May 23 - Knight Ridder/Tribune Business News - Bill Hord Omaha World-Herald, Neb.

Nebraska political and agricultural leaders are taking the lead in a nationwide effort to give farmers a bigger role in energy production.

State Sen. Bob Kremer of Aurora said Monday that a new Nebraska coalition will join a nationwide initiative to have 25 percent of U.S. energy come from renewable sources by 2025.

Currently, renewable energy -- such as ethanol, biodiesel, wind, solar and hydro -- accounts for only 6 percent of energy consumed in the United States.

Duane Acker of Atlantic, Iowa, a national leader for the biofuels initiative, said Iowa farm groups will roll out their own collaborative effort later this summer.

"My personal number one motive is our national security," said Acker, a retired president of Kansas State University and former undersecretary of agriculture. "It's because energy is so critical and we are dependent on volatile regions of the world for our oil."

Biofuels, mostly made from the leading crops of Nebraska and Iowa, are now well established as a clean-burning alternative to oil for transportation. Thirty percent of U.S. automotive fuel now contains ethanol, a major user of corn.

Soybeans are consumed in the production of biodiesel, the fastest-growing alternative fuel.

As the price of oil and natural gas has risen, biofuels have become more competitive in price, creating a rush for more production.

There are currently 12 ethanol plants in Nebraska, with another 15 under consideration. The plants use about 300 million bushels of grain annually in the state to make 575 million gallons of ethanol, raising the average price of corn near plants by 5 to 8 cents a bushel.

To reach its 25 percent goal, the "25 x '25" program suggests that many products will need to be used, including crop residue, sawdust and switch grass for the making of cellulosic ethanol. Cellulose from cornstalks, rice hulls and even municipal solid waste can be broken down into sugars, which then can be used to make ethanol.

The new Nebraska organization is made up of agriculture trade groups, plus the Nebraska Agriculture Department, the Nebraska Rural Electric Association and the Nebraska Farm Bureau.

The state coalition, called the Nebraska 25 x '25 Energy Work Group, is modeled after the national 25 x '25 initiative sponsored by the Energy Future Coalition. The national alliance is funded by various foundations to foster understanding about energy issues.

The Nebraska Legislature, Gov. Dave Heineman and the five members of the Nebraska congressional delegation have endorsed the goals of the initiative.

"Nebraska was the first state in the nation to get support at all levels of government," said Bart Ruth, a Rising City, Neb., farmer who along with Acker serves on a national steering committee for the program.

Included among the group's members are two livestock groups, the Nebraska Cattlemen and the Nebraska Pork Producers Association.

Livestock groups have approached the renewable energy issue with caution, said Acker, because as demand increases for corn and soybeans, feed supplies could suffer and costs could go up.

"That's why we wanted to be part of it, so we can keep track of what's going on and be part of the discussion," said Rod Johnson, executive producer of the state pork producers group.

There are potential benefits to livestock operations, Acker said. Renewable fuels programs could include methods for converting waste from poultry, hog and cattle operations into methane for energy use.

Acker said a study is currently being conducted by the University of Tennessee to analyze the potential consequences of converting a large portion of the nation's crops to energy use.

Other groups in the Nebraska coalition are the Nebraska Farm Bureau, Nebraska Corn Growers Association and the Nebraska Soybean Association.

The 25 x '25 energy group does not endorse a specific method of attaining the 25 percent goal, Sen. Kremer said, but wants to promote collaboration among many groups to find a way.

Said Kremer: "The growth of renewable energy will bring more jobs, more economic recovery and more affordable energy supplies to all Nebraska families."