iq magazine - fall 2008

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2 Initiative Quarterly • IQmag.org

FALL 2008

CONTENTSFEATURES

16Earth, Wind & FireWelcome to RenewableEnergy 101

22Wild Juice ChaseMinnesota’s Plus and MinusPursuit of Renewable Power

26Growing HomeGreen Building RevolutionRanks Function over Form

32For Watt It’s WorthInsider Tips to Save You Green

34May I Borrow YourCrystal Ball?Four Bold Predictions forMinnesota Energy

4 Beginnings

10 UnpluggedShort-CircuitingEnergy’s Popular Mythology

12 Greenville, MNCommunities PioneerEnergy Transformation, but Who’s Greenest?

14 Green-Collared?Rising Renewable Sector Searches for Workers

40 Minnesota’s Corn MazeThe Evolution & Revolutionof Corn-Based Ethanol

44 KeynotesThe Initiative Foundation Newsletter

56 Guest EditorialRenewable Optimism

Digital Illustration by Andrea Baumann andBrad Raymond. Photograph by Bryan Petersen.

DEPARTMENTS

COVER “To unlock the power of central Minnesota people to build and sustain healthy communities.”

“To be a catalyst, facilitating opportunities for economic and socialgrowth by developing and challengingleaders to build on the region’s assets.”

Fall 2008 3

KATHY: Personally speaking, our kidslearned some hard lessons about energyearly in their lives. When they were young,Neal and I tried to get the point across thatthere’s a cost to using electricity, both forour family and our community. During the

teen years, their bad behaviors included taking very long, hotshowers. Our son, Luke, seemed to take his best naps in there.

One day, my husband, Neal, noticed the familiar steampouring out from under the bathroom door. He got so fed upthat he shut off the hot water. Shouting and shivering, Lukelearned the lesson that revenge is a dish that’s best served cold.

Last year, Neal was helping Luke and his lovely bride,Anna, move into their new home in Ohio. Dad made the mis-take of letting the water run while in his son’s new bathroom.“Don’t you know that costs money?” Luke hollered. “Waterdoesn’t grow on trees, you know!”

Neal learned the lesson that turnabout is fair play.Luke is now a fuels research engineer at the U.S. Air Force

Research Lab on Wright Patterson Air Force Base, and he pro-vided some great input on this issue of IQ. (Thanks, Luke.Maybe you learned something after all!)

SHERRY: Professionally speaking, my energy andinspiration are driven by the visionaries who havebeen instrumental in the renewable energy indus-try and who are committed to our rural region.

People like Bill Lee, general manager of theChippewa Valley Ethanol Company (CVEC), the

nation’s first ethanol plant to use biomass-derived gas to generate steam.Or Greg Langmo, who helped create Fibrominn, the $202 million

power plant that is the first in the nation to generate enough electricityfrom poultry litter to serve 40,000 homes.

And Dan Juhl, founder of Juhl Wind, Inc., a pioneer and nationalexpert who has developed more than $100 million worth of farmer- andcommunity-owned wind farms.

There is Mark Willers, a leader of Minwind Energy, LLC, whichhelped bring together multi-stockholder commercial wind farms withlocal individuals to generate new income.

Or Jan Lundebrek, president of First Security State Bank and com-munity volunteer who helps increase public understanding and oppor-tunities created by renewables to help our farmers.

These people, and so many more, inspire me to someday drive avehicle powered by renewable sources, heat my home through solar pan-els, and diversify my investments in the renewable energy industry,which is an integral part of our future.

Dear Friends,

BEGINNINGS


KATHY & SHERRY: Both personally and pro-fessionally, Minnesotans share the values ofcaring, innovation, and common sense. Weneed each of those values to solve the definingchallenge of our generation—that of energy.

Of course, with challenge comes oppor-tunity. Investing in renewable energy holdsthe promise of preservation for our environ-ment and prosperity for our communities.Aggressively pursuing ways to conserve ener-

gy has the added benefit of conserving moneyfor families.

Energy and its sources have become apopular, and at times controversial, topic. Tobe successful in this challenge, we must listento all voices, examine all ideas, and appreciateall efforts.

For community leaders like you, thejourney begins with understanding and par-ticipating in the discussion. You’ve likely

experienced countless reports and conflictingopinions on renewable energy and conserva-tion in the news media.

In this issue of IQ, our two foundationshave endeavored to boil them down to theirvery essence, and by doing so, to level theplaying field for community action. We hopeto inspire your imagination and find theanswers together.

Enjoy the magazine!

P.S. Special thanks to our magazine sponsors—Connexus Energy, Happy Dancing Turtle, and the Southwest Initiative Foundation—whose investment inIQ demonstrates their statewide leadership to raise awareness about renewable energy and conservation. To read more about their work, see pgs. 6-8.

Kathy Gaalswyk, PresidentInitiative Foundation

Sherry Ristau, President/CEOSouthwest Initiative Foundation

INITIATIVE FOUNDATIONExecutive Editor & Director of Communications / MATT KILIAN

Grants & Communications Specialist / ANITA HOLLENHORST

SOUTHWEST INITIATIVE FOUNDATIONSenior Communications Officer / JANIS RANNOW

Communications Specialist / KAREN GRASMON

PUBLISHERSEvergreen Press / CHIP & JEAN BORKENHAGEN

EDITORIALEditorial Director / JODI SCHWEN

Managing Editor / TENLEE LUND

Staff Writer / DAWN ZIMMERMAN

Staff Writer / SARAH COLBURN

ARTArt Director / ANDREA BAUMANN

Senior Graphic Designer / BOB WALLENIUS

Graphic Designer / BRAD RAYMOND

Production Manager / BRYAN PETERSEN

Lead Photographer / JIM ALTOBELL

ADVERTISING / SUBSCRIPTIONSBusiness & Advertising Director / BRIAN LEHMAN

Advertiser Services / MARY SAVAGE

Subscriber Services / ANITA HOLLENHORST

IQ EDITORIAL BOARDInitiative Foundation President / KATHY GAALSWYK

Southwest Initiative Foundation President/CEO / SHERRY RISTAU

Happy Dancing Turtle / NOLITA CHRISTENSEN

Southwest Initiative Foundation / JOSH GEHLEN

Southwest Initiative Foundation / CHERYL GLAESER

Stearns Electric / DAVE GRUENES (Initiative Foundation Trustee)Initiative Foundation / CURT HANSON

Initiative Foundation / DON HICKMAN

Hunt Utilities / LYNN HUNT

Minnesota Renewable Energy Marketplace / TERESA KITTRIDGE

Southwest Initiative Foundation / SCOTT MARQUARDT

6Solutions / CECIL MASSIE

Environmental Well & Septic / STEVE NELSON

Silent Power / PETER NELSON

USDA Rural Development / LISA NOTY

Northland Securities / DAN O’NEILL

Minnesota West Community & Technical College / ROSE PATZER

Clean Energy Resource Teams / LISSA PAWLISCH

University of Minnesota, Morris / LOWELL RASMUSSEN

Redwood Area Development Corporation / JULIE RATH

Winkelman Builders / MIKE SCHOENECKER

Agricultural Utilization Research Institute / DENNY TIMMERMAN

Initiative Foundation405 First Street SE Little Falls, MN 56345320.632.9255 | www.ifound.org

Published in partnership with Evergreen Press, IQ Magazineunlocks the power of central Minnesota leaders to understand and take action on regional issues.

> VOLUME 8, FALL 2008

www.EvergreenPress.net

Printed with Soy-Based Ink on Recycled Paper Fall 2008 5


Focus on Energy EfficiencyServing more than 120,000 customersthroughout the North Metropolitan area,Connexus Energy is Minnesota’s largest electric dis-tribution cooperative. Connexus Energy is far morethan just a company keeping the lights on. Since1937, the cooperative has built its solid reputationby being dependable, customer-focused, commu-nity-minded, and environmentally innovative.

Throughout the past several years, we’vebeen observing the growing groundswell ofawareness about the environment we share. Withthe increasing demand for energy and focus onthe environment, Connexus Energy is expandingits efforts to educate customers to become moreefficient with their energy use. Connexus Energyis offering programs that cut back on customers’energy needs and help reduce costs.

Connexus Energy’s power provider, GreatRiver Energy, is an environmental leader amongutilities. Its generation sources already includewind energy, refuse-derived fuel and hydropower.Together, Connexus Energy and Great RiverEnergy are working to develop programs and tech-nologies that address today’s environmental issues.

connexusenergy.com

6 Initiative Quarterly • IQmag.org6

Special Renewable Energy Issue

Inspired? Ready to Explore More?

7Fall 2008

On 70 acres at the edge of Pine River, MN, Paul and Lynn Hunt lead a crew researching and developing approaches to sustainable living, renewable energy, and high efficiency sustainable housing.

The Hunt Utilities Group Campus is home toHunt Utilities Group, Happy Dancing Turtle,and the Rural Renewable Energy Alliance.Working from various perspectives, they seek to improve the local community and connect their efforts to the broader network of people striving to make our world a more resilient, healthy, and just place.

Visit the New and Improved CleanEnergy Resource Teams Website!The CERTs site is your resource for Minnesotaclean energy news, events, case studies, presentations, technical resources, and currentfunding opportunities. Check it out at www.cleanenergyresourceteams.org.

Harnessing Resources and Teamworkfor Minnesota’s Energy FutureFeb. 10-11, 2009 | Saint Cloud, MNThe 2009 Clean Energy Resource TeamsConference brings together Minnesotanswho are blazing the paths to a clean energyfuture and those who are interested in working on energy efficiency and clean energy in their community. You won’t wantto miss it! Registration opens October 1st. Visit the CERTs Website for more info.

Want to Reduce your School’s Carbon Footprint? CERTs is awarding grants to 100 Minnesotapublic high schools, colleges, and universitiesfor student-led projects and technical assistanceto make your school more energy efficient.Applications and additional information can be found on the CERTs website.

3rd Annual North AmericanPassive House Conference Duluth, Minnesota | Nov. 7-9, 2008www.passivehouse.us

The Passive House Institute US (PHIUS) is a consulting and research firm working tofurther the implementation of passive housestandards and techniques nationwide.

The Clean Energy Resource Teams (CERTs) are helping Minnesotans determine theirclean energy future. By connecting people with the resources needed to identify and implement community-scale energy efficiency and clean energy projects.

happydancingturtle.orghugllc.com


The Southwest Initiative Foundation (SWIF)has seen first-hand how building on ourassets, engaging and challenging leaders andcitizens and fostering an entrepreneurialspirit has led to positive outcomes forsouthwest Minnesota. The renewable energyindustry combines all three aspects to holdeven greater potential for our entire state.

