Report: Minn. ethanol industry booming |
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Thu, 25 Jan 2007 22:05
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ST. PAUL (AFX) - Minnesota's booming ethanol industry generated nearly $2.8 billion in economic impacts last year and supported more than 10,000 jobs, according to a report released Thursday by the Minnesota Department of Agriculture.The report said the state now has 16 ethanol plants with a total annual production capacity of 620 million gallons, while five more plants under construction will add another 450 million gallons, boosting total capacity above 1 billion gallons by 2008.And if current trends hold, the report said, the state's ethanol industry will generate nearly $5 billion in economic impacts and support more than 18,000 jobs by late 2008.Gene Hugoson, Minnesota's agriculture commissioner, said in a statement that the report shows the state's investment in ethanol is paying off with jobs and economic activity for rural Minnesota.'We have been talking for decades about the economic promise of renewable fuels,' Hugoson said. 'I think this report pretty clearly shows that we are now seeing a big return on that investment.'The ethanol industry's growing demand for corn has pushed corn prices up to around $4 per bushel, raising concerns about producing enough corn for both food and fuel needs. But the report found that Minnesota's ethanol plants process only 15 percent of the state's corn crop.Fifty-seven percent of Minnesota's corn is shipped out of state, while 17 percent is used here for animal feed, the report said. By 2008, however, about a fourth of the state's corn crop is projected be used for making ethanol.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Farmers planting more corn this year 