Biofuels
Biofuels production is an important component of Governor Brian Schweitzer's energy policy. Biofuels production will create new markets for agricultural products, reduce our state and nation's dependence on imported oil, attract investment and create jobs in economically-distressed rural Montana.
Biomass
Biomass is organic material that comes primarily from plants. It contains stored energy that plants get from the sun through photosynthesis. Biomass is a renewable energy source that can be produced from crops, garbage, manure and wood.
When biomass is burned it releases its stored energy and can be used to power steam electricity plants. Currently biomass provides about 3 percent of the energy in the United States. It doesn't pollute the air as much as fossil fuels and it doesn't produce pollutants such as sulfur. The carbon dioxide that is emitted from burning biomass is nearly the same amount that was captured by the plant during photosynthesis.
Montana's Objectives
- Develop a Montana biofuels industry as a component of Governor Schweitzer's energy policy of developing diverse energy sources available in abundant supply in Montana.
- Utilizing the $15 million under a US Department of Labor WIRED grant, create a "biofuels" energy production economy in the region comprised of 32 eastern Montana counties that will boost one of the nation's most economically distressed regions.
- Advance the utilization of grain and oil seed crops that can be made into transportation fuels and biolubricants.
Montana's Assets
- Total land area of 145,000 square miles, the nation's 4th largest state.
- 16.5 million acres of crop land suitable for growing grain and/or oil seed crops for use in ethanol and biodiesel production.
- 19 million acres of non-reserved forest land in Montana available for production of cellulosic ethanol and other biofuels.
- The Montana Department of Environmental Quality (DEQ) conducts a Department of Energy (DOE) funded Biomass energy Program that currently assists in commercial development, develops new bio-energy technology, and provides technical assistance to the industry.
- DEQ conducts biodiesel production workshops for those interested in starting a business.
Converting Biomass to Fuel
The U.S. DOE Biomass Program develops technology for conversion of biomass (plant-derived material) to valuable fuels, chemicals, materials and power, so as to reduce dependence on foreign oil and foster growth of biorefineries. Biomass is one of our most important energy resources. The largest U.S. renewable energy source every year since 2000, it also provides the only renewable alternative for liquid transportation fuel. Biomass use strengthens rural economies, decreases America's dependence on imported oil, avoids use of highly toxic fuel additives, reduces air and water pollution, and reduces greenhouse gas emissions.
Today's biomass uses include ethanol, biodiesel, biomass power, and industrial process energy. Tomorrow, biorefineries or cluster companies will use advanced technology such as hydrolysis of cellulosic biomass to sugars and lignin and thermochemical conversion of biomass to synthesis gas for fermentation and catalysis of these platform chemicals to produce slates of biopolymers and fuels.
Environmental Considerations
Biodiesel:
- Safer
- Renewable
- Biodegradable
- Positive Energy Balance
- Cleaner Burning
Ethanol:
- Domestic
- Renewable
- Cleaner Burning
- Good for your car
- Environmentally Friendly
Governor Schweitzer is the nation's first governor to endorse the national 25 x '25 Initiative; a nationwide grassroots effort gaining widespread bipartisan support to pass federal legislation requiring 25% of US energy demand to be supplied by renewable energy by 2025.
State Incentives
Grant and Loan Assistance for Biofuels
- Alternate Energy Revolving Loan Fund , Montana Department of Environmental Quality
- Montana Growth Through Agriculture Program , Montana Department of Agriculture
Montana Ethanol Incentives
- 10% ethanol blending requirement when Montana production reaches 40 million gallons per year
- Ethanol production tax credit (up to $0.20 per gallon)
- Ethanol-blend fuel tax reduction (15% until blend requirement is in place)
- Distribution and storage equipment (retail and distribution) tax incentive
Montana Biodiesel Incentives
- Biodiesel tax credits for production ($0.10 per new gallon)
- Biodiesel distributor and retailer tax credit (up to $0.02 per gallon sold)
- Production (and oilseed crushing) Facility tax incentive (up to 15%)
- Distribution and storage equipment (retail and distribution) tax incentive
