We need to keep renewable energy production in the United States

Author:  Doug Peterson, Minnesota Farmers Union President

(February 17, 2009) - We receive a lot of information through the media.  The Minneapolis Star Tribune recently sited a study that claimed corn ethanol is not better than gasoline for the environment.  My frustration is that from the looks of it, the study just offers criticisms, and does not give the corn ethanol industry credit for producing a clean and non-foreign substitute that is helping the United States take a step toward being less dependent on foreign oil.

Another criticism I have of this study is that it is by the University of Minnesota, and it provides unfavorable information on the corn ethanol industry without offering any suggestions.  The University of Minnesota is a land grant college, and many believe the University of Minnesota should work with farm organizations, and commodity groups, and with the great resources we have here in Minnesota to take us one step further in reaching home-grown energy independence.

I wanted to mention that WCCO's Pat Kessler did a "Reality Check" about this story and the study.  One thing he pointed out was that the study neglects to mention that both the ethanol and oil industries are subsidized, and that a gallon of E-85 costs about $1.45 a gallon, but without subsidies would be $2.23 a gallon; whereas a gallon of gasoline costs $1.85, and without subsidies would cost $5.85 a gallon.

I am not saying corn ethanol is the only answer to get our country off of foreign oil, but I am saying without the infrastructure and policy that corn ethanol brought us, we would not be on the alternative fuels path as far as we are, and on the bridge to the next stage of cellulosic and algae ethanol.

The University of Minnesota study can be found at the Proceedings of the National Academy of Sciences website, www.pnas.org.

The University of Nebraska found that the latest corn ethanol refineries have helped cut greenhouse gases in half and that, as an industry, ethanol producers are now creating 1.8 units of energy for every unit of energy used to produce it.

As the volatility in the corn market pressured profits, some ethanol plants fell into bankruptcy, leading to oil companies being able to buy in to ethanol companies.  Valero Energy, a Texas-based company is trying to purchase five ethanol plants, including one in Welcome, Minnesota.  The sale is not final, but it is something we should all keep an eye on.

If oil companies are getting into ethanol production, it hurts our local economy, and confuses consumers and policy makers in the debate between oil and corn.  We need to keep the alternative energy movement in the United States; we cannot afford to import alternative fuels from foreign countries, or buy alternative fuels from oil companies.  It is common knowledge that alternative fuels, or alternative energy adds value to the commodities that farmers produce, and keeps money and jobs in the local economy, and makes us less dependent on foreign oil.