Biomass Magazine - March 2010

INSIDE: ENERGY CROPS CREATE OPPORTUNITIES, CHALLENGES

March 2010

www.BiomassMagazine.com

Lock, Stock and Biomass

Crop Residue Will Play an Important Role in Developing

the Cellulosic Ethanol Industry

The biggest improvement in dust collection is also the smallest.

Introducing the SpaceSaver™. Not only is it up to 75% smaller than traditional

dust collectors, it also outperforms them in every way. The SpaceSaver’s

leak-free cartridges are the longest lasting of any dust collector on the market.

Durable cartridges and a superior cleaning mechanism with directed airfl ow

make it the toughest, smallest, most effi cient dust collector out there.

To fi nd out more, call MAC at 1-800-821-2476 or email

[email protected].

ENGINEERED FOR NFPA COMPLIANCEPATENT PENDING www.macspacesaver.com

4 BIOMASS MAGAZINE 3|2010

3 |2010 BIOMASS MAGAZINE 5

INSIDE MARCH 2010 VOLUME 4 ISSUE 03

FEATURES. . . . . . . . . . . . . . . . . . . . .

24 ENERGY CROPS Energy Crop ConundrumTraits of dedicated energy crops such as switchgrass, miscanthus and jatropha are being tweaked to make them more economically effi cient to plant, grow and harvest. By Lisa Gibson

32 MISCANTHUS Make Way for Miscanthus Interest in miscanthus has intensifi ed along with research efforts that focus on creating new, higher yielding strains and developing harvesting and planting techniques that will result in its commercial production. By Anna Austin

40 PROFILE It’s Show Time Members of Missouri-based Show Me Energy Co-op believe their grower-owned pellet plant is a model for success that others can replicate. By Rona Johnson

46 CROP RESIDUE The Path to Cellulosic Ethanol Crop residue is being looked at more closely as feedstock for cellulosic ethanol. Although supplies are ample, there are concerns about how much to remove.By Lisa Gibson

CONTRIBUTIONS. . . . . . . . . . . . . . . . . . . . .

52 INTERNATIONAL Forest Biomass Generation in Degraded, Steep, Outcropped EcosystemsA company in Uruguay has developed a cropping system to plant trees in areas of the country where conditions are unsuitable for conventional farming. By Pablo Reali

MISCANTHUS | PAGE 32

DEPARTMENTS. . . . . . . . . . . . . . . . . . . . .

06 Editor’s NoteFederal Support for Biofuels Intensifi esBy Rona Johnson

07 Advertiser Index 08 Industry Events

09 Biomass Power AssociationCongress Should Support a Strong RESThat Will Create Millions of New JobsBy Bob Cleaves

11 EERC UpdateRenewable Nitrogen Fertilizer ProductionBy Ted Aulich

13 Legal PerspectivesCreditworthiness Keyto Biomass Project SuccessBy John Eustermann

14 Business Briefs

16 Biobytes

18 Industry News

54 Marketplace


Federal Support for Biofuels Intensifi es

here was a fl urry of activity in the fi rst week of Febru-ary as the government released the proposed rule for the Biomass Crop Assistance Program, the fi nal rule to implement the renewable fuels standard (RFS2) of 36 billion gallons by 2022, and the administration’s Biofu-

els Interagency Working Group released its fi rst report aimed at boosting biofuels production.

The RFS2 reduced the requirement for cellulosic ethanol from 100 million gallons to 6.5 million gallons, but the industry seemed to think that was a fair judgment as it is still in the early stages of development.

We at Biomass Magazine are still going through the 104-page proposed rule for the BCAP program but we encourage readers who have concerns to send their comments to the USDA. A copy of the rule and comment instructions can be found at www.fsa.usda.gov/bcap.

The biofuels working group report called “Growing America’s Fuel” can be found at www.whitehouse.gov/sites/default/fi les/rss_viewer/growing_americas_fuels.PDF. The report outlines the steps the government needs to take to achieve the 36 billion gallon goal. It emphasizes the implementation of a supply chain systems approach that makes sure that the biofuels produced are compatible with our transportation fuels infrastructure, and it establishes lead agencies that will be responsible for each segment of that chain. Also in the report, is a proposal to create USDA Regional Feedstock Research Centers to “develop sustainable supply chain strategies and science-based implementation plans designed to accelerate biofuels feedstock production and reduce transaction costs to feedstock producers and biorefi neries.”

All this activity came on the heels of President Barack Obama’s State of the Union address in January where his commitment to renewable energy was clear when he talked about the need to encourage innovation. “Last year, we made the largest investment in basic research funding in history an investment that kills cancer cells but leaves healthy ones untouched,” Obama said. “And no area is more ripe for such innovation than energy.” Although he used advanced batteries and solar panels as examples, we in the industry know that biomass-based power is much more effi cient.

Obama also mentioned the need for continued investment in renewable fuels, which is crucial if we want to be able to commercially produce fuel from crop residue and energy crops, which is what this issue is all about.

In his address, the president also said one of his goals is to increase the amount of goods that the country exports. “Because the more products we make and sell to other countries, the more jobs we support right here in America," Obama said. "So tonight, we set a new goal: We will double our exports over the next fi ve years, an increase that will support 2 million jobs in America. To help meet this goal, we're launching a National Export Initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security.” I believe the biomass industry could help with this goal by shipping products such as wood chips, biomass pellets and torrifi ed biomass and biomass-based chemicals and fertilizers to other countries.

T

Rona JohnsonEditor

[email protected]

editor’sNOTE

3 |2010 BIOMASS MAGAZINE 7

advertiserINDEX

2010 International BIOMASS 56Conference & Expo

2010 Northeast Biomass Conference & Expo 4

2010 Southeast Biomass Conference & Expo 10

Advanced Trailer Industries 29

Agra Industries 35

Biodiesel Magazine 55

BRUKS Rockwood 36

Buhler Inc. 31

Church & Dwight Co, Inc. 45

CPM Roskamp Champion 26 & 49

Detroit Stoker Company 34

Energy & Environmental Research Center 3

Frazier, Barnes & Associates, LLC 51

Genencor® - A Danisco Division 12

Hoffmann, Inc. 39

Hurst Boiler & Welding Co. Inc. 50

Indeck Power Equipment Co. 27

Jeffrey Rader Corporation 42

KEITH Manufacturing Company 43

Larox Corp. 30

MAC Equipment 2

Morbark, Inc. 37

The NanoSteel Company 44

The Teaford Co. Inc. 28

West Salem Machinery 48

Wolf Material Handling Systems 38

EDITORIAL

EDITOR Rona Johnson [email protected]

ASSOCIATE EDITORSAnna Austin [email protected] Gibson [email protected]

COPY EDITOR Jan Tellmann [email protected]

ART

ART DIRECTOR Jaci Satterlund [email protected]

GRAPHIC DESIGNERSElizabeth Burslie [email protected] Melquist [email protected]

PUBLISHING & SALES

CHAIRMANMike Bryan [email protected]

CEOJoe Bryan [email protected]

VICE PRESIDENT, CONTENTTom Bryan [email protected]

VICE PRESIDENT, SALES & MARKETINGMatthew Spoor [email protected]

EXECUTIVE ACCOUNT MANAGERHoward Brockhouse [email protected]

SENIOR ACCOUNT MANAGER Jeremy Hanson [email protected]

ACCOUNT MANAGERSMarty Steen [email protected] Brown [email protected] Shields [email protected]

CIRCULATION MANAGER Jessica Beaudry [email protected]

SUBSCRIBER ACQUISITION MANAGER Jason Smith [email protected]

ADVERTISING COORDINATORMarla DeFoe [email protected]

Subscriptions Subscriptions to Bio-mass Magazine are $24.95 per year in the U.S; $39.95 in Canada and Mex-ico; and $49.95 outside North Amer-ica. Subscriptions can be completed online at www.BiomassMagazine.com or subscribe over the phone at (701) 746-8385.

Back Issues & Reprints Select back issues are available for $3.95 each, plus shipping. Article reprints are also available for a fee. For more informa-tion, contact us at (701) 746-8385 or [email protected].

Advertising Biomass Magazine pro-vides a specifi c topic delivered to a highly targeted audience. We are committed to editorial excellence and high-quality print production. To fi nd out more about Biomass Magazine advertising opportunities, please con-tact us at (701) 746-8385 or [email protected].

Letters to the Editor We welcome let-ters to the editor. Send to Biomass Magazine Letters to the Editor, 308 2nd Ave. N., Suite 304, Grand Forks, ND 58203 or e-mail to [email protected]. Please include your name, address and phone num-ber. Letters may be edited for clarity and/or space.

Cert no. SCS-COC-00648

Biomass Trade & Power

March 11-12, 2010 Golden Tulip Rotterdam CentreRotterdam, NetherlandsThis conference will explore the rise of a new biocommodity for clean power generation. Several companies will attend the event to discuss the Euro-pean Union’s pending bioenergy mandates, sustainability and certifi cation, biomass power generation growth in Europe, opportunities and barriers to developing a global biomass trade network, and gaps between technolo-gies and capital investments.+65 6346 9132/6455 7322www.cmtevents.com/aboutevent.aspx?ev=100306&

World Biofuels Markets

March 15-17, 2010 The RAI Exhibition and Congress CentreAmsterdam, NetherlandsThis event will provide leaders of the biofuels fi eld an opportunity to meet new customers, suppliers and partners, and help drive innovation and busi-ness. More than 4,500 executives from 78 countries have attended this conference to date.+44 20 7099 0600www.worldbiofuelsmarkets.com

5th International Congress Fuel Bioethanol-2010

April 13-15, 2010 Moscow World Trade CenterMoscow, RussiaMore than 300 participants from 20 countries attended this event in 2009, making it the premier event for any organization involved in the rapidly ma-turing biofuels markets in the former Soviet Union. This event will be hosted by the Russian Biofuels Association, and presentations will include new process technologies and feedstocks, cellulosic ethanol, biobutanol and other second-generation biofuels.+7 495 585-5449www.biofuels.ru

2010 International Biomass Conference & Expo

May 4-6, 2010 Minneapolis Convention CenterMinneapolis, MinnesotaThis Biomass Magazine sponsored conference will unite current and future producers of biomass-derived power, fuels and chemicals with waste gen-erators, energy crop growers, municipal leaders, utility executives, technol-ogy providers, equipment manufacturers, project developers, investors and policymakers. Future and existing biofuels and biomass power producers will be able to network with waste generators and other industry suppliers and technology providers as well as utility executives, researchers, policy-makers, investors, project developers and farmers.(701) 746-8385www.biomassconference.com

2010 International Fuel Ethanol Workshop & Expo

June 14-17, 2010America’s CenterSt. Louis, MissouriThe FEW provides the global ethanol industry with cutting-edge content and unparalleled networking opportunities in a dynamic business-to-busi-ness environment. It is the largest, longest-running ethanol conference in the world. The event delivers timely presentations with a strong focus on commercial-scale ethanol production, new technology, and near-term re-search and development.(701) 746-8385www.fuelethanolworkshop.com

Biomass ’10: Renewable Power, Fuels, and Chemicals Workshop

July 20-21, 2010Alerus Center Grand Forks, North DakotaIn its eighth year, this workshop offers a cutting-edge two-day technical program and exhibit show with national experts who focus on biomass pro-duction (plant matter such as straw, corn, and wood residue) and biomass conversion to power, transportation fuels and chemicals. The workshop will be geared toward industry, research entities, government, community and economic development corporations, fi nancial institutions and landowners. Topics will include trends and opportunities in utilizing biomass, renewable policies and incentives, renewable fuels, fi nancing biomass-related proj-ects, biorefi nery chemicals and products, biomass for heat and electricity, biomass feedstocks, and algae.(701) 777-5000www.undeerc.org/biomass10

2010 Farm to Fuel Summit

August 11-13, 2010 Rosen Shingle CreekOrlando, FloridaThis fi fth annual summit will be an opportunity for industry leaders and stakeholders to learn, network and strategize to advance the development of renewable energy in Florida. Florida’s Farm to Fuel Initiative was devel-oped to promote the production and distribution of renewable energy from Florida-grown crops, agricultural wastes and other biomass. More than 500 attendees from academia, industry and government participated in last year’s summit.(850) 488-0646www.fl oridafarmtofuel.com/summit_2010.htm

Gasifi cation Technologies 2010 Conference

October 31-November 3, 2010 Marriott Wardman Park HotelWashington, D.C.The GTC is the largest gasifi cation event in the world, attracting speakers and participants from the Americas, Europe, China and India. The GTC pro-vides a single venue for participants to learn what is new in the gasifi cation industry and why it is important. Speakers will address all aspects of the industry, from cutting-edge improvements in technology, through projects in development worldwide to updates on operations of plants based on coal, petroleum residues, biomass and secondary materials.(703) 276-0110www.gasifi cation.org

industry events


3|2010 BIOMASS MAGAZINE 9

Congress is crafting a federal renewable electric-ity standard (RES) to help create new jobs in the re-newable energy sector and help America reach energy independence. The Biomass Power Association is urg-ing Congress to adopt a federal mandate for all states to produce at least 25 percent of their electricity from renewable sources such as biomass. It is time to create the legislative framework to move the U.S. away from foreign oil and other fossil fuels that have harmful ef-fects on the environment, and create new green jobs in the process.

The RES-Alliance for Jobs, a coalition of busi-nesses and organizations that support the congressio-nal enactment of a strong RES, recently commissioned an economic analysis of the impact of a national RES of 25 percent. The Navigant study, released in Febru-ary, concluded that a 25 percent RES by 2025 would re-sult in the creation of an additional 274,000 renewable energy jobs nationwide and a cumulative 2.36 million job years of work.

The Navigant study is the fi rst comprehensive analysis of potential jobs created specifi cally in the bio-mass power industry. For years, the southeastern region of the U.S. has resisted any type of renewable energy mandate because many southeastern states lack the wind and solar power necessary to meet those goals. According to the study, however, the southeast region has the opportunity to create hundreds of thousands of jobs in clean, renewable biomass power under a 25 percent RES by 2025.

The study found that in the biomass power in-dustry alone, more than 60,000 jobs would be created from 2009 to 2025 under a 25 percent RES. The ma-jority of the jobs will be created in the eastern part of the U.S., where there is currently an abundant supply of biomass, but few biomass power facilities.

Legislation being proposed in both houses of Congress, unfortunately, does not go far enough to-ward meeting these goals. In fact, both the House and

Senate versions of the RES have al-most no substantive effect on job creation and essentially maintain the status quo. An increase to a 25 per-cent renewable electricity mandate, however, would have a substantial positive impact on the economy, the environment and America’s long-term energy security.

The study also shows that any standard that falls short of 25 per-cent by 2025 will only have minimal positive impacts on the economy and the environment. Instead of making meaningful investments in renew-able energy technologies, states will look for loopholes and effi ciency credits to meet low federal requirements. The BPA fully supports steps toward increased effi -ciency, however, building a green energy economy and reducing our reliance on foreign oil requires a serious shift to American sources of renewable energy, such as biomass power, wind, solar, geothermal and others.

