40 40

Lincolnland Agri-Energy, LLC* Palestine, IL corn 48 48

Lincolnway Energy, LLC* Nevada, IA corn 55 55

Little Sioux Corn Processors, LLC* Marcus, IA corn 92 92

Louis Dreyfus Commodities Grand Junction, IA corn 100 100

Louis Dreyfus Commodities Norfolk, NE corn 45 45

Marquis Energy, LLC Hennepin, IL corn 100 100

Marquis Energy - Wisconsin, LLC Necedah, WI corn 50 50

Marysville Ethanol, LLC Marysville, MI corn 50 50

Merrick & Company Aurora, CO waste beer33

Mid America BioEnergy & Commodities Madrid, NE corn 44 44

Mid-Missouri Energy, Inc.* Malta Bend, MO corn 50 50

Midwest Renewable Energy, LLC Sutherland, NE corn 25 25

Minnesota Energy* Buffalo Lake, MN corn 18 0 

Nebraska Corn Processing, LLC Cambridge, NE corn 45 45

NEDAK Ethanol Atkinson, NE corn 44 44

Nesika Energy, LLC Scandia, KS corn 10 10

New Energy Corp. South Bend, IN corn 102 102

North Country Ethanol, LLC* Rosholt, SD corn 20 20

NuGen Energy Marion, SD corn 110 110

One Earth Energy Gibson City, IL corn 100 100

Otter Tail Ag Enterprises Fergus Falls, MN corn 57.5 57.5

Pacific Ethanol, Inc. Madera, CA corn 400

Pacific Ethanol, Inc. Stockton, CA corn 60 60

Pacific Ethanol, Inc. Burley, ID corn 50 50

Pacific Ethanol, Inc. Boardman, OR corn 40 40

Panda Ethanol Hereford, TX corn/milo 115

Parallel Products Rancho Cucamonga, CA beverage waste

Parallel Products Louisville, KY beverage waste 5.4 5.4

Patriot Renewable Fuels, LLC Annawan, IL corn 100 100

Penford Products Cedar Rapids, IA corn 45 45

Pinal Energy, LLC Maricopa, AZ corn 55 55

Pine Lake Corn Processors, LLC Steamboat Rock, IA corn 31 31

Platinum Ethanol, LLC* Arthur, IA corn 110 110

Plymouth Ethanol, LLC* Merrill, IA corn 50 50

POET Biorefining - Alexandria Alexandria, IN corn 68 68

POET Biorefining - Ashton Ashton, IA corn 56 56

POET Biorefining - Big Stone Big Stone City, SD corn 79 79

POET Biorefining - Bingham Lake Bingham Lake, MN corn 35 35

POET Biorefining - Caro Caro, MI corn 53 53

POET Biorefining - Chancellor Chancellor, SD corn 110 110

POET Biorefining - Cloverdale Cloverdale, IN corn 920

POET Biorefining - Coon Rapids Coon Rapids, IA corn 54 54

POET Biorefining - Corning Corning, IA corn 65 65

POET Biorefining - Emmetsburg Emmetsburg, IA corn 55 55

POET Biorefining - Fostoria Fostoria, OH corn 68 68

POET Biorefining - Glenville Albert Lea, MN corn 42 42

POET Biorefining - Gowrie Gowrie, IA corn 69 69

POET Biorefining - Hanlontown Hanlontown, IA corn 56 56

POET Biorefining - Hudson Hudson, SD corn 56 56

POET Biorefining - Jewell Jewell, IA corn 69 69

POET Biorefining - Laddonia Laddonia, MO corn 50 50
POET Biorefining - Lake Crystal Lake Crystal, MN corn 56 56

POET Biorefining - Leipsic Leipsic, OH corn 68 68

POET Biorefining - Macon Macon, MO corn 46 46

POET Biorefining - Marion Marion, OH corn 68 68

POET Biorefining - Mitchell Mitchell, SD corn 68 68

POET Biorefining - North Manchester North Manchester, IN corn 68 68

POET Biorefining - Portland Portland, IN corn 68 68

POET Biorefining - Preston Preston, MN corn 46 46

POET Biorefining - Scotland Scotland, SD corn 11 11

POET Biorefining - Groton Groton, SD corn 53 53

Prairie Horizon Agri-Energy, LLC Phillipsburg, KS corn 40 40

Quad-County Corn Processors* Galva, IA corn 30 30

Range Fuels Soperton, GA woody biomass 10

Red Trail Energy, LLC Richardton, ND corn 50 50

Redfield Energy, LLC* Redfield, SD corn 50 50

Reeve Agri-Energy Garden City, KS corn/milo 12 12

Renova Energy Torrington, WY corn 5 5

Show Me Ethanol Carrollton, MO corn 55 55

Siouxland Energy & Livestock Coop* Sioux Center, IA corn 60 60

Siouxland Ethanol, LLC Jackson, NE corn 50 50

Southwest Georgia Ethanol, LLC Camilla, GA corn 100 100

Southwest Iowa Renewable Energy, LLC* Council Bluffs, IA corn 110 110

Spectrum Business Ventures, Inc. Mead, NE corn 25 0

Sterling Ethanol, LLC Sterling, CO corn 42 42

Sunoco Volney, NY corn 114 114

Tate & Lyle Loudon, TN corn 67 67 38

Tharaldson Ethanol Casselton, ND corn/milo 110 110

The Andersons Albion Ethanol, LLC Albion, MI corn 55 55

The Andersons Clymers Ethanol, LLC Clymers, IN corn 110 110

The Andersons Marathon Ethanol, LLC Greenville, OH corn 110 110

Trenton Agri Products, LLC Trenton, NE corn 40 40

United Ethanol, LLC Milton, WI corn 52 52

United WI Grain Producers, LLC* Friesland, WI corn 49 49

Utica Energy, LLC Oshkosh, WI corn 48 48

Valero Renewable Fuels Albert City, IA corn 110 110

Valero Renewable Fuels Fort Dodge, IA corn 110 110

Valero Renewable Fuels Albion, NE corn 110 110

Valero Renewable Fuels Aurora, SD corn 120 120

Valero Renewable Fuels Charles City, IA corn 110 110

Valero Renewable Fuels Welcome, MN corn 110 110

Valero Renewable Fuels Hartley, IA corn 110 110

Valero Renewable Fuels North Linden, IN corn 110 110

Valero Renewable Fuels Bloomingburg, OH corn 110 110

Valero Renewable Fuels Jefferson Junction, WI corn 110 130

Western New York Energy, LLC Shelby, NY corn 50 50

Western Plains Energy, LLC* Campus, KS corn 45 45

Western Wisconsin Renewable Energy, LLC* Boyceville, WI corn 40 40

White Energy Russell, KS milo/wheat starch 48 48

White Energy Hereford, TX corn/milo 100 100

White Energy Plainview, TX corn 110 110

Wind Gap Farms Baconton, GA brewery waste 0.4 0.4

Yuma Ethanol Yuma, CO corn 40 40

U.S. Capacity TOTALS 14,071.4 13,507.9 560

* locally owned Updated: January 2011
New Faces in Places of Power

The results of the election have put Republicans in control of the 

House of Republicans and narrowed the majority of the Democrats 

in the Senate. The result of parties changing power in Congress is 

the minting of new chairmen of committees with jurisdiction over 

important ethanol policies. 

