|
| | ||
| ||||
| ||||
| ||||
| HOME | ABOUT US | CONTACT US | SUBSCRIBE | NEWSSTAND LOCATIONS | ||||
| ||||
|
|
| | |
Minnesota is the leader for producing biodiesel Tuesday, January 10, 2006
Agri News
OWATONNA, Minn. -- Minnesota currently is the No. 1 biodiesel-producing state.
"By this time next year, Iowa will be," said Bob Carlson of RWC Consultants.
Carlson spoke about the status of oilseeds and feedlots at a recent meeting in Owatonna about agriculture-based energy sources.
"Biodiesel is somewhat new to Minnesota," he said.
The fuel has a mandate in Minnesota that all diesel must have a 2 percent biodiesel blend.
But until lately, biodiesel wasn't thought of much because of the cost. A lot of biodiesel is made from soybean oil, which costs about $69 per barrel. Petroleum oil -- the raw ingredient for fuels -- costs between $57 and $65 per barrel.
"They have come much closer together than they were five years ago," Carlson said.
In 2000, petroleum cost about $35 per barrel and soybean oil was significantly higher at $50.
The state needs 18 million gallons of biodiesel to meet Minnesota's biodiesel blend mandate. Currently, 180 million gallons are being made in the nation. Plants planned in Iowa will add another 120 million gallons to that total.
Carlson said other states have similar programs to Minnesota's mandate, but no others have the requirement at the gas station pump.
If the United States was to require a mandate like Minnesota's, Carlson said the country would need 1 billion gallons of biodiesel per year.
The question Carlson said would be on everyone's mind is if the United States has the capacity to make that much biodiesel.
Currently, the United States exports enough soybean oil to make 195 million gallons. Carlson said if the nation competes for those exports, the country could make that much biodiesel.
One downside, he said, is the ratio of soybean meal to soybean oil made at crush plants. Only 20 percent of the product is made into soybean oil.
"Other feedlots are going to have to come into play," Carlson said about biodiesel production.
Corn, cottonseed and canola oils all could be used in production.
With canola oil, 85 million gallons of biodiesel could be made each year "if we use every drop," Carlson said.
Another option that a European biodiesel company is trying is using rendered animal fats and oils to make the fuel.
Carlson said that has the potential to make 400 million gallons of biodiesel, but rendered animal fats and oils also are exported.
"We would need to outbid the current bidders," Carlson said.
Another option would be a better system of reusing and recycling the oil from fast food restaurants throughout the nation.
He also said the American Trucker's Association recently announced the members are in favor of a 5 percent biodiesel blended fuel. At that percentage, Carlson said the country would need to produce 2.5 billion gallons per year.
"I think it's conceivable that we do it," he said.
But if the country would try to go to a mandated 20 percent biodiesel blend, it couldn't happen, not even if every drop of oil went to biodiesel production.
"Twenty percent is just not realistic," Carlson said.
Don Davis, president of the Farmers Union Marketing and Processing Association complex in Redwood Falls, which makes biodiesel, talked about developments.
The complex processes raw materials from the turkey industry to produce about 3 million gallons of biodiesel per year.
Davis said the company designed and installed a pretreatment system that removes some impurities before the product is processed at the biodiesel plant.
In the future, the plant plans to continue to use soy and animal fats in production.
"We believe there's a real need for renewable fuels," Davis said.
He said federal reserves of 1.2 trillion gallons of oil will last about 30 years if fuel consumption stays at its current rate.
"Environmentally it makes sense ... biodiesel is not wasteful of our natural resources," Davis said.
Every gallon saves four gallons of fossil fuel and burns 48 percent less carbon monoxide, he said.
"Quality and customer satisfaction are required to move this industry forward," Davis said.
The company also burns 100 percent animal fat in its boilers with no prior processing.
SoyMar General Manager Tony Prehm spoke about the production capacity of that company.
"There are some benefits, I think to producing (soybean oil)," he said.
SoyMar makes about 30 million gallons of biodiesel per year. |
| | |
| |
Copyright 2008 Agri News
All Rights Reserved