At a time of 10 percent unemployment, Congress should seize this opportunity to pass strong energy leg-islation that puts America on a new path toward en-ergy independence built on domestic, clean, renewable sources of energy. The Navigant jobs study provides a clear guide to creating hundreds of thousands of jobs in the biomass power industry and outlines the signifi cant economic benefi ts of an aggressive RES. The BPA and the RES-Alliance for Jobs will continue to urge Congress to support a meaningful mandate for renewable electricity of 25 percent by 2025.

The Navigant study can be found at www.res-alliance.org/res-jobs-study. BIO

Bob Cleaves is president and CEO of the Biomass Pow-er Association. To learn more about biomass power, please visit www.USABiomass.org.

B P AUPDATE

Congress Should Support a Strong RESThat Will Create Millions of New Jobs

Bob Cleavespresident and CEO, Biomass Power Association

November 2 - 4, 2010Hyatt Regency Atlanta

Atlanta, Georgia

www.biomassconference.com/southeast

Visit www.biomassconference.com/southeast and:View interactive exhibitor mapSee conference sponsors and review sponsor benefitsRegister to attendExplore conference agendaAnd much more!


EERCUPDATE

U.S. agriculture is dependent on nitrogen-based fertilizers, and the U.S. fertilizer industry is dependent on natural gas as the primary source of hydrogen for reaction with nitrogen to yield ammonia. In 2003, more than 50 percent of U.S. ammonia was produced in Louisiana, Oklahoma, and Texas because of their large reserves of natu-ral gas. Also in 2003, U.S. producers were second behind China in the production and consumption of ammonia, 90 percent of which was used for fertilizer. A fertilizer in its own right, ammonia is also the feedstock for production of urea, ammo-nium nitrate and other nitrogen fertilizers.

The cost of domestic natural gas typically accounts for at least 80 percent of the cost of ammonia—and by extension, the cost of all other nitrogen-based fertilizers. The volatile and high prices of domestic natural gas have resulted in a signifi cant increase in fertilizer imports and a signifi cant reduction in U.S. fertilizer production capacity.

One way to ensure against overdependence on imported fertilizer is to develop domestic fer-tilizer production capabilities in noncoastal re-gions that can compete with current import-based scenarios. Import-based fertilizer production includes the use of low-cost “stranded” natural gas; large-scale ammonia production via the high-pressure, high-temperature Haber Bosch process; and long-range transport to U.S. farmers.

The Energy & Environmental Research Cen-ter at the University of North Dakota recently developed an electrolytic ammonia production process that replaces high-cost, high-purity hy-drogen from natural gas with lower-cost mixtures of hydrogen and carbon monoxide derived from biomass gasifi cation. Because it is driven by elec-tricity and operates at signifi cantly milder condi-tions than the Haber Bosch process, the EERC process offers the potential to directly utilize wind-generated electricity for ammonia produc-tion at signifi cantly reduced capital and operating costs versus the Haber Bosch process.

In partnership with the North Dakota Corn Utiliza-tion Council, the Minnesota Corn Research and Promo-tion Council and the EERC Foundation, the EERC is de-veloping the electrolytic am-monia production process for commercial applications. Progress to date includes development of a highly ac-tive and durable catalyst that enables ammonia production at ambient pressure and a temperature of 200 degrees Celsius (392 degrees Fahrenheit) versus typical Haber Bosch conditions of 3,000 pounds per square inch and 450 degrees C (842 degrees F). These milder pro-cess conditions translate to signifi cantly reduced capital and operational costs, which will enable commercial production at smaller, more distrib-uted scales than currently required for commer-cial viability. Distributed-scale production means that plants could be located closer to the farm-land where it is being applied, drastically cutting transportation costs.

Based on progress made to date, the EERC is targeting an ammonia production cost of $300 per ton. Once the technology is fully commer-cially competitive, ammonia production targets would result in lower-cost fertilizer; support do-mestic fertilizer production; enable extracting val-ue from wind energy without the need for major expansion of expensive, diffi cult-to-permit trans-mission capacity; provide a means to potentially lower the carbon footprint of ammonia produc-tion using renewable power and feedstocks; and promote rural economic development on the wind- and agriculture-rich Great Plains. BIO

Ted Aulich is a senior research manager at the EERC. Reach him at [email protected] or (701) 777-2982.

Renewable Nitrogen Fertilizer Production

Ted Aulichsenior research manager, EERC


LEGALperspectives

ost biomass projects require the developer to raise large amounts of fi nance well in advance of breaking ground, let alone com-

mercial operation. Although the debt markets are expected to rebound and the implementa-tion of multiple state and federal fi nancial incen-tives and capital sources have some saying they already see things opening up, arranging fi nance for a renewable energy project is not easy, and the route adopted to raise fi nance has a major bearing on how the project will be developed. It is therefore important that, at an early stage, consideration is given to the available fi nancing options.

The push for renewable energy and the green economy combined with the multiple grants, guarantees, bonds and other stimulus programs and facilities have resulted in many options for biomass facility developers to con-sider when layering up their fi nancial model. Though the applications and requirements differ from option to option, they share one threshold requirement: creditworthiness.

Creditworthiness is a creditor’s measure of the project company’s ability to meet its debt obligations. The fi nancial markets must get comfortable with their ability to rely on the project to generate a predictable stream of cash fl ow necessary to ensure repayment of their loans. Investment grade rated projects are proj-ects that have contractually sound cash fl ows. Such cash fl ows are the result of well negotiated through-put and development agreements that form the basis of the lender’s security structure, credit analysis; hence underpinning the projects ability to get fi nanced. For biomass projects, the contracts and high level considerations for pur-poses of credit analysis are as follows:

Fuel Supply Agreement: Financiers will generally require the term of a fuel supply contract to exceed the term of the debt by a reasonable margin (ideally two or three years) or have the term align with or be no less than the tenor of the power purchase agreement (PPA). The contract will specify the price, amount and characteristics of fuel to be delivered on a daily, monthly and annual basis. Further, appropriate escalators will be negotiated and the developer should be cognizant of and seek to control how such price adjusters are triggered and the effect they will have on cash fl ows over the term of the agreement. Finally, the counterparties (the fuel/waste suppliers) will be expected to be credit-worthy entities with access to assured sources of fuel/waste over the term of the contract. As a part of this upstream component of project development, the developer is wise to engage the services of an expert in feedstock supply analysis and modeling.

Engineering, Procurement and Con-struction Agreement: Often a creditworthy contractor will undertake to carry out design, engineering, procurement and construction on a fi xed-price, turnkey basis. The desire is to have the contractor assume “single point” responsi-bility for the overall construction of the proj-ect. The contract will contain completion tests and liquidated damages, which will be payable if the tests are not met by the specifi ed date. The debt markets will likewise require bonding or external guarantees to support the obliga-tions of the turnkey contractor (eg: to ensure ability to perform and pay liquidated damages). If more than one contractor assumes the EPC responsibilities, the development of the project in this regard becomes more complex. In such instances, lenders will require that the respon-

sibility for each separate point is clearly delin-eated. Furthermore, risk allocation, insurance, and warranties will be more complex.

Operating Agreement: The operation of the plant is another key consideration of the lending community and will be required to be carried out by a company or entity with an ap-propriate track record of successful operation of similar facilities deploying the same tech-nology. This is, of course, more important to technologies where operation is more complex. Typically, operating agreements will provide for reimbursement of costs plus an incentive-related performance fee. Lenders and the devel-oper will want the ability to terminate such an arrangement in case of poor performance.

Power Purchase Agreement: The PPA is the cornerstone of the biomass project. The power purchaser, more than other project coun-terparties, must be creditworthy. Lenders will want the contract term to extend beyond the term of the loan. The contract will be assessed by the lenders for its economics and conditions that might cause early terminations—lenders will want the ability to cure any defaults rather than face termination.

Rigorous conceptual analysis and planning must go into the structuring of the contractual arrangements of any biomass project and the underlying consideration in all instances for the developer should be the creditworthiness of the project. The wise developer should view all ma-terial contracts, terms and decisions through the eyes of a potential creditor.

John Eustermann is a partner with Stoel Rives LLP. Reach him at jmeustermann@ stoel.com or (208) 387-4218.

Creditworthiness Key to Biomass Project Success By John Eustermann

John Eustermannpartner, Stoel Rives LLP

M


BinMaster introduces BinLink Web-based bin monitoring

BinMaster Level Controls, Lincoln, Neb., introduced Bin-Link, a Web-based monitoring solution for bins, tanks and silos that enables remote wireless inventory management of stored material from any computer connected to the Internet anywhere in the world. The core components of the solution are BinMas-ter’s SmartBob2 and SmartBob-TS1 sensors mounted on the bins, a wireless or wired data communications network, a gateway to provide connectivity to a personal computer or Internet Protocol network, and data collection software that can be viewed by any authorized individual via an Internet connection. BinLink elimi-nates the need to manually check bin levels, saving time, money and manpower and improving the effi ciency of ordering and logis-tics for all types of operations. BIO

business BRIEFSScottMadden, Ascendant Partners join forces

Consulting companies ScottMadden Inc. and Ascendant Partners Inc. have joined forces to help renewable energy com-panies secure project fi nancing. The companies are qualifi ed to assist energy organizations in preparing U.S. DOE and USDA loan guarantee and grant applications for renewable energy projects, as well as to help them oversee the project manage-ment once funding is secured. The fi rms have developed de-tailed methodologies, templates and work plans for each of the DOE and USDA funding mechanisms, which eliminates the guesswork and errors while signifi cantly improving the ef-fi ciency of the process. BIO

GTE names Grant as new chairman Gas Turbine Effi ciency, an energy and aviation products and

services company, has appointed John Grant as the company’s non-executive chairman. Grant brings a strong executive management profi le to GTE, following his work in the engineering and automo-tive industries in the U.S. and the U.K. Prior to joining GTE, he served as chairman of Torotrak plc and as non-executive director of Pace plc, Melrose plc and MHP SA, which are all listed on the London Stock Exchange. Grant’s career started at Ford Motor Co. in 1967, where he progressed through the ranks to achieve execu-tive management positions in Europe and the U.S., until his depar-ture in 1992. BIO

Mascoma appoints Brady CEOMascoma Corp. appointed William

J. Brady as its CEO. He will also join the boards of directors of Mascoma and Frontier Renewable Resources LLC. Prior to joining Mascoma, Brady served as executive vice president and general manager of several operating divisions at Cabot Corp., where he led business units from technical development through commercialization, and managed global capital-intensive busi-nesses and developed strategic relationships with large global customers. Brady will help Mascoma achieve technical and commercial milestones, including continuing to reduce costs for ethanol produced from cellulosic feedstocks, develop ad-ditional partnerships for its commercial-scale ethanol project in Kinross Township, Mich., and create strategic joint ven-tures to commercialize Mascoma’s proprietary Consolidated Bioprocessing technology for production of advanced biofu-els and chemicals. BIO

Laidig, Tank Connection team-upLaidig Systems Inc. has teamed up with Tank Connection

Affi liate Group to address the growing needs in storing and reclaiming diffi cult-to-handle dry bulk materials. In biomass and hot grain meal storage applications, both companies will focus on bulk storage facilities. Tank Connection’s rolled, ta-pered panel (RTP) bolted tank and Fusion coating system is recognized as the top rated, bulk storage tank/system available. Bolted RTP construction is easily containerized and installed globally, utilizing a specialized hydraulic screw jack process. This tank construction process allows crews to install large tanks at grade level, which is safe and provides effective quality control in the fi eld, and will allow Laidig to install its premier reclaim storage systems at any location worldwide. BIO

ADF Engineering’s Williamson, Hery pass exams

ADF Engineering Inc., with corpo-rate headquarters in Miamisburg, Ohio, announced that Matt Williamson and Beth Hery recently passed the Ohio Profession-al Engineer exam in chemical engineering. Williamson is a process department man-ager and has been with ADF Engineering since May 2008. Hery is a senior process engineer and has been with ADF Engi-neering since 2005. ADF Engineering is a full-service engineering and consulting fi rm serving the food, feed, fuel and bioscience industries in the U.S. and Canada. BIO

Brady

Hery

Williamson


business BRIEFS

ClearFuels adds BNP Paribas toits commercial development team

ClearFuels Technology Inc. has executed a letter of en-gagement with BNP Paribas to act as fi nancial advisor to assist and support ClearFuels in securing senior secured debt fi nanc-ing for its commercial biorefi nery projects. The agreement calls for BNP Paribas to assist and support ClearFuels with the ana-lytical work and due diligence regarding ultimate debt fi nancing for ClearFuels’ commercial projects. These services would be directed, in part, to create fi nancing plans for the commercial projects. BIO

Evolution Resources signs agreement with NCSUEvolution Resources, an advanced biofuels production com-

pany that produces cellulosic ethanol, has signed a testing services agreement with North Carolina State University. NCSU will work with Evolution Resources as per the agreement to test and bring about improvements in the current laboratory-scale technology within a bigger pilot-scale system. The technology deals with the enzymatic carbohydrate conversion of woody biomass to ferment-able sugars. BIO

Qteros names McCarthy president and CEO

Qteros Inc. announced that John McCa-rthy has joined the company as president and CEO to accelerate its technology and com-mercial initiatives in the worldwide cellulosic ethanol marketplace. McCarthy’s 18-year ex-perience includes managing the transforma-tional growth of numerous life science and biobased chemical companies into high-value commercial entities. He has raised more than $1 billion of capital in the private and public markets, and developed and executed numerous complex and large-scale strategic corporate partnerships. He joined Qteros from Micro-bia Inc., where he served as chief business offi cer of this developer of unique biobased specialty chemicals for large-scale industrial ap-plications. Prior to Microbia, McCarthy was executive vice president of Verenium Corp. BIO

Stern Brothers to secure fi nancingfor SynGest’s bio-ammonia project

SynGest Inc. announced that the company has engaged Stern Brothers & Co. to raise capital for its fi rst biomass-to-am-monia plant in Menlo, Iowa. After the Iowa project is launched this year, SynGest intends to build similar fertilizer mini-plants in other parts of the country. Discussions regarding emerging opportunities are presently underway with interested parties in Ohio, Oregon, Michigan and Minnesota. Stern Brothers has a national practice in renewable energy fi nance representing pub-lic and private company developers and operators seeking non-recourse project fi nancing in the biomass-to-fuels and chemi-cals, ethanol, biodiesel, methane gas and biomass-to-energy sectors. BIO

Genencor receives 2009 New Product Innovation Award

Genencor, a division of Danisco A/S, is the recipient of the Frost & Sullivan 2009 New Product Innovation Award for Biomass Enzymes. The award was granted for Genencor’s Ac-cellerase, a product line of enzymes used to convert biomass into sugar, a critical step in the production of cellulosic ethanol and other advanced biofuels and biochemicals. According to Frost & Sullivan, the Accellerase product line provides feedstock and pre-treatment fl exibility, better process economics, accessory prod-ucts and versatility, which are all signifi cant advantages that makes it stand out from the competition. BIO

Ceres provides online biopower calculatorEnergy crop company Ceres Inc. has posted a footprint cal-

culator on its Web site to help electric power producers deter-mine the acres needed to support various-sized biomass-to-power projects. One of the largest renewable resources, biomass can be cofi red with coal at existing generating stations or used by large industrial facilities for on-site heat and power. The online tool from Ceres allows users to adjust biomass yield per acre and land usage rates, as well as biomass-fi red capacity and heat rate, a mea-sure of effi ciency. The calculator can be accessed at www.ceres.net/biopower. BIO

McCarthy

Morbark, Strongco form Western Canada allianceMorbark announced the signing of a dealership agreement

with Strongco Limited Partnership in Western Canada. With Strongco’s fi ve locations in Alberta, Morbark customers in West-ern Canada now have convenient access to equipment, service and sales. Strongco, in business for more than 50 years, is one of the largest multi-line industrial equipment distribution providers in Canada, providing service in Calgary, Red Deer, Edmonton, Fort McMurray and Grande Prairie. Strongco sells, rents and services mobile industrial equipment in the construction, road building, mining, forestry, utilities and municipal sectors of the economy. It also represents several leading equipment manufacturers, includ-ing Volvo, Dressta and Manitowoc. BIO


California-based OriginOil Inc., which has developed a tech-nology to transform algae into a competitor for petroleum, has formed a partnership with Lon-don-based StrategicFit, a strategy consulting fi rm with world-class analytical capabilities.

