Renewable Energy: Challenges and Responses Green Economics West Fargo, ND March 17, 2016 David Ripplinger 2

past as prologue 3

Renewable Fuel Standard 4

5 "It is a bad plan that admits of no modification." - Publilius Syrus

Challenge: Low/Volatile Energy Prices WTI in the mid-30’s Down from $100 in the summer of 2014 ND Light Sweet in the mid-20’s 6 Source: Bloomberg

WTI has traded between $26 and $39 in the last month 7 Source: Bloomberg

Response: Ethanol Risk Training Program for new merchants, analysts, and managers to better understand and manage risks associated with corn- ethanol refining. 8 June 2016 Commodity Trading Room Barry Hall Support from ADM, CHS, ND Renewable Energy Program

Clean Power Plan Regulates CO 2 emissions from power plants ND needs to reduce emissions by 45% 9

Response: Extension Programming Displacing even a small percentage of coal currently used in North Dakota will take a massive amount of fuel. Most ND farmers highly value their crop residue. 10 An Extension program to help farmers decide at what price they would be willing supply biomass began in February.

Renewable Fuel Standard 2017 biodiesel mandate set at 2 billion gallons. This is 50% higher than in the original law or recent production. 11

Response: Research Soybean oil is the dominant biodiesel feedstock. The nation will likely need to crush more oilseeds, especially soybean, to have enough oil to meet the mandate. The remaining meal needs a home. 12 Working on three related research projects that looking at livestock feeding in North Dakota.

Energy Efficiency 13

Response: Applied Research Conducting a study of the efficiency of North Dakota’s residential market, including the impact of Energy Star products. Funded by North Dakota’s State Energy Program (a partnership with USDOE) 14

Bio Industry Summit May 12, 2016 Memorial Union North Dakota State University taking ideas from concept to commercialization 15