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Explore the production, economic impacts, and market development of ethanol and biodiesel in Minnesota. Discover the potential for future growth, challenges faced, and pathways for industry sustainability. Stay informed on yields, energy returns, and filter-related issues.
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Industry Overview and Developments • Ralph Groschen • Senior Marketing Specialist • Minnesota Department of Agriculture • ralph.groschen@state.mn.us • www.mda.state.mn.us Riverland Community College December 6, 2006 Kasson, MN
New Projects HAWAII
Minnesota Ethanol: Production, Producer Payments, and Economic Impacts (Fiscal Year: July 1-June 30)
Minnesota’s Ethanol Plants Plant (Start date) Original capacity (millions) 2004 • Marshall (1987) 10 40 • Morris (1991) 3.5 22 • Corn Plus (1994) 15 40 • Heartland (1995) 10 37 • Al-Corn (1996) 10 34 • CVEC (1996) 15 42 • MN Energy (1997) 12 18 • Ethanol 2000 (1997) 12 30 • Pro-Corn (1998) 12 40 • Cornerstone (1998) 12 21 • CMEC (1999) 20 22 • Exol (1999) 13 40 • North Star 2005 50 50 • Total 210 454
Yields Yields Return To Fossil Fuel Energy 100% more energy w/ Ethanol 1.67 Btu of fuel ethanol (USDA) 1 Btu of fossil energy Coal, oil, or gas 0.805 Btu of gasoline
Market Development • 5 billion gallons used today, mostly in E10. • E85 is future possibility for market expansion. (MN is way ahead nationally) • May also develop other markets: • 1. Aviation Fuel? • 2. Diesel Fuel (Sweden) • 3. E20 (Gov’s initiative) • 4. RFG area O2 caps may be lifted
Where do we go from here? • Maintain existing industry through transition • “Cellulose” (biomass) to ethanol and other fuels. • Minnesota plants are taking the initiative. • Pathways • 1. Use biomass fuels for process energy. (MN) • 2. Enzyme/Fermentation DOE focus. • 2. Thermochemical • A. Various thermochemical reactions (Pyrolysis- Synthetics) • B. Gasification “Syngas” and “biorefinery process” (MN)
What’s Possible? Source - Vinod Khosla 70% of today’s gasoline usage?
Fossil Energy Ratio (FER) = energy in fuel/fossil energy input 10.31 Michael Wang, Center for Transportation Research, Energy Systems Division, Argonne National Laboratory
Yields Yields Return To Fossil Fuel Energy 280% more energy w/ Biodiesel 3.2 Btu of Biodiesel (USDA & DOE) 1 Btu of fossil energy Coal, oil, or gas 0.843 Btu of Diesel Fuel
Minnesota Biodiesel • 2% required in Minnesota since 9/29/05 • 3 plants, 63 million gallons production capacity • High blends & B100 used in summer by some • Filter problems in Winter ‘05 & ’06 blamed on biodiesel • Some “off-spec” biodiesel was shipped • Everybody used B2, most had no problem • Other potential causes of filter problems were not discussed
Diesel Filter Problems • Jan. 2006 Cummins Diesel Bulletin • Diesel filter life has shortened steadily since Winter of 2004. • Major causes of plugging are: • “Asphaltine” polymers duel to high fuel temp • “Biological organism” growing in fuel • “Engine lubricating oil” mixed in fuel • Engine design, pipeline additives & used oil. • Biodiesel fuel mixed at “high levels” (B20) • “Solid Particle contaminants, (Dirt)”