confessions of an agriculturist : a biofuel opportunity

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Bruce Miller Agricultural Systems Technology and Education Confessions of an Agriculturist: a biofuel opportunity

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Confessions of an Agriculturist : a biofuel opportunity. Bruce Miller Agricultural Systems Technology and Education . What’s your Agricultural Paradigm?. Human Food Feed for Livestock Fiber for Clothing Energy Production Sun = 4 to 6 billion years Green plant photosynthesis - PowerPoint PPT Presentation

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Page 1: Confessions of an  Agriculturist :  a biofuel opportunity

Bruce MillerAgricultural Systems Technology and Education

Confessions of an Agriculturist: a biofuel opportunity

Page 2: Confessions of an  Agriculturist :  a biofuel opportunity

What’s your Agricultural Paradigm? Human Food Feed for Livestock Fiber for Clothing

Energy ProductionSun = 4 to 6 billion years

Green plant photosynthesis Photovoltaic cells

Petroleum, Coal, Uranium, Natural Gas = ?

Page 3: Confessions of an  Agriculturist :  a biofuel opportunity

Why Biofuels?Rudolph Diesel used peanut

oil when developing compression ignition engines.

Henry Ford ran first automobiles off of Ethanol

“We must learn to synthesize materials for every human need from the things that grow.” - George Washington Carver

Society must still rely on agriculture for food, feed, fiber AND …. recognize fuel responsibility as well.

Page 4: Confessions of an  Agriculturist :  a biofuel opportunity

Sustainable Energy ProductionDemand for food AND

fuel projected to double by approximately 2050. Energy and food are both vital

to our society!

So, it appears to be ‘a perfect opportunity’ not a ‘perfect storm’ for agriculture.

Agriculture will continue to play a significant role in America’s Energy economy.

Page 5: Confessions of an  Agriculturist :  a biofuel opportunity

Food vs. Fuel? Commodity prices affect food prices???? A 30% increase in corn price at the farm equates to ~1.1% increase in

food prices containing corn. (Center for Agriculture & Rural Development – ISU)

Historically ethanol price does not track corn price. (Houston Biofuels Cons.)

“High energy prices cause higher food prices,…Based on the historical relationship between crude [oil] prices and corn prices, current prices for corn are lower than one would predict,”. (Consumers Federation of America)

Gasoline prices would be higher if biofuels not blended with gasoline 20-35 cents per gallon (Samuel Bodman Secretary of the Energy Dep’t)

Page 6: Confessions of an  Agriculturist :  a biofuel opportunity

USDA Crop Data 2008-09 2006-07 2003-04CornAcres1 (millions) 87.3 78.3 78.7Usage (million bu) Feed 5200 5600 5781 Ethanol 3950 2115 1200Harvest Low (Dec $/bu)

$6.00 $2.60 $3.40

SoybeansAcres (millions) 74.5 75.5 73.4Usage (million bu) Crush 1830 1806 1530Harvest Low (Nov $/bu)

$13.89 $5.40 $6.75

WheatAcres (millions) 63.5 57.3 62.1Usage (million bu) Feed 285 131 212 Milling 960 925 907Harvest Low (Sep $/bu)

$8.02 $4.30 $3.30

US avg reg Gas $/gal $3.08 $2.23 $1.41

Page 7: Confessions of an  Agriculturist :  a biofuel opportunity

Let’s talk EthanolU.S. capacity will approach

7.5 billion gallons by early 2009.

The 2005 Renewable Fuels Standard sets the target at 36 billion gallons by 2022.

Cellulosic ethanol production will yield 5x the energy needed to grow, harvest, transport, and convert. Based on ‘near farm’ ethanol

production sites. On-farm storage and

processing…

Page 8: Confessions of an  Agriculturist :  a biofuel opportunity

Why Corn-basedThink chicken vs eggInfrastructure

building for near-farm production using other feedstocks

High feed value from corn-based byproducts 96%-180% energy

content of wet distillers grains compared to corn

Because we can….

Page 9: Confessions of an  Agriculturist :  a biofuel opportunity

Biofuel FeedstocksPrimary biofuels on

commercial scale in U.S. Ethanol (~3% today

and 7% projected in 2010)Starch from corn and

other grainsBiodiesel

(transesterfied)Soybeans and animal

fats

USDA ‘POWER PLANTS’ at U.S. National Arboretum…Corn, Sorghum, Sunflower, Canola, Algae, Castor Bean, Lesquerella, Sugar Cane, Hybrid Poplar, Alfalfa, Cuphea, African Oil Palm, Barley, Sugar Beet, Soybean, Camelina, Peanut, Mustard, Switch Grass, Miscanthus, Jatropha, Babassou Palm

Page 10: Confessions of an  Agriculturist :  a biofuel opportunity

Where will Biofuels come from…Most of the current

federal R&D is focused on the ‘next generation’ of biofuels. High emphasis on lignocellulosic

Short-rotation, perennial crops; rapid regrowth after harvest with multiple harvest per planting.

From a field to biorefinery…

Feedstocks will evolve to the most efficient

Consumers need to shift their pardigm of sustainable energy and agricultural production

Page 11: Confessions of an  Agriculturist :  a biofuel opportunity

Andrejczak, M. 11 June, 2008. Government: Ethanol helps keep gas prices low: Senate hearing to delve into U.S. renewable fuels policy and food prices. MarketWatch – The Wall Street Journal Digital Network. Retrieved 6/11/08 www.marketwatch.com/news/story/govt-officials-ethanol-helps-keep/story.aspx?guid=%7B81858B8C-CD9D-48AC-8D4D-B7EBB762F3C7%7D

Buchanan, G., et al., February, 2008. The New Paradigm in Agriculture. Resource. American Society of Agricultural and Biological Engineers.

Buchanan, G., et al., April, 2008. Biomass Feedstocks: Opportunities to increase biofuels. Resource. American Society of Agricultural and Biological Engineers.

Buchanan, G., et al., July, 2008.From Field to Biorefinery. American Society of Agricultural and Biological Engineers.

Iowa State University Extension. 2007. Ethanol Coproducts for Cattle. IBC-19. Iowa State University.

Johnson, T., Donkin, S., Schultz, M. 2006. Value of Distillers’ Grain Ethanol Co-Products to Dairy Replacements. ID-332-W. Purdue University.

Westcott, P. 2007. U.S. Ethanol Expansion Driving Changes Throughout the Agricultural Sector. In Amber Waves: the economics of food, farming, natural resources, and rural America. USDA-Economic Research Service. Retrieved 7/22/08 www.ers.usda.gov/AmberWaves/September07/Features/Ethanol.htm

References