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Nebraska Ethanol Industry
Click here for a list of Nebraska's ethanol plants
Nebraska's first ethanol plant, now known as Chief Ethanol Fuels in Hastings, began production in January, 1985. Since that time, the ethanol industry in the state has grown dramatically—creating a new market for nearly one-third of Nebraska’s corn production, creating new jobs in rural communities, and creating a valuable new industry that generates local and state tax revenue.
Nebraska is the second largest ethanol producing state in the nation—and it is the largest ethanol producing state west of the Missouri River. This location, combined with a large corn crop and competitive rail transportation, puts Nebraska in a prime position to serve key ethanol markets in California, the Southwest, and the Pacific Northwest.
Grain Consumption for Ethanol Production
Ethanol production has become the third largest use of Nebraska corn—consuming more than 600 million bushels of Nebraska’s corn harvest annually. This is a market that barely existed twenty–five years ago, but has grown to become a significant factor in the profitability for Nebraska farmers.
One bushel of corn produces approximately 2.7 gallons of ethanol. It is estimated that ethanol production adds 5¢ to 8¢ per bushel of corn in areas near an ethanol plant.
Grain sorghum is also used as a feedstock in Nebraska ethanol production.
E-10 Unleaded Sales in Nebraska
Nebraskans have purchased more than six billion gallons of ethanol-blended
fuel since this fuel choice became available in 1978. From 1978 to 1992,
the fuel tax on ethanol blends in Nebraska was less than for ordinary
unleaded gasoline—helping provide a price incentive at the pump
that spurred demand. When the tax incentive was discontinued, market
share for ethanol blends dropped, but have come back steadily—especially
since the September 2000 launch of the E-10 Unleaded campaign co-sponsored
by the Nebraska Ethanol Board, Nebraska Corn Board and Nebraska Corn
Growers Association.
Nebraska Annual Motor Fuel Sales
Economic Impact Analysis
Donis Petersan, the economic research supervisor with Nebraska Public Power District, has prepared an analysis estimating the economic effects of ethanol plants located in Nebraska. Estimated Economic Effects for the Husker Ag Ethanol Plant at Plainview, Nebraska, and Estimated Economic Effects for the Prospective Fagen Ethanol Project at Central City, Nebraska contains information detailing the positive employment and other economic effects associated with this ethanol facility. Other economic impact studies are available for review by contacting the Nebraska Ethanol Board.
Site Selection Assistance
The Nebraska Ethanol Board is available to assist ethanol plant site consultants with feasible plant site locations in the state of Nebraska. Extensive plant site research has already been conducted in the state. The Nebraska Ethanol Board can provide information pertaining to pre-permitted and premier ethanol plant sites in the state.
The Nebraska Ethanol Board also assists Nebraska communities in evaluating prospective plant sites. Staff members offer project development consultation to communities and ethanol developers.
Contact the Nebraska Ethanol Board for assistance in locating premier site locations—or to discuss ethanol project development criteria.
The Nebraska Ethanol Board and The Clean Fuels Development Coalition in cooperation with The U.S. Department of Agriculture have developed A Guide for Evaluating the Requirements of Ethanol Plants. To view the guide, click here.