Earlier today, Minnesota Bio-Fuels Association (MN Bio-Fuels) executive director, Brian Werner, participated in a panel discussing the outlook for the agriculture industry at the Minnesota Farmfest in Morgan. 

In his remarks, Werner provided attendees with an overview of the ethanol industry’s role  in Minnesota’s economy, noting the industry contributed $2.5 billion to the state’s economy and generated $6.6 billion in economic activity in 2023. 

“Minnesota’s ethanol industry is an economic powerhouse that provides value to farmers and rural communities,” he said. 

Werner said the industry this year is poised to break new records. 

Exports, he said, is on pace to match or exceed the previous record achieved in 2018 with Canada on track to importing a billion gallons of ethanol per month from the United States (another record).

As for Unleaded 88, also known as E15, Werner said sales in 2024 have grown 17 percent in comparison to 2023. He said infrastructure grants from both the federal and state governments have helped increase access to Unleaded 88 in Minnesota with over 500 stations offering the fuel. Going forward, Werner said a permanent solution to enable the year-round sale of Unleaded 88 was needed.

“We need policy that doesn’t slow down our momentum on E15,” he said.

On Clean Fuel Tax Credits, Werner said the credits offer valuable incentives to help ethanol get to net-zero by 2050, but only if the rules are written in a way that works for producers and farmers. 

He pointed to recent comments by MN Bio-Fuels to the USDA, which recommended, among others, the usage of the GREET model and the unbundling and expanding climate smart agriculture practices. 

Werner also said environmental permitting reform is needed in Minnesota, noting ethanol plants in the state have been frustrated with lengthy delays in obtaining permits to expand production and install new energy efficient equipment, which both require amending their air permits. In some cases, it has taken three to five years for a plant to amend their operating permit.

“If Minnesota is going to meet its clean energy goals, become a SAF hub, and capitalize on these federal tax credits, the state needs to make a good-faith effort to issue environmental permits in a more efficient and timely way,” he said.