The partnership will focus on increasing the robustness of OriginOil’s core algae productiv-ity model by refi ning underlying assumptions and process logic,

according to OriginOil. The life-cycle model will be the starting point for the project, as it shows that a properly sited industrial al-gae production system could be both profi table and benefi cial, ac-cording to OriginOil. The knowl-edge and experience of Strate-gicFit will help OriginOil identify key opportunities and challenges involved in commercializing its technology platform.

Partnership will develop algae production models

BIObytes Biomass News Briefs

Veolia Water Solutions & Technologies Co. subsidiaries Bio-thane LLC and N.A. Water systems LLC have begun work in-stalling an advanced wastewater treatment system at The Holmes Cheese Co. in Millersburg, Ohio, which will employ an anaero-bic digestion technology to help reduce energy costs. Biothane’s Upfl ow Anaerobic Sludge Blanket system fi rst passes wastewater through a pretreatment and conditioning tank where it is pre-pared for main treatment. It is then supplied via an infl uent distri-bution system on the UASB reactor ground, rising through a bed of granular biomass (sludge bed) where the treatment takes place. At the top, a three-phase settler separates the treated water from biogas and granular biomass, and water and biogas are drawn off separately while the granular is returned to the sludge bed.

Cheese plant installs wastewater treatment, digester

The Glendale, Ariz., En-ergy Power Plant, a 2.8-mega-watt biogas plant in the city of Glendale’s municipal landfi ll, is now on line and serving customers of utility company APS. A dedication ceremony for the plant was held at the end of January, followed by “Lunch at the Landfi ll,” which was open to the public. The project uses large combustion

engines to turn a shaft con-nected to a generator, produc-ing electricity from the land-fi ll’s methane emissions. APS has a power purchase agree-ment with Glendale Energy LLC. This is APS’ fi rst biogas project, but its renewable en-ergy portfolio includes solar, wind, geothermal and bio-mass, together serving about 60,000 households.

Missouri-based engineer-ing, architecture and consulting fi rm Burns & McDonnell will perform engineering services, procurement and construction support services for the design and installation of a biomass gas-ifi er at Xcel Energy’s Bay Front Power Plant in Ashland, Wis.

The company will assist Xcel in converting the last of three coal-fi red boilers to a waste-

wood feedstock, including wood left behind in logging operations and forests, according to Burns & McDonnell. Engineering and design technology evaluation is underway on the 73-megawatt plant and construction is slated to begin in 2011, with operation in 2012. Burns & McDonnell will review and fi nalize project costs, as well.

Arizona landfi ll gas project on line

Excel Energy contracts Missouri fi rm

Austrian-based AAT Ab-wasser’s biogas division and BioEnergy Technologies LLC, Sumter, S.C., have formed a strategic alliance that will es-tablish BioEnergy as the sole representative for AAT’s biogas technology in 44 states in the U.S.

AAT has more than 26 years of experience in anaero-bic digestion technology, with more than 100 plants in opera-tion in Europe and one in Or-egon that came on line this past

summer, according to Christian Kloser, AAT America manag-ing director. BioEnergy Tech-nologies, a renewable biomass energy provider, builds and operates decentralized facilities on-site at farm and processing locations, generating biogas that is converted to power, and also can provide a source of chilled water, hot water or steam to the host facility, according to Bio-Energy Technologies.

Alliance brings Austrian products to US

Upfl ow Anaerobic Sludge Blanket System


National Power Corp. and Clenergen Corp. will collabo-rate in generating electricity from biomass for NPC’s Small Power Utilities Group in the Philippines. NPC is the Philip-pine government’s mandated state agency to develop off-grid nonconventional island power systems. Together, the organi-zations will pursue feasibility studies for the nominated areas: Kabugao, Kalinga, Lubuagan, Apayao, Concepcion, Romblon, Corcuera and Banton, accord-ing to Clenergen. NPC believes those areas have the best poten-tial for developing competitive

renewable energy. Clenergen will install distributed environ-mental power systems in the chosen areas, ranging from 0.5

megawatts to eight megawatts, according to the company. The Philippines is an excellent plat-form to demonstrate biomass

and gasifi cation technologies to assure renewable electricity for the Asia Pacifi c Basin, Clener-gen CEO Mark Quinn said.

Partnership brings biomass power to Philippines

Minnesota’s Agricultural Utilization Research Institute has been named recipient of a $99,000 award administered through the USDA Rural De-velopment Business Enter-prise Grant program, in order to provide technical assistance to small and emerging busi-nesses in the biomass process-ing industry in Minnesota.

AURI, a non-profi t orga-

nization that works to develop innovative uses for agricultur-al commodities, will distribute the funds throughout seven counties in the state for use as start-up capital loans, build-ing and plant renovations, transportation improvements, project planning and other relevant business needs.

AURI receives $99,000 USDA grantCovanta Holding Corp. an-

nounced that it has successfully completed its previously an-nounced acquisition of a 3,000 ton per day operating contract in Miami-Dade County, Fla. Completing this fi nal stage of the acquisition of Veolia Envi-ronnement’s North American energy-from-waste business enhances Covanta’s position as a leader in the development,

ownership and operation of energy-from-waste facilities. The businesses acquired from France’s Veolia consist of the operating contracts associated with six energy-from-waste businesses; ownership and op-eration of a seventh facility in Montgomery County, Pa., and one transfer station, also locat-ed in Pennsylvania.

Covanta Acquires Veolia’s NA energy-from-waste business

Philippines


industry NEWSAbengoa partners for Kansas ethanol/power plant

Spanish cellulosic ethanol producer Abengoa Bioenergy has teamed up with Mid-Kansas Electric Co. LLC to develop a cellulosic ethanol and power plant in Stevens County, Kan., to produce 15 MMgy of ethanol and 75 megawatts (MW) of power per year.

Abengoa Bioenergy Hybrid of Kansas (ABHK) will utilize lo-cally available biomass resources such as corn stover, wheat straw and switchgrass as feedstocks, procuring them from farmers/producers in seven counties within a 50-mile radius of the plant. ABHK will require about 2,500 tons of biomass per day, or the equivalent of about 130 truckloads, according to Chris Roach, ABHK project development manager.

Once the biomass materials are harvested into package form, they will be transported via fl at-bed trailer to the nearest satellite depot. An estimated 80 percent of the biomass packages will go from the fi eld to a satellite depot for storage and then to ABHK; the rest will be trans-ported directly from the fi eld to the facility, according to the companies. An extensive investigation of biomass availability determined that there will be a suffi cient quantity of feedstock to meet demand. Clare Gustin, vice president of Mid-Kansas Electric Co. Member Services & Exter-nal Affairs, said the facility would require only about 10 percent of the biomass residues available within 50 miles of ABHK.

Roach told Biomass Magazine that contracting for the materials has already begun.

The projected cost of construction is $550 million, which will be funded by equity provided by Abengoa Bioenergy, a grant of $76 mil-lion from the U.S. DOE to support the commercialization of Aben-goa’s cellulosic ethanol technology and additional fi nancing through a lender or similar entity.

“The signifi cance of this announcement is that the power pur-chase agreement gives Abengoa Bioenergy a 20-year contract to ‘take to the bank’ for fi nancing,” Gustin said. The electricity produced at the

site will serve the retail customers of Mid-Kansas Electric located in 34 counties in the state.

The next step in developing the project will be for Abengoa Bio-energy to obtain an air permit from the Kansas Department of Health and the Environment and prepare an Environmental Impact Statement in compliance with the National Environmental Policy Act.

Roach said project construction is slated to commence late 2010; completion is targeted for 2012.

Beyond ABHK, Abengoa currently owns two ethanol production facilities in Brazil, and recently completed construction of and is in the process of starting up two facilities in Indiana and Illinois.

—Anna Austin

Corn stover will provide approximately 76 percent of the biomass feedstock at the ABHK facility.

Construction job fair In Texas attracts hundredsA job fair in Nacogdoches, Texas, in search of construction

workers for a biomass power plant resulted in about 330 completed job applications and almost as many job interviews, according to Bill King, president and CEO of the Nacogdoches Economic Develop-ment Corp.

NEDC held the fair in conjunction with Fagen Inc., which is managing construction of the 100-megawatt Nacogdoches Power LLC plant near Sacul, Texas. About half of the job fair attendees came from Nacogdoches County, King said, the rest traveling from elsewhere. “Job opportunities like this attract people from a pretty good distance,” he said. The county has been fortunate in experi-encing a fairly lower unemployment rate—about 6.2 percent—than surrounding areas, he added. “Housing and construction have been hit pretty hard by this recession.”

During the 2 1/2-year construction period, about 200 to 300

workers will be needed at all times, King said, adding that he ex-pected the job fair to attract about 200 people. Many prospective workers have also fi lled out online applications on Fagen’s Web site (www.fageninc.com). Since the fair was announced, King has seen substantial interest in it and the available positions. “We’re getting calls from all over the place,” he said.

The plant will occupy 165 acres and will run on about 1 million tons annually of biomass such as forest residue, wood processing residue and clean municipal solid waste from a 75-mile radius, ac-cording to Fagen. A 20-year power purchase agreement has been reached with utility Austin Energy, which serves Austin, Texas. The $400 million facility is slated for operation in the summer of 2012.

—Lisa Gibson

PH

OTO

: AB

EN

GO

A B

IOE

NE

RG

Y


industry NEWS

Obama takes steps to boost bioenergyThe biofuels and biomass industries received nothing but good

news Feb. 3, with the release of the long-awaited renewable fuels standard (RFS2) fi nal rule, the fi rst report generated by President Barack Obama’s Biofuel Interagency Working Group, and the Bio-mass Crop Assistance Program proposed rule.

U.S. Secretary of the Interior Ken Salazar, Agriculture Secre-tary Tom Vilsack, Energy Secretary Steven Chu, U.S. EPA Admin-istrator Lisa Jackson and Assistant to the President for Energy and Climate Change Carol Browner participated in a conference call to discuss the energy announcements following a meeting with Presi-dent Obama, Vice President Joe Biden, and a bipartisan group of governors from across the country.

During the conference, Vilsack pointed out that historically, government agencies such as the USDA and EPA have been du-plicating efforts for similar but different energy-related projects, rather than collaborating. The fi rst task force report encourages interagency cooperation, he said, while clearly delineating responsi-bilities in order to concentrate and leverage resources.

The report also recognizes that one size does not fi t all, Vilsack added. “So every region in the country will able to participate in a biofuel future to create jobs and economic opportunity, particularly in rural communities,” he said. Obama’s fi scal year 2011 budget will develop fi ve regional feedstock research and demonstration centers that will partner universities, industry and other federal and state agencies, tribal nations and internationals, to accelerate research and development in second- and third-generation feedstocks, and the implementation of a supply chain that will allow the U.S. to get new biofuels to market as quickly and effi ciently as possible.

“One issue we face in connection with promoting biofuels is encouraging production of feedstocks,” Vilsack said. “So many [people] have been waiting for the proposed rule as it relates to the BCAP program. We believe [BCAP] is an essential component to our national biofuels and renewable energy policies, and needs to be designed to reduce fi nancial risks for farmers, ranchers and for-est landowners who want to invest in and establish production of nonfood, nonfeed biomass. BCAP will address the ‘chicken or egg’ dilemma that has stalled biomass growth in this sector, and we be-lieve we have fashioned a rule that has suffi cient fl exibility to ensure technology neutrality. Cellulosic feedstocks, woody biomass, energy cane all need to be and will be explored with the BCAP rule.”

Vilsack also said the interagency group believes the rule ad-dresses concerns expressed by the wood industry, by proposing a prohibition on wood waste and residues not just on federal land

but also nonfederal land, that otherwise might be used for higher value products. “We’re also putting forward a number of alterna-tives for matching payments to biomass suppliers to make sure that those funds are targeted to biomass that contributes to an increase in the base line use among current biomass conversion facilities,” he said. “The public has 60 days to comment on the proposed rule, and we will incorporate those comments into the fi nal rulemaking process.”

Jackson discussed the changes to the RFS2 ruling, while ensur-ing it will create many new jobs, particularly in rural areas that have been hit hard by the economic depression, and also help farmers by creating new markets for agricultural products. She estimated the rule will result in an annual $13 billion increase in income for U.S. farmers by 2022.

The RFS2 is an effort to reduce greenhouse gases (GHG), Jackson said, and there has been reasonable worry that with the life-cycle impacts of switching to renewable fuels there may not be reductions of GHGs, or that even more carbon emissions may be generated. “To address those worries, the EPA used the soundest available science that has evolved in response from questions and concerns from a number of stakeholders, and employed a full life-cycle analysis to track GHG emissions for biofuels production and use including land use issues,” she said. “Using this, [with RFS2] we’ve estimated a reduction of carbon emissions to the equivalent of taking 27 million cars off the road annually by 2022.”

Jackson concluded by emphasizing that the interagency group wants to send a positive, specifi c and direct message that the Obama/Biden administration is highly supportive of the biofuels industry, sees a tremendous opportunity for growth and expansion of that industry, and is committed to making it happen.

Novozymes, a company that develops enzymes and is currently building a production facility in Nebraska, applauded the govern-ment for its efforts to expand ethanol production. “The new com-mitment made by President Obama will signifi cantly help grow and advance development of biofuels in the U.S., and at the same time create thousands of new green jobs,” said Steen Riisgaard, CEO of Novozymes. “The new RFS2 is a strong framework and by moving to E15 and increased accessibility of E85, the biofuel industry can create more long-lasting, high earning jobs that will help transform the way the U.S. and world use and consume fuel. And at the same time lessen U.S. dependence on foreign oil.”