Benefit your family, business, organization orcommunity through renewable energy bypartnering with us!

The Path toCommunityWindThe Rural EnergyDevelopmentInitiative (REDI) provides outreach andpublic education, project developmentassistance and financing for initial feasibilityand planning to strengthen rural economiesthrough community-based wind energyproject development. REDI is administeredby SWIF and is sponsored by the State ofMinnesota and the Center for Rural Policyand Development.

Putting Energy into Our FutureYES! is a program of Prairie WoodsEnvironmental Learning Center and SWIFthat uses hands-on education and energyaction projects toaddress energyopportunities andissues. Teams ofstudents in grades 8through 12 and adult coaches work toliterally put energy into their communitiesand our future.

Creative Lending OptionsSWIF’s Renewable Energy Loan Programpromotes the industry by supporting businessventures including energy productionbusinesses, secondary businesses that supportthe renewable energy industry, energy usageconversion projects or new and emergingtechnologies.

Whether it’s the economic surge of job, business and investmentopportunities or the wise use of our existing natural resources,our great state is ready for renewable energy.

Contact us to get involved or visit www.swifoundation.org/renewableenergy.htmlfor more information.

15 3rd Avenue NW | Hutchinson, MN 553501-800-594-9480www.swifoundation.org

9Fall 2008

don’t put all your eggs in one basket. Anddon’t trust those who do.

“In far too many cases, a particularenergy source proponent tends to promotetheir favorite and neglect its limitationswhile simultaneously disparaging otherpossible options,” he said.

Conventional Wisdom: We have no con-trol over where we get our energy.Reality Check: Utilities and communitiesare now sharing the driver’s seat.

The Southwest Initiative Foundation(SWIF) is helping to promote the develop-ment of community-based energy in itsregional hotbed, which already boastsmore than 554 megawatts of wind-generat-ed electricity.

“We have great examples of communi-ty-based energy development making asignificant impact in southwestMinnesota,” said Scott Marquardt, SWIFsenior program officer for economicadvancement.

One such example is Bingham LakeWind in Cottonwood County. Developedin 2006 as a 12-family collaboration, this15-megawatt wind farm sells its electricityto Alliant Energy.

“Wind generation has been a perfectfit for my farm operation,” said MartyEspenson, a local farmer and co-founder ofBingham Lake Wind. “With the help andexpertise of our developer, Dan Juhl of JuhlWind, not only do I lease my land to theturbines but I have ownership in one aswell. While helping the environment byproducing this clean, renewable energy, I

MYTHOLOGY

UnpluggedShort-Circuiting Energy’s Popular Mythology

Is your refrigerator running?”

Getting duped by energy myths is nolaughing matter. Sifting through the infor-mation and misinformation is like chasingafter your refrigerator. (You probably won’tcatch it.) So, when it comes to power pun-ditry, do you really know what you thinkyou know? We asked a few of Minnesota’senergy experts to shed some compact flu-orescent light on the subject . . .

Conventional Wisdom: We shouldinvest in one perfect source of clean,cheap energy.Reality Check: Contrary to those politicalsound bites, the solution isn’t that simple.

“We need multiple renewables now,”said John Weber, a member of the Mid-American Solar Energy Council. Weberlived without electricity for 10 years andhas depended on solar and wind powerfor the past 20. He said that fossil fuelsare still used to make wind turbines andsolar panels.

“Wind energy is a good idea inbreeze-blown Morris,” he added.“Hydroelectric power works in Little Fallswhere a river flows through the town’sbackyard. The sun shines on us all, butstorage and transportation are kinks thatstill need to be worked out.”

According to Todd Allen, head of theAdvanced Test Reactor National ScientificUser Facility with 40 years of research his-tory, a more realistic solution is to developmultiple renewable sources as dependenceon fossil fuels is reduced. In other words,

am also helping my bottom line. I am nowa strong advocate of community-basedenergy development and those who pro-mote it.”

“But it’s wrong to paint utility compa-nies as the bad guys with black hats whostand in the way of progress,” added DonHickman, Initiative Foundation programmanager for planning and preservation.“The fact is, they’re good partners whowant to make renewable energy work fortheir communities, their customers, andthe environment.”

Conventional Wisdom: Conservationwon’t make a dent in the problem.Reality Check: Yeah, it’s more like a crater.

In 2007 alone, the federal Energy Starprogram helped residential and businesscustomers save $16 billion on utility billsand prevented greenhouse gas emissionsabout equal to 27 million cars. According

BY NANCY LEASMAN & MATT KILIAN


“

Chris McAllister

to the U.S. Department of Energy, familiescan save about a third by simply makingmore efficient choices. Through formalenergy audits and managed conservationprograms, businesses have saved morethan twice as much as they would havegoing it alone.

“Conservation is the fifth fuel thatnobody’s talking about,” said Cecil Massie,vice president of technology at 6Solutions, arenewable energy consulting firm. “Thecheapest energy is the energy you don’t use.”

Conventional Wisdom: The new Americanpresident will save the day.Reality Check: If you’re looking for a hero,look in the mirror.

In 2007, U.S. Sen. Dick Lugar (R-Indiana) gave audiences an expectation-tem-pering look at political pressures during aspeech at the Brookings Institution. Headvocated bold leadership and risk-takingfrom both presidential candidates.

“The president will have advisers whowill be whispering cautions about the risksof committing the prestige of any adminis-tration to aggressive energy goals,” he said.“They will say that the voting public’s over-whelming energy concern is high prices forgasoline and home heating, and that as longas the president appears attentive to thoseconcerns, they can cover their politicalbases without asking for sacrifices or risk-ing the possible failure of a more controver-sial energy policy.”

On the Minnesota level, energy leaderscontinue to preach a sermon of personalresponsibility and the potential payback onrenewable investments.

“Renewable energy needs to be a muchlarger part of our energy mix,” said DaveGruenes, Stearns Electric Association districtmanager and former MinnesotaCommissioner of Commerce, “but we needgreater emphasis on conservation as well asinvestment in new energy technologies.”

React at IQMAG.ORG

11Fall 2008

Rasmussen estimated thatalmost $700,000, which is currentlyspent on out-of-state natural gas, willinstead be used to purchase biofuelswithin a 20-mile radius of Morris.

The City of Morris is partner-ing with UMM’s environmentalstudies department to develop aneco-friendly neighborhood on thesite of a former elementary school.Also participating in the project is ayouth board, formed from membersof the Morris Youth Energy Summit(YES!) team who are participatingin a program of Prairie WoodsEnvironmental Learning Center and theSouthwest Initiative Foundation (SWIF).

“YES! engages youth in energy actionprojects that literally put energy into ourfuture,” said Cheryl Glaeser, SWIF programspecialist—so the residents of Morris, andthe rest of us, can look forward to brighter,healthier, and greener days ahead.

UMORE ParkDuring World War II, there was a govern-ment defense plant at the site of theUniversity of Minnesota’s VermillionHighlands wildlife area. Soon, the 4,900-acre site will be used to demonstrate envi-ronmental defense.

The U will build “a community of thefuture,” according to Dr. Charles Muscoplat,vice president of the university’s StatewideStrategic Resource Development. “We’regoing to create a community of 20,000 to30,000 people and have an industrial-com-mercial area. We’ll produce most of our ownenergy, utilize alternative forms of energy,

MAIN STREET

Greenville, MinnesotaCommunities Pioneer Energy Transformation,but Who’s Greenest?

It seemed impossible eight years ago:eliminate the carbon footprint of the

University of Minnesota, Morris—all onemillion square feet of it—by the year 2010.Today it’s within reach, and Morris, thewest-central city of 5,100, has become oneof the Midwest’s poster communities forrenewable energy use and conservation.

The impetus came from the universi-ty’s students. “We wouldn’t have muchcredibility if we just talked about conserva-tion and renewable energy, but we didn’tdemonstrate it,” said Lowell Rasmussen,vice chancellor of finance and facilities.

A wind turbine owned by the WestCentral Research and Outreach Center(WCROC) powers 60 percent of the campuselectrical load. The next step is using biomassgasification for heat, replacing natural gas.

With the future addition of a steamturbine for electricity on demand, anabsorption chiller for cooling, and a secondwind turbine, the campus will meet itsonce-improbable goal of carbon-neutrality.

The WCROC is also focusing on con-servation with the renovations of itsGateway Center and Renewable EnergyResearch and Demonstration Center. Thegoal—double the square footage withoutincreasing energy consumption. Plansinclude replacing a residence hall with aneco-friendly, sustainable community thatcombines education, conservation, andlocal foods. Next up, the entire community.

“In my mind,” said Mike Reese,WCROC renewable energy director, “thiswill be a failure for us if we don’t alsoimprove the rural economies and sustainthe environment.”

and try to keep our water use to that waterwhich falls on the site or flows onto the sitenaturally.” Building should begin within thenext three years.

NorthfieldThe City of Northfield encouragedeleven citizen groups to brainstorm ener-gy challenges and solutions as part of theCities for Climate Protection campaign.Recommendations, from carpooling tobiomass energy, have taken root in whatmay become one of Minnesota’s greenestcommunities.

Ideas include building a clean-energyeconomy through reduction of greenhousegas emissions and achievement of carbonneutrality within 25 years; establishing a per-manent energy commission; and hiring acoordinator to help businesses, residents,and government entities deal with energyissues. The city council and its energy taskforce are considering the recommendations.

React at IQMAG.ORG

SPIN DOCTOR: Mike Reese, West Central Research andOutreach Center, shows off the wind turbine that powers60 percent of the University of Minnesota, Morris.

BY TENLEE LUND


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Building to a higher standard.

The federalrenewable energybill, passed in August2007, is expected tocreate about 18,000new jobs inMinnesota, accordingto a report by theRenewable Energy Policy Project, aWashington, D.C.-based think tank.

The report places Minnesota among thenation’s leaders in green-collar job gains,adding 9,000 wind jobs, 5,000 solar, 2,500biomass, and 1,500 geothermal-related jobs.“Available jobs and services range from tech-nical and financial to legal and professional,not to mention the entrepreneurial opportu-nities for aspiring business owners andinvestors,” Ristau added.

Growing demand for workers hasspurred Minnesota colleges and universitiesto add majors, minors, and customized train-ing programs to meet the needs of employerslike Suzlon. The Greater Minnesota HousingFund and Minnesota State Colleges andUniversities system will launch a statewideprogram this fall that provides curriculum ongreen building.

“This new partnership could effectivelytrain a whole new generation of Minnesotatrades-people in the construction of greenhousing, and better prepare the constructiontrades for the emerging green building indus-try,” said Warren Hanson, president of theGreater Minnesota Housing Fund.

