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Bioenergy &
Rural Electric Cooperatives
Carol E. Whitman
Agriculture as a Producer and Consumer of Energy
June 24-25, 2004
Arlington, VA
Co-op BasicsCo-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 & CooperativesBioenergy & 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?
• 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 ElectricCooperative (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 co-ops 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