Good news for Indiana corn growers, POET to expand its Shelbyville plant 

POET, the world’s largest producer of biofuels, celebrated the planned expansion of its ethanol plant in Shelbyville, Ind., with a groundbreaking ceremony on June 23. The expansion will nearly double the facility’s bioethanol production capacity from 98 million gallons to 193 million gallons. 

This move aligns with the Indiana Corn Marketing Council’s mission to expand markets for corn within the state. ICMC Biofuels Director Megan DeVelvis said this expansion will likely boost Indiana from the sixth-largest ethanol-producing state to the fourth-largest state. 

“This is really exciting because, of the 15 ethanol plants in Indiana, this one is the largest,” DeVelvis said. “So to double the largest plant capacity is exciting. It will guarantee a continued greater outlook for area farmers who take corn to that facility.” 

As farmers deal with low commodity prices, access to stable domestic markets for grain is essential, she said. This expansion will create 32 million bushels of new demand for local farmers. The expansion also will improve access to new markets and emerging opportunities such as carbon capture, feed products and growing demand for E15 fuel across the United States. 

“This $200 million investment is a major win for Shelby County and for Indiana agriculture. It creates stable, domestic demand for 32 million additional bushels of Indiana corn each year,” said U.S. Rep. Jefferson Shreve (R-Dist. 6). “Supporting biofuels means supporting Hoosier farmers, rural communities, local jobs, and American energy security. When Indiana corn has a stronger market here at home, Shelby County and our state are better for it.” 

The upgraded facility will also double its dried distillers’ grains (DDGs) and corn oil output and add 25 new full-time employees. 

“From day one, POET has sought to unleash the power of agriculture while bringing value to farm families,” said Matt Braun, Senior Vice President and General Manager of POET Bioprocessing. “Doubling the capacity of this facility will help us meet growing domestic and global demand for American-made biofuel and bioproducts while bolstering rural economies across Indiana and beyond.” 

Actual construction on the expansion began in March, and it is expected to be completed during the summer of 2027. 

Farmers approve of expansion 

ICMC Board member Tim Gauck, a farmer from nearby Greensburg, Ind., said corn growers who don’t produce corn for ethanol will still benefit from increased competition for the crop. 

“I often tell the story of when I started farming in 1972. Indiana grew 303 million bushels of corn,” Gauck said. “Today, Indiana grows about 1.1 billion. So, we have to find markets for that corn. And this is a great way to accomplish that.” 

Shelby County farmer Jim Douglas said ethanol accounts for nearly half of the state’s corn usage and continued growth remains critical. “Added revenue in any form helps in today’s economy, so this will be a big help,” he said. “If you’re a farmer, the closer you live to an end user, the better off you are.” 

Gauck said the plant’s increased demand will require corn from farmers outside of Shelby County. 

“They’re going to be drawing corn from the neighboring counties, which is good for our community,” he explained. “We have river markets, and it’s going to help basis there. So it’s going to be quite a benefit with the checkoff money working to see this happen, and there’s going to be a bump in prices from what we would normally get.” 

Federal lawmakers continue to debate a U.S. Senate bill that would allow for year-round sales of E15. Gauck said this expansion will support additional opportunities that might come from that legislation. “We’re working to get E15 through the Senate now,” said Gauck, who is a paid member of the policy-focused Indiana Corn Growers Association. “And there’s other options for airline fuel and fuel in ships that would use ethanol. There’s lots of options if we can stay on the edge of getting those things done.” 

Shreve added that he has been a supporter of year-round sales of E15 and voted for similar legislation in the U.S. House of Representatives earlier this year. 

A benefit to Indiana 

Jason Lucas, General Manager of Shelbyville’s POET facility, said the expansion reflects continued confidence in ethanol and other bioproducts as demand for lower-carbon fuels continues to grow. 

“If you consider what POET is investing right now, that says a lot,” Lucas said. “We’re making a $211 million investment here. We think that ethanol has a bright future. Right now, we buy about 35 million bushels of corn, that will turn into almost 70 million bushels. That will help drive basis in the area.” 

Shreve praised the project as another example of agriculture and innovation working together to create economic opportunities in rural Indiana. “There’s confidence in Indiana,” he said. “There’s confidence in our ag community. We’re growing it here. We’re going to be able to increasingly process it here and use the energy here.” 

DeVelvis said the task of finding new markets never ends. “We continue to work and support growing channels for selling more corn,” DeVelvis added. “It’s a really big achievement for farmers that Poet chose this facility to expand out of all the options they had with all their facilities.” 

Not only will this expansion generate larger demand for domestic corn, but it will also increase Indiana’s share of ethanol produced in the United States. 

“Our share of total U.S. production of ethanol will grow from 6 percent to about 9 percent,” DeVelvis said. “I believe Indiana is growing as an important voice in the ethanol industry. This creates a reliable customer for our corn products. It offers some security and exciting things will happen.” 

DeVelvis said generating more feed from local grain will benefit Indiana’s livestock producers. “When we can make more ethanol, it’s really a value add on a feed product,” DeVelvis explained. “That also allows us to produce more feed because when you have a market for part of the product, then we can go work on markets for the other part. The locally grown meats that we’re consuming are grown using locally grown feed.”