FOR MORE INFORMATION:
Monte Shaw, 515-252-6249

FOR IMMEDIATE RELEASE

January 27, 2009

New Study:  Contribution of the Ethanol Industry

to the Economy of the United Statses

Ethanol to Meet Production Target Despite Bleak Economic Outlook

A new report prepared by John Urbanchuk, Director of LECG, LLC, assesses the ethanol industry’s contribution to the nation’s economy.  Urbanchuk’s report, entitled “Contribution of the Ethanol Industry to the Economy of the United States,” finds that despite the current, difficult economic conditions, the industry is poised to meet the production targets.

“As this report points out, these are unquestionably tough times for the economy and the ethanol industry,” said Urbanchuk. “Nevertheless, it also finds that ethanol capacity continues to expand and that the industry is in position to meet the 36 billion gallon renewable fuels goal set for 2022. Through additional investment in both grain and cellulosic ethanol capacity, the industry will not only create new green jobs and provide increasing tax revenue to federal, state and local governments, but will continue to reduce our dependence on foreign oil.”

 “Despite a struggling economic marketplace that has impacted all industries, America’s ethanol industry continues to provide unique economic opportunities that few other industries can offer,” said Renewable Fuels Association President Bob Dinneen. “The economic contributions of domestic ethanol production are concrete and vital to the economies of the towns in which they operate and to the effort to grow our nation’s economy once more. In most cases, ethanol production has offered the kind of opportunities that rural communities have not seen in generations.”

The report notes that the net benefit to the federal government, after ethanol related tax credits, was more than $7 billion in 2008, providing a return on every dollar invested of 2.5 to 1.

For the complete report, click here.