What is a “community” to a biomass investor? – As biomass does not lend itself to transport over long distances a “community” is generally a rural town that offers a pool of potential employees plus the surrounding biomass producing area and within a sixty mile radius.

What infrastructure is required by a biorefiner? A rail or barge link, at least in the case for cellulosic ethanol for transport of the end product to market, is usually deemed to be essential. While an interstate highway through a community is advantageous, some of the best biomass sources are in found where there are only rural roads and minor highways which also tend to be adequate. Indeed, most rural communities have the roads, electricity infrastructure and available natural gas to meet the needs of biomass processors. Biomass availability is a much more important issue.

What biomass works? For some applications such as electricity all forms of biomass are acceptable while for others such as cellulosic ethanol virtually all agriculture based biomass is suitable but softwoods have relatively low fuel yields and therefore are not attractive for this application. As a rule, no matter what the biomass, there is an application. Moisture content below 18% to facilitate long term storage can be a challenge in some years.

How important are dedicated biomass crops?  For most communities they will be an essential part of the biomass mix unless agriculture residues are particularly abundant and/or there are ample forest resources. Switchgrass, miscanthus, energy sorghum, willow, energy cane and poplar are some of the leading contenders.

What might a biorefinery or other biomass dependant investment mean to a community?  For farmers it will mean an additional long term, stable, and potentially significant source of income.  For the community, it means an expanded tax base, substantial direct employment for the construction phase of the project, long terms jobs to manage and operate the plant plus those associated with harvesting and transporting the biomass.  Because of the distance limitations of biomass transport this is one of the few activities in rural America where the locally grown raw material must be processed in the same community. Hence the inevitable double benefit of employment and increased farm income.

What are the challenges and opportunities associated with supplying biomass from dedicated perennial biomass crops?  The challenges mostly relate to the establishment of perennial crops such as switchgrass, miscanthus or willow which require a different approach to planting and weed control than annual row crops. Once established, which can take up to three seasons for a full harvest, dedicated perennial biomass crops tend to have low input costs and with their deep established root systems much are less prone to adverse weather than conventional row crops. Furthermore they can be economically viable on land that is deemed marginal for annual row cops and thus providing growers with added revenue from property that produced little in the past.

If a farmer commits to planting a dedicated perennial biomass crop what assurances will he or she have that the biomass will have a market? Assuming a biomass processing facility exists or is under construction, the investors will be as concerned about receiving a secure and regular supply of biomass as the farmer is about obtaining a binding commitment for a long term guarantee on the price structure and market for the biomass. Thus it is in the equal interest of both parties to enter into a long term mutually beneficial contract. Furthermore, given the high cost of transporting biomass long distances, growers in the vicinity of a biorefinery will be a particularly attractive raw material source.

With annual food crops a farmer has the option to switch from corn to soy beans or possibly wheat or other grains depending on market expectations but with a dedicated crop there is not this opportunity for flexibility, particularly with a long term contract. What about the dangers of being locked into a long term contract at prices that, over time, becomes unattractive relative to other crops?  This is where the farmer can demand price escalation clauses over the life of the contract. As security of supply is essential to the managers of the biomass processing facility there will be an acceptance of such contract provisions that will mitigate farmers backing out of unattractive contracts.

Should a farmer or group of farmers plant a large acreage of biomass crops in anticipation of attracting a biorefinery? Generally this is not a good strategy.  However, it would be an advantage to plant a few acres to develop an ability to establish and harvest one or more dedicated biomass crops. With this approach farmers will have added confidence to enter into large scale production if an investor establishes a facility and wishes to enter into a long term contract.  Similarly such investors will be attracted to a community with a critical mass of farmers who have already demonstrated an interest in and ability to produce biomass crops.  Government funding should be made available to cover opportunity and establishment costs over several years.  (See “my rant” elsewhere on this web site on this issue)