 The most prominent change resulting from the power switch is 

the election of Representative John Boehner (R-OH) as Speaker 

of the House. Joining Speaker Boehner are Representative Fred 

Upton (R-MI) as the new chairman of the House Energy and 

Commerce Committee; Representative Dave Camp (R-MI) as the 

Opening the Door to the 112th 

The results of the November election have brought more than 100 new members of both the House and the 

Senate to Washington. These new members will bring with them new ideas and new priorities. Some will be 

intimately familiar with issues important to the ethanol industry. Others will not be as familiar. Nevertheless, the 

RFA will do what it has done for the past 15 Congresses and work with our member companies to educate new 

and veteran lawmakers alike on the importance of a domestic ethanol industry and the potential of ethanol 

technologies to come. 

new chairman of the House Ways and Means Committee; and 

Representative Frank Lucas (R-OK) as chairman of the House 

Agriculture Committee.

While the Senate did not change hands, retirements and defeats 

have led to a smaller Democratic majority and altered the makeup of key committees. Notably, Senator Debbie Stabenow 

(D-MI) is the new chair of the Senate Agriculture, Nutrition 

and Forestry Committee, which will begin work on a new 

farm bill in the 112th Congress.

“It’s the Economy, Stupid”

As leaders of both political parties have stated, job creation and 

the economy will be a major focus for Congress. Such a focus 

provides American ethanol producers the opportunity to educate 

lawmakers and the public on the hundreds of thousands of jobs 

that are supported by ethanol production and to highlight the fact 

that these jobs cannot be sent to Arabian oil fields. A focus on jobs 

and the economy also presents a forum to enumerate the billions of 

dollars in new economic activities that come to communities with 

ethanol production facilities. 

16

2011 will be a busy year for America’s ethanol industry. 

A host of issues will be addressed, including:

n Tax policy

n Commercialization of new technologies

n Expansion of infrastructure

n A new farm bill

n Greenhouse gas regulation

n Market expansion

 2011 Ethanol Agenda
2010 Ethanol Industry OUTLOOK

Congress

S CONGRESSIONAL MAKEUP BY PARTY

2011 Ethanol Industry OUTLOOK 17

A Look into the Obama 

Administration

Many are predicting that President Obama will make changes in 

his Cabinet as we begin the third year of his Administration. Even 

so, the consensus is this Administration’s support for domestic 

ethanol production and use will remain steadfast.

The RFA and the entire ethanol industry must and will remain 

engaged with the White House, the Department of Energy, 

the Environmental Protection Agency, and the Department 

of Agriculture to help inform policy decisions and regulatory 

implementation. Issues such as the Renewable Fuel Standard, 

greenhouse gas emission regulation, loan guarantees for advanced 

and cellulosic ethanol technologies, and expanding the use of 

ethanol beyond current 10 percent limits will all be in play in the 

coming year. 

2011 – Ethanol’s Eye on Washington

Both on Capitol Hill and off, in Washington and state capitals 

around the country, the upcoming year promises to be very active 

from the ethanol industry’s point of view. A bevy of issues will be 

debated and addressed. It will be incumbent upon the industry to 

invest the shoe leather needed to educate each and every member 

of Congress on important issues. The same holds true with regards 

to the Obama Administration where implementation of existing 

and new regulations will directly impact the bottom line for many 

ethanol producers.

GOP +64

Net Change

255 Democrats 178 Republicans

193 Democrats 242 Republicans

111th Congress

112th Congress

House

GOP +6

Net Change

59 Democrats 41 Republicans

53 Democrats 47 Republicans

111th Congress

112th Congress

Senate
21st Century Policy for a 21st Century 

Industry

Ensuring that America’s ethanol industry – both current and 

developing technologies – remains the dynamic and innovative 

force it has been over the past decade is dependent upon responsible 

reforms of all energy tax policy. Every energy industry in the U.S. is 

supported in some part by preferential tax treatment and incentives 

from the federal government. True reform of ethanol tax policies can 

only come in the context of wide-ranging discussions of all forms of 

support for fossil fuel and renewable energies alike. 

Tying Together Fiscal Concerns 

The defining issue in 2010 was extension of the critical tax incentives that have helped level the playing field 

for ethanol in a market nearly monopolized by petroleum. Specifically, the Volumetric Ethanol Excise Tax Credit 

(VEETC), which provides blenders of ethanol with a $0.45 per gallon excise tax credit for each gallon of ethanol 

used, was extended for one more year. While this extension was critical, it sets the stage for yet another 

energy tax policy debate in 2011. The future success of both grain-based and cellulosic and advanced ethanol 

production will hinge in no small measure on whether thoughtful, responsible, and realistic policies that truly 

promote market access and technology commercialization – in good markets and bad – can be put into place. 

Ethanol Debate Requires Context

Existing ethanol policies have been widely successful in building 

the world’s largest renewable fuels industry. The centerpiece of 

that policy framework has been the market-based tax incentive 

– VEETC. It has helped spur the use of ethanol beyond what’s 

needed to meet Clean Air Act and other requirements. It has 

encouraged the tens of thousands of small business owners that 

operate corner gas stations to invest in infrastructure to sell 

ethanol blends and allowed them to offer lower priced fuel to their 

customers. 

The challenge facing ethanol today is more than market access, 

it is still largely about market economics. Any reform of current 

policies must work for ethanol producers and consumers when the 

market is up as well as when it is down. 

If reform is to come to ethanol tax policy, it must do so as part of a 

much larger discussion shedding light on the hundreds of billions 

of dollars of federal support all forms of energy receive. Oil, natural 

gas, coal, nuclear – all have benefited from tax or other incentives. 

Many of these subsidies have lasted much longer than those for 

ethanol. All totaled, the incentives for ethanol pale in comparison 

18

VEETC is a $0.45 per gallon tax credit available for each 

gallon of ethanol gasoline blenders and marketers use 

regardless of the ethanol’s origin. It is applied against the 

federal excise tax on gasoline, thus reducing the price for 

consumers at the pump. As a tax credit, it is not an appropriated sum of money that can be allocated for other 

What is VEETC? 
 with Progressive Policy

2011 Ethanol Industry OUTLOOK 19

to the estimated $280 billion-a-year in federal subsidies for the 

highly lucrative petroleum industry that resulted in oil’s virtual 

monopoly over the U.S. transportation fuel market.1

Advocates of reform must consider why current policies have 

been successful. VEETC has allowed gasoline marketers to reduce 

their tax burden and subsequently reduce the price for consumers 

at the pump. Those that would advocate simply shifting money 

from this program to another one must recognize that no pot 

of money exists to be shifted. Because it is a tax credit and not 

an earmark, VEETC has operated seamlessly from year to year 

and not required an appropriation from Congress. Any potential 

reform should appreciate the practicality and efficacy of a marketbased policy to spur demand as well as drive investment in 

increased ethanol fueling infrastructure.

