Just as sailors looked to the North Star for guidance and direction, the ethanol industry has looked to Minnesota as an example of a progressive leader in the development of a successful renewable fuels sector.

Preparing for the "next generation" of ethanol production, Minnesota Agriculture Commissioner Gene Hugoson in November called for the creation of a working group to focus on cellulosic ethanol. One of the goals of this initiative is to extend the benefits of ethanol to new production areas in Minnesota that could utilize wastes from the state's forestry industry.

Currently, Central Minnesota Ethanol Cooperative (CMEC) is using wood waste to fire its biomass gasifier, which provides heat and power for the facility. So there is logistical experience in hauling and collecting this potential feedstock pool for cellulosic ethanol. "Minnesota has the resources, the energy and the expertise to lead the nation in this new and promising technology," Hugoson said in a press release from the Minnesota Department of Agriculture. "Just as we have done with ethanol from corn, we can continue to lead the nation in the next generation of homegrown, renewable energy."

Hugoson also attended "Farming Our Fuel: Growing a Sustainable Ethanol Industry," a conference organized by the Minnesota Environmental Initiative held at Gustavus Adolphus College in St. Peter, Minn., on Nov. 15. Among many issues discussed there, the event acknowledged the limitations of the current corn-based production model and the need to move toward cellulose, which strengthened the commissioner's call for a working group.

According to Carolyn Brouillard, manager of environmental projects for the Minnesota Environmental Initiative, other areas of concern addressed at the conference were the shortage of water supplies, which has halted some proposed plant projects in the state, and the possible expansion of the grain-based ethanol industry until corn prices reach $4 per bushel.

As the state looks to increase the scale of production from cellulosic feedstocks, there is already legislation in place that would require all gasoline sold in Minnesota by 2013 to contain 20 percent ethanol. To meet that goal, the state could certify an E20 blend or simply increase current ethanol usage. The U.S. EPA would need to certify an E20 blend as a motor fuel, which would require a waiver under the Clean Air Act.

To obtain the waiver, E20 is being tested in 40 of the University of Minnesota's 525 fleet vehicles on the Twin Cities campus. The test vehicles include a wide variety of makes and models. After the first three months of the evaluation, no driveability issues had been noted. Results of the study will help Minnesota to pursue an EPA waiver, a necessary prerequisite for the implementation of E20.

There may be another way to reach the 20 percent goal, however. Minnesota Gov. Tim Pawlenty spoke at an energy summit in early December in St. Paul, Minn., proposing an "E85 Everywhere" program to promote E85. Minnesota's 20 percent ethanol mandate states that if E85 replaces an additional 10 percent of gasoline in the state by 2010, then Minnesota wouldn't have to implement E20 blends.

Minnesota has required that all gasoline sold in the state be blended with 10 percent ethanol since 1997. Sixteen ethanol plants currently operate in the state, with another two under construction.