The United States produces most of the fuel ethanol that it consumes
U.S. fuel ethanol production capacity and annual production have increased over time. Since 2008, the increases have largely been because of the fuel blending requirements of the Renewable Fuel Standard program. Total production capacity increased from 13.6 billion gallons per year in 2011 to about 17.7 billion gallons per year by the end of 2022. Total annual fuel ethanol production generally increased each year from 1981 through 2022.
In 2022, U.S. fuel ethanol production (as measured by renewable fuels and oxygenate plant net production of fuel ethanol) was about 15.4 billion gallons (about 0.4 billion barrels). Fuel ethanol production fell in 2020, mainly because lower overall gasoline demand reduced the demand for ethanol blending into motor gasoline. However, continuing the trend since 2010, total annual fuel ethanol production exceeded annual fuel ethanol consumption in 2022, as measured by the amount blended into motor gasoline, by about 1.3 billion gallons. The United States exported about 1.3 billion gallons (31.3 million barrels) of fuel ethanol to at least 87 countries in 2022.
Although the United States has been an annual net exporter of fuel ethanol since 2010, it imports some fuel ethanol, mostly from Brazil. Most fuel ethanol imports from 2018 through 2022 have been to the U.S West Coast.
U.S. fuel ethanol production is concentrated in the U.S. Midwest
As of January 1, 2023, fuel ethanol production facilities were located in 21 states with a total production capacity of about 17.7 billion gallons per year. Most U.S. fuel ethanol production capacity (93%) was located in the Midwest region (Petroleum Administration for Defense District or PADD 2), where production capacity was about 16.6 billion gallons per year. Three states combined had 50% of total production capacity: Iowa (27%), Nebraska (13%), and Illinois (10%). Those three states combined also accounted for 50% of total annual U.S. fuel ethanol production in 2021; Iowa accounted for 27%, Nebraska for 13%, and Illinois for 10%.1 The Midwest region accounted for 95% of total U.S. fuel ethanol production in 2021.
Because ethanol cannot be transported in petroleum product pipelines, it is transported from ethanol production facilities by rail, tanker and barge, and truck to finished motor gasoline blending terminals and then by truck to gasoline fueling stations.
1 U.S. Energy Information Administration, State Energy Data System (SEDS), Primary Energy Production Estimates in Physical Units, United States, as of April 4, 2022.
Last updated: January 26, 2024.