Additionally, any reform must be careful to both provide for 

the continued expansion of the existing ethanol industry and 

the commercialization of advanced and cellulosic ethanol 

technologies. Incentives that are feedstock and technology neutral 

and that value reducing carbon emissions must be considered.

A Bridge to the Future

Those who have been critical of ethanol in the past should take a 

fresh and objective look at the industry today. Those within the 

industry should be willing to work with our critics to understand 

their concerns. Just as maintaining the status quo should not be 

an option, neither should simply allowing the ethanol industry 

to wither on the vine, leaving a void in the market that can only 

be filled by increased and significantly more costly oil imports. 

That of course is neither fiscally responsible nor environmentally 

sustainable.

“With more research and incentives, we can 

break our dependence on oil with biofuels... 

We need to get behind this innovation. And 

to help pay for it, I’m asking Congress to 

eliminate the billions in taxpayer dollars we 

currently give to oil companies. I don’t know if 

you’ve noticed, but they’re doing just fine on 

their own. So instead of subsidizing yesterday’s energy, let’s invest in tomorrow’s.”

 President Barack Obama 

 State of the Union Speech

 January 25, 2011

uses. It is accompanied by an offsetting secondary tariff 

on imported ethanol to recover the value of VEETC. As 

foreign ethanol is treated equally under this tax provision as domestic ethanol, the tariff protects American 

taxpayers from having to subsidize foreign ethanol 

production.

The most pressing issue is developing a roadmap 

for the future deployment of ethanol after 2011. 

The extensions have given the industry a year to 

create a plan, generate support, and implement it. 

We need to focus on higher ethanol blends and the 

infrastructure to deliver them. 

Mike Jerke, General Manager, Chippewa Valley 

Ethanol Company and RFA Board Member

In Their

WORDS

[1] Calculated by DTN/Progressive Farmer.
Spanning the Range of Ethanol 

To provide enough market capacity to allow for 36 billion gallons of renewable fuel in 2022, America needs to 

move beyond current artificial limits on ethanol blending. That means allowing for the use of blends above 

10 percent ethanol (E10) for all vehicles, expanding the fleet of flex-fuel vehicles (FFVs) able to use up to 85

percent ethanol (E85), and ensuring the infrastructure exists to dispense these fuels. To achieve the goals of 

the Renewable Fuel Standard (RFS), the nation will need more than 25 percent of the gasoline market to be 

comprised of renewable fuels.

E15 Split Decision

In October 2010, the Environmental Protection Agency (EPA) 

approved the use of 15 percent ethanol (E15) in gasoline for cars 

and light duty trucks made in model year 2007 and later. In January 

2011, EPA expanded upon that decision to include cars, pickups 

and SUVs made in model years 2001 through 2006. All told, that 

encompasses approximately 62 percent of all light duty vehicles on 

the road today.

However, EPA has no immediate plans to review the efficacy 

of E15 for vehicles older than model year 2001, despite the fact 

most of these vehicles have outlived EPA’s definition of a useful 

life. An engineering analysis of vehicles from 1994-2000 done by 

automotive engineering firm Ricardo Inc. concluded “that the 

adoption and use of E15 in the motor vehicle fleet from the studied 

model years should not adversely affect these vehicles... or cause 

them to perform in a sub-optimal manner when compared with 

their performance using the E10 blend that is currently available.”

EPA’s decisions have been met with muted enthusiasm from 

ethanol interests and outright hostility from automakers, oil 

companies, and engine makers to name a few. Currently, no fewer 

than three separate lawsuits have been filed to stop EPA’s partial 

waiver from moving forward.

Despite the confusion caused by the split decision and pending 

litigation, work remains to ensure higher levels of ethanol, 

including E15, can be sold. Namely, concerns over proposed 

labeling language, health effects testing of E15 blends, state 

fuel regulations, and apprehension from gasoline retailers and 

automakers must all be addressed to see meaningful volumes of 

E15 available in the market.

20
2010 Ethanol Industry OUTLOOK

 Blends

2011 Ethanol Industry OUTLOOK 21

Beyond the Blend Wall

A wide variety of ethanol blends will be required to satisfy the 

demands of the RFS. E15 is just a start. Currently, testing is 

ongoing into the efficacy of 20 percent ethanol blends (E20) for 

use in conventional vehicles. Simultaneously, efforts to expand 

ethanol dispensing infrastructure are under way.

To this end, the RFA is supporting efforts by the U.S. 

Department of Agriculture (USDA) to install 10,000 blender 

pumps over the next five years. Additionally, the RFA is 

working with lawmakers to craft responsible policy that 

properly incentivizes both blender pump infrastructure and 

the production of vehicles like FFVs capable of using high level 

ethanol blends.

E15 Label

As part of the requirement of the partial waiver, EPA is 

creating a label to inform consumers which vehicles can 

use E15. The RFA has vigorously participated in the process, 

working with industry partners and gasoline marketers 

to ensure EPA’s label is neither unnecessarily alarming nor 

misleading. The RFA has summited comments to EPA and 

proposed the label seen on this page.

EPA Fuel Registration 

The RFA is working with Growth Energy to develop the 

necessary health effects data to register E15 as a legal fuel.

State Regulations

As with E10 blends, the RFA is working with state regulators 

to properly adjust various fuel regulations to allow for the 

legal sale of E15 blends.

Point-of-Sale

Beyond working to develop an appropriate label, the RFA is 

working with retailers to address concerns over misfueling, 

E15 storage and other issues. Namely, the RFA worked 

with the Society of Independent Gasoline Marketers of 

America (SIGMA), the Petroleum Marketers Association of 

America (PMAA), and other fuel marketers to introduce 

the Renewable Fuels Marketing Act in the 111th Congress. 

The bill would provide a checklist for compliance to satisfy 

concerns of insurance companies covering gasoline retailers 

that all proper precautions and safety measures are in place. 

The RFA will look to get the legislation reintroduced in the 

112th Congress.

The E15 Checklist 3

RFA Proposed Label EPA Proposed Label
Unparalleled Environmental Gains

The use of an increasing amount of ethanol in American gasoline 

supplies is making the air we all breathe much cleaner. Using the 

GREET model developed by the U.S. Department of Energy’s 

Argonne National Laboratory, 13 billion gallons of production and 

use last year helped reduce greenhouse gas (GHG) emissions from 

on-road vehicles by 21.9 million tons. That is equivalent to removing 

3.5 million cars and pickups entirely from the road.

Ethanol reduces greenhouse gas emissions through the uptake of 

carbon dioxide (CO2) during the growth of ethanol feedstocks. 

