Bioenergy & Rural Electric Cooperatives

Bioenergy &Rural Electric Cooperatives

Carol E. Whitman

Agriculture as a Producer and Consumer of EnergyJune 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