Minnesota West Community andTechnical College, with five campuses inwestern Minnesota, was the first in thenation to develop a renewable energy-train-

WORKFORCE

Green-Collared?Rising Renewable Sector Searches for Workers

About 150 workers file off buses tobegin another workday at Suzlon

Rotor Corp.’s first U.S. wind-turbine man-ufacturing plant in Pipestone. They ride48 miles from Sioux Falls, South Dakota,or 60 miles from Worthington, Minnesota,to collect generous overtime pay and get inon the ground floor of the explodingrenewable energy industry.

In much of greater Minnesota,there’s just one problem. There aren’tenough workers.

Increased demands for turbine bladesand a shortage of workers led India-basedSuzlon to organize bus routes just threemonths after opening the plant. The month-ly price-tag is $50,000.

“We needed about 150 more workersthan Pipestone’s population could provide,”said Susie Rennich, former human resourcesmanager. Suzlon launched a relocation pro-gram and doubled financial incentives.Workers who moved to Pipestone last sum-mer received $4,000 toward a home mort-gage or $2,000 for rent.

“The renewable energy sector is pro-viding an awesome opportunity for peoplein southwest Minnesota to increase theirskills and education in order to beemployed in this growing industry,” saidSherry Ristau, president/CEO of theSouthwest Initiative Foundation (SWIF).

The demand for “green-collar” workersis expected to soar as government mandatespush for renewable energy sources. Suzlon’sblades are back-ordered for two years, andthe company plans to hire up to 100 work-ers within the next six months to expand itsproduction capacity, Rennich said.

LONG HAUL: 150 employees board buses in Sioux Falls andWorthington to fill workforce shortages at Suzlon Rotor Corp. inPipestone. Daily commutes range from 48 to 60 miles at a cost of$50,000 per month.

BY DAWN ZIMMERMAN


ing program focused on ethanol production,and now is selling that program to other col-leges. Central Lakes College in Brainerd isfollowing suit with a new wind program.

“We’re at the beginning of an energyrevolution,” said Duane Carrow, director ofrenewable energy programs and instructorat Minnesota West. “There are way morejobs than there are students. We haveemployers who call and say they wouldtake 50 students, and we only have 12 andthey all have jobs.”

YES!, a program of Prairie WoodsEnvironmental Learning Center (PWELC) inSpicer, Minnesota, and SWIF is using hands-on projects to address issues and opportuni-ties with youth as early as the eighth grade,including information about new careersrelated to renewable energy.

“Teams of youth and their adult advi-sors increase their knowledge on renewableenergy, climate change issues, conservation,and energy resources, and choose energyaction projects that encourage them to thinkcritically about how energy affects theircommunities,” said Anne Dybsetter, YES!coordinator at PWELC. “YES! teams workwith each other and leaders in their com-munities and the industry to find solutionsto energy issues.”React at IQMAG.ORG

17Fall 2008

By Sarah Colburn Photos by Jim Altobell

Turn on your TV and dig a little deeper into the Montana earth for coal-fired energy. Rechargeyour cell phone and summon the power of submersed uranium rods in Monticello or PrairieIsland. Whether you know it or not, more than 87 percent of Minnesota energy comes from coaland nuclear sources. Renewable energy? Just 7 percent. As the push to reverse these numberscontinues, the fab-four of renewables have inspired public interest, private investment, andpolitical platforms. If you need to catch up, here’s a good place to start.

Increasing demand for energy and risingcosts of fossil fuels, combined with the ecolog-ical and economic benefits of renewable energy,are driving the search for better, cleaner, cost-effective ways to meet future needs. Large-scaleuse of renewables is no longer a dream held byenvironmentalists, it’s a mandate. Minnesotautilities must comply with the 2007 RenewableEnergy Standard that demands 25 to 30 per-cent of their energy from renewable sources by2020 or 2025, depending on the company.

Though utilities are free to choose how togenerate that power, Minnesota will require“aggressive energy efficiency and conservationmeasures,” as well as reliable energy fromrenewable, coal, and nuclear sources, saidMark Rathbun, Great River Energy’s renew-able energy project leader.

Not only can renewables help Minnesotansreduce their dependence on fossil fuels, there’salso great economic development potential forjob creation and additional tax-bases.

“In the past 50-plus years, the entire state ofMinnesota hasn’t had an economic development

opportunity this big,” said Kathy Gaalswyk,Initiative Foundation president. “The renewableenergy sector and its supporting industries havethe potential of changing the fortunes of manygreater-Minnesota communities.”

Another driver is the speculation that a newU.S. president will bring nationwide carbon leg-islation and a corresponding price spike in ener-gy and products derived from coal and oil.Those companies that emit excessive amounts ofcarbon dioxide may be charged a tax-per-ton ofemission for polluting. If that happens, cus-tomers can expect prices to rise even more, mak-ing the renewable price tag more palatable.

Utility experts and wind proponentsalike predict that wind will continue its reignas the greatest source of renewable energy inMinnesota. Tom Hoen, spokesman for XcelEnergy, the state’s largest utility, said the com-pany already supplies wind energy inMinnesota and is planning for 4,000megawatts of wind energy by 2020—enoughto serve one million homes.

Great River Energy, the state’s second

largest utility, plans to serve 54,500 homes withwind this year. Companies like GRE, which areahead of their renewable energy-producingmandates, can earn credits for the excess renew-able energy generated. According to Rathbun,GRE may choose to sell those credits to otherutilities and large corporations.

Every renewable source—be it electrici-ty-generating, fuel-replacing, or conservation-maximizing—has its own unique technolo-gies, strengths, and challenges. Consider thefollowing pages as your Renewable 101 crashcourse in Minnesota’s next generation ofhomegrown energy.

Electric AvenuesMinnesota Sources of Electric Energy

Coal . . . . . . . . . . . . . . . . . . 67.7%Nuclear . . . . . . . . . . . . . . . 19.6%Renewables . . . . . . . . . . . . 6.7%Natural Gas. . . . . . . . . . . . . 4.6%Hydroelectric . . . . . . . . . . . 1.0%Petroleum . . . . . . . . . . . . . . 0.4%Sources: Minnesota Department of Commerce,U.S. Energy Information Administration


WIND 101Wind is the fastest developing source of renewable energy in thestate and nation. Its technology is perhaps the most basic.Natural wind turns the blades of a large turbine. The turbinespins a shaft connected to a generator, which creates electricity.

STRONG SUITS“Harvesting the wind is one of the cleanestways to harvest electricity. It produces noemissions that contribute to global warm-ing,” said Lisa Daniels, executive director ofWindustry, a Minneapolis-based nonprofitworking to increase wind energy opportuni-ties for rural landowners and communities.“Wind power is one of the most abundantand increasingly cost-effective resources.Wind energy is limitless; it’s renewable.”

The kinetic energy of wind can betrapped by large-scale wind farms or by smallcommunity projects. Minnesota is a leader incommunity wind, thanks in part to Dan Juhl,a nationally renowned expert and the creatorof the nation’s first community-based windfarm near Woodstock, Minnesota.

Juhl sees unlimited potential for commu-nities to rally behind locally owned wind proj-ects and reap economic benefits. Most large-scale wind farms are owned by multi-nationalcompanies, he said. The benefit to landownersis simply a lease payment and a modestincrease in tax-base for the community.

In Minnesota, however, about 25 per-cent of wind turbines are locally owned,Juhl said. When farmers or communities

band together, they are able topurchase locally, provide localjobs, and own their land andwind turbines. They can also sellthe surplus electricity to utili-ties, for as much as $1.5 millionper turbine annually. “Windenergy is a cash crop,” Juhl said.“The real value is keeping themoney in the community. It’s toobig an opportunity to let it go by. ”

The Southwest Initiative Foundation(SWIF) is currently implementing a RuralEnergy Development (REDI) program to sup-port community-based energy development.“We want to help our communities success-fully develop wind energy projects by provid-ing funding to assess the feasibility of theseprojects, ultimately reducing the initial risks,”said Cheryl Glaeser, SWIF program specialist.

CHALLENGESProjects are primarily located in Minnesota’swindy rural areas with sparse transmissionlines. In these places, wind turbines must beerected for the purpose of supplying a near-by community, business, or residence, orthey must be connected to the state’s power

grid. Utilities are now working together tocreate a plan for more transmission lines,but the prospect is an expensive one—$1.4to $1.7 billion—and many private propertyowners have resisted allowing rights of wayfor new lines.

Wind energy can also be inconsistent;it’s created only when the wind blows.Engineers are working on a variety of stor-age methods to manage the peaks and val-leys of wind-generated power.

As more wind projects are planned, thedemand is rising for foreign-made turbinecomponents and other manufacturing mate-rials. India-based Suzlon Corp., the fifth-largest manufacturer of turbine blades with aplant in Pipestone, Minnesota, now reports atwo-year waiting list for many components.

Lisa Daniels, Windustry

Fall 2008 19

GEOTHERMALThe near-constant temperatures found just below the earth’s surface(46–48 degrees F.) are helping Minnesotans conserve energy and savehundreds on their annual heating and cooling costs.

“People go to a geothermal system notbecause it’s the right thing to do,” said SteveNelson, owner of Environmental Well andSeptic in Spicer, Minnesota. “It’s the costs theysave for their families. People are saying, ‘Idon’t care if the economy is weak or strong. I’mjust not going to pay these high (heating andcooling) bills.’”

In a geothermal system, a compressor unitextracts heat from the ground to warm roomsin winter, or—with air conditioning—to coolthem in summer. In Minnesota, the verticalclosed-loop system and open loop system(using well water) are the leading trends ingeothermal technology.

For a vertical closed-loop system, profes-sionals drill holes up to 200 feet into theground. Liquid circulates in sealed under-ground piping to reach earth temperature. Theheat-exchanged coolant then passes throughthe heat pump and raises the temperature ofthe refrigerant. A heat exchanger transfers theheat to circulated water in the floors or deliversit to a forced-air system. For cooling, the sys-tem reverses, expelling heat from the home intothe ground and the water heater. The closedloop can also be run horizontally.

STRONG SUITSA geothermal system can provide all the heatingand air conditioning for a home and 40 to 80percent of its hot water. Geothermal’s carbonemissions are negligible, though the system doesrequire electricity to run a compressor, pump,and furnace fan, Nelson said. Newer technolo-gies can reduce energy consumption.

The public has been slow to adopt geother-mal systems, according to Kent Schwen, presi-dent of Mid-American Energy in Baxter,Minnesota, but that’s changing due to averageheating and cooling savings of 70 to 80 percent.

