Ethanol industry strong, future looks promising
By Lori EhdeCorn producers got a pat on the back Tuesday from Washington, D.C.’s Bob Dinneen, president of the Renewable Fuels Association."You need to be proud of what you do, because it’s incredibly important to our nation’s economy," Dinneen said to a room full of people in the commons area of Luverne Elementary School.It was the annual meeting of members of the Corn-er Stone Farmers Cooperative, and Dinneen was the keynote speaker.The Renewable Fuels Association is the trade organization representing the ethanol industry.Corn-er Stone Manager Dave Kolsrud, who introduced Dinneen, offered some statistics to illustrate historical gains in the ethanol industry."When I started in ethanol in 1988, there were 600 million gallons of ethanol produced in the United States," he said. "We’ve gone from 35 plants to 73 in operation and 13 more under construction and we have the capacity now to produce 3 billion gallons of ethanol a year."In his address, Dinneen offered a few statistics of his own. He said one in every 10 rows of corn acres in the United States goes into ethanol production, and in Minnesota, that ratio is much higher."Minnesota leads the nation in ethanol production," he said. "With 14 plants, there’s no state in the nation that rivals Minnesota for ethanol production."He said that’s largely due to the efforts of Kolsrud and many others like him."When I met Dave eight years ago, he was telling me about the plans here to build an ethanol plant," Dinneen said. "His enthusiasm and energy was infectious."He said it’s been an uphill battle to educate Washington on the merits of ethanol, but lobbying efforts are starting to pay off."They’re understanding that ethanol is the single most important value added market for farmers," Dinneen said. "It’s a testament to what each and every one of you have done at the grass roots."But he said the value of their efforts is measured beyond their own pocketbooks."You need to understand that what you’re doing is more important than the return on your investment," he said."When you’re adding to economic development in Luverne and Minnesota, you’re also contributing to environmental protection and air quality advancements from coast to coast."Studies have shown MTBE, the petroleum-based additive, in gasoline finds its way to drinking water supplies. That’s why it was banned in California, and East Coast states are also considering switching to ethanol.While ethanol has come a long way in the past 10 to 15 years, Dinneen said the next big hurdle to clear involves the national energy bill, currently under debate in Congress.Part of that bill involves the provisions for a Renewable Fuels Standard that would ban MTBE, eliminate the reformulated gasoline oxygen standard, enhance clean air rules, and establish a minimum renewable fuels standard that grows to 5 billion gallons by 2012."It’s all about reducing dependence on imported fuels and increasing reliance on domestically produced fuels, such as ethanol and biodiesel," Dinneen said.He said the legislation has the potential to double the size of the ethanol of the next nine years.Ironically, gains in national support for ethanol have come from cooperation with oil companies. When MTBEs were found to contaminate the environment, oil companies looked to other oxygenated blending alternatives."Now, oil producers are our customers," Dinneen said. "They’re the ones marketing our product."Not only are oil companies working with renewable fuels producers, but Dinneen said Republicans are working with Democrats to promote ethanol."Things have really changed. Now we have this broad-based coalition of support," he said. "Ethanol unites people. You need to be aware of it and proud of it."According to information on the Renewable Fuels Association Web site, ethanol is sold nationwide as a high-octane fuel that delivers improved vehicle performance while reducing emissions and improving air quality. "By reducing foreign oil imports, ethanol creates American jobs and provides value-added markets to bolster agriculture and rural America," the organization states on its home page. "In the midst of record growth, the ethanol industry will continue to play a larger role in meeting our nation's energy needs."
