SERVING MINNEAPOLIS / ST. PAUL / MINNESOTA
Donate Now Sustaining Member


Our major sponsors




Sponsor of
Second Opinion



Our major advertisers


Our in-kind partners


MinnPost thanks these generous donors:

INDIVIDUALS AND FOUNDATI0NS
Blandin Foundation
Otto Bremer Foundation
Bush Foundation
Sage & John Cowles
David & Vicki Cox
Toby & Mae Dayton
Jack & Claire Dempsey
Ethics and Excellence in Journalism Foundation
Sam & Stacey Heins
John S. and James L. Knight Foundation
Joel & Laurie Kramer
Lee Lynch & Terry Saario
Martin & Brown Foundation
The McKnight Foundation
The Minneapolis Foundation
The Saint Paul Foundation
Rebecca & Mark Shavlik

(See all donors here.)

Community Voices

  • Switch to Small Text Size
  • Switch to Medium Text Size
  • Switch to Large Text Size
Email Print Submit a Comment

    Let biodiesel mandates, subsidies expire -- nature does it better

    By Rolf Westgard | Tuesday, Feb. 9, 2010

    The EPA has announced that 2010 production of cellulosic ethanol will reach 6.5 million gallons instead of the 100 million gallons required by the 2007 Energy Independence and Securities Act. Another highly touted biofuel, biodiesel, is encountering similar shortcomings.

    Biodiesel is made from vegetable oils, mainly soy. The oil cost depends on the price of the fossil fuels used to grow, harvest, fertilize and process vegetable crops into oil. Those functions make biodiesel inherently more expensive than fossil fuels, where nature has done the conversion of biomass into oil.

    To counter this for biodiesel, Congress in 2004 created a $1 per gallon tax credit for biodiesel; it was later extended through 2009. Hopes were high that this would support a significant role for biodiesel in the U.S. diesel market.

     

     

    A mandate for 2015
    The Energy Independence and Security Act of 2007(EISA) added to the push with mandates for biodiesel, calling for 2.5 billion annual gallons of biodiesel by 2015.

    EISA also did not prevent the export of subsidized biofuels. American producers of biodiesel have been exporting a majority of their product to Europe, thanks to the edge that the dollar-per-gallon blending credit gives them over European rivals. But in March 2009, the European Commission imposed anti-dumping duties on imports of U.S. biodiesel.

    Legislation to continue the $1 gallon credit in 2010 has stalled in the Senate. This delay and European duties have U.S. biodiesel production down to less than 20 percent of capacity.

    In 2009, 600 million gallons
    In 2009, the U.S. biodiesel industry produced 600 million gallons of biodiesel, just 1.4 percent of total U.S. diesel consumption of 48.5 billion gallons.

    One of many investors in biodiesel facilities is the City of Seattle Employee's Retirement Fund. That fund invested $10 million of the $90 million that Imperium Renewables spent to build the largest U.S. biodiesel refinery, now idle.

    One small bright spot for the struggling industry is Minnesota, which requires a 5 percent biodiesel blend in conventional diesel.

    It's time to let subsidies and mandates for this biofuel expire.

    Rolf Westgard is a professional member of the Geological Society of America and teacher of energy subjects for the U of M College of Continuing Education.

    Community Voices | Tue, Feb 9 2010 7:00 am

    Like what you just read? Support high-quality journalism in Minnesota by becoming a member of MinnPost.


    Want to add your voice?

    If you're interested in joining the discussion by writing a Community Voices article, email Susan Albright at salbright [at] minnpost [dot] com.

    12 Comments: Hide/Show Comments

    E-mail address

    Password

     

    Forgot Password? | Register to Comment

    MinnPost does not permit the use of foul language, personal attacks or the use of language that may be libelous or interpreted as inciting hate or sexual harassment. User comments are reviewed by moderators to ensure that comments meet these standards and adhere to MinnPost's terms of use and privacy policy.

    We intend for this area to be used by our readers as a place for civil, thought-provoking and high-quality public discussion. In order to achieve this, MinnPost requires that all commenters register and post comments with their actual names and place of residence. Register here to comment.



    Community Voices features opinion pieces from a wide variety of authors and perspectives. MinnPost welcomes submissions on current topics of broad interest in Minnesota. We suggest that they be limited to 800 words.

    If you'd like to join the discussion by writing a Community Voices article, email Susan Albright at salbright [at] minnpost [dot] com.

    Recent Community Voices