In Minnesota, geothermal technology isprimarily used as an energy conservationmethod. In the western U.S., where naturalgeothermal reservoirs reside in the earth, geot-hermal power plants can create electricity.

CHALLENGESAn average residential closed-loop system maycost $20,000 or more. A well-water system cancost about $12,000. Experts encourage con-sumers to subtract the cost of a conventionalheating and cooling system (about$8,000–$12,000) when considering the pricetag. The return on investment is 11–30 percent,

with a payback between two and 10 years.Although technology is advancing, the sys-

tems don’t work everywhere. Areas with highbedrock content can be more costly, and varioussoil types and lot sizes can also be challenging.

In addition, Dr. Jim Bose, executivedirector of the International Ground SourceHeat Pump Association (IGSHPA), said theavailability of trained drillers is becoming achallenge as geothermal gains popularity insome areas of the country.

Environmental Well and Septic, Spicer


BIOMASS 101Biomass products, once thought to be organic waste—corn stalks, sawdust, woodchips, garbage, and manure—may be tomorrow’s opportunity for creating energy.

Biomass, in the form of field corn, isalready used throughout Minnesota in theproduction of automotive-grade ethanol.According to Lowell Rasmussen, vice chancel-lor of finance and facilities at the University ofMinnesota, Morris, its other uses include ther-mal conversion—using biomass to produceheat. Biomass gasification produces a com-bustible gas that can be used for energy, like aweaker form of natural gas.

STRONG SUITSDuring conversion processes, biomass does-n’t produce excess carbon dioxide, a culpritof global warming. And because somegarbage, plant material, and municipal solidwaste can be used as fuel, they don’t emitsimilarly harmful gases as they decompose.

Fibrominn, the nation’s first turkey-lit-ter-fueled power plant in Benson,Minnesota, produces 55 megawatts of elec-tricity, enough to run about 45,000 homes.Turkey droppings from regional farms aretrucked in and incinerated, which heats aboiler that spins a turbine-powered genera-tor to create electricity.

Greg Langmo, fuel manager atFibrominn, said energy demands are spark-ing greater interest in experimental biomass

fuels made from such waste aschipped tires and railroad ties.“There’s so much need for power,we can’t discount any of them,” hesaid.

CHALLENGESBiofuels have low energy densities,meaning they don’t have near theenergy output of a gallon of gas or apound of coal. Almost anythingthat grows can be converted intoenergy, said Dr. Steve Taff, an agri-cultural economist at the Universityof Minnesota, but each source mustbe cost-effective and sustainable.

Although the corn ethanolindustry has been a boon for somefarmers, it has come under fire forits public subsidies, water usage,agricultural impacts, and evenpotential for world food shortages.Scientists are now experimentingwith other abundant biomass materials suchas algae. Studies suggest that algae is capableof yielding 30 times more oil per acre thancrops currently used in biodiesel production.

Because it’s costly to transport biomass, Taffand others believe that biofuels may be most

cost-effective as a regional source of energy. “We grew corn because we want to feed

the cows, not because we love corn,” Taffadded. “We do biomass because we love ener-gy, not biomass. If there are cheaper ways tomake energy, we should look at those.”

Lowell Rasmussen, University of Minnesota, Morris

21Fall 2008

SOLAR 101Solar energy can be used to supply electricity to a house,run a car, and heat everything from the water heater tothe hot tub. There are three main types of solar energy:photovoltaic, solar thermal, and passive solar.

Photovoltaic technology is perhaps themost familiar. Electron-packed panels areinstalled on or near a home or business.Sunlight releases electrons, and the flow ofelectrons creates electricity, said DougShoemaker of the Minnesota RenewableEnergy Society. Advances in nanotechnologynow make it possible to create paper-thinpanels. Researchers have also applied “solarpaints” to a test-lab home, transforming itinto a huge collector.

“In one hour, the Department of Energyreports that there’s enough (sunlight) strikingthe earth to take care of our energy needs forone year,” Shoemaker said. “It’s extremelyimportant that we figure out ways to use thatpotential energy source.”

Solar thermal technology can be used toheat water or air. In water-heating applica-tions, the sun heats liquid in a panel thatleads to a collector. The hot fluid is trans-ported to water heaters, swimming pools,and heating systems. In air-heating applica-tions, the air from a building is forcedthrough a collector, warming it and returningit to the building.

Passive solar technology captures the

natural heat from thesun using glass windowpanes on the south sideof a building.

STRONG SUITSSolar-powered systemscan work efficiently inmost settings, either asprimary or supplemen-tary sources of energy and heat. A systemcan be mounted on the ground, a building,or pole to easily provide an unobstructedview of the sun. Consumers who captureexcess solar energy may be eligible for finan-cial incentives if the energy can be returnedto help power the state’s energy grid.

According to Jason Edens, foundingdirector of the Rural Renewable EnergyAlliance (RREAL) in Backus, solar-basedconservation could make a huge impact onfuture energy needs. Funded in part by theInitiative Foundation, RREAL provides pas-sive solar systems that help families inpoverty use 25 percent less energy to heattheir homes. Edens plans to replicate theprogram across the Midwest.

CHALLENGESLike wind, solar power can be inconsistent.Captured energy varies daily based on theamount and strength of sunlight. On cloudydays, a backup system may be necessary.

Solar energy systems can also be expen-sive. According to Shoemaker, the averagethree-to-four KW photovoltaic system inMinnesota costs $30,000 to $40,000 andsupplies about 30 to 40 percent of homeenergy needs. Edens creates systems forsmaller homes and low-income residents for$6,000. Costs vary depending on homesize, energy usage, and efficiency.

React at IQMAG.ORG

Doug Shoemaker, Minnesota Renewable Energy Society


“Do you build transmission

that you NEED TODAY or do you

build transmission that you

may need for TOMORROW?”

—MARK WILLERSCEO, Minwind Energy

23Fall 2008

“In the 1990s, we were leaders,”said David Morris, co-founder and vicepresident of the Institute for Local Self-Reliance, a Minneapolis-based advocatefor sustainable community development.“We were leaders in ethanol. We wereleaders in wind energy. We were leadersin trying to design policies that allowedfor local ownership of both wind tur-bines and ethanol plants so we couldkeep the money at home. In 2008, we’renot leaders anymore.”

But today, equipped with far-sightedstate legislation and an ingrained entrepre-neurial spirit, Minnesota is tackling chal-lenges and once again aiming for the top.

“Minnesota has two advantages: it’s awindy place in the country with a lot ofland where you can put wind turbines,and it’s an agricultural state as well as aforestry state, so it has a significant amountof plant matter. Those are key renewableresources,” Morris added.

“Minnesota is also unusual in that wehave a very entrepreneurial economy. Wecan compete globally in terms of technol-ogy, and we have a very diversified econo-my. We’ve managed to develop a culturethat incubates invention.”

According to Sherry Ristau,Southwest Initiative Foundation presi-dent/CEO, Minnesota’s universally toutedstrengths make it a formidable favorite inthe renewable energy marketplace.

“However, we also have some chal-lenges that require immediate attention,”she said. “In order to move forward, we allneed to come together as partners andallies. Making this a divisive political issuehampers progress. The worst thing we cando is waste time by presuming motivesand placing blame.”

Experts universally point to threepotential stumbling blocks—workforce,transmission, and policy.

Minnesota stands at a crossroads of boundless opportunity and dwindling time. If the state is to emerge

victorious in the high-stakes scramble for renewable energy supremacy, it must maximize its strengths and overcome its challenges. Spoils include international

recognition, booming economic development, lucrativeexports, and quality jobs in rural areas that need them most.

LET THE CHASE BEGIN.


WORKFORCE“Minnesota is the epicenter of the ethanol industry so, as a state, we

were the first ones to notice that we needed workers with higher skill lev-els,” said Duane Carrow, director of renewable energy programs atMinnesota West Community and Technical College.

Companies needed trained employees who understood ethanol pro-duction, and the college answered by creating the first curriculum specifi-cally designed for the industry. To meet the evolving needs of the emergingrenewable energy industries, they now offer programs in biodiesel, wind,and lab technology.

Connie Ireland, regional administrator with the MinnesotaDepartment of Employment and Economic Development, works withrenewable energy companies seeking to locate operations in Minnesota.

“One of the foremost questions they ask is, ‘Do you have the laborforce?’” she said. “It’s tight. Minnesota has lost a couple of projects, and oneof the major factors has been the talent piece.”

Teresa Kittridge, executive director for the Renewable EnergyMarketplace-Alliance for Talent Development, said that Suzlon Rotor Corp.in Pipestone currently buses in about 150 workers from Worthington,Minnesota, and South Dakota in order to fill its employment needs.

Both Kittridge and Ireland are working to identify workforce gaps,then align businesses and education to produce the skilled workersneeded to fill them.

For example, since a large number of electrical line-workers will retireover the next few years, Kittridge plans to publicize the shortage along withpromoting a line-worker training program at Minnesota State Communityand Technical College in Wadena.

“It’s so important to have the private sector driving what education isdelivering,” Kittridge said. “Businesses need people with technical skillswho come out of school and are able to do the job immediately. We reallyneed to look at technical and vocational education and our K–12 system.

“There’s opportunity in rural Minnesota but we need to get on it. Wehave great natural resources, and that’s why the businesses are here, but ifthey can’t get the skilled labor they need, they can’t compete.”

TRAN SMISSION & STORAGE“Transmission is the Achilles heel of our renewable energy efforts. If

we don’t upgrade transmission at all levels, we will not be able to achieveour desired goals on renewable energy, particularly wind,” said EdwardGarvey, former director of the Office of Energy Security. That office facili-tates the Dispersed Renewable Generation Study, designed to identifyrenewable energy projects that can operate in the current transmission grid.

Utilities that own transmission lines in the Midwest have bandedtogether to create CapX 2020, the state’s largest effort to install more lines.However, infrastructure expansion like that proposed by CapX carries ahefty price tag: an estimated $1.4 to $1.7 billion. Skyrocketing costs andthe need for rights of way on privately owned property have caused con-siderable debate.

“Do you build transmission that you need today or do you build trans-mission that you may need for tomorrow?” said Mark Willers, CEO ofMinwind Energy, a series of locally owned wind projects near Luverne,Minnesota. “Are we looking at serving Minnesota or are we looking at serv-ing Illinois and Indiana and other places as well? How far are we going totransport and market our natural resource?”

According to Garvey, the transmission puzzle cannot be solved by justworking smarter. “Yes, there is a significant amount of additional wind-gen-erated electricity that could be injected into the existing grid system with-out building additional high-voltage transmission lines,” Garvey said. “ButI want to be crystal clear that that’s not the end of the story. We have a des-perate need for additional transmission infrastructure in the state.”

