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Minnesota officials excited about renewable energy Tuesday, December 20, 2005
Agri News staff writer
NORTH MANKATO, Minn. -- Minnesota Public Utilities Commission Phyllis Reha set the stage for a recent conference on renewable energy.
Renewable energy is an opportunity, she said. It's popular with the public, especially in this time of high oil prices. It's a positive for national security, economic development, the environment and reliability.
But there are challenges to overcome, she said. Alternative energy is dependent upon poorly defined public policy.
A panel of three took it from there. Steve Taff, a University of Minnesota agricultural economist; Ron Obermoller, a Minnesota Corn Growers Association director; and Bob Metz, American Soybean Association president spoke about their experiences with renewable energy.
"We use a helluva lot of energy in this country," Taff said. Most heat comes from natural gas and most electricity from coal. Renewables are but a sliver of the market, sandwiched between energy produced by nuclear power plants and hydro power.
Even so, renewable energy has come a long ways since the 1970s when words like windmills, solar power and methane were in vogue.
A movement exists to produce cleaner energy, where renewables certainly fill a void, he said. The European Union uses biodiesel to help it meet the standards of the Kyoto Accord.
Ethanol is now competitive with unleaded gasoline, even without a subsidy. Minnesota plants produce 2.7 gallons to 2.8 gallons of ethanol from a bushel of corn.
In Minnesota, ethanol is the renewable energy giant. In 2005, the state's ethanol plants produced an estimated 43,914 billion Btu, according to Taff's research.
Biodiesel is second, with an estimated 8,690 billion Btu produced and wind power third, producing an estimated 5,763 billion Btu of energy.
Ethanol generates an estimated 448 local jobs and $676.3 million in local spending.
There are four ways to make money from renewable energy production, Taff said. First, grow stuff that is converted to energy. Second, make energy. Third, make the equipment that is used to make energy, and fourth, do things because you can get subsidies for doing them.
He encouraged attendees at the 23rd annual Rural Legislative Forum to focus on the third item, making equipment to improve local economies. That's where the money is going, Taff said.
Obermoller said the corn growers association wants farmers to own energy production capacity.
Today, 14 percent to 15 percent of Minnesota's corn crop is used for ethanol, and corn is still exported. The Brewster corn grower is excited about what else can be made at ethanol plants.
The industry doesn't want to compete with agribusiness giants, but it does want to fill niche markets those giants don't want to pursue.
"The future is going to be exciting," Obermoller said. "We're just starting to scratch the surface with renewables."
Renewable energy is going to be part of his family's future, said Metz, from West Browns Valley, S.D. They have invested in three ethanol plants and two soybean processing plants.
When he drives by a lush soybean field he doesn't see 50 bushel soybeans, he sees 75 gallons of biodiesel. |
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