Independent analyses comparing ethanol and gasoline show 

ethanol reduces GHG emissions from 30-50 percent, depending 

upon technologies and factors considered. A study published in 

Yale University’s Journal of Industrial Ecology found that GHG 

emissions from ethanol produced at modern dry-mill facilities are 

“...equivalent to a 48 percent to 59 percent reduction compared to 

gasoline, a twofold to threefold greater reduction than reported in 

previous studies.”

Ethanol production is also becoming more efficient, requiring fewer 

energy inputs while yielding more ethanol. According to May 2010 

research on ethanol production resource requirements in 2008 

from the University of Illinois at Chicago, energy requirements for 

ethanol production have decreased 28 percent since 2001, electricity 

demands by 32 percent, and water use is down to 2.72 gallons per 

gallon of ethanol production. All of these improvements were 

achieved while improving ethanol yields by 5.3 percent. 

Naturally, ethanol also requires far less fossil fuel inputs than 

gasoline refining. According to the University of California at 

Berkeley, the production of 19 units of ethanol energy takes just 

one unit of petroleum energy. An analysis released by the U.S. 

Department of Agriculture in June 2010 concluded that one unit of 

fossil energy used in the corn ethanol production process results in 

2.3 units of energy in the form of ethanol. In fact, it is gasoline and 

not ethanol that requires more energy to produce. Researchers at the 

Department of Energy’s Argonne National Laboratory found that it 

takes 1.23 units of fossil energy to produce one unit of energy in the 

form of gasoline.

Traversing the Environmental 

There is no fuel available at scale today that can match ethanol’s ability to improve overall environmental 

quality compared to gasoline. From its biodegradable nature to reductions in greenhouse gas emissions and 

tailpipe pollution, ethanol provides a tool to address environmental concerns without requiring an entirely new 

way for goods and people to get from one place to another. 

Hot Topics for 2011

Environmental issues will continue to be front and center this 

year. Implementation of the RFS based upon its GHG emissions 

requirement needs additional monitoring as the science behind 

EPA’s determination of emissions continues to evolve while new 

regulations on the emissions from ethanol biorefineries seek to 

penalize ethanol production.

ILUC Takes a Hit

A common criticism of environmental activists opposed to 

ethanol is the notion of indirect land use change (ILUC). This 

idea states that land used to grow corn for ethanol production 

in the U.S. requires new acres elsewhere in the world to be 

brought into production. The resulting “carbon belch” of that land 

conversion must be attributed to ethanol’s lifecycle greenhouse gas 

accounting, as the theory goes. This theory originally took root in 

2008 when environmental attorney Timothy Searchinger imagined 

that this carbon belch and the perceived emission of GHG through 

deforestation resulting from increased biofuel production was 

massive. Subsequently, carbon accounting policies both at the 

federal and state level sought to penalize ethanol with this yet-tobe-proven theory. 

Now, with the benefit of time and improved scientific processes, 

those original doomsday predictions are being roundly disproven. 

New ILUC modeling results released by Purdue University in 

April 2010 reduced corn ethanol ILUC to about 15-18 grams 

of carbon dioxide (CO2) per mega joule (g/MJ), compared to 

Searchinger’s original estimate of 104 g/MJ. Additionally, modeling 

done by Air Improvement Resource, Inc., the Department of 

Energy’s Oak Ridge National Laboratory, and others suggest little 

if any additional land was needed domestically or internationally 

to support the recent growth in U.S. ethanol production, thus 

eliminating the penalty for ILUC. As ILUC calculations are 

integral to ethanol’s lifecycle GHG emission profile as used by the 

RFS and in states such as California, these new findings demand a 

fresh look at ethanol’s environmental benefits.

22
Landscape

2011 Ethanol Industry OUTLOOK 23

Amazonian Deforestation Rates Fall

Analysis of satellite imagery by Brazil’s National Institute 

for Space Research (INPE) demonstrates that deforestation 

rates in the Brazilian Amazon have fallen to their lowest 

levels since the government began keeping data in 1988. 

The destruction of rain forests is one of the chief criticisms 

of environmentalists opposed to ethanol production and 

use. Yet, as this data shows, deforestation rates are down 14 

percent year over year while U.S. ethanol production rose 

more than 20 percent over the same period.

S corn ethanol indirect land use change (iluc) published estimates

110

100

90

80

70

60

50

40

30

20

10

0

Searchinger 

et al. (Science)

Feb 08

U.S. EPA 

(RFS2 Proposal)

May 09

CA Air Resources 

Board (ISOR)

Jan 09

U.S. EPA 

(RFS2 Final Rule)

Feb 10

Hertel et al. 

(BioScience)

Mar 10

Purdue 

University

Apr 10

Grams CO2e/MJ (30 years/0% discount)

104.0

63.3

30.0

28.4

27.0

13.9

Source: RFA 
A March 2010 report by the United Kingdom’s Department for 

Environment, Food and Rural Affairs found that, “available evidence 

suggests that biofuels had a relatively small contribution to the 2008 

spike in agricultural commodity prices.” Even the World Bank, which 

in 2008 suggested biofuels was playing a large role in higher food 

prices, released an analysis in July 2010 that found “...the effect of 

biofuels on food prices has not been as large as originally thought...” 

and that “...the use of commodities by financial investors may have 

been partly responsible for the 2007-08 spike.” 

The U.K. and World Bank reports confirmed the findings of a 2009 

Congressional Budget Office analysis that found “...from April 2007 

to April 2008, the rise in the price of corn resulting from expanded 

production of ethanol contributed between 0.5 and 0.8 percentage 

points of the 5.1 percent increase in food prices measured by the 

Consumer Price Index (CPI). Over the same period, certain other 

factors—for example, higher energy costs—had a greater effect on 

food prices than did the use of ethanol as a motor fuel.”

If any more evidence of ethanol’s trivial impact on food prices 

is needed, one needs only to consider that the CPI for food was 

projected to increase just 0.5-1.5 percent in 2010—the lowest annual 

food inflation rate since 1992. Even as ethanol production is set to 

reach record levels in 2011, USDA’s forecast for 2011 food inflation is 

2 to 3 percent, compared to the more normal rate of 3 to 4 percent.

Food and Fuel

The ethanol industry continues to battle the “food vs. fuel” myth, although the debate is losing its 

intellectual foundation. Several new independent studies on the role of ethanol in the food price spike 

of 2008 confirmed the industry’s charge that ethanol production plays a marginal role in determining 

food prices.

Off to the Races in 2011

The food and fuel debate has plagued American ethanol 

production from the beginning. While the facts clearly 

demonstrate the marginal role of ethanol production in food 

prices, the recent rise in all commodity prices will undoubtedly 

refuel the inflammatory rhetoric that was rampant in the summer 

of 2008 as corn prices followed oil prices to record highs. 

