Where do we go from here?
David Kolsrud (aka Pissed Off Farmer) is set to be a panelist at Minnesota AgriGrowth 2026 Fall Summit. The panel's title is "Unleashing Minnesota's Biofuel Potential."
Preparing for this panel gave me lots of time to think. Having 30 years of experience in biofuels, I could dwell on the past, relate the present, or build a vision for the future. To be fair, in order to understand Minnesota's potential you have to touch on all three.
Minnesota being a pioneer in biofuels did two things early on: one, created a market by mandating a 10% ethanol blend; and two, incentivized local growers to own and operate their own production facilities.
This locally owned model had several advantages. First of all, growers had additional market for their commodities close to their home. The community benefited from economic development resulting from no economic leakage. It proved to be a natural hedge. By that I mean if corn goes up, I'm happy since I grow corn; if corn goes down, I'm happy because then my ownership in the ethanol plant is more profitable. The same could be said for fuel.
Minnesota benefits by not having to import more fossil fuels and exporting clean, renewable bio-based fuels. If that wasn't enough, the first ethanol sales were made as a way to reduce air pollution.
This Minnesota model proved successful; however, the ethanol industry needed to expand to fulfill market demand. So, what followed was a rapid expansion with many different business models and ownership groups. That's basically where we're at today. Large plants whose only business model is to make more of the same, cheaper. Result: now we have more of the same, cheaper.
That highlights my message for this panel: where do we go from here?
First of all, because of doing business in Minnesota for over 30 years, I want to emphasize the positive: the vision, the cooperation, and effort put forth by the legislature, state and local government officials, etc. Not many states have such a coordinated effort.
Recently, I put together 115 local farmers and investors to purchase the idle GEVO biorefinery in Luverne, MN. Why? Not to be just an ethanol plant, but an innovation center. Today there are more demands for bio-based, low-carbon products than ever before.
Minnesota is leading the nation in this effort: SAF fuel incentives, a regional blending hub, supporting precision fermentation at the U of M, AURI, Biomade, and the AGRI Bioincentive Program.
The world is looking for solutions to microplastics, CO2 emissions, harmful chemicals and pesticides, and inorganic fertilizers.
Back to the biorefinery in Luverne, now called Agri Energy. The 115 farmers that own the plant have learned that they can be more profitable by investing together than being independent.
Today we are producing low-carbon ethanol and, ironically, shipping it to Texas. Our facility is capable of precision fermentation with sterilization at various levels (including a one-million-liter fermentation chamber).
One of our innovation partners, CapCO2, plans to use our CO2 to make green methanol for utilization in the shipping industry.
Our plant also supports 35,000 head of cattle near our facility daily with wet distillers grains.
In closing, being in the heart of the Midwest with its abundant feedstock, vibrant livestock industry, supportive state, and visionary farmers, the future is something to behold!
October 2026
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