—Anna Austin


industry NEWSFertilizers from biomass enhance growth

Fertilizers produced from mostly pine tree biomass by Washing-ton-based EcoTrac Organics have been shown to enhance growth in conifers and pine trees, and can reduce water requirements of treated lawns and plants, according to the company.

Since its establishment in 2007, the company has sought to manu-facture and market environmentally friendly products and has come up with three so far, with some patents pending. The fi rst, HyperGrow, is a pine tree-derived biomass fertilizer. It is composed of pine tree saw-dust and wood ash from biomass cogeneration processes, according to Jim Lodwig, EcoTrac president. It enhances growth rate, specifi cally in conifers. HyperGrow is primarily used in applications where the plants require lower levels of nitrogen.

The second product is HyperGrow Plus, which is manufactured using various timber and agricultural waste residues, without adding any synthetic components, Lodwig said. The product is made from 100 percent natural, organic plant and crop waste and replaces some com-ponents used in HyperGrow with others that enhance nitrogen content in the fertilizer. HyperGrow Plus is low in phosphate so it’s ideal for municipal use, as many cities have created ordinances requiring fertil-izers used in golf courses and public parks to be low in phosphorous to reduce the possibility of contaminating the groundwater, accord-ing to Lodwig. The product also contains wood ash and sawdust, but does not exclusively contain pine tree or softwood sawdust, according to EcoTrac. Sawdust gives the fertilizer fi ber to keep it from leeching through the soil post-application and bypassing the roots of crops and grasses before they can absorb the nutrients. The company obtains saw-dust and lumber yard waste for its products from various local lumber mills.

HyperGrow and HyperGrow Plus share benefi cial traits for trees, crops, gardens and lawns, such as enhanced growth, replenished fi ber in the soil profi le, and the increased benefi ts of that fi ber, according to the company. HyperGrow Plus can be applied during the seeding process and is currently being tested by farmers in Washington and Idaho.

EcoTrac’s third product, Traction Plus, is a traction aid additive for winter highway maintenance sand and is also made from pine tree biomass. It blends with sand and immediately adheres to compact snow and ice, minimizing the scatter upon application and keeping sand in place longer under traffi c conditions, according to Lodwig. Traction Plus also minimizes dust pollution from excessive sand use and fertil-izes the areas surrounding the highways.

EcoTrac is working with Stimson Lumber, the Idaho Forest Group and Colville Indian Precision Pine, among others in the Northwest re-gion of the U.S., to secure lumber processing waste for its products. Raw byproducts are blended and pelletized at West Oregon Wood Products, according to EcoTrac.

The market potential for EcoTrac’s products seems to be substan-tial, including timber companies, landowners, homeowners, park man-agers or any entity that plants trees for consumption or beautifi cation,

according to the company. EcoTrac expects future markets will include retail consumer applications of its formulas.

The company will continue to research new formulas and differ-ent additives for various applications and will investigate new compat-ible resources for its current products, such as forest slash, according to Lodwig. EcoTrac is also conducting trials using HyperGrow Plus in conjunction with a seed starter called HyperPlantStart, which gives seeds a healthier, stronger start to increase yield potential and reduce the need for chemical applications. The combination gives plants both a pre-emergence boost and a post-emergence growth advantage, accord-ing to the company.

—Lisa Gibson

EcoTrac’s biomass-based fertilizers enhance tree growth.

HyperGrow Plus is made with timber waste and agricultural residue.

PH

OTO

: EC

OTR

AC

OR

GA

NIC

SP

HO

TO: E

CO

TRA

C O

RG

AN

ICS


A study recently published by Michigan State University has found that diverse biomass crop plantings such as switchgrass and native prai-rie grasses attract a higher number of benefi cial insects than nondiverse crops such as corn.

The purpose of the study was to assess the implications of differ-ent biofuel crops for benefi cial insects —pollinators and pest controllers such as bees—that provide valuable ecosystem services in agricultural landscapes. MSU entomology professor and study co-author Doug Lan-dis said existing plantings throughout southern Michigan that were not actively being managed as biofuel crops were sampled, and it was found that the crops contained a diverse bee community comprised of 75 spe-cies. Overall, bees were three to four times more abundant in switchgrass and prairie grass than in corn.

The study suggests that there are important consequences for the insects in the type of biofuel crop that is grown. Results indicated that as an annual crop with low plant diversity and high levels of soil distur-bance, corn tends to have low abundance and diversity of these ben-efi cial insects. By contrast, both perennial grassland-based biofuel crops harbored a higher abundance, species richness, and diversity of benefi cial arthropods compared with corn monocultures, according to the study.

The researchers believe their fi ndings suggest important policy im-plications. Particularly, on U.S. government policies toward cellulosic bio-fuels being driven by ethanol production targets that infl uence research focused on attaining high biomass productivity and corresponding ef-fi ciency in processing, without explicit consideration of the landscape-level environmental impacts such systems may induce.

Landis told Biomass Magazine that a caveat he and his team have is that as these crops are “pushed” for higher yield that diversity will

likely decline. Future bioenergy policy should be developed to explicitly enhance biodiversity as a means of improving the delivery of ecosystem services by agricultural landscapes, they contend, while also meeting bio-fuel production targets.

Funding for the study, published in January in the BioEnergy Research Journal, was provided by the U.S. DOE Great Lakes Bioenergy Research Center, the Michigan Agricultural Extension Station and the USDA Na-tional Research Initiative program.

—Anna Austin

Landis and a team of Michigan State University researchers have found that diverse biomass crops attract more benefi cial insects than nondiverse crops.

PH

OTO

: MIC

HIG

AN

STA

TE U

NIV

ER

SIT

Y

industry NEWS

Study: Biomass crops attract benefi cial insects

Bill will boost biomass in WisconsinWisconsin biomass advocates are requesting active support from

the public to secure the passage of Gov. Jim Doyle’s Clean Energy Jobs Act (SB450 and AB649), which was introduced in early January.

The bill, which largely endorses biomass energy, will increase the use of renewable energy, energy effi ciency and cleaner fuels in Wisconsin. “The legislation provides multiple benefi ts for biomass energy systems and for the fi rst time, introduces measures to encourage the most effi -cient use of biomass in heating and cogeneration,” said Peter Taglia, staff scientist for the environmental advocacy organization Clean Wisconsin. The provision is part of an enhanced renewable portfolio standard (RPS), he added, which would credit biomass thermal applications from cogeneration and biogas injected into the natural gas pipeline, providing additional opportunities for farms to install anaerobic digesters at loca-tions where the cost to install electric generators or transmission isn’t feasible. The section also proposes allowing utilities to count the heat produced from biomass cogeneration toward the RPS, and improves the calculations used to determine the energy produced from biomass cofi r-ing and biomass cogeneration facilities, according to Taglia.

Wisconsin’s current RPS targets the increase of renewable energy in the state to 10 percent by 2010 and the proposed bill would expand

the RPS to 25 percent by 2020. In addition, all state agencies would use biomass to provide 25 percent of their energy use by 2025.

Among provisions that would benefi t the production of local bio-mass resources is a Biomass Crop Reserve Program, which would award contracts to farmers to plant native perennial plants to sell for bioenergy production. Taglia said this program would help solve the “chicken-and-egg problem” of jump-starting the homegrown fuels market, and make Wisconsin more competitive to receive funding through the USDA’s Biomass Crop Assistance Program.

Taglia said proponents of the bill hope to get it passed and signed into law before this legislative session ends in mid-May. Clean Wisconsin is requesting letters of support for the bills from the public, which may be submitted at http://cleanwisconsin.e-actionmax.com/takeaction.asp?aaid=297.

A public hearing to discuss details of the bill was held at the State Capitol building in February. For an overview of SB450 and AB649, go to www.legis.state.wi.us/lc/publications/climate/index.htm.

—Anna Austin


industry NEWSRFS2 reduces 2010 cellulosic ethanol requirement

The new requirement for cellulosic biofuel production in 2010 is reduced to 6.5 million ethanol equivalent gallons in the renew-able fuels standard (RFS2), down signifi cantly from the 100 million gallons established in RFS1, included in the Energy Policy Act of 2005. The U.S. EPA released fi nal RFS2 rules Feb. 3 as media out-lets, producers and others scrambled to fi nd out how it would affect their industries.

While the required total volume of renewable fuels produced this year remains the same at 12.95 billion gallons, changes within the requirements for different types of fuels are drastic. Good news came for the biodiesel industry, as the requirement for a new bio-mass-based diesel program jumped to 1.15 billion gallons, a com-bination of standards for 2009 and 2010, to be applied in 2010.The advanced biofuel requirement remains the same at 950 million gallons.

The new cellulosic biofuel standard is based on an updated market analysis that considers detailed information from pilot and demonstration-scale plants, an Energy Information Administration analysis, and other public and private market information, accord-ing to the EPA. While 6.5 million shows a drastic reduction, a num-ber of companies appear poised to expand over the next several years, it added.

“We see it as a positive change,” said Jennifer Hutchins, spokes-woman for DuPont Danisco Cellulosic Ethanol, which opened a demonstration plant in Vonore, Tenn., at the end of January. “As a leading player in cellulosic ethanol, we’re glad the standard has changed. Obviously, the industry wasn’t going to meet that 100 million-gallon mandate.” The plant runs on corncobs now, but will transition to 100 percent switchgrass over the next year.

“I think it’s a great change,” said Arnold Klann, CEO of Cal-ifornia-based BlueFire Ethanol Fuels Inc., which focuses on pro-ducing cellulosic ethanol from waste. “It was very clear our industry couldn’t meet the standard set for this year.” He added that the new goal is easily achievable and was a good decision.

Fortunately, changes to the greenhouse gas (GHG) modeling mean all classes of biofuels meet the RFS GHG reduction goals. According to the RFS2 life-cycle greenhouse gas analysis, ethanol from switchgrass reduces GHG emissions by a stunning 110 per-cent through biochemical conversion and 72 percent through ther-mochemical processes. That was no surprise to DDCE. “We have known about the greenhouse gas reduction potential of switch-

grass,” Hutchins said. “That’s one of the reasons we work with it.” Ethanol from corn stover reduces emissions by 130 percent through biochemical conversion and 93 percent thermochemical. That means both meet the 60 percent GHG reduction requirement in EISA for cellulosic biofuels.

Ethanol from sugarcane also meets the standard, reducing GHG emissions by 61 percent. “EPA’s reaffi rmation of sugarcane ethanol’s superior GHG reduction confi rms that sustainably pro-duced biofuels can play an important role in climate mitigation,” said Joel Velasco, chief representative in Washington for the Brazil-ian Sugarcane Industry Association.

Biomass-based diesel must meet a 50 percent reduction stan-dard to qualify for the RFS2. The National Biodiesel Board wel-comed the RFS2, specifi cally the implementation of the biomass-based diesel program, which will help America reap existing benefi ts in job creation, energy security and the environment, according to Joe Jobe, NBB CEO.

The EPA also mentioned fi ve categories of feedstock that are expected to have less or no indirect land use changes, including crop residues such as corn stover, wheat straw, rice straw, citrus residues; forest material such as eligible forest thinning and solid residue remaining from forest product production; secondary an-nual crops planted on existing crop land; separated food and yard waste; and perennial grasses including switchgrass and miscanthus.

The RFS2 lays out the strategy for reaching the goal of using 36 billion gallons of renewable fuel by 2022. Currently, the country is not on track to meet that goal, as only about 12 billion gallons of biofuels are produced annually.

“We welcome the commitment of the president to continue growing the domestic ethanol industry,” Poet LLC CEO Jeff Broin said. “He correctly noted that producing home-grown ethanol cre-ates jobs in America at a time America most needs them. However, we are concerned that some pieces of the rules put out by EPA today run contrary to that stated effort. Although the international indirect land use change penalty has been lessened somewhat, EPA still relied on the disproven theory when all of the data shows that ethanol production continues to improve and isn’t requiring new land.” South Dakota-based Poet produces corn-based and cellu-losic ethanol from corncobs.

—Lisa Gibson


industry NEWS

Mitchell plant conversion delayed for EPA ruling

Indiana company to offer energy crop plantlets

The conversion of Georgia Power’s Mitchell Generation Plant to biomass feedstock has been delayed, awaiting a U.S. EPA ruling on the industrial boiler Maximum Achievable Control Technology (IB MACT) rule.

The rule would regulate emissions of hazardous air pollutants such as certain acid gases, organics, metals and others from indus-trial boilers. It will likely affect biomass boilers like the one planned for Plant Mitchell, near Albany, Ga., according to Georgia Power Spokeswoman Lynn Wallace. “Our intent was always to convert this boiler with the understanding that we’re meeting the EPA rules,” she said, adding that undetermined rules make that diffi cult.

The plant operates now on coal, generating 155 megawatts. When converted to biomass feedstocks, including waste wood such as tree limbs, tree tops, needles and leaves, the facility will have a capacity of 96 megawatts, according to the company.

Georgia Power was set to begin spending a signifi cant amount of capital on the project at the beginning of this year. “But now that the rule is in question, it’s the prudent thing to do,” Wallace said of the action to delay the project. Otherwise, she added, cus-tomers could be subject to a cost risk if expensive changes are nec-essary to meet any new requirements.

The company had initially planned to begin retrofi t construc-tion on the plant in April 2011 and go on line in June 2012. A new

project timeline has not been determined, but Wallace said the draft of the ruling should be out in April, at which time Georgia Power will have an idea of whether its already-established standards will suffi ce. A fi nal ruling is not expected until December 2010. De-pending on what the draft brings, the project could be back on track in April. “They may come out with something within our own guidelines,” she said. The timing of the fi nal rule release and the possibility of the company having to change plans may bring Georgia Power uncomfortably close to development deadlines for tax credits and other fi nancial incentives.

In the meantime, Georgia Power is looking into alternative boiler technologies, in case the ruling signifi cantly impacts the cost of the planned boiler conversion. “We think it’s in our best in-terests, just in case the current boiler doesn’t meet their specifi ca-tions,” Wallace said.

The company does not expect to scrap the project altogether, but instead is preparing for possible changes. “We don’t think that the project is going to be cancelled,” Wallace said. “Our hope is it’ll just be a matter of modifying our existing design, or adding new equipment.”

—Lisa Gibson

A company in Indiana aims to streamline Miscanthus gigan-teus and Arundo donax (giant reed) production by offering growers plantlets resulting from a micropropagation technology.

Both crops are high-yielding perennial grasses that have been studied as potential biomass feedstocks for quite some time, but their use as a commercial-scale energy crop has been slow to frui-tion due to their sterile nature and the labor intensity involved in harvesting the plants.

White Technology LLC acquired an exclusive license for the micropropagation technology, developed by University of South Carolina plant geneticists Laszlo Marton and Mihaly Czako, about a year ago. The technology utilizes the regenerative nature of mis-canthus and arundo to enable mass plantings of the crops.

Kenn Davis, White Technology CEO, said the technology is superior to traditional methods of growing the crops, in that thou-sands to millions more plants can be grown in the same amount of

time required by other companies working to develop and plant rhi-zomes. Rhizomes are horizontal, underground plant stems, which are cut from mature plants and then planted for reproduction.