According to some predictions, corn prices could approach the 

non-inflation adjusted highs seen in 2008. Like then, oil prices 

are also expected to rise to $100 or more per barrel. Such an 

environment is fertile ground for speculators, as the World Bank 

noted when it revisited the 2008 commodity bubble.

Much of the speculation is being fueled by a perceived shortage 

in global grain supplies. Farmers base their planting decisions 

on price signals from the marketplace. Higher world prices 

for corn resulting in part from lower-than-expected 2010 

production in the United States and elsewhere will lead farmers 

in other parts of the world to plant more corn instead of other 

less profitable crops. 

Further, U.S. farmers have a history of responding quickly to 

market signals by adjusting acreage and switching crops to best 

capitalize on current and expected prices. As an example, a 

short corn crop in 1995 caused prices to spike and left ending 

stocks at just 426 million bushels. Farmers responded the next 

year by increasing corn acres by 11 percent and boosting total 

production by 25 percent. 

More recently, farmers increased corn acreage by some 15 

million acres in 2007 in response to demand and price signals. 

The 19 percent increase in corn acreage and 24 percent increase 

in production in 2007 clearly demonstrate the ability of farmers 

to react swiftly to changes in the marketplace.

Hopefully, the lessons learned from the rush to judgment about 

the causes of the 2007/08 food price escalation will lead media 

and policymakers to take a more careful and measured approach 

to discussions of the current grain market situation and the role 

of biofuels.

2244
2011 Ethanol Industry OUTLOOK 25

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

Millions of Bushels

Feed & Residual DG/CG (fed) Production

Exports Ethanol (Net)

Non-Ethanol Industrial

Source: USDA *Estimated 

S U.S. Corn use by segment

2011 Ethanol Industry OUTLOOK 25

U.S. Ethanol’s Industry Share

of Global Grain SUPPLY* S

Global Grain Supply 

for Other Uses

97%

U.S. Ethanol 

Industry

3%

Source: USDA and RFA *Estimated 

The impact of U.S. ethanol production on world grain supplies is 

minimal. U.S. ethanol production accounts for just 3 percent on a net 

basis of the second-largest global grain supply in history - 2.6 billion 

metric tons. That means 97 percent of all the grain produced in the 

world is available for other uses. In the U.S., where ethanol demand 

for corn has grown, so too has the production of livestock feed 

from ethanol biorefineries. As the chart below points out, DDGS are 

becoming a growing source of feed for domestic use and for export.

Global grain 

supply (corn, 

wheat, rice, etc) 

totaled more

than 2.6 billion 

metric tons last year.
Connecting World Markets with 

While domestic challenges consumed much of the debate around ethanol in 2010, advancements in the global 

market for ethanol showed promise for establishing a true world trade in renewable fuels.

Surging Global Production Matched 

by Growing Demand

On the back of greater than anticipated ethanol production in the U.S., 

global production of ethanol grew nearly 15 percent in 2010 to 22.9 

billion gallons. Leading ethanol producers in the U.S., Brazil, Canada, 

and Europe saw increases in ethanol production reflective of the 

growing appetite for renewable fuels.

Perhaps even more representative is the growth seen in trade of 

ethanol, particularly in exports of ethanol from the U.S. Long a net 

importer of ethanol, the U.S. reversed course in 2010 by sending a 

record of more than 350 million gallons of denatured and undenatured 

ethanol to overseas markets.

As previously noted, this surge in ethanol exports was mirrored by 

increases in exports of distillers grains. A record of nearly 9 million 

metric tons of this high value livestock feed were exported in 2010, 

with much of the product headed for markets in Asia and Europe.

Barriers to a Global Market

Expanding industries are bound to experience coinciding 

growing pains, and the global ethanol industry is no exception. 

While production and demand grow, so does the spotlight on 

trade policies in various regions. 

One issue that has received repeated attention over the years 

is the charge by Brazil that the U.S. tariff on imported ethanol 

blocks the trade of ethanol between the two nations. Frustrated 

that they were unable to manipulate U.S. policy to meet their 

goals, the Brazilians are threatening action in the World Trade 

Organization. However, as has always been the case, Brazil or any 

other potential importer of ethanol to the U.S. are beneficiaries 

of the tax credit known as VEETC. Because VEETC is applied 

equally to all gallons of ethanol regardless of origin, Congress 

imposed a secondary tariff to recapture the value of VEETC and 

S 2010 Global ethanol production (millions of gallons)*

Source: F.O. Lichts 

26

Continent Africa Asia Australia Europe North and Central America Oceania South America

 2010 43.59 785.91 66.04 1,208.58 13,720.99 66.04 7,121.76

Nation Brazil Canada China European Union

 2010 6,921.54 356.63 541.55 1,176.88

*Estimated

 
 Ethanol

prevent American taxpayers from further subsidizing ethanol 

industries that already receive handsome government support 

in their own countries. 

A new issue has also arisen in the European Union (EU). 

Because of EU tariff schedules, ethanol blended with just 10 

percent gasoline can be imported into the economic zone at a 

lower rate than traditional denatured or undenatured ethanol. 

Following the recent rise in exports to Europe, EU officials 

have charged that American ethanol tax policy is encouraging 

further use of this tariff loophole through such trade. 

However, imports of ethanol with the additional gasoline 

blending have been entering EU markets and paying the lower 

Source: F.O. Lichts

tariff for years. While the complaints of the European ethanol 

industry are understandable, their angst is misguided. This issue 

is largely one of EU tariff policy and not U.S. tax policy.

Finally, and most recently, China announced that it would be 

conducting an investigation into an antidumping claim lodged 

by Chinese ethanol and dry distillers grains (DDGs) producers 

regarding the exports of U.S. dry distillers grains. China claims 

that alleged DDGs dumping into the country’s livestock markets 

is presenting unfair competition to China’s own ethanol producers 

who cannot produce DDGs as cheaply. The U.S. ethanol industry 

strongly disputes China’s antidumping claims and is confident that 

the results of the investigation will render the complaint moot.

S Historic U.S. Ethanol Imports (millions of gallons)

2002 2003 2004 2005 2006 2007 2008 2009 2010

 MGY 45.5 60.9 159.9 135.5 653.3 435.2 600.0 193.7 10.0*

S Historic U.S. Ethanol EXports (Denatured and Undenatured, Non-Beverage, in millions of gallons)

2002 2003 2004 2005 2006 2007 2008 2009 2010

 MGY 46.8 63.4 47.3 62.7 36.8 150.2 157.7 113.3 350.0*

Source: International Trade Commission, RFA 

2011 Ethanol Industry OUTLOOK 27

*Estimated

 
The Devil is in the Details

For the past 30 years, the RFA has been and remains the 

unchallenged expert on the critical technical issues that are the 

difference between the smooth integration of ethanol into the 

nation’s fuel mix and failure to access the marketplace. RFA’s 

Technical Committee, comprised of leading experts within the 

ethanol industry, actively engages international, national, and 

state level regulatory and standard-setting agencies to develop 

specifications that allow for the maximum amount of ethanol use 

in the marketplace. The work of the Technical Committee has been 

instrumental in opening new markets to ethanol blends and setting 

standards within ASTM and other bodies that allow for the seamless 

integration of ethanol into gasoline products coast to coast.

