USDA Announces Plan to Boost Exports of Ethanol, Other Biofuels

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Written by Paul Wiseman for IIR News Intelligence (Sugar Land, Texas)

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Summary

Industrial Info Resources is tracking 199 operational ethanol plants in the U.S. and three grassroot ethanol projects worth $925 million, with completion dates from 2026-2030.

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How to Grow U.S. Ethanol Exports

At last week's 17th Annual Growth Energy Biofuel Summit in Washington, D.C. the U.S. Department of Agriculture (USDA) put forth a four-part plan aimed at boosting exports of U.S. produced biofuels.

Industrial Info Resources is tracking 199 operational ethanol plants in the U.S. and three grassroot ethanol projects with a total investment value (TIV) of $925 million, with completion dates from 2026-2030.

Called the American Biofuels Trade Outlook the plan's purpose, as set out by USDA Secretary Brooke Rollins, will be to support farmers of corn and soybeans, help agricultural sustainability, and create jobs in rural America.

Pillar one would boost on-road ethanol blending. "USDA will identify breakthrough markets like in Latin America and Southeast Asia...They are prime for E10 adoption," said Rollins. "And, the USDA will address implementation challenges for the 20 markets around the world with E10 policies in order to ensure continued, reliable access to existing ethanol export markets."

Pillar two would lessen other nations' limits on importing crop-based biofuels from the U.S.

"Currently, several economies, including the European Union, restrict crop-based biofuels from supplying their transportation fuel demand," Rollins said. "It is essential that we open more markets to our U.S. biofuels for on-road transportation, for aviation, and for marine fuel markets."

Note: The EU currently restricts biofuels including ethanol to 7% of total fuel use. That's in order to maintain a balance of land use for food and for other product demands.

Pillar three has a goal of opening untapped markets through USDA programs as well as the American First Trade Promotion Program. It would specifically reach out to India along with Indonesia, Japan and Vietnam.

Pillar four involves engaging the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO) to achieve more fair treatment and prevent competitors like Brazil from creating global regulations that squeeze out competition.

Ethanol in the U.S.

Boosting plant-based fuels like ethanol is designed, as Rollins said, to benefit U.S. Midwest farmers as they compete with other international heavyweights like Brazil.

According to Industrial Info Resources data, here are the top five U.S. ethanol-producing states, including total operational unit capacity:

1. Iowa, 4.8 billion gallons per year (gal/yr)
2. Nebraska, 2.4 billion gal/yr
3. Illinois, 2 billion gal/yr

The three projects Industrial Info Resources is tracking are one in each state: Arizona (TIV $500 million), California (TIV $350 million), and Florida (TIV $75 million).

U.S. Ethanol Leads the World

According to data from the Renewable Fuels Association, the U.S. accounted for more than half of the world's ethanol production in 2024 (16.23 billion gallons of the world's total of 31.31 billion gallons), as quoted by the U.S. Department of Energy. Brazil was second that year, with 8.98 billion gallons.

"Currently we are tracking just under 18 billion gal/yr of operational capacity for ethanol production in the U.S. with very flat growth. Capacity has grown less than 5% in the last 10 years," said Hillary Stevenson, VP Energy Intelligence for Industrial Info Resources.

Between them, the U.S. and Brazil account for almost 81% of the world's ethanol production.

In fact, the timing of this announcement is interesting because, according to a USDA report, both 2024 and 2025 were already record years for U.S. ethanol exports in both volume and dollar value.

It said specifically, "In 2024, U.S. ethanol export volumes reached records in 7 of its top 10 markets, resulting in a record export volume of 7.4 billion liters (1.9 billion gallons) and a record value of $4.3 billion. In 2025, U.S. ethanol export volumes reached new records in 5 of the top 10 markets, again resulting in a record export volume of 8.4 billion liters (2.2 billion gallons) and a record value of $4.7 billion."

Importing nations including "Canada, the European Union (EU), the United Kingdom (UK), India, Colombia, and the Philippines" increased the ethanol consumption, driving up demand in those years.

Canada, in fact, accounts for about one third of all U.S. ethanol exports, the report noted.

Brazilian drivers--who have access to 100% ethanol for vehicle fuel at many pumps--also boosted demand over that period, making less of it available for export.

By the Numbers

• 199: Number of currently operating ethanol plants Industrial Info Resources is tracking
• 18 Billion gallons/yr: U.S. ethanol operational production capacity tracked by Industrial Info Resources
• 52%: U.S. share of world's ethanol production in 2024

Key Takeaways

• USDA Secretary Brooke Rollins announced on September 15 a four-step plan to further increase U.S. exports of ethanol and other crop-based fuels. The idea is to support U.S. farmers.
• Brazil is the only other region that produces more than 3% of the world's ethanol.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).