7.8.1.3Vertical

Ethanol & Advanced Biofuels

Corn ethanol and advanced biofuel producers.

Market snapshot

These figures describe Biomass & Biofuels (7.8.1), the segment that Ethanol & Advanced Biofuels sits within — not Ethanol & Advanced Biofuels on its own.

FragmentationConsolidatingEstimate

Biofuel production overlaps ethyl alcohol and basic organic chemical manufacturing (NAICS 325193/325199, profiled under Chemicals) and is not separately disclosed here, so the segment is not separately sized.

Business model & economics

Revenue model

Biofuel sales plus renewable-fuel credits (RINs, LCFS, 45Z)

Key economics

Recurring revenue
Moderate

recurring fuel demand; credit-driven

EBITDA margin
Margin- and credit-driven; feedstock-exposed
Capex intensity
High

Characteristics

  • Ethanol mature; renewable diesel and SAF the growth.
  • RFS, LCFS, and IRA 45Z credits drive economics.
  • Refiners and agribusiness investing heavily.

Geographic concentration

AlabamaAlaskaArizonaColoradoFloridaGeorgiaIndianaKansasMaineMassachusettsMinnesotaNew JerseyNorth CarolinaNorth DakotaOklahomaPennsylvaniaSouth DakotaWyomingConnecticutMissouriWest VirginiaIllinoisNew MexicoArkansasCaliforniaDelawareDistrict of ColumbiaHawaiiKentuckyMarylandMichiganMississippiMontanaNew HampshireNew YorkOregonTennesseeUtahVirginiaWashingtonWisconsinNebraskaSouth CarolinaIdahoNevadaVermontLouisianaRhode IslandTexasIowaOhio

Biomass and biofuels concentrate in Iowa (the ethanol heartland), Ohio, and Texas.

IowaOhioTexas

U.S. Census Bureau — 2022 County Business Patterns (establishments by state), NAICS 325193/325199. Concentration shown by location quotient.

M&A deal context

Deal activityHigh

Who’s acquiring

  • Refiners & renewable-fuel producers
  • Agribusiness & feedstock players
  • Energy & infrastructure investors

What’s driving deals

  • Renewable-diesel and SAF build-out.
  • Low-carbon-fuel standards and 45Z credits.
  • Refinery conversions to renewable fuels.

Find Ethanol & Advanced Biofuels acquisition targets

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