Teresa Kittridge

“There’s OPPORTUNITY in rural

Minnesota but we need to get on it.

We have GREAT NATURAL RESOURCES,

and that’s why the businesses are here,

but if they can’t get the skilled labor

they need, THEY CAN’T COMPETE.”

—TERESA KITTRIDGE

Research is also ongoing in storage technology, because renewableenergy tends to be variable—produced when the wind blows or the sunshines. Storage would allow renewables to provide a more constant ener-gy stream. According to Great River Energy and Xcel Energy spokesper-sons, three promising options include the creation of huge batteriesowned by utility companies, the ability to store excess energy into electriccar batteries so consumers can return it to the grid at peak times, and theability to store compressed energy in geological formations to be spewedback out at high pressure.

POLIC Y“In Minnesota, essentially everything that has happened in renewable

energy has come because of a mandate (except hydroelectric power),” saidDavid Morris. “We created the wind industry by a mandate in 1994, and thenext mandate in 2006 was the renewable electricity mandate.

“We could have been considered leaders in both wind and biofuels inthe 1990s. Having said that, in 2008 we are number four in the country inwind energy and we could drop as low as seventh by the early part of nextyear. Meanwhile, Texas added more wind electricity to its system last yearthan we added in the previous 15 years.”

While Willers commended Governor Pawlenty and the state legislaturefor their support of renewable energy, he said most of today’s policy prob-lems are beyond their reach because they are decisions made at the federallevel. For example, the energy production tax credits that offset the highcost of wind turbines expire at the end of 2008. Manufacturers andinvestors are unsure whether these credits will be extended, which impactsfuture planning, Willers said.

In 2008, Minnesota’s legislature addressed several renewable energyissues head-on—adopting changes that increased biodiesel requirementsand consumer choices of retail ethanol blends. It also made it easier to sitewind and solar facilities, locate transmission routes, and fund small-scalerenewable projects. The state’s 2007 Renewable Energy Standard requiresutility companies to provide 25 percent of their power through renewablesources by 2025.

“Right now, we’re still using the port of Duluth to import turbines, notexport them,” Willers added. “We have made a commitment to renewablesunlike any other place in the country. We have a public policy, we have util-ities that are committed to this, and we have a growing sense of understand-ing of what it takes to make this work.”

“But can we be successful?” asked Ireland. “The jury’s still out. This isabout global competition and, ultimately, timing. We must implement now.It’s all about strategic doing, not strategic thinking anymore.”

Minnesota Milestones in Energy Policy1994 Minnesota Legislature passes the Prairie IslandBill, imposing new renewable and alternative energymandates on Xcel Energy. These include additional windenergy and biomass capacity as well as establishing aRenewable Development Fund.

1998 The Public Utilities Commission orders XcelEnergy to add electric energy generated by wind energyby 2012.

2001 Minnesota Legislature passes the EnergySecurity and Reliability Bill, detailing conservationgoals, sustainable building guidelines and energy efficiency benchmarks for existing public buildings.Also includes plans for alternative and renewable energy sources, wind energy conversion systems,hydroelectric incentives and more.

2005 Minnesota Legislature authorizes C-BED tariffto optimize local, regional, and state benefits fromwind energy development and to facilitate develop-ment of community-based wind energy projectsthroughout Minnesota.

2007 Minnesota Legislature passes Minnesota’sRenewable Energy Standard, requiring the state’spower companies to provide at least 25 percent oftheir energy through renewable sources by 2025.

Minnesota Legislature passes the Next GenerationEnergy Act, establishing a statewide goal to reducegreenhouse gas emissions and expanding energy efficiency efforts and community-based energy development.

2008 Minnesota Legislature increases biodieselcontent requirements and consumer choices of retailethanol blends. Also establishes a microenergy loanprogram for small-scale renewable projects.

Fall 2008 25

RENEWABLERamp-Up

“Right now, we’re still using the

port of Duluth to IMPORT turbines,

not EXPORT them.”—MARK WILLERS

React at IQMAG.ORG


going green. What was once the domain ofaffluent homeowners and eco-pioneers has nowtaken root in Minnesota’s mainstream constructionof everyday homes, businesses, schools, and govern-ment facilities. True green is unseen. It’s not bestrepresented by bamboo floors and high-tech gadgets.It’s behind the walls and in the ductwork. It’s notflashy. It’s sensible. And it’s as much about savingmoney as saving the earth.

Would you make different decisions on building products if youknew that energy would cost eight times more in 2018? Your silent nodis expected to transform the nation’s building industry. Fast-forward 10years and green building no longer will be a buzzword or a fad. It willbe the standard.

According to the U.S. Green Building Council, buildings accountfor 39 percent of the nation’s energy use. Rising energy costs, com-bined with increasingly eco-minded consumers and government ini-tiatives, have fueled much of the growth in the green building indus-try. The federal Leadership in Energy and Environmental Design’s(LEED) Green Building Rating System and Energy Star program con-tinue to accelerate the adoption of sustainable building and low-impact development practices.

Follow this tour of five of Minnesota’s commercial and residentialbuildings to see how going green is getting results.

BY DAWN ZIMMERMAN | PHOTOGRAPHY BY JIM ALTOBELL

27Fall 2008

YEAR BUILT: 2008

SQUARE-FOOTAGE: 137,000

COST: $25.5 million

DESIGNER: GLT-Architects, St. Cloud

BUILDER: Winkelman Building Corp., St. Cloud

Sources: GLT-Architects, Winkelman Building Corp.,International Ground Source Heat Pump Association (IGSHPA)

Before the school’s referendum vote, localleaders committed to investing an additional$1 million to go green. The 137,000-square-foot facility, completed in August, has becomea model in Minnesota, expecting to reduceenergy use by at least 49 percent and yield areturn on investment in five years.

“This is going to become the new stan-dard,” said David Leapaldt, the project’s chiefarchitect and a partner at GLT-Architects inSt. Cloud. “Other schools are going to getgreener and greener.”

Kennedy’s design and construction teamsfocused on creating a sustainable facility thatnot only lowers energy consumption andrespects the environment, but also boostsattendance, test scores, and the overall healthof its 755 students.

Field GoalsA geothermal loop field, located under the

football and soccer field, has270 loops that serve as theprimary source for bothheating and cooling. Water-to-air heat pumps cool down

hot spaces like computer rooms. Geothermalsystems are about 50 percent more energy-efficient and free up space once occupied bybulky mechanical units.

Living DaylightsLarge, high-efficiency win-dows on the north andsouth exterior walls of class-rooms use the sun to natu-rally light the rooms duringthe day. The north-side win-dows are larger to let inmore light. On the southside, a shelf and sunscreendeflect light and reduceglare on intense days.Tubular skylights brightenthe school’s hallways.Daylight learning environ-ments are linked to reduc-

ing absenteeism and increasing reading andmath test scores by up to 24 percent.

Extra SensoryLight and occupancy sensors throughout the

facility further regulate the use of fluorescentlight fixtures and reduce overall energy con-sumption. When no one is present, the lightsshut off. When enough light is present,power is dimmed. Since electricity typicallyaccounts for 65 percent of a school’s energyuse, such technology will significantly reducemonthly expenses.

Going with the FlowA displacement ventila-tion system, camouflagedon the classroom walls,delivers air close to thefloor and at a low speedfor better distribution.The air is released nearthe ground, rises to theceiling as it warms, and iscycled out. Students whoattend schools with dis-placement ventilationhave fewer sick days, andasthma symptoms decrease by 38 percent.

Class Act |Kennedy Community School, St. Joseph

Imagine reading at school without turning on the lights. Imagine breathing air that reduces illness and increases academic achievement. Imagine learning how wind speed and sun intensity affect energy consumption. Imagination became reality this fall for the students at thenew Kennedy Community School in St. Joseph.


OWNER: On the Wing Investments (Syvantis Technologies)

YEAR BUILT: 2006 (first building)

LOT SIZE: 4.5 acres

SQUARE-FOOTAGE: 3,500–5,000

COST: $700,000–$800,000 per building

DESIGNER: NOR-SON, Baxter

BUILDER: NOR-SON; Northway Construction Services, Baxter

Sources: On the Wing Investments, Northway Construction Services

LandmarkDecision |Fairview Office Park, Baxter

“We didn’t think we would save anymoney on it,” said Riley, president of SyvantisTechnologies and partner at On the WingInvestments, owner of Fairview Office Park.“One of our criteria going in was, ‘Let’s notspend any more than we normally would.’”

By aiming to minimize environmentalimpacts and maximize efficiency, Riley, a for-mer CPA, estimates the company will save$460,000 in the first 10 years of operation.The first building was finished in 2006, witheight more planned.

“I have found that I can make very sim-ple, concrete, inexpensive changes in theway I do things and get a payback for it,”she said. “I would not build any other way.It’s the right thing to do economically,socially, and environmentally.”

With funding from the InitiativeFoundation, the Region Five DevelopmentCommission published best practices andlocal examples of green building atwww.mnbuildsmart.org. Fairview Office Parkis a featured project.

Garden VarietyRedefining curb appeal,On the Wing planted a7,200-square-foot raingarden at the center ofthe property. The gar-den will include deep-

rooted native plants,flowers, trails, and benches when it reachesmaturity in two years. This approach to man-aging storm water and damaging runoff,combined with low-mow grass, will savemore than $175,900 in maintenance expens-es over 10 years.

Parking ParalysisToo much parking is seldom a problem forretailers, but it can be for offices that areforced to follow the same planning require-ments. Looking to provide ample parkingwithout destroying native north woods, Onthe Wing persuaded the City of Baxter toreduce the number of required office parkingspaces from 175 to 117. That saved about$300 per space, or $17,400.

Take out the Papers and the TrashRecognizing that the majority of office waste ispaper, On the Wing focused on reducing trashand maximizing free recycling services. Eachbuilding uses only one residential garbagecan. Over 10 years, the company will save$38,050 by not renting commercial dump-sters or paying for costly disposal services.

Hot PursuitBy declining unnecessary upgrades to its heat-ing and cooling systems, Syvantis Technologieswill save $148,160 in 10 years. A flap on theductwork in itsbalmy computerserver room auto-matically opensin the winter todistribute heat tocolder areas. Thebuilding requireslittle to no additional heating. South-facingsolar panels are also used to defray costs by sell-ing power back to the utility company.

Janelle Riley never set out to build what has become one of central Minnesota’s greenest business parks. The idea of creating a low-impact commercial development came from her sister-in-law, a biologist at the University of Minnesota Extension Service, shortly after her family bought a 4.5-acre site off Minnesota Highway 371 in Baxter.

