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Bioenergy & 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

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Bioenergy & Rural Electric Cooperatives

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  1. Bioenergy &Rural Electric Cooperatives Carol E. Whitman Agriculture as a Producer and Consumer of Energy June 24-25, 2004 Arlington, VA

  2. 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

  3. 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.

  4. Why Bioenergy/Renewables? • Legal requirements • Commitment to community • Environmental stewardship • Interest by cooperative members • Good business

  5. Co-op Experience • Biodiesel • Biomass to electricity

  6. Biodiesel Southern Maryland Electric Cooperative (SMECO) • Distribution co-op serving 300,000 people, headquartered in Hughesville, MD • Historically rural agricultural area • DOE’s Alternative Fuel Transportation Program

  7. 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

  8. PROs Satisfied requirements under AFTP Supported local businesses and farmers CONs Procurement issues Reduced fuel economy Storage issues Engine warranties Biodiesel cont.

  9. Biodiesel cont. SMECO’s solution • Environmental credits

  10. 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

  11. 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

  12. 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.

  13. 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

  14. Conclusions • Some technical constraints to use remain. • Market barriers pose a greater challenge, e.g., • Cost • Availability • Performance

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