Overview

Resources and Consumption

Minnesota has no fossil fuel resources, but the western part of the State has wind energy potential, and cornfields in the south and west provide feedstock for ethanol production. Minnesota’s population and total energy consumption place the State in the middle of national rankings. The industrial and transportation sectors lead State energy demand.

Petroleum

Minnesota has two oil refineries in the Minneapolis-St. Paul area for processing crude oil that comes primarily from Canada. Several pipeline systems bring crude oil to Minnesota, including the Lakehead Pipeline System from Canada that passes through northern Minnesota on its way to other markets in the U.S. Midwest. In an effort to keep pace with growing State demand for petroleum products, Minnesota recently approved construction of a new, 300-mile pipeline to carry additional Canadian crude oil to the State's refineries. The line is expected to be operational by March 2008.

Since 1992, Minnesota has had a robust program in place to support ethanol production and consumption. Minnesota is the only State that requires the statewide use of oxygenated motor gasoline blended with 10 percent ethanol. Minnesota also offers incentives to encourage the adoption of E85—a mixture of 85 percent ethanol with 15 percent motor gasoline—throughout the State and now has more E85 refueling stations than any other State. Minnesota is among the Nation’s top producers of ethanol, with over a dozen corn-based production plants located primarily in the southern part of the State and additional facilities under construction.

Natural Gas

The natural gas consumed in Minnesota is supplied from Canadian and domestic sources via several major natural gas pipelines that traverse the State on the way to other markets in the U.S. Midwest. The residential sector is Minnesota’s largest natural gas consumer, accounting for nearly two-fifths of State consumption. Over two-thirds of Minnesota households use natural gas as their primary heating fuel during the State’s long, cold winters.

Coal, Electricity, and Renewables

Coal-fired power plants typically account for nearly two-thirds of Minnesota’s electricity generation. Minnesota receives most of its coal supply by rail from Montana and Wyoming. Two nuclear plants near the Twin Cities typically account for nearly one-fourth of the State’s electricity production. Recent legislation permits the Prairie Island Plant to store additional nuclear waste onsite, extending the plant’s operation through 2014. The smaller Monticello nuclear plant is currently licensed through September 2010.

Minnesota has numerous wind farms, particularly in the southwest, and ranks among the leading States in wind power generation. The State generates electricity from other renewable sources as well, including conventional hydroelectric dams, municipal solid-waste and landfill gas, and wood waste.