29Fall 2008

Estateof Grace |Luxury Lake Home, Crosslake

YEAR BUILT: 2007

SQUARE FOOTAGE: 5,900

COST: $2.4 million

DESIGNER: Kevin J. Anderson Architect, Little Falls

BUILDER: Northway Construction Services, Baxter

“You’d never allow half the water to leakout on the way to a faucet, so why would youallow it with your air?” said Steve Northway,president of Northway Construction Services.

Northway has found a niche by buildingwhat it calls “high-performance” green homes.It uses specialized software to determine theoptimal size of heating, cooling, and ventila-tion equipment based on features like roomdimensions and geographic coordinates.These load calculations are designed to meethomeowners’ expected comfort levels withoutwasting energy.

After building Minnesota’s first LEED-certified home on Gull Lake, Northway’s$2.4 million Crosslake home is 40 percentmore energy efficient than 2006International Energy Conservation Codestandards, and 20 percent more efficientthan federal Energy Star standards.

Bigger Isn’t Always BetterInstead of one large air conditioner, buildersinstalled three smaller units with separatethermostats. The system allows the smaller air

conditioners to cool only the zones thatrequire it, which canreduce energy con-sumption by 40 to70 percent. “It is notunusual to seeHVAC equipmentoversized by 25 to

200 percent,” Northway said.

Passing the MantelThe sealed-combustion fireplace nestled in thecorner of the second-floor sitting area is theonly model that’s currently approved throughthe LEED program. The open-hearth design oftraditional fireplaces often allows more heat toescape than is produced. The new sealed-com-bustion fireplacepulls air from theoutside, burns itin a closedchamber, andthen exhausts itinto the roomlike a furnace.

Air FareAn air exchanger provides more than a filtra-tion system to improve indoor air quality. The$2,000 system recovers most of the air’s heatbefore redistribution. The unit is designed toprevent 70 percent of the heat from leavingthe house.

Clear ConscienceLike many lake homes, this one showcases thepristine lake-front andnorth woodsview througha series offloor-to-ceil-ing windows.The high-performancew i n d o w smean future owners won’t sacrifice nature’spicturesque scenes for high-energy bills.Protective Low-E coatings, improved framematerials, multiple panes, and vacuum tech-nology prevent unwanted heat gain or loss.

Sources: Northway Construction Services, U.S. Environmental Protection Agency

Luxury homes and lakeside hideaways are becoming increasingly green as affluent homeowners invest in eco-friendly techniques. But much of the greenness on display inthis Crosslake home is due to fundamental building techniques that can be used in anysized home—such as sealing air ducts.


Sources: Greater Minnesota Housing Fund, U.S.Environmental Protection Agency

YEAR BUILT: 2008

SQUARE-FOOTAGE: 979 to 1,014

COST: $165,000–$167,000

DESIGNER: Cermak Rhoades Architects, St. Paul

DEVELOPER: Southwest Minnesota Housing

Partnership, Slayton

Lean & Green |Greater Minnesota Housing Fund, Owatonna

It’s a path any homeowner can take tosave thousands on energy costs, and willbecome the standard in home building, saidWarren Hanson, president of the GreaterMinnesota Housing Fund. The St. Paul-basedagency is pioneering green building by financ-ing three Owatonna homes, which are amongthe first to meet Green Communities criteriain Minnesota.

“Our buyers, our renters, and our devel-opers cannot afford the fluctuations in theenergy market, so we need to control the costsas much as possible,” said Rick Goodemann,executive director of the Southwest MinnesotaHousing Partnership (SMHP), the homedeveloper. Starting this year, all newly builtaffordable homes in Minnesota are required tomeet green standards, under a new policy bythe state’s affordable housing funders.

GMHF and SMHP lenders hope to givefirst-time homebuyers an economic edge.Homes are designed for young buyers who havefamily incomes up to $54,000. Although ener-gy-efficient features may add up to 6 percent tothe purchase price, homeowners will spend 50percent less on their energy bills, Hanson said.

Tickled PinkProperly installed insulation in the walls,floors, and ceiling is among the most cost-

effective greenbuilding step forh o m e o w n e r s .Super insulationincludes two-inch foam on theoutside founda-tion, and 2x6

framed walls to make room for additional bat-ting. This combination greatly increases thehome’s ability to resist heat flow and canreduce energy bills by $400 per year.

Sealed & DeliveredCrews practiced tight construction techniquesto enhance air quality and reduce utility costs.Sealing cracks andholes in the home’sductwork helps todecrease drafts, mois-ture, dust, pollen,and noise. A well-sealed and insulated

duct system can reduce the $600 average annu-al heating and cooling bill by at least $120.

Windows of OpportunityProtective Low-E coatings, improved framematerials, and multiple-panes technologytransform the Owatonna homes’ windowsinto energy savers, decreasing unwanted heatgain or loss. Energy Star-rated windows blockat least 70 percent of the sun’s heat in thesummer and attract heat during the winter.Low-E coatings also reduce fading of pictures,drapes, and furniture by 75 percent.

Heat of the MomentHigh-efficiency furnaces installed at theOwatonna homes are 95-percent efficient,according to Energy Star standards.Combined with well-sealed duct systems,these furnaces heat air and distribute it evenlyand efficiently throughout the homes. Energy-efficient models are up to 15 percent moreefficient than traditional units.

Forget the exotic floors, fancy faucets, and geothermal fields. Reaping the highest energy returns on residential greenness calls construction crews to focus on the fundamentals of building.

31Fall 2008

The 4,500-s q u a r e - f o o tstructure wasthe Hunts’ firstattempt at creat-ing a sustainablehome that heatsand cools itselfwithout the useof fossil fuels.The couple’sbusiness, Hunt

Utilities Group(HUG), blends some of the oldest naturalbuilding techniques with modern technolo-gy on a 70-acre research campus.

Today, they continue to use live-in labsto experiment with creating entire neighbor-hoods of cob homes. They plan to start theirfirst self-sufficient community using renew-able materials and techniques in 2010.Dubbed an Agricultural Resilient Community,it will be built around tight-knit neighbors,micro-economies, and reduced need for cars,shopping, and garbage.

“We only need to build two more

homes to earn a living,” said Paul Hunt, “butthese homes require a change of culture andpeople’s habits, and we need a neighbor-hood to do that.”

Big, Bad Wolf-Proof?HUG constructed its first building out of 600-pound straw bales covered with an inch ofmud made from sand and clay. Similar homesin England have stood for 500 years. Materialsare renewable, accessible, and inexpensive, butthe high labor costs remain an obstacle. TheHunts’ home blocks outdoor heat to maintainyear-round comfort. Decorative sculpting ispossible with mud walls as a medium.

Super BowlHUG has a composting toilet that the compa-ny built out of a five-gallon bucket. A tub ofsawdust is the secret to eliminating odors. The

toilet uses nowater, com-pared to tradi-tional unitsthat accountfor about 25

percent of residential water consumption. Thecomposting toilet’s contents are dumped intoan outdoor bin, yielding high-quality,pathogen-free fertilizer within three years.

Just VentingHUG installed vents near the main building’sceiling to draw in hot air, pull it under thefloor, and keep it warm for future use. Thistechnology allows HUG to use only its geo-thermal heat pump during the winter months.Even in frigid January, heating the 4,500-square-foot facility costs only $48 per month.

New Solar SystemHUG’s workshop features a southern wallwith 76 compact solar panels that capture thesun’s heat. A duct-trenching system then pullsthe air from the ceiling, pushes it through 10-miles of underground pipe, and stores it toprovide up to 40 days of heat. Only $300 isneeded to heat the 4,000-square-foot facilityin winter months.

Back to the Future |Hunt Utilities Group Campus, Pine River

LOCATION: Pine River

ACRES: 70

YEAR BUILT: 2003 (main building), 2006 (shop)

SQUARE-FOOTAGE: 4,500–4,000

DESIGNER: Hunt Utilities Group; Oldham Hirst Design, Brainerd

DEVELOPER: Hunt Utilities Group

Source: Hunt Utilities Group

Entrepreneurs and environmental enthusiasts, Paul and Lynn Hunt, hand-mixed straw, clay,water, and sand to create adobe-like cement walls for their home and business in Pine River.


Shed Some LightLighting can consume up to 15 percent of a home’senergy use. If every Minnesotan swapped one stan-dard bulb for a compact fluorescent, it would saveenough energy to power all St. Paul homes for sixmonths. Changing 10 residential bulbs can yield acost savings of $50 per year.

Captain ObviousRegular maintenance on your furnace, air condi-tioner, or air-source heat pump can help units run

Let’s cut to the chase.You know that you should conserve energy in your homeor business. It’s good for the environment and you’veprobably heard you can even save a little money. Sowhat’s stopping you? Maybe it’s the misconception thatconservation equals some form of self-deprivation—that you’ll have to cut back on air conditioning or longshowers. Maybe it’s the thought that you can’t makemuch difference anyway. So why try?

Ask the Willmar public school district. Eighteen painless monthsof changing bulbs, flipping switches, and unplugging appliancessaved $81,000 in anticipated energy costs. That’s roughly the amountneeded to power its Lincoln Elementary School for 4.5 years.

Karen Hilding, energy coordinator for the Willmar school dis-trict, said the results come from making easy changes and breakingold habits. Teachers now spend mornings doing paperwork underone bank of lights instead of lighting the whole classroom. Kids turnoff unused computer monitors. Custodians installed high-efficiencygymnasium lights.

Minnesota’s Next Generation Energy Act of 2007 demands con-servation from every utility company in the state, mandating 1.5 per-cent reductions in annual energy sales beginning in 2010. Utilitiesare now ramping up conservation programs, rebates, and incentivesto persuade businesses and homeowners to do their share.

“By far the cheapest BTU of energy is not to use it,” said SteveTaff, agricultural economist at the University of Minnesota. “Wehaven’t even begun to explore energy conservation, and that is themost unpopular topic. It’s boring to people.”

What’s never boring, however, is saving money. That’s why weasked experts from three Minnesota power companies to give us theirbest conservation tips that yield the greatest cuts to the monthly bill.

Here are their Top 10 . . .

33Fall 2008

more efficiently. (Heard that one before?) Professionals can also deter-mine whether the units are properly sized and charged. Regular main-tenance can save a minimum of $8 a year.

Unplug the LeechesThose little green and red lights on home electronics are energy-suck-ers. They usually indicate that the products are in standby mode, whichcan still consume as much as 40 percent of the energy it takes to runthem. Unplug them completely or invest in a power strip with a trueon/off switch.

