renewable fuels in minnesota
DESCRIPTION
Renewable Fuels in Minnesota. Commissioner Gene Hugoson. Renewable Fuels in Minnesota. Minnesota’s renewable fuels agenda Boost the farm and rural economy Reduce dependence on foreign fossil fuels Improve air quality. Renewable Fuels in Minnesota. The MDA’s Role: Public education - PowerPoint PPT PresentationTRANSCRIPT
Renewable Fuels in Minnesota
Commissioner Gene Hugoson
Renewable Fuels in Minnesota
• Minnesota’s renewable fuels agenda1. Boost the farm and rural economy
2. Reduce dependence on foreign fossil fuels
3. Improve air quality
Renewable Fuels in Minnesota
• The MDA’s Role:– Public education– Increasing ethanol production– Encouraging farmer-owned developments
12
34
5
7
9
11
14 1416
0
2
4
6
8
10
12
14
16
Nu
mb
er o
f P
lan
ts
1986 1988 1991 1994 1995 1996 1997 1998 1999 2005 2006
Year
Number of Ethanol Plants in Minnesota
Renewable Fuels in Minnesota
• The results: June 2007– Ethanol supports 10,000 jobs– Ethanol generates $2.8 billion for state – 16 ethanol plants, most farmer-owned– Production capacity tops 600 million gallons– 20% of corn crop used for industrial processing– $300 million in value added to commodities
Minnesota Ethanol: Economic and Employment Impact
$0.03 $0.09 $0.12$0.28 $0.35
$0.51
$0.80
$1.07
$1.58
$2.77
$3.07
$4.95
10,321
18,461
671520
4,008
1,476
3,132
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
*
2008
*
Ou
tpu
t Im
pac
t ($
bill
ion
)
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Em
plo
ymen
t Im
pac
t (
# o
f jo
bs)
Output Impact ($ billion)
Employment Impact (# of Jobs)
*ProjectedSource: AMS, MDA
Renewable Fuels in Minnesota
• Goals achieved:– Boost farm and rural economy
• Value added to corn crop• Multiple farmer-owned, value-added cooperatives
– Reduce reliance on foreign energy • Each gallon of ethanol cuts oil import needs by 7
gallons
– Clean up environment • Twin Cities in attainment for carbon monoxide
Renewable Fuels in Minnesota
• Governor Pawlenty takes Minnesota to the next level– Making Minnesota the “Saudi Arabia of
renewable energy”• May 2005: Signs legislation to move to 20% ethanol
(E20) content in state gasoline by 2013
• Boosts number of E85 vehicles in state fleet
• September 2005: Minnesota becomes first state to mandate use of 2 percent biodiesel
Renewable Fuels in Minnesota
• Governor Pawlenty takes Minnesota to the next level– E20 progress
• Conducting tests with University of Minnesota on – Materials compatibility– Drivability– Exhaust and evaporative testing
• Additional testing to be done on– Health impacts of E20– Long-term durability
Renewable Fuels in Minnesota
• Governor Pawlenty takes Minnesota to the next level– May 2007: Signs Next Generation Initiative
into law• Increases Renewable Energy Objective to 25% by
2025
• E-85 Everywhere – Goal of 1,800 stations by 2010
• Promote cellulosic ethanol and advanced biomass technologies
Renewable Fuels in Minnesota
• Governor Pawlenty takes Minnesota to the next level– Next Generation Initiative includes…
• Next Generation Energy Board – Develop recommendations on how state should invest
resources to achieve renewable energy goals
• Next Generation Energy Grants – $35 million for Next Generation Energy initiatives,
including funding for a wide variety of grants and research
Renewable Fuels in Minnesota
• Biodiesel in Minnesota– Three major biodiesel plants with annual
production capacity of 63 million gallons– Minnesota ranks among largest biodiesel
producers in the country
Renewable Fuels in Minnesota
• Minnesota’s status in June 2007– More than 300 E-85 stations– 16 ethanol plants with more than 600 million
gallons of production capacity– Minnesota leading the nation in per-capita
consumption of renewable energy
Renewable Fuels in Minnesota
• Minnesota’s status in June 2007– Continuing to grow
• Five new ethanol plants under construction will add 450 million gallons of production capacity
• 5-6 existing plants are expanding
Renewable Fuels in Minnesota
• Minnesota’s status in June 2007– Continuing to innovate
• Winnebago plant burns DDG syrup, replacing half of natural gas needs for process energy
• Last summer, Little Falls rolled out gasification plant that uses wood chips and DDGs to replace all natural gas and 1/3 of electricity needs
• CVEC plant in Benson to produce syn-gas, opening door to cellulose-to-energy technology
Renewable Fuels in Minnesota
• Federal activity– President announces “20 by 10” goal in 2007
State of the Union• Seeks to cut U.S. gas consumption by 20% over
next 10 years– Renewable fuels standard increase to 35 billion gallons in
2017
– Reforming and modernizing CAFE standards
Renewable Fuels in Minnesota
• External drivers– Oil prices surge past $70/barrel
Renewable Fuels in Minnesota
Renewable Fuels in Minnesota
• External drivers– Oil industry drops MTBE as oxygenate option– U.S. auto makers step up promotion efforts for
E-85 vehicles
Renewable Fuels in Minnesota
• External barriers to success– Lingering misconceptions about renewable fuel
• That it causes engine problems
• That it drives up fuel prices
• That it takes more energy to produce than it yields
• That it is the root cause of food shortages and price hikes
Renewable Fuels in MinnesotaU.S. Crop Area Summary to 2015
35
40
45
50
55
60
65
70
75
80
85
90
95
100
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Ind
ivid
ual
Cro
ps
(m
il a
cres
)
300
303
306
309
312
315
318
321
324
327
330
333
Cro
p T
ota
l (m
il a
cres
)
Crop Total Corn Soybean Wheat All Hay Other Crops
Renewable Fuels in Minnesota
• To-do list– Pursue alternative fuel stocks– Educate public about renewable fuels– Federal farm bill process
• National Governors Association calls for increased biofuels production and consumption
Renewable Fuels in Minnesota
Minnesota Department of Agriculture
Gene Hugoson, Commissioner
651-201-6219