“Economics of Biofuel     Feedstock”   Dr. Cole Gustafson     April 10, 2012
Corn vs. Biofuel Feedstocks• Economics of Corn Production  – Market price  – Low cost of production• Feedstock Economics  ...
North Dakota Projects•   Wheat straw to biofuel•   Energy beets•   Flair gas to fertilizer•   USDA feedstock market standa...
Energy Beet Plant Design•   20 mgy•   Feedstock, 20 miles, 30,000 acres•   70% thermal energy from feedstock•   Capital in...
Energy Beet Industry•   Phase I Development    – 2009 APUC, $58,245, Initial Feasibility    – 2009 REC, $330,000, Burn Tes...
2007 Energy Independence and Security ActYear           Conventional   Advanced       Cellulosic Biofuel Biomass-based    ...
Biomass Contracts• What, When, Where?• Moisture• Premiums/Discounts  – Foreign matter (dirt)  – Purity  – Spoilage
Highly Variable Quality
Lower Than Expected Quantity
Logistics and Transportation• Wheat straw  biorefinery• Is collection  economically feasible?
Potential Wheat Straw Supply•   1.16 million tons (bone dry)•   10% moisture•   Plant height 34.6”•   Combine height 7.6”•...
Farm Focus Group         Table 2.7. Reasons Why Participants Do Not Collect More StrawReason                            Pe...
Farm Focus GroupTable 2.12. Price of Wheat Straw Participants Willing to Accept   Participant Number                   Whe...
Potential Constraints1) Rotary Combines2) Tenant vs. Land Owner3) USDA/NRCS
Stover Harvest to Maintain Carbon                 Continuous Corn     Corn Soybean RotationGrain   Stover   Plow      Chis...
Competition• Who else is interested in biomass?  – Livestock bedding  – Livestock feed  – Fertility  – Ground Cover  – ????
Questions?        cole.gustafson@ndsu.edu       (701) 231-7096
Economics biofuel041012 gustafson
Economics biofuel041012 gustafson
Economics biofuel041012 gustafson
Economics biofuel041012 gustafson
Economics biofuel041012 gustafson
Economics biofuel041012 gustafson
Economics biofuel041012 gustafson
Economics biofuel041012 gustafson
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Economics biofuel041012 gustafson

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  • Copper wire
  • 295g for beer in can, 120g for can
  • July 16, 2009
  • Great River Energy proposes to build a wheat straw biorefinery next to a 99mw combined heat power facility (Sandra will probably describe the project). GRE asked NDSU to conduct feasibility study of collecting wheat stovers.
  • They pay farmer 10-15 for straw and then 35 to bale and haul, 8x13x100 = 40,000 need million
  • Economics biofuel041012 gustafson

    1. 1. “Economics of Biofuel Feedstock” Dr. Cole Gustafson April 10, 2012
    2. 2. Corn vs. Biofuel Feedstocks• Economics of Corn Production – Market price – Low cost of production• Feedstock Economics – Contract/Price – Sustainable – Lower GHG – Low Cost – Scaleable
    3. 3. North Dakota Projects• Wheat straw to biofuel• Energy beets• Flair gas to fertilizer• USDA feedstock market standards• Economics of corn stalk harvesting
    4. 4. Energy Beet Plant Design• 20 mgy• Feedstock, 20 miles, 30,000 acres• 70% thermal energy from feedstock• Capital investment $40 million w/ working capital
    5. 5. Energy Beet Industry• Phase I Development – 2009 APUC, $58,245, Initial Feasibility – 2009 REC, $330,000, Burn Test, Yield Trials, Juice Storage, Grower Education,• Phase II – 2011 APUC, $73,317, EPA Advanced Biofuel – 2011 REC, $1,000,000, Frontend Processing, Yield Trials, Juice Storage, Promotion• Phase III – Commercialization
    6. 6. 2007 Energy Independence and Security ActYear Conventional Advanced Cellulosic Biofuel Biomass-based Biofuel Biofuel Diesel 2008 9.0 2009 10.5 0.60 0.5 2010 12.0 0.95 0.10 0.7 2011 12.6 1.35 0.25 0.8 2012 13.2 2.00 0.50 1.0 2013 13.8 2.75 1.00 * 2014 14.4 3.75 1.75 * 2015-2022 15.0 5.50-21.0 3.00-16.0 *
    7. 7. Biomass Contracts• What, When, Where?• Moisture• Premiums/Discounts – Foreign matter (dirt) – Purity – Spoilage
    8. 8. Highly Variable Quality
    9. 9. Lower Than Expected Quantity
    10. 10. Logistics and Transportation• Wheat straw biorefinery• Is collection economically feasible?
    11. 11. Potential Wheat Straw Supply• 1.16 million tons (bone dry)• 10% moisture• Plant height 34.6”• Combine height 7.6”• Producers are willing to supply• Adequate time to harvest
    12. 12. Farm Focus Group Table 2.7. Reasons Why Participants Do Not Collect More StrawReason Percent Response Number of ParticipantsToo distant to haul 0.00% 0No market 38.89% 7Environmental concern 11.11% 2Fertility loss 50.00% 9Loss of wildlife habitat 0.00% 0No time 0.00% 0Total 100.00% 18
    13. 13. Farm Focus GroupTable 2.12. Price of Wheat Straw Participants Willing to Accept Participant Number Wheat Straw ($/ton) 1 - 2 35.00 3 40.00 4 30.00 5 25.00 6 20.00 7 25.00 8 50.00 9 40.00 10 50.00 11 20.00 12 30.00 13 15.00 14 15.00 15 15.00 16 50.00 Average 30.67
    14. 14. Potential Constraints1) Rotary Combines2) Tenant vs. Land Owner3) USDA/NRCS
    15. 15. Stover Harvest to Maintain Carbon Continuous Corn Corn Soybean RotationGrain Stover Plow Chisel/ Plow Chisel/Yield No Till No TillBu/ac t/ac t/ac t/ac t/ac t/ac103 2.2 0.0 0.0 0.0 0.0 Source: PRX 2010, Johnson 2006156 3.3 0.0 1.0 0.0 0.0200 4.5 1.1 2.1 0.0 0.9259 5.6 2.2 3.2 0.0 2.1312 6.7 3.3 4.3 0.9 3.2363 7.8 4.4 5.4 2.1 4.3415 8.9 5.5 6.6 3.2 5.4
    16. 16. Competition• Who else is interested in biomass? – Livestock bedding – Livestock feed – Fertility – Ground Cover – ????
    17. 17. Questions? cole.gustafson@ndsu.edu (701) 231-7096
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