Energy & Environment
| More

Gassing Up in Minnesota

A state ups the ante on alternative fuels.

BY: | January 2006



Minnesota made a name for itself in the renewable fuel market in 1997. That's when it became the only state to require that gasoline sold in the state contain 10 percent ethanol. Now the state is making its mark again. The mandate this time requires that almost all diesel fuel sold in the state contain at least 2 percent biodiesel--a cleaner-burning fuel produced from domestic, renewable resources such as vegetable oils, animal fats or soybeans.

The law, which was passed by the legislature in 2002, went into effect in September and already Minnesota boasts the nation's two biggest biodiesel plants. These two plants and a third are expected to produce 63 million gallons of biodiesel a year. The state agriculture department estimates that the biodiesel mandate will increase the demand for Minnesota's soybean crop by between 4 and 10 percent annually and generate an additional $206 million to $515 million in total statewide earnings. More than 3,000 farmers have already invested millions of dollars in the soybean crop.

There have, however, been some problems on the road to implementation. The mandate was temporarily suspended after a quality problem inside one of the plants caused refiners and blenders to stop selling the fuel in October. There also is some concern about biodiesel's performance during frigid weather.

Ralph Groschen, of the agriculture department, says kinks are inevitable. He notes that similar situations occurred with the ethanol mandate. "We have seen most of what has happened and what will happen," he says, "and now we'll do it with biodiesel."


If you enjoyed this post, subscribe for updates.

Elizabeth Daigneau
Elizabeth Daigneau

Elizabeth Daigneau is GOVERNING's managing editor.

E-mail: edaigneau@governing.com
Twitter: @governing

Comments



Add Your Comment

You are solely responsible for the content of your comments. GOVERNING reserves the right to remove comments that are considered profane, vulgar, obscene, factually inaccurate, off-topic, or considered a personal attack.

Comments must be fewer than 2000 characters.

Latest from Energy & Environment


More From Energy & Environment

GOVERNING Data

Events & Webinars

  • It’s A Paperless, Paperless World..... Thinking Outside the Box to Gain Efficiencies through Prepaid Cards
  • April 23, 2013
  • Public sector organizations are under intense scrutiny to operate as efficiently and effectively as possible and with maximum transparency. An important consideration is the way in which payments are made and managed. Prepaid cards can offer flexibility, security and accountability to governments as a method of dispersing benefits, healthcare and social care payments, child benefits and housing benefits to their constituents.


More Events & Webinars


© 2011 e.Republic, Inc. All Rights reserved.    |   Privacy Policy   |   Site Map