Biofuel powers discussions about future markets for Minnesota crops
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MANKATO, Minn (KIMT) — One of the keynote speeches of this year’s Minnesota Ag Expo focused on expanding Minnesota’s growing biofuel industry and the role Minnesota farmers have to play in it.
Jeff Davidman, vice president of state and local affairs for Delta Airlines spoke about the state’s existing investments in the industry and his hopes to see it expand to help Minnesota airlines meet their environmental goals.
Davidman says in 2024, the airline used around 12 million gallons of sustainable aviation fuel, but it would like to use more to meet its goal of having around 10 percent of its fuel being sustainable by 2030.
To do that Delta and other community partners want to assist the state through its SAF Hub partnership to expand its production capacity to around 300 million gallons a year to meet that expected demand.
“What we don’t have is enough of it,” Davidman said.
Brian Werner, executive director of the Minnesota Bio-fuels Association, says airlines like Delta are a great potential market for the states corn and soybean producers
“Delta uses around 250 million gallons of jet fuel every year and that’s huge. Huge potential market, so the more we can do to get sustainable aviation to MSP the more it’s going to do for sustainable aviation fuel and bio fuel,” Werner said.
Part of how the state would help support this expanding market is through a proposed expansion of the Sustainable Aviation Fuel tax credit.
Increased support of biofuels could also benefit consumers at the pump, according to Werner.
The states of Minnesota and Iowa are part of a group of 8 states that are also being considered by the Environmental Protection Agency for year round permission to sell E-15, or Unleaded 88 Ethanol, which he says costs on average 25 cents less per gallon.
Joeseph Smentek, executive director of Minnesota Soybean Growers Association says fuels like these are a great way to expand the secondary market for the oils produced by crops like soybeans, especially when only around 40 percent is used for human consumption.
“Biofuels have been a huge economic boost to Minnesota soybean growers these past few decades,” Smentek said.
The roll out of year round sales for E-15 in Minnesota and Iowa is expected to begin this spring, Werner says it may take some time but he is hopeful more waivers can be issued nationally as support for the fuel grows.
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