In 2011, the expertise of Technical Committee members will be 

instrumental in addressing the ongoing decisions of EPA regarding 

the use of E15 and other higher level ethanol blends in motor 

vehicles. Additionally, committee members will be engaged with 

federal and state regulators to amend current fuel regulations to 

allow for the widespread availability of E15. 

The work of the Technical Committee with regard to fuel 

specifications and the proper use of ethanol blends can be found in 

the Changes In Gasoline Manual: Fourth Edition. This resource has 

become the definitive reference for auto technicians, engine repair 

shops, and fuel distributors. The full manual is available for free at 

www.EthanolRFA.org. 

In short, the ability of domestically-produced ethanol from all 

feedstocks to capture more market share and fulfill the goals set forth 

by the Renewable Fuel Standard is in no small measure dependent 

upon successful outcomes to the many technical issues regarding 

fuel ethanol.

RFA Behind the Scenes

Much of the work that is needed to allow American ethanol production to grow and evolve is done out of 

the spotlight and without fanfare. Whether it is dealing with specifications for various substances in ethanol 

measured in parts per million, expanding markets for all products of ethanol production, or providing the 

necessary information for the safe operation and transport of ethanol, the success of the industry is as much a 

function of quality technical expertise as it is policy development. 

More than Fuel

The importance of distillers grains and other feed co-products 

provided by American ethanol producers has never been more 

prominent. As domestic livestock and poultry producers research 

new and increased uses for DDGs and global trading partners 

discover the value of this product, the quality and reliability of the 

DDGs produced is paramount. The RFA’s Co-products Committee 

has stayed fully abreast of all the issues regarding the trade and use 

of DDGs. Members of the committee routinely interact with our 

trading partners and other groups, such as the U.S. Grains Council 

and the National Corn Growers Association, to appropriately 

address any issues that may arise as well as capitalize on new 

markets and opportunities for the use of DDGs. 

28
2010 Ethanol Industry OUTLOOK

2011 Ethanol Industry OUTLOOK 29

Safety First

The safety of employees within the ethanol industry and our 

neighbors in the communities in which the ethanol industry 

operates is priority number one. The Ethanol Emergency 

Response Coalition (EERC, www.ethanolresponse.com), a 

coalition of both industry and government representatives and 

led by the RFA Plant and Employee Safety Committee, provides 

detailed and up to date training materials to first responders to 

educate them about techniques and tools that are most effective 

in responding to ethanol-related incidents. The EERC’s flagship 

resource, the Complete Training Guide to Ethanol Emergency 

Response, has been distributed to more than 3,000 personnel all 

across the world and is continually updated to offer the most 

accurate information available. 

In addition to emergency response, the RFA Safety Committee 

also provides industry best practices focused squarely on the 

safety of employees and neighbors. The Safety Committee 

monitors new regulations from federal and state safety bodies 

such as the Occupational Safety and Health Administration 

(OSHA) and the U.S. Department of Transportation and provides 

ethanol biorefineries with recommended practices to ensure the 

safety of all employees. From combustible dust regulations to 

improved accident frequency rates, the RFA Plant and Employee 

Safety Committee’s mission is continuous improvement. 

Staying in Compliance

The RFA Environmental Compliance Committee has put a 

priority on protecting the environment while providing a forum 

for navigating the complex environmental regulations imposed 

on ethanol production facilities. EPA’s Greenhouse Gas Tailoring 

Rule, Mandatory Greenhouse Gas Reporting requirements and 

Industrial Wastewater regulations are all topics leading the agenda 

of this committee.

2011 Ethanol Industry OUTLOOK 29

The RFA’s value to the industry stretches far 

beyond Washington. Whether it’s fuel regulations, 

product quality improvements, implementation of 

federal regulations, or keeping employees and our 

communities safe, the technical information the 

RFA provides is invaluable to operating an ethanol 

plant and meeting the needs of our customers. 

The technical expertise of the RFA staff is second 

to none.

Chuck Woodside, CEO of KAAPA Ethanol 

and RFA Chairman of the Board

In Their WORDS
Pedal to the Metal in 2011

The RFA Market Development Team has partnered with the 

American Coalition for Ethanol (ACE), the National Corn Growers 

Association (NCGA), and 12 state corn grower associations to 

educate gasoline marketers and retailers about the use of midlevel ethanol blends (MLEBs) and the blender pumps needed to 

dispense them. Begun in 2009, the Blend Your Own (BYO) Ethanol 

campaign has worked tirelessly to lay the groundwork for extensive 

installation of blender pumps. With certification from Underwriters 

Laboratories (UL) of several blender pump models, the marketplace 

now has access to both the technology and the information to install, 

offer, and market MLEBs to the American driver.

To date, the BYO campaign has contacted tens of thousands of 

retailers, provided thousands of sales kits, and participated in dozens 

of leading petroleum industry meetings all across the country. 

More information about the campaign and access to blender pump 

information is available at www.BYOethanol.com. 

Building Awareness, Driving 

Ethanol is a high-octane, cleaner-burning, and cheaper alternative to imported oil for fueling America’s vehicle 

fleet. The production of ethanol is providing economic opportunity for tens of thousands of Americans, 

particularly those living in rural areas. Telling consumers the benefits of ethanol, and more importantly where 

they can buy it, is vital to ensuring the policies enacted are successful. 

Giving Consumers Choice

Outside the mission of the BYO Ethanol campaign, the RFA’s 

Market Development team is focused on identifying opportunities 

to assist gasoline retailers in offering MLEBs, up to E85. Seeking 

out markets with high concentrations of flex-fuel vehicles (FFVs) 

capable of using higher ethanol blends, the Market Development 

team has partnered with fuel providers like Protec and pump 

providers like Gilbarco to put blender pumps and E85 pumps in 

locations all across the country.

One notable success of the RFA’s marketing efforts is the adoption 

of E85 by a growing number of military installations across the 

country. Government fleets, including military vehicles, must 

give preference to alternative fuels where available. The problem 

has been a lack of availability of E85 for the tens of thousands of 

military FFVs. An example of this expansion is the installation of 

an E85 pump at the front gate of the Norfolk Naval Air Station in 

Norfolk, Virginia. There are more than 10,000 FFVs near the Naval 

Station that previously had no access to E85.

30
2010 Ethanol Industry OUTLOOK

Different Strokes for Different Folks

The American consuming public is not homogenous. Different 

approaches and creative thinking are required to bring ethanol’s 

message to a diverse consuming public. What works with 

lawmakers on Capitol Hill may not speak to mothers in suburban 

Atlanta. Ethanol’s economic benefits are of interest to farmers in 

Nebraska, but ethanol’s performance is what will move motorcycle 

enthusiasts in Sturgis, South Dakota. Recognizing these 

differences, the RFA has engaged in a wide variety of marketing 

initiatives to engage, inform, and ultimately motivate millions of 

Americans to choose ethanol.

