A new report from Minnesota Department of Agriculture shows ethanol contributed $2.5 billion to the state economy in 2009 and directly supported 6,800 jobs. While the state looks for ways to maintain its current path of economic recovery, ethanol’s economic impact is expected to grow to $3.1 billion this year, a 24 percent increase. Likewise, the industry will add 1,500 jobs this year.

If not for ethanol and other growing renewable energy sources like wind and solar, Minnesota would have to import all of its energy. Though Minnesota has no oil production within its borders, it will produce an estimated 1.1 billion gallons of the cleaner burning renewable fuel this year. The state consumes roughly one third of that ethanol, thanks to a requirement to blend ten percent ethanol into every gallon of gas. The growing use of E85 fuel by flexible fuel vehicle owners is also increasing ethanol use in Minnesota.

However, the state produces a surplus of more than 700 million gallons above its own needs, making ethanol a huge benefit to the state’s balance of trade.

The increase of Minnesota’s ethanol requirement to 20 percent in 2013, and the anticipated allowance of 15 percent ethanol nationwide would further accelerate the economic impact of biofuels here.