The ethanol and overall biofuel industry has been started and built primarily by independent entrepreneurs to date in the nation and Wisconsin.

That independent spirit remains alive today, amidst a recession and attacks by the petroleum industry and others. It can be both an asset and a liability as the industry moves into a more mature phase.

"I once had a farmer tell me he'd rather go broke on his own than make money by sharing," said Josh Morby, who serves as a representative for the Wisconsin Bio Industry Alliance. "That independent, competitive spirit is still very much alive. At times, there has been some dissension in the industry, but the alliance was formed to see what members can agree on, and perhaps collaborate on."

The alliance is a non-profit corporation "that supports the development of bio-based renewable energy, power and products in Wisconsin." On its web site, it contends that "by bringing the appropriate players to the table, the organization will grow the bio-economy in Wisconsin, concentrating on a specific series of campaigns targeted at the most fertile opportunities in Wisconsin."

The bio-fuels industry has already grown to more than a $1 billion industry in the state. The alliance is conducting an economic impact study that should illustrate in more detail just what the past, present and future impact of bio-fuels could be.

Wisconsin now ranks seventh in bio-fuels production in the nation. It has created jobs in agriculture, construction, actual production of the fuels and in other areas, Morby said.

The alliance is working with a bipartisan group of legislators on bills and proposals that could make biofuels a bigger part of the state economy. One proposal will come up for a hearing on Oct. 7. It includes several recommendations that will build on the existing infrastructure of the industry and help expand it to include exploring the use of switch grass and other feed stocks for production.

Biofuels started first primarily as ethanol. In fact, the alliance grew out of the Wisconsin Ethanol Coalition, a movement to require 10 percent ethanol in all fuels in the state. That movement failed, but the coalition remained at least partially together and in the past 3-plus years has grown.

Members of the organization include ACE Ethanol, Didion, Renew Energy, Sanimax. Western Wisconsin Energy, Best Energies, UWGP, Utica Energy, Michael Best & Friedrich, Miron Construction, Plum Creek, U.S. Energy, Oscar J. Boldt Construction, Whyte Hirschboeck Dudek law firm, Alliant Energy, WIPFLI, Agra Industries and J.F Ahern Co. There also are several associate members.

The alliance works with members and its associates on marketing, education, lobbying and other endeavors. Part of its mission in recent years is to counter what bio-fuel producers think is propaganda, created in part by the petroleum industry.

"Petroleum producers are our main competitors and our biggest customers," Morby said. "Ethanol is blended into most of the gas sold in Wisconsin, so they are buying our product."

That makes for an interesting relationship at times. Some of the claims against ethanol -- that mileage will be reduced by using bio-fuels, that energy is used to grow the corn and other feedstock, that ethanol takes corn out of the food supply, etc. -- Morby does not completely deny.

"DDT does a great job of killing bugs. Gasoline does a good job of fueling automobiles. If you want to use them, fine, but it's really about choices," Morby said. "We're talking about a cleaner-running fuel, from renewable sources, right here and not from foreign countries."

Morby said he keeps many of the claims, and the alliance's counter arguments, in a binder, but has them memorized so seldom has to refer to it anymore.

The alliance emphasizes that bio-fuels now go beyond corn-based ethanol, to bio-diesel made from restaurant wastes and many other sources. Many bio-fuel plants also produce byproducts that are used as food for livestock and people.

For example, Didion, based in Columbia Country, has developed a way of separating the protein from the starch in making ethanol. The protein is used for a corn-soy food product that provides agricultural food relief to people around the world.

"That counters the 'food vs. fuel' concept you hear at times," Morby said.

CO2 from bio-fuels plants also is captured and used in the packaging industry and by beverage makers. "Leinenkugel's buys CO2 from an ethanol plant in Monroe, for example," Morby said.

In addition to playing coordinating and advocacy roles, the alliance is building databases for educational purposes. For example, media can access a list of industry experts via the web site at www.wisconsinbioindustry.com. There's also a list of cars that run on the various blends of ethanol and gasoline where consumers can find out whether their auto can use it.

Morby regularly writes a blog on the alliance web site. Recent topics included job growth from ethanol (147,000 jobs in the country and 400 at nine plants in Wisconsin), South Dakota research that converts dried distiller's grains into flour, and a proposed biomass power plant in Rothschild that will use wood and paper waste from a local paper mill as an alternative to coal.

Morby said the bio industry in the state has come a long way, in part through support from the Doyle administration and recently the federal government. The U.S Department of Energy started reviewing an application in September for $1 million for the state through BRAIN (Biofuels Retail Availability Improvement Network) for installation of 27 E85 and biodiesel retail locations.

The state also will get $15 million in stimulus money for clean transportation projects through the federal Clean Cities program. The funds will pay for the deployment of 502 alternative and advanced technology vehicles through 119 public and private entities in the state. That grant was the biggest given to any state in the country.

More than 40 state companies also have filed applications for stimulus funding for energy efficiency and renewable energy, including bio-fuel projects. Wisconsin has been allocated $55 million in funds from the American Reinvestment and Recovery Act. The initial round of $28 million has already been allocated.

Projects include biomass densification, waste-to-energy initiatives, development of second generation bio-fuels and the manufacturing of components for renewable energy.

-- Hoffmann is a veteran journalist who has written on a variety of topics for Wispolitics.com and WisBusiness.com. He writes the WisBiz GreenBiz column monthly.

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