DES MOINES, Iowa — Iowa continues to dominate America’s renewable fuels industry, leading the nation in ethanol production with 42 operating ethanol plants capable of producing 5 billion gallons annually, according to the U.S. Energy Information Administration (EIA).
For businesses, job seekers, and families considering a move to Iowa, the state’s ethanol industry is more than an agricultural success story—it is a cornerstone of Iowa’s economy, supporting thousands of jobs while driving innovation in renewable energy and value-added agriculture.
Iowa Produces More Ethanol Than Any Other State
With a production capacity of 5 billion gallons, Iowa accounts for approximately 27% of all ethanol produced in the United States, according to the EIA’s 2025 data.
No other state produces more ethanol, reinforcing Iowa’s position as the nation’s leading renewable fuels producer.
The industry’s success is fueled by Iowa’s abundant corn production, extensive transportation network, and decades of investment in biofuels technology.
Production Has Grown More Than 1,000% Since 2000
The growth of Iowa’s ethanol industry over the past quarter century has been remarkable.
According to the Iowa Renewable Fuels Association, annual ethanol production increased from 440 million gallons in 2000 to approximately 5 billion gallons in 2025—an increase of more than 1,045%.
That expansion has transformed Iowa into a global leader in renewable fuel production while creating new markets for corn growers and strengthening rural economies across the state.
More Than Fuel: Supporting Iowa Agriculture
Ethanol production delivers benefits that extend far beyond renewable fuel.
One of the industry’s most valuable co-products is distillers grains, a high-protein livestock feed produced during the ethanol manufacturing process.
According to the Iowa Corn Growers Association, Iowa’s ethanol plants produced approximately 94 million pounds of distillers grains in 2024, the highest output of any state.
These co-products help support Iowa’s livestock industry while creating additional revenue streams for ethanol producers and corn farmers.
A Powerful Economic Engine
Iowa’s ethanol industry supports a wide range of economic activity, including:
• Corn farming and agricultural production
• Manufacturing and plant operations
• Engineering and technical careers
• Transportation and logistics
• Equipment manufacturing
• Research and renewable energy innovation
The industry’s impact reaches communities across the state, helping sustain jobs and economic development in both rural and urban areas.
Why Businesses Choose Iowa
For companies in renewable energy, advanced manufacturing, agriculture, and logistics, Iowa offers a proven business environment supported by world-class infrastructure and a highly experienced workforce.
Businesses relocating to Iowa benefit from:
• The nation’s largest ethanol production industry
• Reliable agricultural supply chains
• Central Midwest location with strong rail and highway access
• A skilled workforce experienced in manufacturing and biofuels
• A collaborative ecosystem of producers, researchers, and agricultural organizations
These advantages continue to attract investment in renewable fuels and related industries.
Innovation Continues to Drive Growth
While ethanol remains a key transportation fuel, Iowa producers continue investing in new technologies to improve efficiency, reduce emissions, and develop additional bio-based products.
Ongoing research into carbon capture, sustainable aviation fuel, and next-generation biofuels positions Iowa to remain at the forefront of America’s renewable energy economy.
What It Means for People Moving to Iowa
For individuals and families relocating to Iowa, the ethanol industry represents long-term economic stability and career opportunities in engineering, manufacturing, agriculture, environmental science, transportation, and skilled trades.
The industry’s continued growth also supports local communities through investment, tax revenue, and demand for supporting businesses and services.
As the nation continues to diversify its energy portfolio, Iowa’s leadership in ethanol production demonstrates why the state remains one of America’s premier destinations for renewable energy, agricultural innovation, and business growth.
Whether you’re seeking career opportunities, launching a business, or relocating to a state with a strong and resilient economy, Iowa’s position as the nation’s top ethanol producer highlights the innovation and opportunity that continue to define the Hawkeye State.