ChooseEthanol.com

Driving RFA’s consumer marketing is the website 

www.ChooseEthanol.com. The site contains simple information 

about American ethanol, a listing of FFVs to help consumers 

identify if they are driving one, and tools to help drivers find 

ethanol fueling locations in their neighborhoods. 

There’s an App for That

On the cutting edge of technology, the RFA has launched several 

applications for mobile devices – smartphones, iPhones, iPads 

– to help consumers locate E85 fueling locations. These apps use 

GPS technology to alert drivers to gas stations near them offering 

ethanol blends. Directions to download and install these apps are 

available on www.ChooseEthanol.com. Additionally, programming 

for GPS devices such as the Garmin and 

TomTom is also available for download.

Demand

2011 Ethanol Industry OUTLOOK 31

All About Alternatives

The RFA recognizes that America will need a host of 

renewable energy choices to end our addiction to oil. After 

securing a two-year Department of Energy grant in 2009, the 

RFA is working with the biodiesel, natural gas, and propane 

industries on a national education effort. Partnering with 

Clean Cities coordinators in major metropolitan areas across 

the country, this effort seeks to educate those making fueling 

infrastructure decisions about the merits of these various 

alternative fuels. The program consists of in-person training 

and online webinars to provide up-to-date information on all 

fuel technologies. The program will continue in 2011. 
The expertise of the RFA and its members is not limited to Capitol 

Hill. For 30 years, the RFA has been the authoritative voice on the 

technical issues that determine the size of ethanol’s market share. 

The RFA has worked with regulators to implement amendments 

to the Clean Air Act (CAA) in the 1990s that expanded ethanol’s 

position in major markets seeking to come into compliance with 

CAA requirements. The RFA has also led efforts to amend state 

regulations to allow for the use of E10 and continues those efforts in 

advance of the introduction of E15.

The ability of the RFA’s staff to be successful is derived from the 

commitment of its members to the mission of the association. 

The RFA has been able to advocate on behalf of American ethanol 

production because those who actually produced the fuel supported 

the RFA and the industry.

As the industry moves forward, the RFA will continue to advocate on 

its behalf to enact policies and meaningfully expand the market for 

all ethanol producers regardless of feedstock. 

The RFA at 30

Since 1981, the Renewable Fuels Association has been the unparalleled voice of American ethanol in 

Washington and around the world. The RFA and its members have been at the center of every successful policy 

fight and market initiative that has meaningfully expanded ethanol production and use. No fewer than five 

times has the RFA and its members successfully convinced Congress to extend key tax incentives for ethanol use, 

including the unlikely extension at the end of the year in 2010. The RFA and its members were a driving force 

helping to establish the first Renewable Fuel Standard (RFS) in 2005. And, it was the RFA and its members that 

led the push to expand the RFS 500 percent just two years later.

RFA Staff

Washington D.C. Office

Cara Barrett Administrative Assistant

Bob Dinneen President & CEO

Mary Giglio Director, Special Projects and Events

Matt Hartwig Director of Public Affairs

Edward S. Hubbard, Jr., Esq. Legislative Counsel

Christina Martin Executive Vice President

Taryn Morgan Communications Specialist

Alex Obuchowski Chief Financial Officer

Anne Rhine Office Manager

Samantha Slater Vice President, Government Affairs

Matt Stuckey IT Director

St. Louis Office

Geoff Cooper Vice President, Research 

 and Analysis

Ann Lewis Project Manager

Kristy Moore Director, Technical Services

Omaha Office

Taylor Irish Marketing Coordinator

Randy Klein Director of Membership

Jen Kracher Administrative Assistant

Missy Ruff Market Development Manager

Robert White Director of Market Development

32
Membership

RFA membership includes a broad cross-section of businesses and 

organizations dedicated to the expansion of the U.S. fuel ethanol 

industry. 

Supporting Members enjoy: 

n Participation in Annual Membership meeting 

n Industry alerts and issue briefs 

n Access to Association publications and educational materials 

n Reduced registration fee for National Ethanol Conference

Prospective Producer and Associate Members enjoy all 

benefits of Supporting Members and additionally:

n Weekly updates on regulatory, legislative, research and 

technical market development and communication issues. 

n Provide input on RFA policy, activities and priorities through 

attendance at Annual Membership meeting 

n Networking opportunities with producer members 

n Link on RFA web site 

n Access to Member Center section of RFA web site 

n Committee participation

Producer Members receive all benefits of Prospective 

Producers, Associate and Supporting Members, while also 

enjoying unique benefits including:

n Voting member of the RFA Board of Directors 

n Participation in Association meetings and the development of 

policies

n Eligible to serve as a member of the Association’s Executive 

Committee 

n Timely and accurate legislative and regulatory updates, alerts 

and issue briefs 

n State legislative activity summary 

n Industry reports and studies 

RFA Committees

Within the association, the RFA has a host of committees that address 

issues ranging from blending and performance standards to safety 

concerns to the development of cellulosic ethanol technology. The 

committees include:

Technical Committee

Environmental Compliance Committee

Cellulose Committee

Co-Products Committee

Plant & Employee Safety Committee

The Renewable Fuels Foundation (RFF) is dedicated to meeting the 

education, research and strategic planning needs of the U.S. fuel 

ethanol industry.

The goal of the RFF is to assure a growing and healthy renewable fuels 

industry well into the future. The focus of the RFF is toward academia, 

industry and public policy makers as we address issues related to new 

uses, new feedstocks and new technologies that will impact the future 

of ethanol. More information on the RFF is available at 

www.renewablefuels-foundation.org. 

RFF Officers

Mike Jerke 

Chairman

Chippewa Valley Ethanol Company

Bob Sather

Vice Chairman

Ace Ethanol, LLC

Mick Henderson 

Treasurer

Commonwealth Agri-Energy, LLC 

Steve Gardner 

Secretary

East Kansas Agri-Energy, LLC

2011 Ethanol Industry OUTLOOK 33
Prospective Producer Members

BioEnergy International, LLC www.bioenergyllc.com

BioFuel Energy, LLC www.bfenergy.com

BlueFire Ethanol, Inc. www.bluefireethanol.com

Bunge North America www.bungenorthamerica.com

Corn, LP www.cornlp.com

DuPont Danisco Cellulosic Ethanol www.ddce.com

First United Ethanol, LLC www.firstunitedethanol.com

Heron Lake BioEnergy, LLC www.heronlakebioenergy.com

INEOS New Planet BioEnergy, LLC www.inpbioenergy.com

Iogen Corp. www.iogen.ca

Osage Bio Energy www.osagebioenergy.com

Penford Products Company www.penfordproducts.com

Permolex International, LP www.permolex.com

Range Fuels, Inc. www.rangefuels.com

Renewable Energy Technologies, LLC

SWI Energy, LLC

Taunton Regional Solid Waste Management Facility

Verenium Corp. www.verenium.com

ZeaChem, Inc. www.zeachem.com

Associate Members

AgCountry Farm Credit Services www.agcountry.com

AGRA Industries, Inc. www.agraind.com

AgStar Financial Services www.agstar.com

Alfa Laval, Inc. www.alfalaval.com

Arisdyne Systems, Inc. www.arisdyne.com

Barr Engineering Company www.barr.com

BBI International www.bbibiofuels.com

BetaTec Hop Products, A Division of John I Haas, Inc.

