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US state to raise biodiesel mandate to 20%

16th May, 2008

Minnesota Governor Tim Pawlenty signed legislation on 12 May to increase Minnesota's biodiesel requirement from 2% to 20% by 2015.

Minnesota introduced a 2% biodiesel mandate in August 2005 in conjunction with the opening of Minnesota Soybean Processors' (MnSP) 30 million gallon a year soyabean oil refinery.

In 2007 Pawlenty announced plans to increase the mandate, and over the course of the past two months, bills made their way through both the House and Senate.

The legislation calls for a gradual increase in the biodiesel mandate, going from 2% to 5% by May 2009, and then climbing to 10% in 2012 before reaching 20% biofuel content in all diesel sold in the state by 2015.

With the current 2% biodiesel mandate, approximately 16 million gallons of the soya-based product is used for blending each year in Minnesota. When the mandate increases to 5% in 2009, 40 million gallons of biofuel will be needed, and 80 million gallons will be needed when the blended requirement reaches 10% in 2012.