Transcript Bioenergy and Rural Electric Cooperatives

Bioenergy &
Rural Electric Cooperatives
Carol E. Whitman
Agriculture as a Producer and Consumer of Energy
June 24-25, 2004
Arlington, VA
Co-op Basics
• 865 distribution and 65
G&T cooperatives
• Serve 37 million people in
47 states
• Own and maintain 2.4
million miles, or 43%, of
the nation’s electric
distribution lines,
spanning three quarters of
the nation's landmass
America’s Electric Cooperative Network
Bioenergy & Cooperatives
Co-ops actively support the development of
bioenergy and renewables through 5
resolutions, including 2 that specifically
support increased use of ethanol and biodiesel.
Why Bioenergy/Renewables?
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Legal requirements
Commitment to community
Environmental stewardship
Interest by cooperative members
Good business
Co-op Experience
• Biodiesel
• Biomass to electricity
Biodiesel
• Distribution co-op
serving 300,000
people, headquartered
in Hughesville, MD
• Historically rural
agricultural area
• DOE’s Alternative
Fuel Transportation
Program
Southern Maryland Electric
Cooperative (SMECO)
Biodiesel cont.
State & Alternative Fuel Provider Rule
• Acquire new or used AFVs,
• Purchase credits from other covered fleets,
• Use credits they have earned, or
• Purchase biodiesel fuel blends of 20%
biodiesel or greater
Biodiesel cont.
PROs
• Satisfied requirements
under AFTP
• Supported local
businesses and farmers
CONs
• Procurement issues
• Reduced fuel economy
• Storage issues
• Engine warranties
Biodiesel cont.
SMECO’s solution
• Environmental credits
Biomass to Electricity
• G&T serving 25 coops and 20 municipals
(500,000+ people),
headquartered in
LaCrosse, WI
• 5 states—WI, MN, IA,
and MI
• Methane digester plan
Dairyland Power Cooperative
Biomass to Electricity
Renewable Energy Targets
• WI RPS of 2.2% by 2011
• MN renewable energy objective of 10% by
2015
• IA mandatory utility green power option
• IL renewable portfolio goal of 15% by 2020
Biomass to Electricity cont.
PROs
• Support local
economy
• Multiple benefits
– Improved air and water
quality
– Pathogen and weed
seed reduction
• Proven technology
CONs
• High installed capital
costs
• Permitting issues
• Farm stability critical
to success
• Technical
interconnection issues
Biomass to Electricity cont.
Dairyland is working on 5 projects
• Wild Rose Dairy, La Farge, WI
• Back Farms, Dorchester, WI
• Norswiss Farms, Rice Lake WI
• Five Star Dairy, Elk Mound, WI
• Daley Farms, Rochester, MN
Conclusions
• Some technical constraints to use remain.
• Market barriers pose a greater challenge,
e.g.,
– Cost
– Availability
– Performance