www.betatechopproducts.com

Biofields S.AP.I de C.V. www.biofields.com

BrownWinick www.brownwinick.com

Carl Marks Advisory Group www.carlmarks.com

Ceres, Inc. www.ceres.net

CF Industries www.cfindustries.com

CH2M Hill www.ch2m.com

Christianson & Associates, PLLP www.christiansoncpa.com

CHS Inc. www.chsinc.com

CME Group www.cmegroup.com

CoBank www.cobank.com

Codexis, Inc. www.codexis.com

Cogent BioFuels, LLC www.cogentbiofuels.com

Consolidated Grain & Barge Co. www.cgb.com

CSX Transportation www.csx.com

Dorsey & Whitney, LLP www.dorsey.com

Eco-Energy, Inc. www.eco-energyinc.com

Encore Business Solutions www.encorebusiness.com

Fagen, Inc. www.fageninc.com

Farm Credit Bank of Texas www.farmcreditbank.com

FCStone, LLC www.intlfcstone.com

Fermentis - S.I. Lesaffre www.fermentis.com

Fremont Industries, Inc. www.fremontind.com

Fulbright & Jaworski L.L.P. www.fulbright.com

G Cube Insurance Services www.gcube-insurance.com

GATX Rail www.gatx.com

Gavilon, LLC www.gavilon.com

Genencor, A Danisco Division www.genencor.com

Gold Eagle Co. www.goldeagle.com

Grace Davison www.grace.com

Greenfield Ethanol Inc. www.greenfieldethanol.com

Growmark, Inc. www.growmark.com

Hydro-Klean, Inc. www.hydro-klean.com

Innospec Fuel Specialties www.innospecinc.com

Iowa Renewable Fuels Association www.iowarfa.org

KATZEN International, Inc. www.katzen.com

Kenan Advantage Group, Inc. www.thekag.com

Kinder Morgan Inc. www.kne.com

Lallemand Ethanol Technology www.ethanoltech.com

Lansing Ethanol Services, LLC www.lansingtradegroup.com

Leonard, Street and Deinard www.leonard.com

Lignol Energy Corp. www.lignol.ca

Lincoln Energy Solutions www.lincolnenergysolutions.com

Mascoma Corporation www.mascoma.com

Michael Best & Friedrich, LLP www.michaelbest.com

Midwest Laboratories, Inc. www.midwestlabs.com

Monsanto www.monsanto.com

34
2010 Ethanol Industry OUTLOOK

Motiva Enterprises LLC www.motivaenterprises.com

Murex, N.A., Ltd. www.murexltd.com

Musket Corporation www.musketcorp.com

Nalco Company www.nalco.com

National Corn Growers Association www.ncga.com

National Grain Sorghum Producers www.sorghumgrowers.com

Noble Americas Corp. www.thisisnoble.com

NorFalco Inc. www.norfalco.com

North American Bioproducts Corp. www.na-bio.com

North Dakota Corn Council www.ndcorn.org

Novozymes North America, Inc. www.novozymes.com

PhibroChem www.phibrochem.com

Pinnacle Engineering Inc. www.pineng.com

Pioneer, A DuPont Company www.pioneer.com

PRX Geographic, Inc. www.prxgeo.com

Qteros www.qteros.com

Renewable Products Marketing Group www.rpmgllc.com

RSM McGladrey www.mcgladrey.com

SGS www.sgs.com

Stoel Rives LLP www.stoel.com

SunOpta BioProcess www.sunopta.com

TMO Renewables LTD www.tmo-group.com

TransMontaigne Product Services www.transmontaigne.com

Transportation Fuels Consulting Inc.

TranSystems www.transystems.com

Tranter PHE, Inc. www.tranter.com

Trinity Rail Group, LLC www.trinityrail.com

U.S. Development Group www.us-dev.com

U.S. Energy Services, Inc. www.usenergyservices.com

U.S. Water Services www.uswaterservices.com

Union Pacific Railroad www.up.com

Union Tank Car Company www.utlx.com

Victaulic www.victaulic.com

Weaver www.weaverllp.com

Western Ethanol Company, LLC www.westernethanol.com

Supporting Members

Agricultural Retailers Association www.aradc.org

Angelina College www.angelina.edu

Bemidji (MN) State University www.bemidjistate.edu

Bismarck State College www.bsc.nodak.edu

Colorado Farm Bureau www.colofb.com

Corn Marketing Program of Michigan www.micorn.org

Distillers Grains Technology Council www.distillersgrains.org

Downstream Alternatives

Ethanol Producers and Consumers www.ethanolmt.org

Illinois Corn Growers Association www.ilcorn.org

Indiana BioFuels Alliance www.indianabiofuels.com

Iowa State University www.iastate.edu

Jamestown/Stutsman Development Corp. www.growingjamestown.com

Kansas Association of Ethanol Processors www.ethanolkansas.com

Maryland Grain Producers Utilization Board 

www.marylandgrain.com

Michigan State University – Department of Agricultural Economics

www.aec.msu.edu

Milano the New School www.newschool.edu/milano

Minnesota Corn Growers Association www.mncorn.org

Minnesota Department of Agriculture www.mda.state.mn.us

Mississippi State University – Department of Forestry 

www.cfr.msstate.edu/forestry

Missouri Corn Growers Association www.mocorn.org

Morton College www.morton.edu

National Corn-to-Ethanol Research Center www.ethanolresearch.com

Nebraska Corn Board www.nebraskacorn.org

New Jersey Gasoline C-Store Automotive Association (NJGCA) 

www.njgca.org

Ohio Corn Marketing Program www.ohiocorn.org

REDDI www.reddionline.org

South Dakota Corn Growers Association www.sdcorn.org

Steele-Waseca Cooperative Electric www.swce.coop

Sugar Processing Research Institute www.spriinc.org

Texas Renewable Energy Industries Association www.treia.org

United Association www.ua.org

Water Assurance Technology Energy Resources www.waterc3.com

Western Iowa Tech Community College – The National Boiler Training 

and Renewable Fuels Institute www.boiler.witcc.edu

Western Petroleum Co. www.westernpetro.com

Wisconsin Pipe Trades Association www.wipipetrades.org

2011 Ethanol Industry OUTLOOK 35
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