Sustainable bioenergy and community economic development


Published on

Published in: Technology, Economy & Finance
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Sustainable bioenergy and community economic development

  1. 1. Sustainable Bioenergy andCommunity Economic Development Thomas G. Johnson Presented April 11, 2012 Columbia, Missouri
  2. 2. Introduction• What does the emerging bio-economy mean for community and regional economies?• How can community leaders and businesses take full advantage of the biomass-based economy?
  3. 3. Energy—Past, Present and FutureEnergy in the past was almostentire renewable …and almost entirely rural-sourcedSource: Source:
  4. 4. Energy—Past, Present and Future BiomassSource: Source:
  5. 5. Energy—Past, Present and Future WindSource: Source:
  6. 6. Energy—Past, Present and Future Hydro Source: wikipedia
  7. 7. Yesterday’s Energy Was:• Distributed• Mostly renewable• Collected in rural areas BUT• Low energy conversion efficiency• Unsustainable at today’s levels of demand
  8. 8. Energy—Past, Present and Future Today’s energy is very different Coal Petroleum Hydro NuclearSources:
  9. 9. Today’s Energy Is:• Spatially concentrated – Oil refineries – Coal
  10. 10. Today’s Energy Is:• Spatially concentrated• Mostly nonrenewable• Very large scale
  11. 11. Today’s Energy Is:• Spatially concentrated• Mostly nonrenewable• Very large scale• Still rural• Higher, but still low energy conversion efficiency• Frequently environmentally damaging• Unsustainable at tomorrow’s levels of demand
  12. 12. Bioenergy—Back to the Future
  13. 13. The First Flex-Fuel Vehicle (1908)
  14. 14. Energy—Past, Present and Future 100 years ago these were ‘hay burners’ Source:
  15. 15. Energy—Past, Present and Future Today, this is a ‘hay burner’ Source:
  16. 16. Today’s Refinery
  17. 17. Tomorrow’s Refinery
  18. 18. Tomorrow’s Energy Is:• Still rural• Renewable• High energy conversion efficiency• Environmentally sound• More sustainable• Much more distributed
  19. 19. Energy—Past, Present and Future From the concentrated To a distributed non-renewable energy renewable energy economy economy
  20. 20. Non-renewable to Renewable Energy• In the non-renewable energy economy – rural residents pay transportation costs in both directions – they receive less when they sell commodities and pay more when they buy consumer goods• In the renewable energy economy – energy is less expensive in rural areas – a competitive advantage for rural areas
  21. 21. With Distributed Renewable Energy• Waste streams become energy sources• Rural firms no longer bear high costs of transporting their energy inputs (diesel, gasoline, and electricity)• Rural farms no longer bear high costs of transporting all their biomass to distant markets• Rural areas are more attractive to energy using industries• Rural consumers save on locally produced energy and commodities
  22. 22. Distributed Energy Technologies Anaerobic Digestion Farm-scale Even mobile unitsSource: Source:
  23. 23. Distribute Energy Technologies: Biomass Dedicated Crops Crop ResiduesSource: Source:
  24. 24. CHP power station in Denmark burns straw as fuel. The adjacent greenhouses are heated from the plant
  25. 25. Advantages of Distributed Energy Systems• Up to some level, transmission costs are reduced• Reduced need for transmission lines and right-of- ways• Greater possibilities of exploiting combined heat and power (CHP)• Greater reliability when part of smart grid• Reduced emissions• Increased energy efficiency
  26. 26. Consequences of the Emerging Bioeconomy• Most rural areas will switch from net energy consumers to net energy suppliers• Energy costs will decline in many rural areas• More energy dependent sectors will locate in rural areas• More rural economies will become energy dependent
  27. 27. Some observations about the bioenergy sector and community development• Bioenergy refineries and related sectors increase employment and income in local economies• Like most modern sectors, employment in bioenergy is not high but highly paid and stable
  28. 28. Least cost sources of biomass • 18 types of local biomass • Capital costs • Transportation & handling costs • Energy & moisture content • Electricity costs • Other revenue sources
  29. 29. Model Output • Least cost biomass• t sources • Transportation & other costs • Revenues • Financial indicators • Economic impact indicators
  30. 30. Other Community Economic Impact Studies and Tools• Wisconsin’s Community Impact of Biodiesel and Bioethanol Plants• Low, S. A. and Isserman, A. M. (2009). ”Ethanol and the local economy: Industry trends, location factors, economic impacts, and risks.” Economic Development Quarterly, 23(1): 71–88.• Hodges, Alan W., Thomas J. Stevens and Mohammad Rahmani. 2010. Economic Impacts of Expanded Woody Biomass Utilization on the Bioenergy and Forest Products Industries in Florida. /Final%20Report%20on%20Economic%20Impacts%20of%20Woody %20Biomass%20Utilization.pdf• Swenson, David. 2008. The Economic Impact of Ethanol Production in Iowa. Iowa State University. pdf
  31. 31. Myths about Bioenergy & Community Economies1. Impacts are greater when locally owned – Depends on rate of return – Profits are repayment for investment and risk – Local ownership may exploit place-based knowledge2. Producers benefit more if producer owned – See points above – Producers benefit when they sell at the highest price and make sound investments
  32. 32. Thank you