Earlier today, Minnesota Bio-Fuels Association (MN Bio-Fuels) executive director, Brian Werner, participated in a panel discussing the outlook for the agriculture industry at the Minnesota Farmfest in Morgan. 

Unleaded 88 sales in Minnesota in May and June reached new records with 12.61 million gallons and 12.16 million gallons respectively, according to revised data from the Minnesota Department of Commerce. 

By Tim Rudnicki, Esq.

Welcome to the Minnesota Bio-Fuels Buzz.  In the last issue of the Buzz I noted many consumer and environmental benefits are associated with Today’s 21st Century Biofuels.  Since the last issue of the Buzz went out, a number of you have asked me about a biofuel called E15 and the environmental benefits of biofuels.  Here is a nutshell version of some answers to those questions.

In June 2012, the U.S. Environmental Protection Agency approved adding 85% gasoline to 15% ethanol for use as a motor fuel in 2001 and newer light duty vehicles. This mixture of ethanol and gasoline is called E15 (more accurately, it should be nicknamed “Eco-15").  E15 went through about six (6) million miles of testing before it was approved for use in about 70% of the gasoline powered vehicles on the roadways today.  No other fuel has received this amount of testing!  The bottom line:  “The Stuff Works!” (More Info On E15 Here)

If your light duty vehicle was built within the last 12 years, you can use E15.  For consumers using E15, it’s like getting a premium fuel for the price of regular gasoline.  Over the holidays I had the good fortune to travel to locations where E15 is available.  Although the price for a gallon of gasoline is variable, E15 was 10 cents less per gallon compared to regular gasoline.  E15 is a motor fuel similar to regular gasoline (most regular fuel has 90% gasoline added to 10% ethanol) except E15 performs like premium fuel for less money.  Regular gasoline is 87 octane while E15 is 90 octane.

At the Minnesota Bio-Fuels Association we like to say: “Today’s 21st Century Biofuels Are Not Your Daddy’s Ethanol” for several reasons.  First, Minnesota biofuel producers have significantly reduced the amount of water used to produce a gallon of biofuel.  Many producers recirculate all the water they use to produce biofuels and some use less than two gallons of water to make a gallon of biofuel. Compare this to crude oil processing techniques that use 40 gallons of water to make one gallon of gasoline.  (Source:Minnesota Technical Assistance Program)

Todays’ biofuels, compared to a few years ago, are improved for another reason:  it takes less energy to make it and the Greenhouse Gas (GHG) emissions are far lower for biofuels.  Researchers measured the amount of energy it takes to pump oil, refine it to make gasoline and then deliver the gasoline to your favorite gas station.  Researchers also measured the amount of energy used to grow, harvest and process renewable energy ingredients into biofuels and to deliver those biofuels, like E15, to your favorite fuel dispenser. Remember, whether we are talking about biofuels or gasoline, it takes energy to make energy.  The big difference is this:  to make the same amount of energy from biofuels uses 60% less energy inputs compared to the amount of energy used to make gasoline.  (Source: Argonne National Laboratory)  You might wonder, how can that happen?  How can we get more energy out of biofuels than what is used to make biofuels?  The short answer: (1) biofuels are made from renewable ingredients that capture solar energy and store the energy in the plant material and (2) biofuel producers simply unlock the energy stored in renewable ingredients like field corn kernels and other plant materials.

Lastly, the GHG environmental issue.  Based on a December 2012 published study by Argonne National Laboratory, biofuels, like ethanol, reduce Greenhouse Gas (GHG) emissions.  Compared to petroleum gasoline, biofuels can reduce GHG emissions from 57% (field corn used as renewable ingredient) to 115% (miscanthus used as renewable ingredient). (Source: Argonne National Laboratory)

No need to wait!  If you don’t have a flex fuel vehicle and are looking for a way to immediately reduce GHG emissions (“green” your 2001 or newer light duty vehicle), look for E15 and use E15.  If you can’t find E15 at your favorite retailer, ask for E15.  As soon as you start using E15, you will further reduce GHG emissions right here, right now.

Take a look at the balance of Minnesota Bio-Fuels Buzz for a sampling of some important issues in the world of biofuels.  As always, if you have questions or comments about what you read in the Buzz, send me a note (Contact Page) or call me (612.924.6495).

By Tim Rudnicki, Esq.

