With 2.4 billion gallons of ethanol produced in Nebraska each year, it’s easy to see why the renewable biofuel commands so much attention. However, it’s not the only important product created by the state’s 24 ethanol plants. They also produce high-value ethanol byproducts used for cattle feed and nutrition for other livestock, beverage carbonation and more.
These products help ethanol plants maximize the value and sustainability of their operations. Here’s a closer look at the uses for ethanol byproducts and how they benefit farmers, ethanol producers, local communities and the state’s economy.
Co-Products Created During Ethanol Production
Several co-products are created during the ethanol production process, but the most widely used are distillers grains and corn gluten meal, corn oil and carbon dioxide.
Distillers Grains and Corn Gluten Meal
Distillers grains and corn gluten meal are small, ground-up flakes of protein, fiber, oil and minerals left over from the ethanol-making process. Distillers grains are made through the dry-milling process, which is used at the majority of Nebraska’s ethanol plants. Corn gluten meal is made from the wet-milling process, which is used at two of the state’s plants.
The primary use for corn gluten meal and distillers grains is for cattle feed, as well as pig and poultry feed. In addition, a high-protein form of distillers grains is often used at commercial aquaculture farms — providing a plant-based alternative food source.
Approximately 9.5 million tons of distillers grains are produced at ethanol plants in Nebraska each year. This includes four types of distillers grains: dry, dry with solubles, wet and modified. They are distinguished by the amount of moisture they contain and all are used in animal feed.
Corn Oil
The fermentation process used to create ethanol also produces corn oil, which is a vegetable oil extracted from corn plants. Nebraska’s ethanol plants produce roughly 500,000 tons of corn oil each year. Its main use is the production of biodiesel, a renewable biofuel that is blended with traditional diesel for use as fuel for cars, trucks and other diesel-powered vehicles. Approximately 90-95%of the corn oil produced in Nebraska each year is exported outside the state.
Carbon Dioxide Gas
Another ethanol byproduct is carbon dioxide production. Also called CO2, carbon dioxide is made of oxygen and carbon molecules. Companies use the carbon dioxide derived from the ethanol manufacturing process to carbonate beverages, such as soft drinks, and in food preservation. Other carbon dioxide uses include making dry ice and components in fire extinguishers. The ability for these facilities to capture and re-utilize CO2 goes a long way to improving the overall sustainability of the operation.
How Ethanol Co-Products Benefit Nebraska Farmers
Every 56-pound bushel of corn produces about 2.9 gallons of ethanol, 14.5 pounds of dry distillers grains, 0.9 pounds of distillers corn oil and about 16 pounds of CO2. These co-products help strengthen the market for corn and make the most value out of every bushel raised in the state.
An economic impact study released in March 2025, by the University of Nebraska-Lincoln found that, for every $1 in ethanol produced or sold in the state, 45 cents of co-products such as distillers grains, corn oil, corn gluten meal and more were produced or sold.
Nebraska Corn Board Director of Market Development Payton Schaneman said ethanol co-products make an important contribution to the Nebraska economy.
“Distillers grains contribute about $4.5 billion to the state economy — and that’s just distillers grains alone,” he said. “That’s not even including everything else.”
Making the Most Out of Corn: Improving Ethanol Production Efficiency
Looking to the future, the two dozen ethanol plants in Nebraska will continue to increase the sustainability of their operations while also searching for more uses for ethanol co-products.
One of the new ways plants are increasing sustainability is by reutilizing corn kernel fiber. This process allows an ethanol plant to extract more starch from corn kernel fiber. This additional starch can be reused to make more ethanol and reduce waste.
The Nebraska Corn Board and its partners will continue to work together to increase demand for ethanol co-products. In doing so, this creates more demand for corn and helps increase profitability for Nebraska corn farmers.
