Sustainable Bioenergy andCommunity Economic Development        Thomas G. Johnson      Presented April 11, 2012        Colu...
Introduction• What does the emerging bio-economy mean  for community and regional economies?• How can community leaders an...
Energy—Past, Present and FutureEnergy in the past was almostentire renewable                …and almost entirely          ...
Energy—Past, Present and Future                              BiomassSource: ukurbansurvival.com        Source: somethingaw...
Energy—Past, Present and Future                              WindSource: ukurbansurvival.com          Source: lampusuluh.b...
Energy—Past, Present and Future               Hydro           Source: wikipedia
Yesterday’s Energy Was:• Distributed• Mostly renewable• Collected in rural areas                        BUT• Low energy co...
Energy—Past, Present and Future                Today’s energy is very different            Coal            Petroleum      ...
Today’s Energy Is:• Spatially concentrated  – Oil refineries  – Coal
Today’s Energy Is:• Spatially concentrated• Mostly nonrenewable• Very large scale
Today’s Energy Is:• Spatially concentrated• Mostly nonrenewable• Very large scale• Still rural• Higher, but still low ener...
Bioenergy—Back to the Future
The First Flex-Fuel Vehicle (1908)
Energy—Past, Present and Future  100 years ago these were ‘hay burners’             Source: prinsviewbelgians.com
Energy—Past, Present and Future      Today, this is a ‘hay burner’              Source: tootoo.com
Today’s Refinery
Tomorrow’s Refinery energydescentplanning.blogspot.com
Tomorrow’s Energy Is:•   Still rural•   Renewable•   High energy conversion efficiency•   Environmentally sound•   More su...
Energy—Past, Present and Future From the concentrated    To a distributed non-renewable energy    renewable energy       e...
Non-renewable to Renewable Energy• In the non-renewable energy economy  – rural residents pay transportation costs in both...
With Distributed Renewable Energy• Waste streams become energy sources• Rural firms no longer bear high costs of  transpor...
Distributed Energy Technologies                      Anaerobic Digestion          Farm-scale                Even mobile un...
Distribute Energy Technologies:                               Biomass      Dedicated Crops                      Crop Resid...
CHP power station in Denmark burns straw as fuel. The  adjacent greenhouses are heated from the plant
Advantages of Distributed Energy              Systems• Up to some level, transmission costs are reduced• Reduced need for ...
Consequences of the Emerging            Bioeconomy• Most rural areas will switch from net energy  consumers to net energy ...
Some observations about the   bioenergy sector and community            development• Bioenergy refineries and related sect...
Least cost sources of biomass                        • 18 types of                          local biomass                 ...
Model Output                     • Least cost                       biomass• t                    sources                 ...
Other Community Economic Impact          Studies and Tools• Wisconsin’s Community Impact of Biodiesel and Bioethanol Plant...
Myths about Bioenergy & Community            Economies1. Impacts are greater when locally owned  – Depends on rate of retu...
Thank you
Sustainable bioenergy and community economic development
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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: ukurbansurvival.com Source: safran-arts.com
  4. 4. Energy—Past, Present and Future BiomassSource: ukurbansurvival.com Source: somethingawful.com
  5. 5. Energy—Past, Present and Future WindSource: ukurbansurvival.com Source: lampusuluh.blogspot.com
  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: Mineengineer.com BTGWord.com usbr.gov Scientificamerican.com
  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: prinsviewbelgians.com
  15. 15. Energy—Past, Present and Future Today, this is a ‘hay burner’ Source: tootoo.com
  16. 16. Today’s Refinery
  17. 17. Tomorrow’s Refinery energydescentplanning.blogspot.com
  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: wbcarbonfinance.org Source: sustainabletech.cc
  23. 23. Distribute Energy Technologies: Biomass Dedicated Crops Crop ResiduesSource: farmindustrynews.com Source: biomassmagazine.com
  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 http://www.aae.wisc.edu/renk/impactcalculator.asp• 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. http://www.floridaforestservice.com/forest_management/fm_pdfs /Final%20Report%20on%20Economic%20Impacts%20of%20Woody %20Biomass%20Utilization.pdf• Swenson, David. 2008. The Economic Impact of Ethanol Production in Iowa. Iowa State University. http://www2.econ.iastate.edu/research/webpapers/paper_12865. 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
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