“We’ll be able to support large farm operations, large enough to support biomass feedstocks for energy plants in a much shorter period of time; it’s a lot more reliable,” Davis said.

Davis said White Technology is putting together package deals for buyers and is currently taking orders. He said interest in the crops has been “overwhelming,” but the company has found very few who are interested in actually purchasing the plantlets. Rather, the majority of inquiries are persons looking for the mature plants to use as feedstocks at biomass plants. “So we’re working to incor-porate that philosophy into a package deal,” he added. “We have a lot going on.”

—Anna Austin


ENERGY CROPS

This switchgrass bale will be used in one of several ongoing projects at Genera Energy.

PHOTO: GENERA ENERGY LLC


ENERGY CROPS

Energy Crop Energy Crop Conundrum Conundrum

Dedicated energy crops hold massive potential as a renewable energy resource, but hurdles remain in the path of their large-scale utilization.

By Lisa Gibson


ENERGY CROPS

demonstration-scale facility in Vonore, Tenn., began producing cellulosic ethanol in late January, fueled by a steady diet of corn-

cobs with the intent to transition to 100 percent switchgrass feedstock aover the next year. The plant has a nameplate capac-ity of 250,000 gallons and has its biomass supply chain ready and waiting, through the farmer-owned Tennessee Biomass Supply Co-op.

The plant, developed by partners Du-Pont Danisco Cellulosic Ethanol LLC and Genera Energy LLC, is one of only a few, however, as dedicated energy crops search for their window to permanently and signif-icantly slip into the U.S. renewable energy market. Two crucial steps in the realization of their potential seem obvious: farmer in-volvement and land-use patterns.

Farmers in the Tennessee Biomass Supply Co-op will be responsible for pro-viding switchgrass to the Vonore facility, including growing, material handling, pre-processing, supply chain logistics and even marketing, according to Kelly Tiller, presi-dent and CEO of Genera Energy, wholly owned by the University of Tennessee. “That’s the very important next step: get-ting farmers engaged and involved in the supply chain,” Tiller says. “We’ve set this up as a demonstration for how to do this.”

Members of the co-op currently con-tracted with the University of Tennessee to grow switchgrass for Genera have 2,700

acres planted on private farms. In April, the company will add another 5,000 acres to its cache for use in several of its ongoing proj-ects. “It will actually be in great excess of what we need to operate that facility,” Til-ler says of the DDCE plant. Switchgrass is a sustainable feedstock that can be used for

A

You can count on our knowledge and experience for a cost-effective, integrated solution for yourgreen energy plant.

Our engineered system combines quality equipmentand process management to control product flow fromstart to finish, with automated solutions for:• Grinding • Conditioning • Pelleting• Cooling • Sifting

Call us today, and hold us accountable for your cost-effective solution.

One Source,One Automated Solution

ROSKAMP CHAMPION—YOUR AUTOMATION PARTNER

800-552-2382 | WWW.CPM.NET | WATERLOO, IOWA

DDCE’s demonstration plant in Tennessee began production in January.

PH

OTO

: DD

CE

‘We actually evaluated a number of different feedstock alternatives and decided that switchgrass was a really good fi t for this project and for this region. We see switchgrass activity as generating a lot of the important values and data we need to develop a commercial-scale supply chain.’Kelly Tiller, president and CEO, Genera Energy

numerous projects in the Southeastern U.S., she adds. “We actually evaluated a number of different feedstock alternatives and de-cided that switchgrass was a really good fi t for this project and for this region,” she says. “We see switchgrass activity as generating a

lot of the important values and data we need to develop a commercial-scale supply chain.” The U.S. DOE has identifi ed it as a preferred dedicated energy crop and has also deter-mined hybrid poplars and hybrid willows to be favorable tree energy crops for biopower.

Switchgrass is perennial and grows well on marginal and underutilized lands, re-quires minimal input and can be harvested and handled using existing equipment. The crop’s greatest potential is the amount of biomass it can produce, Tiller says, adding that the yield per acre is between eight and 10 tons without improvements in the vari-eties. Genera, however, will continue work to improve the yield and cost effi ciency of the crop.

“In my opinion, [energy crops] hold tre-mendous potential,” Tiller says, being care-ful to add that they’re not the only solution in the world’s transition from fossil fuels. A whole portfolio of technologies will come into play. “But within cellulosic ethanol, I do think dedicated energy crops are criti-cal to the large-scale expansion,” she says. The Vonore facility will serve to prepare DDCE’s integrated conversion technology for commercial production by 2012.

Genera’s 7,000 acres are only the tip of the iceberg in switchgrass planting poten-

ENERGY CROPS

This partially cut fi eld of switchgrass is used to produce cellulosic ethanol.

PH

OTO

: GE

NE

RA

EN

ER

GY

LLC


tial in Tennessee. “We did some modeling, looking at marginal cropland just in Ten-nessee and identifi ed more than 1 million acres that can move into dedicated energy crop production,” Tiller says.

BiobarriersLand-use patterns will need to change

to accommodate the widespread growth of

dedicated energy crops, according to Mark Downing, agricultural economist and senior scientist at the DOE’s Oak Ridge National Laboratory in Tennessee. “The biggest re-source we have is land,” he says. “There may be some limited feedstock issues unless we make some monumental changes about what we do with the land that we have.”

Food and energy crops can be grown

without interfering with each other, but an in-depth look at all the nation’s land re-sources is essential to optimize agriculture and energy policy, Downing says. The U.S. is good at balancing food, feed and fi ber, he adds, but hasn’t gotten into the fuel equation yet. “Pick and choose your land for energy crops,” he emphasizes. “They don’t need No. 1 corn land.”

Work also needs to be done to deter-mine where each crop would grow best, a project Ceres Inc. has been working on with its switchgrass, miscanthus, sweet sorghum, biomass sorghum and energy cane variet-ies. The company’s high-yielding switch-grass cultivars and high-biomass sorghum hybrids are available now under the brand name Blade Energy Crops. The company’s Web site (www.ceres.net) includes maps of the U.S. that outline target markets for each of its crops. Ceres is also evaluating inter-national markets, according to the site. As of now, production of biofuels has been largely limited to the Corn Belt, but the

ENERGY CROPS

These switchgrass bales will be used in one of Genera Energy’s projects.

PH

OTO

: GE

NE

RA

EN

ER

GY

LLC

‘I want a biomass that looks like grain, handles like grain, is treated like grain. That’s my goal.’

Mark Downing, ag economist and senior scientist, Oak Ridge National Laboratory


ENERGY CROPS

USDA estimates 60 million acres in the nation could be used for dedicated energy crop growth, opening the door to more states participating in biofuels production.

Getting farmers engaged in the supply chain and growing those crops isn’t easy, however, and is exacerbated by a lack of standards for biomass conversion technol-ogies. “The farmers are asking the biore-

fi nery what it wants and the biorefi nery is asking the farmers what they have,” Down-ing explains, adding that the nation is mov-ing closer to solving the problem, but isn’t there yet. “So, I don’t have a commodity called biomass that can be assigned value-added properties that make it high enough value to be able to ship it very far.” Grain elevators know what they’ve got when

the product comes in, he says. “I want a biomass that looks like grain, handles like grain, is treated like grain. That’s my goal.”

In order to plant on a large scale, the correct seed varieties and plant materials need to be available, Downing says, making aggressive breeding programs fundamental. Mendel Biotechnology is working to acceler-ate improvement in plant varieties, drawing on its knowledge of the regulation of plant gene and pathway function. The company serves agricultural companies with new ge-netic and chemical solutions and strives to be the leading seed company serving the bioenergy industry, according to Mendel.

Another huge barrier to widespread use of dedicated energy crops is the cost of producing cellulosic ethanol. “The trick is yes, you can make ethanol out of lignocellu-losic material and it has been done,” Down-ing says. “The problem is you can’t afford to do it.” Separation of lignin, cellulose and hemicellulose, along with the conversion of cellulose and hemicellulose to sugars for fermenting is a costly endeavor. “You’d think it’d be easy,” he says of commercial-izing an effi cient process. “But we have not had the investment. We have not had the push. We have not had, quite frankly, the national need or thrust that the corn etha-nol industry has.”

The CEO of SG Biofuels believes that jatropha is the only near-term solution for biofuels production.


The DOE has awarded some funding to lignocellulosic biore-fi neries. Under the Biomass Research and Development Initiative, Genera recently received a $2.4 million grant to research and im-prove switchgrass varieties in cooperation with Ceres and DDCE, Tiller says. With the funding, Genera will compare Ceres’s im-proved switchgrass varieties to traditional ones on a large scale, she says. In addition, Genera was awarded a $4.9 million DOE grant to optimize removal, transportation and storage of switch-grass, including the use of in-fi eld chopping systems instead of baling.

Downing shares Tiller’s belief that dedicated energy crops will play a large role in the switch from petroleum and fossil fu-els. Oak Ridge National Laboratory’s Biomass as Feedstock for a Bioenergy and Bioproducts Industry: The Technical Feasibil-ity of a Billion-Ton Annual Supply, commonly called the Billion-Ton Study, found that an estimated 1.3 billion tons of biomass feedstock could be available countrywide including agricultural residues, forest resources, herbaceous energy crops and woody energy crops, under a number of assumptions, probably the most important being land use, Downing says. But what that study did not address is equally important: Where are those feedstocks available? What are they? What will it cost? Downing and about 50 fellow scientists are going back to the study and elaborating on it, making some important changes and delving a bit deeper. The results should be released in June. “We’ll have to go under scrutiny and knife, but we are optimistic, based on what the sec-retary [of energy] and the president say we should be producing for fuels by 2022, that we’re going to have a signifi cant amount of feedstock to satisfy that,” he says. The U.S. renewable fuels stan-dard, established in the Energy Policy Act of 2005, is 36 billion gallons by 2022.

“Growing switchgrass and trees isn’t inexpensive,” Downing says. “Picking up corn stover is not cheap either. There are non-existent markets for some of these things; there are always alter-native markets that farmers will seek out to provide the highest revenue for their farm enterprises. They don’t care what it’s used for; they just want the highest price.”

Near-Term Profi tability“On a macro level, one of the key elements missing in biofuel

feedstocks is that most are not profi table today,” says Kirk Haney, president and CEO of California-based SG Biofuels. “Jatropha is.” SG Biofuels has the largest library in the world of jatropha genetic material, along with 4-year-old fi eld trials in Latin America. “Our business model is to develop jatropha so it’s the highest-yielding with the lowest input costs,” Haney says. “We think the most important thing is profi tability for farmers.”

In mid-January, SG Biofuels announced it had formed a strate-gic alliance with Life Technologies Corp., a provider of life science

ENERGY CROPS


The solution behind the solution.

Quality pellets, guaranteed. For perfect pellets the entire production system must work together flawlessly. Buhler enables total process control by providing a complete process design package and key equipment for drying, grinding, pelleting, cooling, bagging and loading. This, combined with Buhler’s integrated automation system, unrivaled after sales support and training provides a seamless solution, guaranteed.

Buhler Inc., 13105 12th Ave N., Plymouth, MN 55441, T 763-847-9900 [email protected], www.buhlergroup.com

solutions, to further sequence the jatropha genomes and put the perennial plant on the fast track to commercialization. Life Tech-nology’s choice to partner with SG Biofuels signifi es the promise and potential of the plant, Haney says. “It’s really market valida-tion for jatropha and market validation for our company,” he says.

“The reality is, in the near-term, biofu-els are going to play a very important stra-tegic part in offsetting petroleum,” he says, adding that jatropha will have a signifi cant impact on that biofuels industry. Biodiesel from jatropha shows a 70 percent green-house gas reduction from petroleum biod-iesel levels, he cites. “It’s a fuel that works. It’s profi table today, and with companies like ours, it’s only going to get more profi t-able.”

The plant has shown yields four to fi ve times those of soybeans and two to three times the yield of rapeseed, Haney says. “Another reason we’ve approached jatropha is that Mother Nature has already devel-oped this plant to a point where it’s clearly a high yielder with lower input costs,” he says, adding that it’s well-known in the avia-tion industry. “It makes a great jet fuel,” Haney says. “It’s actually more fuel effi cient than kerosene.” The biomass portion of a recent 50-50 biomass/petroleum jet fuel blend consisted of 48 percent jatropha, 1 percent algae and 1 percent camelina.

SG Biofuels is working to identify fa-vorable traits—including cold tolerance—that will allow the crop to be grown outside its native habitat of Central America. Jat-ropha can be grown on marginal or aban-doned lands so as not to compete with food crops, and is not currently grown in the continental U.S. More than 800 mil-lion acres of nonagricultural land around the world could be used to plant jatropha, Haney says, and that does not include ar-eas that could grow cold-tolerant strains. To put that in perspective, 50 million acres are planted with sugarcane today, and about 200 million each of corn and soybeans, he says.

SG, with its new partner, will continue to work with jatropha to bring it to market and has had success in its fi eld trials and lab work. “We have some incredible data that will revolutionize the space,” he says, add-ing that it’s too early to disclose it. The al-liance will develop region-specifi c cultivars, an aspect of energy crop production that both Haney and Downing believe is crucial. “One thing we think is missing with a lot of energy crops is not just doing trials in one

specifi c area where the plant grows really well,” Haney says, building on Downing’s land-use viewpoints. “To get the plant to have the scale of a corn, a soybean, wheat and sugarcane, we have to grow it in differ-ent regions of the world.” BIO

Lisa Gibson is a Biomass Magazine associate editor. Reach her at [email protected] or (701) 738-4952.

ENERGY CROPS


MISCANTHUS

Genetic improvements and advancements in growth and harvest techniques are moving miscanthus closer to becoming a commercial energy crop.

By Anna Austin

MAKE WAY MISCANTHUSFO

R


MISCANTHUS


esearch on miscanthus as an energy crop took off in the U.S. in the mid-’90s, but interest in the grass has peaked during the past few years. Though steady progress is be-ing made in all dimensions of utilizing miscanthus as a

biomass crop—from breeding to planting to harvesting to pest control—there are still some challenges to overcome.

Because miscanthus is naturally sterile, it must be grown by planting its root-like stems called rhizomes, a process similar to potato planting. While some groups have focused on developing rhizomes to provide to future growers, which takes about three years to accomplish, others are concentrating on genetic improve-ments such as seeded varieties of the crop.

Mississippi State University researchers have spent more than a decade isolating, identifying and developing genotypes of giant miscanthus that would be most suitable for commercial growth in the South. Their work has led to the development of a new strain dubbed Freedom. During MSU variety trials, Freedom demon-strated yields of 25 tons per acre and grew to 12 feet, outperform-ing switchgrass by a ratio of at least 2:1.

Soperton, Ga.-based SunBelt Biofuels is taking MSU’s re-search to the next level. The company obtained an exclusive li-cense for Freedom a few years ago, and has since been working to produce plant material to sell to growers, according to SunBelt Biofuels President Phillip Jennings. The company currently has 250 acres of Freedom in Georgia and Mississippi, and plans to have rhizomes available for sale this year.

