Minnesota introduces B20 blend for summer months

4 May 2018 |

Minnesota became this week the first part of the US to introduce a B20 biodiesel blend for "summer" months, and is expected to be a major boon for corn and soybean growers in the state.

From May 1, fuel pumps across the state will offer B20, a blend that will be sold during the 1 April-30 September period each year, reverting to B5 during 1 October-31 March when a lower biofuel blend is required during Minnesota’s extreme winters.

The B20 blend will replace B10 in the summer months, providing a bigger captive market for the state’s farmers, who are among the biggest producers of corn and soybeans in the US.

The increase from B10 to B20 is expected to increase demand for soybean in the state by 13%.

Minnesota is home to three biodiesel plants, located in Albert Lea, Brewster and Isanti, which combined produce around 63 million gallons of biodiesel (286 million litres) annually, according to the Minnesota governor’s office.

On a national basis, the US National Biodiesel Board (NBB) has calculated that biodiesel demand adds 63 cents a bushel for soybeans and that the extra demand should prompt farmers in other states to push for similar legislation.

The increased demand for crops to meet the requirement for B20 adds roughly $242 million to Minnesota’s agricultural economy each year, the NBB added. 

 

Sign up to get all the day's news and prices
Register for the weekly [RE]fuel Report
+000