One Good TurnWhile they are common, programmablethermostats aren’t often used to theirfull potential. Rule of thumb: For everyone degree you turn the thermostat upor down, you’ll save 1 percent on yourutility bill over eight hours. Water-heaters can also be cranked back; 10degrees will save 3 to 5 percent.

Freeze Your AssetsReplacing an outdated appliance withan Energy Star-rated one can save up to15 percent. A 1980s fridge in yourgarage can cost as much as $200 a year.And today’s plasma TVs, one utility repsaid, are the electric equivalent of gas-guzzling SUVs.

Get the Remote ControlVolunteer energy-saving programs allow utilities to remotely turn airconditioners and electric water heaters on and off for brief periodsduring peak demand times. In exchange for your trouble, you get a 15percent discount.

Tech SupportSome cooperatives and online businesses offer kilowatt-hour metersthat show how much energy your home consumes, providing cluesabout which appliances are the worst offenders. Connexus Energy, acooperative of Great River Energy, is testing an in-home monitor thatshows when energy is at its lowest and highest prices, allowing the con-sumer to avoid peak-demand times.

Quick & NerdyThere are many technologies on the market to help businesses, manu-facturers, and farmers conserve energy—energy-efficient motor start-ups, variable speed drives, and refrigeration units, to name a few.Contact your utility for more information.

Love Your AuditorMany utilities offer low-cost energy audits where an expert visits yourhome or business to review heating and cooling systems, insulation,doors, and windows for potential energy savings. Commercial consulta-tions are available for new construction and remodeling projects.Payoffs for simply eliminating drafts from the home can be as much as5 to 30 percent.

Vow to RenewMore utility companies are seeing customers supplement their energyneeds through geothermal heating systems, solar panels, and wind tur-bines. Today, they’re the exception. In the future, they may be the rule.

Learn Morewww.energystar.gov has many more conservation tips and a coolfeature to compare your energy bill to the local average. Click on“Home Energy Audit” and type in your ZIP code.

www.dsireusa.orgClearinghouse for information on energy rebates from local to federal.

Sources: Great River Energy, Stearns Electric Association, Xcel Energy


Minnesota in 2030.Is our future The Jetsons, Little House onthe Prairie, or Mad Max? Will we be livingoff the land, cutting firewood and canning tomatoes, flitting about a high-tech paradise in hydrogen-powered flyingcars, or scrabbling for survival in a bleak,energy-starved, blighted landscape?

Well, yes. Or no. Depends on which oracle you talk to.

35Fall 2008

Okay, maybe not the flying cars. They didn’t work out when Popular Mechanics predictedthem 50 years ago, so there’s no real reason to see them coming ’round the bend anytime soon.Even so, it’s not a problem to get a variety of opinions about what the next 20 years will bring.

Paul Hunt, co-founder of Hunt Utilities Group in Pine River, hit the nail on the head whenhe said, “The real question is, how bold will our leaders be?”

Hard to tell, but we can be as bold as we want.

WE’LL GET HALF OUR POWER FROM SOLAR AND WIND SOURCES.

Question: How much is a megawatt? Answer: About enough electricity to power 300 homes.That means about 500 megawatts are needed to power the 150,000 households in

Minneapolis. Let’s call that a Minniwatt. In order to generate one Minniwatt, it would take 250 bigwindmills or 3,000 football fields of solar panels.

America uses about 1,500 Minniwatts, and a U.S. Department of Energy study says it wouldbe possible to get about 20 percent from wind power, without structural changes to our grid sys-tem. Solar power has even more potential. If we covered Nevada in solarpanels (so people can gamble in the shade), we would produce enoughelectricity for the entire world.

“In the transportation sector, the line between electrical generationand transportation fuels will be blurred as more and more electriccars take the road,” said Todd Reubold, program director of theUniversity of Minnesota’s Initiative for Renewable Energy and

the Environment. “With more electric cars, more efficientsolar panels are the greatest opportunity for

growth in the electrical generation field. Wind canalso be greatly scaled up.”

By Brent Olson

1

Illustration by Chris McAllister

OUR CARS AND HOMES WILL ACT AS GIANT

BATTERY PACKS.The wind doesn’t always blow and the sun doesn’t always

shine. That’s the nutshell argument against investing in renewableenergy, and it’s a good one. There is enormous generating capaci-ty built into our electrical grid, just so that there will be enoughon those days when demand is particularly high.

Today, we don’t store any power—if demand goes up, webring more plants online. Credible, affordable storage systemswill remove the last barrier to transitioning our electrical genera-tion to renewable sources.

So how do you store wind or solar power? Ryan Hunt ofHunt Utilities Group thinks we’ll store it in our cars. “In 20 years,most cars will be hybrids,” he said. “When they’re not going downthe road, they’ll be plugged in, charging their batteries whenpower supply is high, feeding the grid when it’s low.”

According to Pete Nelson, chief operating officer at SilentPower in Brainerd, our houses, too, will become hybrids. A bat-tery backup system about the size of a mini-fridge will power afuture Minnesota home for eight hours or more.

“Small-scale inverters and battery systems will be an integralpart of a smart grid,” Nelson said. “They will let a house drawpower off the grid when it’s cheap and provide the power whenit’s not.” Silent Power already markets a household-sized inverterand battery backup that can run a house off the grid for a fewhours, and switch back and forth to locally made power.

WE’LL GROW MORE OF OUR FUEL, BUT

NOT JUST IN FIELDS.“Sources will range from grass to algae,” said Dr. Roger

Ruan, professor at the University of Minnesota Center forBiorefining. “Bio-energy will be important because we have anexisting liquid-fuel infrastructure. Ethanol and biodiesel areeasily added to the system.”

The Center for Biorefining received a USDA grant to studyways to use biomass (organic compounds like wood, plants, andmanure) to produce fuels using a small scale “pyrolisis” system.By heating biomass to 1,000 degrees Fahrenheit very fast, underpressure, and in the absence of oxygen, it turns into oil.

Such technology would be suitable for use on farms, thusremoving one of the largest obstacles to biomass use—trans-portation costs.

The center has even conducted research on algae. Why?Because while an acre of corn stalks currently produces 20 gallonsof bio-oil, there is the potential for 15,000 gallons per acre usingalgae. It can grow anywhere there is warmth and water.


2

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CONTINUED ON PAGE 52

ANDR

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Fall 2008

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Saudi Arabia of renewableenergy,” proclaimed GovernorTim Pawlenty.

According to MinnesotaDepartment of Agriculture pro-jections, the corn ethanolindustry could provide morethan 18,000 jobs, with a totalestimated economic impact ofclose to $5 billion for 2008. Theeconomic impacts are evengreater in communities whereethanol plants are locallyowned.

Ethanol is basically grain alcohol, thesame alcohol found in beer and other dis-tilled liquors. It’s clear and colorless and canbe made from a variety of plants. Braziliansmake it from sugarcane.

Using ethanol as a fuel source is not anew idea. It was used as lamp fuel in theUnited States as early as 1840. The originalModel-T Ford was built to run on ethanoluntil the falling price of crude oil made gaso-line a cheaper alternative.

The 1979 OPEC oil embargo and result-ing fuel shortages, along with a federal banon leaded gasoline, prompted renewed inter-est in ethanol. For Minnesota farmers, theresurgence of ethanol couldn’t have come ata better time.

Ralph Groschen, senior marketing spe-cialist at the Minnesota Department ofAgriculture, has been involved in Minnesota’sethanol program for more than 20 years. He

ETHANOL

Minnesota’s Corn MazeThe Evolution & Revolution of Corn-Based Ethanol

Gloria Rind filled the gas tank of her redMazda sedan. When asked if she

knows that the gas she’s pumping in her carcontains ethanol, she shakes her head no. “Imean, I’ve heard of ethanol, but I guess Ididn’t know that it’s in our gas.”

That’s no surprise to David, the station’sowner, who said most people are like Gloria.“They don’t pay too much attention to what’sin the gas as much as they do the price of thegas,” he said.

Whether they know it or not,Minnesotans have been putting ethanol intheir tanks since 1997, when the statebecame the first in the nation to requireethanol in virtually all gasoline sold.

In fact, Minnesota has been a nationalleader in both ethanol consumption andethanol production. There are currently 17ethanol plants in the state, another fourunder construction, and several more in theplanning stages. According to the MinnesotaDepartment of Agriculture, Minnesota couldproduce about one billion gallons of ethanolin 2008.

According to its proponents, ethanoloffers a host of benefits: It’s considered acleaner burning fuel, it comes from a renew-able resource, it has the potential to helpreduce dependence on foreign oil, and inMinnesota, it’s resulted in a huge economicshot in the arm for struggling farmers andthe rural communities in which they live.

“Minnesota’s nation-leading positionin ethanol and biodiesel can make us the

recalls a time in the 1980s when two-thirdsof the corn grown in Minnesota was shippedout of the state. “Minnesota farmers were get-ting the lowest prices for their corn of any-one,” he said. “It was a frustrating time inMinnesota agriculture.”

Yet it was also the spark that ignitedMinnesota’s corn ethanol industry, or the“Minnesota Miracle,” as Groschen calls it.Thousands of Minnesota farmers cametogether to advocate for a new industry thatnot only promised them a fair value for theircrops, but also provided a viable alternativeto oil.

The Minnesota Department ofAgriculture lists five goals for the state’sethanol program, and building “a new mar-ket for the state’s largest crop (corn),” is list-ed first. The others include development of

KERNELS OF TRUTH: The ethanol boom was a “MinnesotaMiracle” for farmers, said Ralph Groschen, Department ofAgriculture, but other forms of biomass may soon challengecorn’s supremacy.

BY KAYLEEN LARSON

CONTINUED ON PAGE 42

Fall 2008

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MN CORN MAZE, CONTINUED


“I view the community members and farmers who came together to form those early ethanol co-ops as real pioneers,

and I have nothing but praise for them.”—ROBERT ELDE

corn ethanol production facilities inMinnesota, increasing the number of farmerco-ops, and replacing 10 percent of import-ed petroleum with ethanol.

But no one—not even its strongest sup-porters—said corn ethanol is the perfectsubstitute for oil. First, there is the cost ofgovernment subsidies needed to supportmany traditional and renewable energyindustries. According to the MinnesotaOffice of the Legislative Auditor, in 2008Minnesota will spend a total of $15.2 millionon its ethanol program.

Others point to the environmentalimpacts. Increased ethanol use means morefarmers are plowing up land to grow corn.That means increased water, herbicide, andfertilizer use, more fuel to run planting andharvesting equipment, and in some cases,loss of environmentally sensitive land previ-ously held in conservation reserve programs.