Miscanthus MilestoneIt has taken time and dedication to get to the point where

SunBelt is able to supply miscanthus rhizomes to growers, accord-ing to Jennings. “For the past three years, our concentration has been on a series of studies involving the actual growing of rhi-zomes so we’re able to furnish grower manuals, since it’s a new crop,” he says. “We’re continuing to do numerous studies with ma-jor universities in the Southeast to learn more about the genetics of the plant.”

Beyond the region’s ideal climate, longer growing season and daylight hours, the Southeast, which is a region of focus for Sun-Belt, offers another advantage to growers—ample idle, available land. Georgia and Alabama each have a little more than 1 million acres of land not currently being utilized, according to Jennings, and South Carolina has 500,000 acres. Additionally, it costs con-siderably less to rent land in the Southeast than in other regions of the U.S. “Cash rent in Illinois is $200 to $400 an acre, and in Geor-gia its $50 to $70 an acre,” he says. “Land that doesn’t produce a profi table food crop—we want that land to host miscanthus.” However, that doesn’t mean miscanthus can’t be grown in other areas from Florida to Canada, Phillips adds, the economics just fi t better in the Southeast.

Freedom out-yields switchgrass because of the ideal growing conditions, while growers in other areas may fare better planting

MISCANTHUS

RCombustion technology from Detroit® Stoker

is converting biomass to energy now. Everyday, more than 125,000 tons of biomass and refuse are converted into useful energy using Detroit® combustion systems. This extraction

of energy from otherwise unusable material represents recycling at its finest—and a sen-sible alternative to expensive conventional fuels.

Performance-proven, Detroit® biomass com-bustion systems are working today on six continents. They are fired by a broad range of renewable fuels includ-ing wood bark, coffee refuse, sunflower hulls, eucalyptus, poultry lit-ter, municipal waste, urban wood waste, and RDF/CDR.

For more information about converting biomass or other waste materials to energy, talk to the

company with a proven track record.

Detroit Stoker Company 1510 East First Street Monroe, MI 48161 USA

Call toll free: 800-786-5374 FAX: 734-241-7126

E-mail: [email protected] www.detroitstoker.com

From the AustralianFrom the AustralianFrom the Australian Outback to the UrbanOutback to the UrbanOutback to the Urban Cities of Europe...Cities of Europe...Cities of Europe...

“Our opportunities are always growing”


switchgrass. “[In the Southeast], we’re go-ing to get four times the amount of cel-lulose to the acre per year than you’d get with switchgrass,” he says. “It’s exceedingly hard to produce a stand of switchgrass in the Southeast, and after about three years, stands need to be replanted. It’s a wonder-ful crop for the prairie lands where it is native, but you can’t economically, feasibly reach yields that justify what we’ve got to

do with cellulose. Cellulose buyers cannot afford to pay a switchgrass producer what it costs to grow tons of switchgrass in the Southeast—it’s pure economics.”

Though it’s possible for growers to use the same equipment used to harvest hay, Jennings says those contracted for large acreages will likely require something more automated. “There hasn’t been a lot of technologies developed surrounding

MISCANTHUS

MSU researcher Brian Baldwin , left, and SunBelt Biofuels CEO Jennings stand in a fi eld of miscanthus.

A miscanthus rhizome ball at nine months

PH

OTO

: SU

NB

ELT

BIO

FUE

LSP

HO

TO: S

UN

BE

LT B

IOFU

ELS


miscanthus—we’re surprised at that—but we’re in the process of developing and will soon have a precision planter that will plant miscanthus the same way corn or soybeans are planted, and we also have developed a mechanical digger.”

Others are also working to automate miscanthus planting and harvesting. The University of Illinois in partnership with Tomax Ltd. and Bermuda King USA, re-cently unveiled a miscanthus rhizome re-generation harvester and planter system af-

ter three years of collaboration. According to the university, the planter demonstrates a more uniform stream of rhizomes, enabling placement at a rate that matches rhizome weight, quality and ground conditions. The four-row planter incorporates separate feed hoppers and placement channels so it can be used for two-row nursery work and larger scale plantations.

The harvester lifts the rhizomes on a continual basis with a one-pass digging head and oscillating de-soiler. The rhizomes exit

MISCANTHUS

Bulk Materials Handling Solutions RECEIVING-PROCESSING-CONVEYING-STORAGE-DELIVERY

More Information? Please call 770-849-0100 or email us at [email protected]

via a bulk side discharger that conveys the rootstock to an adjacent trailer. The equip-ment will be available for licensing this year.

For those who aren’t sold on the idea of establishing and planting rhizomes, Cal-ifornia-based Mendel Biotechnology Inc. is developing seeded varieties of miscanthus, a route it believes will serve as a long-term solution for commercial production of miscanthus.

Planting a SeedWhen a company specializes in plant

breeding its long-term fundamental asset is the scope and diversity of the gene pool that it can draw on to create commercial varieties, says Mendel Biotechnology Presi-dent and CEO Neal Gutterson. “So what Mendel did early on, through the acquisi-tion of a breeding program in Germany, was collect miscanthus accessions to put together what we think is the world’s best and most robust miscanthus germplasm pool. That pool now has 2,000 accessions; quite a few natural accessions, and some developed varieties.”

Miscanthus rhizome regeneration harvester

PH

OTO

: UN

IVE

RS

ITY

OF

ILLI

NO

IS


Why so many accessions? Gutterson says most of the accessions are not actu-ally under development for commercial use in the next two to four years, but serve as assets to build on in the long term. “In the short term, we’re focused on sterile varieties like many other people, and our approach at the moment is to propagate those with partners and to deliver them to farmers and growers in the form of transplant plugs,” he says. “Establishing plugs is quite a reli-able form of delivering planting material. Like the rhizome system, it’s still rather ex-pensive all-in-all, and although Mendel does have a proprietary clone, we don’t see that as a long-term solution for a scalable mis-canthus industry. For the long term, we’re working toward creating varieties that can be reproduced from seeds. A seed produc-tion system is less expensive than a rhizome or plug system.”

“Seeded varieties will dramatically change the cost structure of producing mis-canthus for developers, growers, and power companies and refi neries,” Gutterson says. “That is our long-term goal, and we’re well on the path to that.”

Mendel is testing its clonal products on larger scales, as well as its seeded varieties that will come after the clonal products, on smaller scales. At its Kentucky demonstra-tion site, the company has planted nearly 30 acres of miscanthus and expects to increase that to more than 50 acres this year. Outside of the Southeast, Patterson says Mendel is looking at the Atlantic Seaboard, southern parts of the Corn Belt, and has trials of different sizes at about 25 sites that extend into Canada in order to analyze issues such as cold tolerance and fl owering control.

In the meantime, researchers and aca-

MISCANTHUS

From Grinder to Chipper in Record Time!

MORBARK® GRINDERS

More Versatility. More Opportunity. Normally, high-quality chips and mulch are produced on separate machines, but with the Morbark® Quick Switch, you can produce both products and virtually double your market opportunities with a single Morbark® grinder. The best horizontal grinders on the market are now the most versatile with the introduction of the Morbark® Quick Switch Grinder-to-Chipper Conversion Kit.

MORBARK®

Horizontal Grinder-to-Chipper Conversion Kit.Turn grinder downtime into profit by modifying the hammermill of your Morbark® horizontal grinder in the field – without special tools or heavy equipment. Make the switch and produce high-quality biomass fuel chips in only a few hours!

Go to Morbark.com/QuickSwitch to see a video demonstration or call 800-831-0042 for more information.

BUILDING EQUIPMENT THAT CREATES OPPORTUNITIES

demia are covering other bases of miscan-thus production, including possible hin-drances.

Pondering Pests Beyond innovations in yield, growth

and harvest, perhaps one of the most over-looked aspects of developing new biomass crops is potentially negative scenarios such as disease, pests and effects on other crops. So far, SunBelt hasn’t experienced any pest or disease problems in the Southeast that

thrive on Freedom, Jennings says. “Our pathologists have injected our plants with numerous leaf diseases and they haven’t taken,” he tells Biomass Magazine. “We’re not saying that Freedom is 100 percent resistant, but it was selected because it’s a superior va-riety for the Southeast.”

University of Illinois researcher Jo-seph Spencer, however, says those involved in or considering growing giant miscanthus should test the waters before jumping in, and fully understand pest possibilities and

‘For the long term, we’re working toward creating varieties that can be reproduced from seeds. A seed production system is less expensive than a rhizome or plug system.’

Neal Gutterson, president and CEO, Mendel Biotechnology


Spencer examines giant miscanthus plants that have been exposed to the western corn rootworm.

consequences. He is particularly concerned about the western corn rootworm (WCR). Although the WCR typically feeds on corn crops, Spencer’s research indicates it could thrive on giant miscanthus. Just because corn isn’t grown in regions that are ideal for giant miscanthus production, doesn’t mean that a WCR infestation should be ruled out, Spencer says. “It is present in parts of the Southeast U.S.—in western North Carolina and Tennessee, as well as northern South Carolina, Alabama and Georgia—though this species has invaded these areas only in past 10 to 15 years,” he says. “The WCR is a very adaptable and mobile pest. Pest manag-ers in the Midwest know only too well that it can cause serious economic problems if ignored.”

While Spencer agrees with Gutterson and Jennings that interest in farm-scale plantings of giant miscanthus is healthy, he emphasizes that it’s not yet known whether the WCR will become a pest of giant mis-canthus or whether giant miscanthus will become a source of WCR that will invade corn, or if giant miscanthus might actually benefi t corn growers by acting as a refuge

MISCANTHUS

PH

OTO

: UN

IVE

RS

ITY

OF

ILLI

NO

IS


for WCR that are susceptible to trans-genic corn hybrids. “If I were a grower I would want to go into my giant miscant-hus commitment with a full understanding that pests and pest management costs may not be negligible,” he says. “In the case of the WCR, it is our most signifi cant pest of corn—it is adapted to a host plant that is available in the same fi eld year after year; we were not surprised that the WCR could survive on a grassy biomass crop with a pe-rennial growth habit. I think it is becoming clear that claims of a lack of pests on giant miscanthus are due to not looking for them, not because they are absent. That sort of hubris gets you in trouble with nature.”

From Spencer’s perspective, issues re-lated to potential pests must be analyzed extensively for the future success of giant miscanthus. “Another issue that is often discounted is whether giant miscanthus may become invasive,” he says. “People, who suggest caution in this regard, are painted as being obstructionist. Any time someone tells me that we don’t have time to be careful my discomfort level goes up a notch or two. There are good reasons to work toward biofuel alternatives; this new and developing technology will certainly provide good jobs and profi ts to those in-volved. However, until we are willing to ac-cept the responsibility for associated risks I don’t think we can go ‘all in’ on this.”

As long as the proponents are mainly focused on profi ts and are unwilling to shoulder the risks, or adequately address them, it is a gamble, Spencer adds. “It’s a lot like gambling with someone else’s money—there’s little need to be risk averse when it doesn’t cost you anything to lose. Being

thoughtful and thorough in the collection of data about a system’s risks and benefi ts is far less costly than acting in haste and paying to clean up a mess down the road.”

Fueling the FutureDeveloping new crops is never easy

but miscanthus does have an advantage as a bioenergy feedstock—the Biomass Crop Assistance Program. Gutterson says he thinks programs such as the federal BCAP are essential in helping the industry get on its feet, but it needs to be extended. “Our view is that any program that is important to help an industry get on its feet shouldn’t last for 20 years, but BCAP needs to be available longer than its current [duration, which is 2012]. I think if it’s available out to 2016 or 2017, it will get the industry over the hurdle. At this stage, where there’s a lot of specu-lative production and a pretty high cost of

establishment, BCAP is essential to get this moving.”

As always the industry struggles with its chicken and egg dilemma of what should come fi rst the feedstock or the facility. “By the time the cellulosic ethanol people are ready, the [feedstock] needs to be here,” Jen-nings says. “There’s no reason to build the facilities until you have the [feedstock]. Our government has somehow gotten one ahead of the other—the area we need help in is the feedstock. Once we get that done, then the facilities will come. It’s backwards to get these facilities up and then fi gure out what to feed them.” BIO

Anna Austin is a Biomass Magazine as-sociate editor. Reach her at [email protected] or (701) 738-4968.

MISCANTHUS

‘If I were a grower I would want to go into my giant miscanthus commitment with a full understanding that pests and pest management costs may not be negligible.’ Joseph Spencer, University of Illinois researcher

PROFILE

The nation’s fi rst grower-owned biomass cooperative has shown the world that the cooperative model can be successful and is ready to build on that success.

By Rona Johnson


It’s Show Time


PROFILE

t a time when many biomass project developers are search-ing for fi nancing and developing systems capable of han-dling thousands of tons of biomass, Centerview, Mo.-based Show Me Energy Co-op has already done that and is now

gearing up to expand.Although co-op members couldn’t reveal all of their expansion

plans because some are still in the early planning stages, they did say they are researching the possibility of building a power plant on site to create green electricity, and negotiating a contract with another util-ity in the area. Show Me Energy Chairman Steve Flick says the co-op could make an announcement regarding its expansion plans by April or May.

Currently, the producer-owned co-op processes biomass into pellets that it sells to a local utility, to poultry producers in the area, who use it to heat their chicken and turkey barns, and for home heat-ing. “We’ve shipped material all over the world,” Flick says.

The development process wasn’t easy, Flick says, but they were successful because they answered two questions before they started their equity drive: How are we going to move all this material? How are farmers going to make money in the process? “The nucleus of the group started in 2005 and we began by studying feedstock availability, the sustainability, the life-cycle assessments, and how can we provide positive impacts on the rural landscape and create green jobs at the same time,” Flick says. The group then went on to fi gure out what and where would be the best potential for marketing their biomass pellets. Once they had a handle on those, they came up with what they

thought was a good business model and went out to fi nd investors.“We sold shares into the co-op as farmers selling to farmers,”

Flick says. “We pitched it to small-town America within a 100-mile ra-dius of the proposed plant site. We knew we were successful because we raised a lot of money very quickly.”

Having the farmers, who would be delivering the biomass to the plant, on board was key to the project’s success, Flick says. “We be-lieve that no matter what technology anybody has—power or liquid fuels—if it’s not valuable to the farmers they won’t participate in the project,” he says. “They have to have skin in the game.”

The co-op was set up and then closed after the organizers raised their initial investment. It was then reopened in the fall to raise money for capital expansion, Flick says. “We will have some minimal invest-ment in March but that’s about it,” he says. “It’s really only for Mis-souri residents who live within the local area.”