Shortly before Earth Day, the International Energy Agency (IEA) released a report about the progress, or lack thereof, for clean energy production.  The substance of the 154 page report is reflected in these words from the IEA Executive Director:  “Despite much talk by world leaders, and despite a boom in renewable energy over the last decade, the average unit of energy produced today is basically as dirty as it was 20 years ago."  What factors form the basis for this statement?  How is the IEA report relevant to biofuel producers and consumers in the U.S. Midwest?  Are there any actions we can take to improve the situation?

The IEA is an autonomous entity that was formed in response to the oil crises in the early 1970's.  It is comprised of 28 member nations, including the United States, and provides reports to the Clean Energy Ministerial which consists of 23 governments whose nations account for approximately 80% of the total global Greenhouse Gas (GHG) emissions.  Among the IEA’s key initiatives is its work to ensure clean energy supplies for its members as well as other nations. 
Tracking Clean Energy Progress 2013 (the “Report”) is one tool the IEA relies upon to measure progress in meeting target GHG emission reductions by 2020 and beyond.  The reduction numbers are those required to stabilize the climate.  While this Report covers a wide range of energy sectors and issues, we limit our focus here to the biofuel portion of the Report.

What does the IEA Executive Director mean by “dirty” energy?  In two words, fossil fuels.  According to the Report, while progress is being made in developing and deploying clean renewable energy, such as biofuels, the full potential and availability of renewable energy has yet to be realized in the marketplace.  Meanwhile, the use of the more carbon intensive fossil fuels, including oil extracted from the tar sands of the Boreal Forest in Canada, are on the rise. 

Although the carbon intensity of fossil fuels and the environmental benefits of energy efficiency and renewable energy sources have been known for decades, little substantive progress has been made in reducing carbon emissions over the last 40 years.  The total carbon intensity between the 1970's to the present has been reduced by a mere 7% according to the IEA Report.  To grasp the magnitude of the situation, contrast the historic progress with the carbon intensity reductions necessary in the future:  6% required by 2020 and 64% by 2050.  Report at 8.

Our atmosphere is a global commons since it has no geopolitical boundaries.  As energy producers and consumers, we play very important roles in caring for the atmospheric commons.  Our individual as well as collective health and well-being are improved by maximizing energy efficiency and using sustainably produced, regenerative renewable energy sources.  Biofuels, according to the IEA, is one of those energy sources.  In fact, to achieve the target GHG reductions necessary to stabilize the climate, the IEA calls upon biofuel producers to double global production.  This can be achieved by deploying advanced biofuel conversion technologies and working to improve efficiency, cost and sustainability of conventional biofuels. Report at 91.  

The Producer Members of the Minnesota Bio-Fuels Association (MBA) are part of the solution!  Right here, right now, these producers are leaders with respect to process efficiencies.  From the field where the renewable ingredients are grown to the fuel dispenser, the life-cycle GHG emissions for the ethanol Minnesota Producers make from corn starch is 48% to 57% less relative to petroleum gasoline.  Michael Wang, Well-to-wheels energy use and greenhouse gas emissions of ethanol from corn, sugarcane and cellulosic biomass for US use, December 2012.  MBA Producer Members continually seek new opportunities to further improve the thermal efficiency of their operations and reuse storm and wastewater so they can provide consumers with the best environmentally responsible biofuel possible.

While Minnesota biofuel producers are part of the solution to the environmental challenges raised by the IEA, the full availability of biofuels at higher blend levels is still a problem.  For instance, Minnesotans know about the environmental and pocket book benefits of “Minnesota Grown Energy - for Today and Tomorrow,” yet they have a difficult time finding the higher octane, lower priced (compared to regular gasoline) E15.  

Once E15 is readily available to consumers, they can switch to E15, a higher blend of biofuels with lower GHG emissions, and immediately “green” their 2001 or newer vehicle (no need to buy a new car).  How do we turn this situation around so more biofuels, such as E15, are available to consumers?

Here is one solution: the next time you stop for fuel at your favorite gas station, ask for E15.  Consumers have the power to immediately decrease GHG emissions as they drive by simply using E15.  E15 contains 50% more biofuel having fewer life-cycle GHG emissions compared to petroleum gasoline.  Meanwhile, MBA will continue to do its part by working with coalition partners and interested retailers so consumers have more biofuel options at the pump.  This concerted effort can help Minnesota consumers immediately reduce GHG emissions when driving and save more money at the pump.

Take a look at the balance of Minnesota Bio-Fuels Buzz for a sampling of some exciting issues in the realm of biofuels.  As always, if you have questions or comments about what you read in the Buzz, send me a note (This email address is being protected from spambots. You need JavaScript enabled to view it.) or call me (612.924.6495).