While farmers argue that theseimpacts have been greatly offset byincreased corn yields and economic bene-fits to rural areas, others counter that mostof those gains in yield come from the useof chemicals and genetically modifiedcorn, the long-term impact of which manyconsider questionable.

But perhaps the most controversialcharge is that corn ethanol is contributingto rising food prices, and even a food cri-sis in some parts of the world, accordingto The World Bank. This is particularlyfrustrating to corn ethanol supporters,

who point out that many experts agreethat the increased cost of oil, the decliningU.S. dollar, and ongoing droughts haveplayed a significant, if not greater, role inrising food prices than has ethanol.

Processing corn into ethanol also pres-ents unique challenges, the most pro-nounced of which is water use. This, somecritics argue, may place strains on under-ground aquifers.

According to the NationalRenewable Energy Laboratory it takesbetween three and four gallons of waterto make one gallon of ethanol at a drygrind facility, the predominant type ofproduction in Minnesota. As a point ofcomparison, it takes between two andtwo and one-half gallons of water to pro-duce one gallon of gasoline.

“I view the community members andfarmers who came together to form thoseearly ethanol co-ops as real pioneers, and Ihave nothing but praise for them,” saidRobert Elde, dean of biological sciences atthe University of Minnesota and foundingchair of the University of Minnesota’sInitiative for Renewable Energy and theEnvironment (IREE).

Elde and his colleagues are among thosewho believe that the future of ethanol is mostlikely not in corn, but in something calledcellulosic ethanol.

Cellulosic ethanol is made from wood,grasses, cornhusks, and other non-edibleparts of plants, or what’s called biomass.

While the technology needed to producelarge amounts of cellulosic ethanol is stillseveral years away, it is happening, albeit ona smaller scale.

One example is the University ofMinnesota, Morris. Wood chips, prairiegrass, corn leaves, and stalks fuel a gasifica-tion system to provide 80 percent of theenergy needs on campus, said Jim Barbour,emissions specialist.

The Central Minnesota Ethanol Co-opin Little Falls, which received start-upinvestments from the Initiative Foundation,is also working with Sun Opta of Canadaon the feasibility of building a cellulosicethanol production facility next to its cornethanol plant. General manager KerryNixon said the new facility would createethanol from wood and create enoughenergy to power both facilities.

Whether it’s made from corn, wood, orprairie grass, ethanol is still a promisingalternative with enough supporters that it ishere to stay—at least for the time being. “Itis possible that ethanol may turn out not tobe the ultimate molecule to use for fuel,”Elde added. “There are other contendersthat look promising.”

Among them—a teeny-tiny plant withpotentially vast hydrogen-producing poten-tial: algae. Oh, and it happens to be abun-dant in Minnesota.

But that’s another story.

React at IQMAG.ORG

Fall 2008 43

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> E C O N O M I C O P P O R T U N I T Y

French fries, pine trees, sunflowers, andalgae—entrepreneur Dr. Clayton McNeff

appreciates what those things have in common. McNeff is the owner of Ever Cat Fuels

and inventor of a new process for makingbiodiesel, a renewable fuel that costs about 10to 25 cents less per gallon, is safe for diesel-fueled engines, and produces 50 to 80 percentfewer toxic emissions.

The fries and algae are just a few of theproducts that Ever Cat will use to make threemillion gallons of biodiesel next year.

Ever Cat’s proprietary process is superiorto traditional methods because it makes fuel inseconds, costs about half the price, produces

virtually no waste, and canuse almost any animal fat orvegetable oil as a feedstock.

In early 2009, Ever CatFuels will open a new10,000 square foot facilityin the city of Isanti, creating12 new jobs. The businessreceived support from a variety of sources,including the Initiative Foundation’s GreenBusiness Loan Fund.

“Without financial support from peoplelike the Initiative Foundation, it would not beas far along as it is,” said McNeff.

“This project combines so many posi-

tives,” said Isanti Mayor George Wimmer. “Itbrings in good, high-paying jobs, it’s adding toour tax base, and the overall concept of theproject is great.”

Learn more: www.evercatfuels.com.

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them in retirement, without considering how it will succeed without them.Even more devastating, they do not plan for death, a disability, or otherunforeseen events.

Failure to plan can result in monetary loss or the loss of the businessitself. The right succession plan keeps the business healthy, and secures thefinancial future of both the business and its owner.

Here are four steps owners can take today:1. Develop a business strategic plan. Include a mission statement,

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answers on paper and identify steps toachieve your dreams.

3. Identify a succession process.Include an estimated retirementdate, a successor (a family member,employee, outsider, etc.), and thetransitioning plan.

4. Draft an estate plan. This can include a will, assignment of powerof attorney, a living will or healthcare proxy, and possibly a trust.

Visit www.ifound.org/donorcenter for succession planning tips, tools,and stories.

By Dave Toeben, Insight Insurance Services, (320) 258-3122,[email protected]

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America uses about twice as much electricity per capita as eitherGermany or Japan, two fairly swell places to live, and 50 times asmuch as Bangladesh, a slightly less-swell place. We have plenty ofroom for improvement.

“We’ll treat efficiency like a fuel,” said Cecil Massie, vice presi-dent of technology at 6Solutions, a renewable-energy consultingfirm. “The cheapest energy is the energy you don’t use. There’ll bebusinesses that help people with energy audits, showing them howto use less energy.”

Much of what is new in energy conservation isn’t new at all. Therelative cheapness of energy in the past 100 years has helped usdevelop some very bad habits. In 2030, retro-stone and concrete

buildings will regulate indoor temperatures, and geothermal sys-tems, motion-sensing lights, high-tech windows, and smart thermo-stats will make efficiency automatic.

Remember the Minniwatt? If we all just switched to compactfluorescent light bulbs, we could save over 100 Minniwatts. That’s100 fewer gigantic coal power plants, 25,000 fewer windmills, and300,000 fewer football fields of solar panels.

And that’s just the beginning. The problem is that there’s noth-ing sexy about insulating the attic, not compared to giant windmillsand acres of solar panels. We have to get past that. We need to growup and figure out that sexy doesn’t belong everywhere. Sometimeswhat matters is—what matters.

4

CONTINUED FROM PAGE 36

OUR BUILDINGS WILL BE 20 PERCENT MORE EFFICIENT,AUTOMATICALLY.

ANDR

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Fall 2008

One guy’s humble opinion . . .In Minnesota, we’re at a sweet spot right now—an intersection of

need and possibility, and all we need to do is reach out and take hold.If we talk to enough thoughtful people, a couple of pictures emerge.

The first image shows what will be if we continue to do whatwe’ve always done. It’s not particularly appealing—scarce and moreexpensive energy, the environment sacrificed for short-term security,and more jobs and opportunities shipped to other countries while wesquabble over what’s left.

The alternative picture is much more attractive. Stunning newtechnology married with old-time virtues such as efficiency and self-reliance. A rebirth and new importance for rural areas as they becomecenters of thoughtful energy policies. A world in which we are both

more independent and interdependent. A world that can be broughtabout by bold actions from our leaders, who will be driven by therequirements of an informed, involved citizenry.

But no flying cars. Forget the flying cars. You’d probably just runinto a goose.

Brent Olson is a writer and county commissioner living in Big StoneCounty. He was on the founding board of directors of the Northern LightsEthanol Plant and is a board member of Big Stone Wind, which is cur-rently developing a community-based wind turbine farm.

React at IQMAG.ORG

53


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The next genera-tion of bio-energyholds the promise ofchanging the way we fuelour cars, trucks, and buses.Dairy farmers are able to con-vert methane from manure intorenewable natural gas, for themselvesor for pipeline distribution throughout thestate. Talk about taking something nobodywants and turning it into something every-one needs!

Utilizing these renewable resourcesholds tremendous promise for our state, andespecially for our rural economies. But mak-ing that promise a reality is not going to bequick or easy. We need consistent state poli-cies to support the development of our solarand bio-energy resources, areas that we’venot focused on as well as we could or should.

For instance, more than 20 Wisconsindairy farmers make use of the methane-to-natural-gas technology. In Minnesota, wehave less than a handful. Do Wisconsin cowssomehow produce better manure than ours?

In order to make the most of ourMidwest wind resources, we need to upgradeand reinvest in our transmission grid—thepoles and wires that transport and deliverelectricity across the region. As we say atWind on the Wires: If you love wind energy,you have to at least like transmission. Windsimply cannot become a significant resourceunless we build enough capacity to deliverthe energy from where the wind blows towhere people live.

Finally, and most importantly, each andevery one of us must do our part to reducethe amount of energy we consume. Energy

GUEST EDITORIAL

Renewable Energy is Homeland Security.

Or so says the bumper sticker on mycar. My seven year-old son, James, noticedit for the first time this weekend, and Iasked him what he thought it means. “If wemake our own energy,” he said, “we won’thave to worry about where it comes fromor how to get it here.” He’s a smart kid.Takes after his mom.

Energy independence means makingthe most of our homegrown energyresources. Minnesota doesn’t have coal, oil,or uranium, but we have an abundance ofrenewable resources. Maximizing theseassets will strengthen our economy and helpaddress the environmental and climate chal-lenges we face.

Minnesota has the ninth-best windresource of any state in the nation. We’recurrently fourth in the amount of wind ener-gy we generate here (behind Texas,California, and . . . Iowa!). But wind can beharvested for more than just electricity. InMorris, researchers are combining windpower and water to make hydrogen, whichcan then be used to make anhydrous ammo-nia, a renewable fertilizer.

You might be shocked to hear thatMinnesota’s solar resource (the amount ofsunlight we get) is about the same asHouston, Texas, or Miami. Try to rememberthat next February.

Between our agricultural crops, prairiegrasses, and timber, Minnesota’s biomassresources are among America’s most diverseand abundant. We already lead the nation inthe production and use of biofuels likeethanol and biodiesel.

conservation is, by far, our cheapest energyresource. Reducing the amount of energy weuse vastly increases the impact of renewables.Contact your utility about an energy efficien-cy audit for your home or business. They’reinexpensive and could save you big moneythis winter.

Renewable energy is homeland securi-ty, and homeland security begins at home,with all of us and the energy choices wemake. Doing well by doing good—youcan’t beat that.

React at IQMAG.ORG

Mike Bull is the regional policy manag-er for Wind on the Wires, a collabora-tion of wind developers and environmen-tal groups working to promote windenergy development in the Midwest. Healso served as Assistant Commissionerfor Renewable Energyat the MinnesotaDepartment ofCommerce. Mikelives in Northfield,Minnesota.

BY MIKE BULL


Renewable OptimismMinnesota Primed for Homegrown Energy Revolution

ChrisMcAllis

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iq magazine - fall 2008

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