Minnesota’s ethanol production and demand recovered last year from the slowdown in 2020, producing 1.27 billion gallons of ethanol in 2021, 33 percent higher than 2020’s volume, according to a new study by the University of Minnesota Extension.

The study found the ethanol industry contributed $1.3 billion in income for Minnesota residents while paying $123 million in state and local taxes. “This new study once again illustrates the importance of Minnesota’s ethanol industry to the state’s economy,” said Tim Rudnicki, executive director of the Minnesota Bio-Fuels Association.

The study said Minnesota’s ethanol industry used 454.1 million bushels of corn in 2021. This represented 31 percent of the 1.5 billion bushels harvested in Minnesota in 2021. The industry also produced 3.7 million tons of dried distillers grains with solubles (DDGS) and 332.3 million pounds of corn oil in 2021.