The co-op’s equity drive got a boost from the state of Missouri in the form of tax credits for producers who bought shares. “The Mis-souri Department of Agriculture has been our No. 1 partner through an organization called the Missouri Agriculture Small Business De-velopment Authority,” Flick says. In 1988, the legislature granted the Missouri Agriculture Department the authority to set up an organiza-tion allowing the state to partner with new-generation cooperatives. “When we sold our shares in that fi rst round, the state of Missouri gave tax credits to the producers who bought those shares.” Farmers could then sell their tax credits or use them to reduce their tax liability. “It wasn’t like you got a grant and if the thing doesn’t work then the

PROFILE

A

CFB Boiler Feed SystemsBiomass Handling EquipmentComplete Engineered SystemsPulverized Coal Boiler Conversions

USA: CORPORATE HEADQUARTERSJeffrey Rader Corporation398 Willis RoadWoodruff, SC, USA 29388Phone: 864.476.7523

CANADA: Montreal, QuebecJeffrey Rader Canada2350 Place Trans-CanadienneDorval, Quebec H9P 2X5 CanadaPhone: 514.822.2660

CANADA: Vancouver, BCJeffrey Rader CanadaUnit 2, 62 Fawcett RoadCoquitlam, BC V3K 6V5 CanadaPhone: 604.299.0241

SWEDEN: StockholmJeffrey Rader ABDomnarvsgatan 11, 163 53 SPÅNGAStockholm, SwedenPhone: +46 8 56 47 57 47

To learn how how Jeffrey Rader Corporation can solve your Biomass Handling needs, visit us at www.jeffreyrader.com/bio1

Silos

Wood Hogs

Disc Screens

Open Storage

Closed Storage

Truck Dumpers

Chain Conveyors

Bucket Elevators

Screw Conveyors

Screw Reclaimers

Pneumatic Conveying

Material Handling for Woody BiomassUNITED STATES CANADA SWEDENUNITED STATES CANADA SWEDEN

See our Biomass video at www.jeffreyrader.com/videoB


PROFILE

state ends up owning it, this is real money on the line,” Flick says.The technology the cooperative uses was designed in-house by a

group of farmers and engineers who license it to others who want to build a pellet plants in their local areas.

Although the co-op hasn’t paid out dividends to its members yet, it hopes to soon. “We probably won’t do that for another year because we are constantly re-investing and reducing debt load,” Flick says.

Delivering the BiomassThe co-op has 650 members from 28 counties, supplying every-

thing from storm- and ice-damaged wood, switchgrass, native grasses, stubble, cereal straws, corn stalks and milo stubble. The plant takes in 10 to 15 truckloads of biomass per day, which doesn’t impact its neighbors because it was built in a rural area. “We believed the plant had to have a minimal impact on the area that we were living and working in,” Flick says. The site was also chosen because it has access to two hard surface roads and a rail line

About 90 percent of the biomass that comes into the plant is in the form of round bales, Flick says. The rest is transported in on walking fl oors. The 16-acre site only allows the cooperative to store 3,000 bales so farmers store the material on their farms until the co-op needs it.

For famers, both members and nonmembers, who deliver to the plant, it’s a way to get more value from the crops they already grow. For example, Flick and other members who grow grass seed used to burn the straw after they harvested the seed. Now the straw is baled

and delivered to the pellet plant, where it can fetch $40 to $60 per ton, based on its net energy value.

The plant also benefi ts farmers who for economic reasons have had to change their cropping systems.

Since the early 1950s, Mike Rape’s family supplied sod for the turf grass industry for new housing. Until the collapse of the housing market, his farming operation consisted of 100 percent sod. “When we fi rst formed this co-op three or four years ago, I could see there was going to be a tremendous downturn in the housing market, and am now rotating out of the sod,” says Rape, who is a past president of the Kansas City Turf Association and is currently on Show Me En-ergy’s board of directors. “We now farm 900 acres and we are going to

Show Me Energy processes biomass into pellets that it sells to a local utility, poultry producers in the area, who use it to heat their chicken and turkey barns, and for home heating.


row crops and energy crops and only going to have maybe 100 to 200 acres of sod.”

The sod business is about 80 percent of where it was four or fi ve years ago, when the eight-county region around Kansas City, Mo., was generating 10,000 to 13,000 housing per-mits a year. Rape says they will barely reach 2,000 permits in 2009.

Rape believes the co-op created a perfect opportunity for him, and that between the switch to row crops and the biomass that he delivers to the plant, he will make up for any losses he has incurred, especially when the contract they are currently negotiating with the power company is signed and the plant’s production is ramped up. “When we get this up and running to full capacity this should substantially increase and subsidize my loss from the sod business,” he says. “I personally think that it could be more benefi cial in years to come because the downturn in the hous-ing market is going to be there for a while.”

He let some of his sod fi elds grow up and then baled the biomass from those fi elds, and he plans to plant some higher yielding biomass crops that the co-op is experiment-

ing with so that I can get more tons per acre. “I raised zero row crops in the past, so as far as food for fuel in my case, we did not do the traditional row crops at all and never have.“

Rape says the energy crops are ideal for planting on marginal ground and areas where the ground slopes. “You can plant energy crops there because you don’t disturb the soil and don’t have to worry about erosion like you would if you planted traditional row crops.”

The co-op has also created opportunities for hobby farmers and others whose primary income isn’t derived from farming.

Mark Schuchmann, a co-op member and an electrical contractor, became interest-ed in joining the co-op because he had some family farmland that was planted to native prairie grasses that could provide him with some extra income. “The beauty of the co-op is that a lot of members are farmers but there are others who are bi-vocational, who work at another job but also do a little bit of farming,” he says. “I’m one of those people. I don’t have a lot of acres but I have enough to make my commitment.”

Schuchmann and Rape also provide ex-tra income for custom balers because they currently have no equipment of their own, and the truckers who deliver the bales to the co-op.

The co-op members are also able to take advantage of the federal Biomass Crop As-sistance Program, which pays producers or entities that deliver eligible biomass material to designated biomass conversion facilities that will convert it into heat, power, biobased products or biofuels. “For every dollar that we pay the producer, the federal government subsidizes them with another dollar, which will continue for two years,” Flick says. The cooperative was the fi rst to apply and receive BCAP benefi ts. “We were the fi rst BCAP area in the U.S. and it’s working,” Flick says. “It was a little confusing because we’re creating an in-dustry shift from traditional DCP (Direct and Counter-Cyclical Program) payments and CRP (Conservation Reserve Program) and all this has to fl ow down from the national of-fi ce to the state offi ce to the county offi ces. There was quite a learning curve involved for everyone including us.” Flick says they are

PROFILE

NanoSteel® Thermal Spray Coatings for CFB boiler tubes in biomass power plants

Woody biomass is the one of the fast growing fuels for renewable energy

CFB Boiler Operation: To increase efficiency, a bed of circulating material (ash) helps transfers additional heat to water wall tubes

Problem: Since woody biomass produces low ash amounts, sand must be added to the circulating bed material for heat transfer to occur properly, resulting in

• Accelerated erosion and corrosion attack on boiler tube surfaces• Increased risk of tube failure and unplanned outages

Answer: NanoSteel® Engineered to Spec Thermal Spray Coatings create a protective metallic barrier on boiler tubes • Cuts off contact between boiler tube surface and harmful ash and sand particles• Results in exceptional resistance to erosion and corrosion• Provides a means to meet or exceed contracted availability requirements

Reduce the risk of boiler tube failurecaused by erosive sand particles

www.NanoSteelco.com • Call Toll Free 1-877-293-NANO • [email protected]


now looking forward to the next round of BCAP, which will focus on dedicated energy crops. “There could be 25,000 acres of dedi-cated energy crops planted just for the co-op that in turn would be a wonderful feed supply that could increase our production,” he says. “We don’t want to sound arrogant here but we believe we are on the right track and we’re moving ahead with exporting some of our material.”

One of the co-op’s marketing objectives is to make sure end users understand the dif-ference between a pellet and an engineered fi ber fuel, which is what the co-op produces. “It’s important to distinguish between the two because an engineered fi ber fuel has three things that bring it to bear: certifi cation showing that it was harvested sustainably; all the bad things that are usually found in biomass including silica, nitrogen, magne-sium and potassium that will foul boilers [is removed]; third is our experience in using it,” Flick says.

Co-op’s Impact

Show Me Energy co-op executives be-lieve they are only in the beginning stages of a bioenergy economy and that much work needs to be done to build the industry. The co-op plans to send a representative to major universities to educate graduating seniors in agriculture about producing bioenergy crops. In May, I will be running to all the big 12 schools as part of our outreach,” Flick says. “It’s got to start with the next generation. We’re just setting the foundation right now.”

Flick is convinced that the coopera-tive model is the key to growers wanting to participate in the biomass industry, but the producers have to be willing to take risks and invest their own money.

“It takes fi ve to 10 guys with a check-book willing to take a risk to set up a co-op just like we did,” Flick says. “We didn’t know it was going to be successful and it means money on the line, hard work and a vision, and out of those initial people, you need a ramrod and you need somebody who will keep those people together politically,” Rape says that Flick is the ramrod who organized the co-op and keeps everyone on track. “Steve is the ramrod,” Rape says. “He is the hardest driving individual I have ever met.”

Co-op organizers also kept the cost of the plant to a minimum, which made it at-tractive to investors. “We’re not a $50 million project,” Flick says. “We built the plant for less than $10 million. We think economies of scale are local and we consider ourselves the new microbrewery on the block.”

Flick says he’s gotten calls from some large ethanol co-ops who are amazed at the progress that the co-op has made despite the fact that they had to write the book on bio-mass cooperative development.

“We’re the real deal,” Flick says. “We grind a bale every 10 minutes, we suck the dust, we have the breakdowns, we know what has gone right and gone wrong and every-body that says they want to do this. I say put your money where your mouth is, build it, run it, show me.” BIO

Rona Johnson is editor of Biomass Magazine. Reach her at [email protected] or (701) 738-4940.

PROFILE


CROP RESIDUE

Crop residue is abundant and a good source of renewable energy, as long as its removal doesn’t cause soil nutrient depletion and erosion.

By Lisa Gibson


CROP RESIDUE

T h e P a t h t o C e l l u l o s i c E t h a n o l


CROP RESIDUE

ight of the leading U.S. crops produce more than 500 mil-lion tons of residue each year, only a fraction of which can be removed for energy production because of equip-ment constraints and soil erosion concerns, according to a

report by the U.S. DOE’s Biomass Research and Development Initia-tive. Even so, crop residue is expected to play an early role in the de-velopment of the cellulosic ethanol industry because of its immediate availability.

The report, “The Economics of Biomass Feedstocks in the United States,” lists the most common residue as corn stover and straw associated with wheat, rice, barley or oats production. In ad-dition to cellulosic ethanol, these materials can be used for power generation through direct combustion, gasifi cation or cofi ring with fossil fuels.

Poet LLC has operated a demonstration-scale cellulosic ethanol plant in Scotland, S.D., for a year and a half, running on a steady diet of corncobs from local farms. Poet’s next endeavor, dubbed Project Liberty, will establish a commercial-scale cellulosic ethanol plant in Emmetsburg, Iowa, in 2011 that will produce 25 million gallons, ac-cording to Scott Weishaar, vice president of commercial development for Poet and Poet Biomass.

Project Liberty will be an expansion of a current 50-million-gal-lon-per-year dry-mill plant called Poet Biorefi ning, according to Poet, and will require 750 to 850 tons of corncobs per day. The sheer vol-ume of that supply seems staggering, but Weishaar isn’t worried. “It’s an extremely aggressive goal, but we believe we’ll need 300 to 400 farmers involved to support full commercial activity of the cellulosic facility,” Weishaar says. “Our objective is to have 100 farmers under contract this next year for cob collection around the Emmetsburg area.”

The goal is more than attainable, as demonstrated by a No-vember Project Liberty Field Day that drew many local farmers,

some ready to sign on the dotted line. At the event, more than 60 farmers said they would be willing to supply corncobs to the plant, Weishaar says. “The next step would be for them to make their decision on the type of equipment or approach, and then Poet will be contracting with them.”

Farmers contracted to provide feedstock for Project Liberty will need to invest in residue harvesting equipment, Weishaar ex-plains. Currently, little cob collection is done in the country, so much of the required equipment is still in the prototype phase, but some is commercially available. “If they’re going to invest in the equipment, we’re going to invest in the farmer so the farmer knows he has a market for the cobs he collects,” he says.

E

A combine and cart biomass harvesting system collects cobs during a Project Liberty test harvest.

PH

OTO

: PO

ET

LLC


CROP RESIDUE

Soil Depletion, Erosion RisksRemoving residue can cause problems for the soil, depend-

ing on where the crop is located, the soil type and how much is removed, according to Noel Gollehon, senior economist with the USDA Natural Resources Conservation Service. Residue serves two main functions for the soil: it protects from rain, wind and ero-sion; and decomposes back into the soil as organic matter that is an important source of carbon and thereby an important element of soil quality, Gollehon explains. Some crops produce more residue than others and if only a little is present and promptly removed, it leads to soil depletion. In addition, some residues break down quickly, while others remain on the soil. “But as long as we replace the nutrients that are lost with it, it’s a practice that can go on for some time,” he says.

“We’re staying way below the residue numbers as far as what we’re leaving on the fi eld,” Weishaar says. “We want to be good stewards of the soil and the last thing we want to have happen is the farmer taking too much material where he opens himself up to nutritional loss or erosion issues.”

To make sure this doesn’t happen, Iowa State University is conducting region-specifi c studies in the Emmetsburg area to de-termine best practices for residue removal. The study includes two extreme scenarios: taking everything off the corn fi eld; and tradi-tional combining where all residue is deposited back onto the fi eld. The research will also evaluate four variations in between and will monitor soil condition, nutrients and other crucial issues. “We want to make sure we can answer those questions for the farmer and more importantly the landowner, on what are the impacts to the soil if it’s [removed] one year, three years or whatever it may be for my soil,” Weishaar explains. The results were due in February and at press time Weishaar believed they would not deter interested farmers from participating in Project Liberty. “We’re confi dent that it will not be harmful to the soil, that the results will be very posi-tive,” he says. Thus far, soil concerns have not steered farmers away, but they do want to know what data is available and what to expect, he adds.

Project Liberty is on task as far as permitting goes, so the next step is to generate farmer contracts. “The third leg on the stool is activities surrounding E15 and expanding the market,” Weishaar says. “The last thing you want to do is build a plant if you don’t have an available market to sell the ethanol to. The E15 legislation that will allow our market to expand is vital, as well.”

Added Revenue“We’re opening up a new revenue stream for the farmer and

creating a new cash crop in the sense that we’re going to buy what

POINT & CLICKPROCESS CONTROL

Product consistency, conformity and traceability areautomatic with Beta Raven process control solutions.Our automation systems deliver cost-effective solutions to protect your assets and track your products through your process.

Whether you need process controls for a singleprocess or entire facility, Beta Raven offers an automation solution for your needs. With completeprocess control through real-time, easy-to-read HMI screens and 24-7 technical support, Beta Raven solutions are a click away.

BETA RAVEN—YOUR AUTOMATION PARTNER.

800-552-2382 | [email protected]. CHARLES, MO | WWW.CPM.NET

This corn stover is ready for PowerStock to harvest.

PH

OTO

: PO

WE

RS

TOC

K


STEAM & HOT WATER BOILERS

From Kansas to Korea, wood chips to rice hulls.If it burns, chances are we’ve already

burned it successfully...

