





The Energy Bill calls for 16 billion
gallons of cellulosic ethanol by 2022 which could involve up to 200 thousand
growers each supplying am average of 1000 tons of biomass to 250 plus
biorefineries each producing 60 million gallons per year. Electricity and other
biomass to energy applications will call for even more. Agriculture and
forestry residues will provide a limited part of this amount while much of the
remainder will be dedicated energy crops. John Deere estimate that the 200 million tons of
biomass required for cellulosic ethanol is roughly equal in weight to all food
and fiber now passing through America’s farm gates. Where will the massive
amounts of biomass come from? In
particular, has the farming community been engaged and is prepared to meet this
challenge and turn it into an opportunity for them?
There seems to be an all too common
belief that biomass availability is no more an issue for a biorefiner than
wheat is to a flour miller – just build a facility and the raw material will be
there. However, for biomass, most farmers are neither particularly familiar
with planting and harvesting new grasses or other biomass crops nor accustomed
to multi year contracts for perennial plantings. Even without these impediments, a movement
towards increased biomass production is very limited because of the understandable
reluctance by farmers to establish perennial energy crops (most take three
years to fully mature but there is a harvest in the first year) absent any
biorefiner commitment to a community.
At such time as the multi plant
cellulosic ethanol roll out occurs over the next few years where will investors
turn, particularly as technologies such as basic electricity production are
well proven and will capture much of the low hanging existing biomass fruit? This is a fundamental issue that is not
being adequately addressed as investors will not commit to a community unless
long term and sustainable biomass availability can be demonstrated within the
parameters of normal business risk. In
plain words – too few committed farmers means the anticipated industry roll out
to meet the sixteen billion gallon target is severely challenged.
Possible
solution to this situation: Through
the On Farm Biomass Crop Demonstration provision of the 2008 Farm Bill or other
DOE, USDA, state or local funding encourage communities to become biorefinery
ready. The concept is to facilitate a
critical mass of say, a minimum of 200 plus growers in a 60 mile radius to
establish 5 or so acres of a biomass crop of their choice on a trial basis. All expenses including opportunity costs for
a five year period would be covered by the above mentioned programs. This would
provide a community with a critical mass of growers with the know-how and
confidence to enter into long term contracts with biorefiners for commercial acreages
of biomass production. Similarly
biorefineries would be attracted to such communities with the knowledge that a
large number of farmers in a concentrated area could deliver as contracted.
The major initiative required to
mobilize many tens of thousands of farmers and forest owners is badly lacking
and needs to be developed if actual energy from biomass such as cellulosic
ethanol is to match government policy and move towards energy independence.