Cardinal Ethanol LLC in Union City, Ind., celebrates the 15th anniversary of its first grind this fall. The production process went live on Nov. 1, 2008. A longtime dream of local farmers became reality.

“We wanted better markets for our corn, and we saw ethanol as an opportunity,” says Tom Chalfant, Redkey, Ind.

Chalfant also saw the opportunity to bring jobs to rural Randolph County in Indiana, which needed a better economic base. He was one of a handful of farmers who held meetings in their homes, drove up and down rural roads seeking support from other farmers, and invested to start what would be a farmer- and investor-owned business.

All that happened years before the first load of corn was unloaded. Since then, Chalfant remained involved, and is still on the Cardinal Ethanol board of directors.

Big business

According to a search on Google, Cardinal Ethanol is one of 15 ethanol plants operating in Indiana. Together, they produce an estimated 1.4 billion gallons annually. Cardinal Ethanol alone estimates annual production at 140 million gallons.

Nationally, the industry produced 15.4 billion gallons of ethanol in 2022, up from 2021, but below the peak of 16.1 billion gallons in 2018. The U.S. produces 55% of the world’s ethanol, with Brazil second at 26%.

U.S. production is heavily concentrated in the Midwest in these top-producing states, with Iowa in the lead at 19%:

One of Chalfant’s original goals was improving the local corn market. Casey Bruns, risk manager for Cardinal Ethanol, says that is reality. He figures that on average, their activity adds about 40 cents per bushel to the local corn price.

Cardinal buys corn from several counties around the plant, including western Ohio. It needs about 45.5 million bushels of corn annually as feedstock. And although Cardinal doesn’t process soybeans, it buys them, so its customers have a convenient marketing option for their soybeans.

More than ethanol

To run profitably, Jeff Painter, president, CEO and plant manager, says they must account for other products produced along with ethanol. One bushel of corn yields roughly 3 gallons of ethanol, but also 13 to 14 pounds of dried distiller grain, a pound of corn oil and carbon dioxide.

“DDGs are one of our primary products besides ethanol,” Painter says. “We produce a dried product that is feedstock quality. We are well equipped to process, store and ship out DDGs.”

In fact, construction is underway so the plant can modify how it produces DDG. The result will be a product higher in protein than typical DDG, he says.

It will open more marketing opportunities, as they seek end users who can capitalize on a higher-protein feedstock. Painter hopes the new process will be operational yet this year.

Benefits are felt by more than area farmers, Chalfant emphasizes. Cardinal Ethanol employs up to 68 people at one time, creating economic activity. The plant runs 24 hours per day with two 12-hour shifts.

The best way to appreciate the size and scope of the plant and its processes is to look around, Chalfant says.

Cardinal Ethanol at a glance