Hurst Biomass systems lead the Alternative Energy boiler market with innovative solid-fuel-combustion and the

super effi cient “Hybrid” vessel design. Complete modular construction for easy low cost installation. Hurst has 43 years specializing in custom design of biomass steam

plants and cogeneration systems.

Complete Package Systems

BOILER REPLACEMENT PARTSHurst is a major supplier of boiler parts and controls that are commonly found on most boiler systems. We stock parts and supplies for gas, oil, coal or solid fuel systems. No matter the maker, Hurst can fi ll all your part needs.

Parts Sales Dept. 1 877 774-877824 / 7 After Hours Parts 229 221-3338 CALL

OVERNIGHT DELIVERY

100%AMERICAN

today is a waste product,” Weishaar says. “It’s a residue that’s thrown back out on the fi eld.”

“The revenue piece is a big piece of this,” says Craig Reeder, vice president of Hale Farms in Oregon. “It’s potential rev-enue as a crop in rotation, which is helpful for us out here.” Hale Farms plants 25,000 acres of green peas, lima beans, sweet corn, wheat, potatoes, grass seed, onions, alfalfa, timothy hay and grain corn. Every year, about 20,000 to 30,000 tons of residues are

harvested from most of those crops, exclud-ing onions and potatoes, by PowerStock, a biomass supply chain company. Hale Farms has contracted with PowerStock’s parent company, Pacifi c Ag Solutions, for about 10 years.

PowerStock, which was recently estab-lished to expand Pacifi c Ag’s residue work, harvests a total of 150,000 tons of residue per year in Oregon and Washington, han-dling the entire process so farmers don’t have to do anything more than what’s re-

quired for their primary crops. “When you’re in the business of agricultural resi-due removal, you’re in the business of fol-lowing another farmer’s harvesting equip-ment at the right speed, taking off the right amount—not too much or too little—and completely removing it from the fi eld,” says Steve Van Mouwerik, PowerStock CEO. “For them, it’s a service we provide, but for us, it’s how we manufacture a product that we can sell.”

It’s a different approach from Poet’s, because Van Mouwerik believes it’s not economical for farmers to harvest resi-due from their own fi elds. “The important thing about agricultural residue removal is that the farmer can’t afford to remove his own agricultural residue because it means purchasing additional harvesting equip-ment,” he says. That additional equipment is typically too expensive to harvest just one farmer’s fi eld. “In order to have the proper levels of productivity for a harvest season for agricultural residue equipment, the norm is that one operator will cover a number of farms,” he says.

Reeder agrees. “To do it right and to do it timely and cover the acres, that’s a several-million-dollar capital investment,” he says. “And it happens right at harvest time, so when we’re harvesting those crops, we would have to add an entire new set of overhead and an entire new set of equip-ment and an additional harvest process.” PowerStock’s strategy allows the farmers to stay focused on their primary crops. “Pull-ing off ag residue does give you that extra little peck on the cheek at the end of the year that allows you to be a little bit more competitive on your other crops,” Reeder says. “It also allows you to take a look at some alternative crops.”

Until now, PowerStock has harvested crop residue to be processed and shipped to Japan and Korea for cattle feed, or sold to domestic dairy operations. This year, however, the company will be involved in its fi rst anaerobic digestion (AD) project in Oregon. PowerStock is also evaluating its involvement in a second AD project in Or-egon. They both will involve wheat straw, grass straw and corn stover. “What’s new is the ability to utilize agricultural residue

CROP RESIDUE


from crops in digestion, in bio-oils or in syngas,” Van Mouwerik says.

The market for agricultural residue is undoubtedly larger in Japan, China and Korea than in the U.S., Van Mouwerik says, but he believes the domestic market will grow. “Japan and Korea can pay more at this point for their feedstock than what is currently used in cost models for feedstock for digesters or cellulosic ethanol,” he says. “That’s not a problem because they’re also more demanding when it comes to qual-ity and have some sanitary restrictions. So there’s an opportunity for a whole segment of agricultural residue that can’t be export-ed to go into projects here.”

PowerStock allows cost-sharing and risk-sharing with farmers who are inter-ested, as an alternative to just clearing the residue and paying the farmer. “If they be-lieve there’s an upside in the market, they can do a cost-sharing strategy where you can split the upside,” Reeder says. “That’s one of the innovative things they’ve done that’s gotten a lot of growers interested in their process.”

Experience has sharpened Power-Stock’s ability to meet farmers’ best prac-tice requirements in harvesting to maxi-mize supply aggregation. PowerStock has relied on Oregon State University to de-velop practices with growers that ensure the right amount of residue is removed to sustain the condition of the soil, Van Mou-werik says. “Everyone is mindful of what the soil needs because the farmer wants to keep growing his corn and his wheat and his soybean crop, and really it’s a matter of formalizing that stewardship as much as it is just doing it,” he says. The beauty of PowerStock’s operations is that the farmer can dictate how much residue to take or leave, Reeder explains. “If you tell them to leave three inches of straw, they can come in and leave three inches of straw,” he says. “They don’t have to scalp it right down to the ground.”

Residue has a fertility value in the soil, but it can be managed, Reeder says. Re-moval is helpful when dealing with heavy residue that is diffi cult to till back into the soil and usually would need to be burned. “It’s not something you have to worry

about, but you have to manage it correctly, especially on some of the dry-land acres,” he says. Weishaar cites ongoing studies that, early on, have found it benefi cial for wheat crops following corn when cobs are removed. “Not having it on the fi eld could actually be a positive thing,” he says.

Reeder sees great potential in residue removal, including a growing opportunity for options in mono-crop agriculture. “If we can get these fi ber crops to work and turn this fallow ground into some perenni-

als for the fi ber, it’s really going to be a ben-efi t to everybody,” Reeder concludes. “It’ll reduce our carbon footprint and provide us with some crop options and alternatives. [PowerStock] is really helping solidify those markets and create those markets and it’s going to be a huge, huge benefi t to what we’re doing.” BIO

Lisa Gibson is a Biomass Magazine as-sociate editor. Reach her at [email protected] or (701) 738-4952.

CROP RESIDUE


CONTRIBUTION

INTERNATIONAL By Pablo Reali

Forest Biomass Generation in Degraded, Steep, Outcropped EcosystemsA company in Uruguay is successfully using specially adapted bulldozers and the application of hydrated polymers to protect tree seedlings and develop plantations on marginal lands.

n Uruguay, about half of the land is considered pri-ority soils (those allowed by the state to be forest-

ed), this means about 1.5 mil-lion hectares (3.7 million acres) are hilly areas with shallow soils, frequent outcropping and steep fi elds. Most of these soils were degraded by sheep overgrazing for more than a century. Many of these areas remain unplanted because of traditional plantation technology, which is based on rubber-tired tractors that can-not be used in such crude con-ditions.

Most of these types of soils

are in the Eastern and North-eastern regions of the country. The price of forestlands there is the most suitable for forest investments, taking into account that it takes a long time for in-vestments to pay off in the saw timber industry. Using the tech-nology described in this article, more than 2,500 hectares were successfully planted in north-east Uruguay (Treinta y Tres and Cerro Largo Departments) in the worst topographic condi-tions in the country.

This technology is based on the use of bulldozers for ripping and plantation bed preparation,

and also utilizing specially adapt-ed bulldozers to apply hydrated polymers at planting time. These polymers protect the seedlings from a lack of water and at the same time provide nitrogen, po-tassium and a root promotion hormone.

Servicios Forestales In-tegrales is a well-known Uru-guayan company with broad experience in forest ripping and planting, having been involved in the forest generation of more than 50,000 hectares in the past 10 years. In 2007, through a joint venture with Tubron SA, a major chemical company in Argentina,

SFI produced a new plantation system mixing bulldozer forest ripping and applying a super-absorbent acrylic polymer in the hole where the trees are planted. The polymer has chemical activ-ity providing for the controlled release of nitrogen, phosphorus and potassium fertilizers and a rooting hormone, which gave the trees a good start, even in the worst drought conditions.

After a successful set of trials, SFI planted about 2,500 hectares of Eucalyptus grandis, E. saligna and E. dunnii in the hilly regions of Northeast Uruguay.

Although these plantations

The claims and statements made in this article belong exclusively to the author(s) and do not necessarily refl ect the views of Biomass Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).

I

Silviculture adaptation for planting in hilly conditions

PH

OTO

: SE

RV

ICIO

S F

OR

ES

TALE

S IN

TEG

RA

LES


were developed for saw timber production (long rotations of 20 years), based on initial growth and national forest inventory data (conservative, as we expect from 20 to 30 solid cubic meters per hectare per year), SFI con-cluded that this new plantation technology could be valid for dendroenergetic forest crops in these degraded and marginal soils.

This type of project contrib-utes greatly to local and national forest development because it increases the production of de-graded soils, helps soils recover and creates jobs in one of the less developed zones of Uru-guay (1 inhabitant per 15 square kilometers or 6 square miles).

Silviculture Development Summary

Silviculture development is basically an adaptation of the hydrated polymer and ripping shallow soil in hilly areas. Start-ing with conventional weed con-trol, a bulldozer deep ripping using Caterpillar D6 and D8 ma-chines, depending on how rough the conditions are, is applied with opposite discs that allow for plantation bed preparation. If fi eld conditions permit it, the rubber wheels transit would be advisable for common bed prep-aration.

The greatest benefi t of this adaptation is the use of the poly-mer hydrated mix, with or with-out the chemical action (nitro-gen, phosphorus and potassium fertilizers and rooting hormone). This balance will depend on the soil’s texture, water-holding ca-pacity and its chemical fertility.

It’s worth noting, that these

hydrated polymer mixes function as effective starter fertilizers and aren’t dependent on rainfall like common granulated fertilizers for soil dilution, where it can be taken up by the eucalyptus roots. The nitrogen, phosphorus and potassium, and rooting hormone with the electronic matrix of the polymer is control released into the water supply from the be-ginning when the root system is planted within the gel. In ad-dition, the polymer works as a control-released fertilizer, which means that no fertilizer is wasted and it can be applied at the rate of 2 to 3 grams per seeding, in-stead of the conventional 80 to 150 grams of mineral granulated fertilizer. This saves the renew-able resources of potassium and phosphorus and avoids ground-water pollution of the nitrogen.

Bioenergy PossibilitiesPower consumption in

Uruguay has been increasing an-nually at a rate of 50 megawatts per year (Dirección National de Energía y Tecnología Nuclear, MIE, 2007). As hydro sources are still in the development stage and nuclear is prohibited by law, this increase in consumption is being fulfi lled by neighbor-ing countries. Both options are costly and not environmentally friendly. So, the Uruguayan state is promoting energy generation using renewable sources, mainly wind and biomass, supporting that with long-term fi xed-price contracts and priority in the grid dispatch.

Energy generation by den-droenergy plantations within many areas of Uruguay has the following advantages:

Middle- and high-voltage lines near the forest soils

Land permit prices con-ducive to forest investments

Presence of permanent and abundant water resources

Good forest sitesAmple wood production

using fast-growing speciesSFI estimated that 2,000

acres of Eucalyptus grandis, E. dunnii or E. maidennii planted in a 10-year rotation could fully sup-ply a 10-megawatt power plant.

Although pellet production in Uruguay is almost nonexis-tent, several feasibility studies demonstrate its potential prof-itability and contribution to the sustainable development of the country. For instance, feasibility studies conducted by the engi-neering faculty at State Univer-sity show that a 10,000 ton per month pellet mill would have an installation cost of about $13 million. Estimating the cost, insurance and freight via the Rotterdam pellet price of about 120 Euros ($169), the calculated internal rate of return was 37 percent, with a repayment in-vestment of three to four years (Borsellino, Carrau and Maison-nave, 2007).

The new development de-scribed earlier, promotes better use of forest land with severe outcropping and slopes. With conventional planting techniques (based on rubber-tired tractors) these areas could not be planted and would be only suitable for grazing cattle and sheep. There are hundreds of thousands of hectares of this land in Lavalle-ja, Treinta y Tres, Cerro Largo Rocha and Maldonado depart-ments.

Planting costs, using the proposed technology, don’t dif-fer much from the conventional method. The increase in the cost of the polymer and the bulldoz-er application are compensated by savings in the disking and manual fertilizer application. More importantly, the forest company using this technology could plant in hilly areas with no signifi cant economical or eco-logical value.

The use of mixing polymers protects the seedlings against drought for about 20 to 30 days, and if conditions don’t improve a single watering with about 2 to 3 liters (0.5 to 0.8 gallons) per seeding could assure full poly-mer recharging. The same re-charging would also occur with about 10 millimeters (0.4 inches) of rain.

This will permit the use of marginal and degraded soils for different forest uses, including dendroenergy and other biomass applications, which depending on the situation could offer high profi tability for the investor and a source of sustainable develop-ment for Uruguay.

The use of the hydrated polymer and the addition of fertilizers and root hormones in its composition, allows for a fast start even in dry conditions. Fur-thermore, there is fi eld evidence that this treatment permits the seedlings to recover better from frost damage in the winter. BIO

Pablo Reali is a forest, bioener-gy and carbon adviser for Ser-vicios Forestales Integrales. Reach him at www.sfi .com.uv.

INTERNATIONAL By Pablo Reali


Rotary and conveyor driers for biomass feedstocks.

aeroglide.com/biofuels+1 919 851 2000

ENERGYRENEWABLE

ENERGY

To learn more, contact Chris Hillman 815-261-4403 or [email protected]

FORACQUISITION

RENEWABLE

TALENT

Select Environmental Services:Permitting & ComplianceAir Quality SpecialistsFeasibility AssessmentsSite AssessmentSite EvaluationsDue DiligenceCarbon Lifecycle Health & Safety

THE PERMITTING SPECIALISTSBiomass Energy and Waste-to-Energy

For more information, contact our Practice Leader:David Minott, CCM, [email protected]

ERM consulting services worldwide www.erm.com

Decades of experience in your industry. ERM offers service

consulting services. ERM is committed to delivering sustainable solutions in a more competitive world.

Is there a VRAD© 1000 Ton / Day Municipal Solid Waste to Green Energy Plant in your future?

Contact:Environmental Developers Inc.

PO Box 5711, Vacaville, CA 95696707-447-7130

WWW.VRADENERGY.COM

Biomass supplymadesimple...

(870) 367-9751 x134www.pricebiostock.com

Price BIOstockA division of The Price Companies, Inc.

Hire theexperts.

40 years experiencecontracting biomass feedstockprocurement and preparation,

receiving yard constructionand management. 21 custom

facilities in operation.

MARKETPLACEBIOMASS MAGAZINE

Subscribe to Biodiesel Magazine and receive:

Twelve - monthly - print issues of Biodiesel Magazine

Instant access to all online content - searchable by issue, keyword or topic

FREE subscription to Biodiesel Week - a recap of the week’s news delivered to your inbox each Wednesday afternoon

One FREE Biodiesel Industry Directory (Printed in January)

FREE U.S. & Canada Biodiesel Plant Wall Map (Printed in March)

SUBSCRIBE TODAY!

www.BiodieselMagazine.com

Renewable Energy Solutions


Documents

Biomass Magazine - March 2010