“Economic Feasibility of Sweet Sorghum and Biomass Sorghum for Biofuels Production in two Texas Regions”

1. Economic Feasibility of Sweet Sorghum and Biomass Sorghum for Biofuels Production in
two Texas Regions
Authors:
Stephen Amosson William Rooney
Texas AgriLife Extension Service Texas AgriLife Research
6500 Amarillo Blvd. West 2474 TAMU
Amarillo, Texas 79106 College Station, Texas 77843
806-677-5600 979-845-3041
samosson@ag.tamu.edu wlr@tamu.edu
Primary Author Co-author
Jnaneshwar Girase Jake Becker
Texas AgriLife Extension Service Texas AgriLife Research
6500 Amarillo Blvd. West 6500 Amarillo Blvd. West
Amarillo, Texas 79106 Amarillo, Texas 79106
806-677-5600 806-677-5600
JRGirase@ag.tamu.edu jdbecker@ag.tamu.edu
Co-author Co-author
Bridget Guerrero Dustin Borden
Texas AgriLife Extension Service Texas A&M University
1102 East FM 1294 2474 TAMU
Lubbock, Texas 79403 College Station, Texas 77843
806-746-4020 979-845-3041
blguerrero@ag.tamu.edu dborden@tamu.edu
Co-author, Presenter Co-author
Seong Park Payne Burks
Texas AgriLifeResearch Texas A&M University
PO Box 1658 2474 TAMU
Vernon, Texas 76385-8361 College Station, Texas 77843
940-552-9941 979-845-3041
SCPark@ag.tamu.edu payne11@tamu.edu
Co-author Co-author
Brent Bean
Texas AgriLife Extension Service
6500 Amarillo Blvd. West
Amarillo, Texas 79106
806-677-5600
bbean@ag.tamu.edu
Co-author

2. Abstract (50 words)
Cost of production in Texas for two promising crops, sweet sorghum and biomass
sorghum for use in biofuel production are identified. Sensitivity analyses performed suggest
sweet sorghum may have a cost advantage. However, the feasibility of each crop can vary
considerably by type and location of the processing plant.

3. Proposal (750 words)
Problem Statement
Large-scale commercial production of cellulosic ethanol continues to be a slow process in
the biofuel industry. The renewable fuels standard (RFS) set forth by Congress calls for the
production of 36 billion gallons of renewable fuels by 2022 to partially offset the United States’
dependence on fossil fuels. Of this production, 15 billion gallons are to come from conventional
biofuel derived from starch-rich crops (corn and sorghum). The remaining 21 billion gallons of
biofuels areexpected to come from a combination of undifferentiated advanced biofuel (5 billion
gallons) and cellulosic biofuel (16 billion gallons)(Renewable Fuels Association, 2008).Asstarch
based ethanol production approaches its RFS limit (15 billion gallons), the focus offuture
renewable fuel production is changing to advanced and cellulosic fuel production.
Potential cellulosic ethanol production is one way producers in Texas may be able to
financially benefit from the RFS. Currently,no cellulosic facilities exist in Texas. However,
evaluating the costs associated with the production of different types of cropsat the field level
may aid this developing industry in the selection of the best potential biomass crop depending on
the type and location of the processing plant being considered. Thus, the focus of this study is
the economic evaluation of two promising crops for use in advanced and cellulosic fuel
production,sweet sorghum and high-biomass sorghum, for two regions in Texas. These crops are
especially suited to the semiarid climate of Texas and can be grown either dryland or under
limited irrigation. The specific objectives include: 1) Develop enterprise budgets for sweet
sorghum and high-biomass sorghum produced under limited irrigation and dryland conditions;
and 2) Evaluate the cost of production for various yield and ethanol conversion levels.
Data and Methods
The two study regions in Texas included the Texas High Plains and College Station
Regions. Research trials were conducted in 2009 and 2010 to evaluate the production potential
of sweet sorghum and high-biomass sorghum production in both regions. Scientists were asked
to identify the Best Management Practices (BMPs) for growing these crops including farming
operations performed. Enterprise budgets were constructed utilizing the BMPs identified. A
three-year average of prices was utilized to evaluate direct expenses and dampen volatility
caused by annual market fluctuations. Texas AgriLife Extension Budgets were used to estimate
the fixed and variable costs of farming operations performed. A sensitivity analysis was also
performed to account for yield variation between years and different mill extraction efficiencies.

4. Results and Implications
The economic analysis indicates a total cost per acre to produce sweet sorghum under
limited irrigation (10 acre-inches) in the Texas High Plains of $706.67with a yield of 28.75 wet
tons.The total cost per acre for full-season sweet sorghum under furrow irrigation (8 acre-inches)
in the College Station Region is $694.20 with a yield of 26.52 wet tons, while mid-season sweet
sorghum has a lower total cost of $568.43 per acre and also a lower yield of 16.70 wet tons.
Harvest, haul, fertilizer, and irrigation are the largest components of the direct cost. The cost to
produce a gallon of ethanol is approximately $0.60 per gallon for full-season sweet sorghum
under a 95% extraction rate for both regions. Dryland sweet sorghumin the Texas High Plains
yields 11.2 wet tons with an estimated total production cost of $303.17 per acre and potential
cost to produce ethanol of $0.64 per gallon under 95% extraction.
The enterprise budget for irrigated biomass sorghumin the Texas High Plains has
production of 24.12 wet tons or 7.5 dry tons with a total cost of $615.78 per acre. Harvest, haul,
irrigation, and fertilizer account for more than 75% of the direct expenses. The cost per gallon of
ethanol is approximately $1.03 per gallon. Dryland high-biomass sorghumis projected to have a
yield of 10.45 wet tons or 3.25 dry tons with total costs of $249.61 per acre in the Texas High
Plains and a higher yield of 29.50 wet tons or 6.79 dry tons and also higher costs of $481.86 in
the College Station Region. The cost per gallon of ethanol produced is estimated at $0.96 and
$0.89 for the Texas High Plains and College Station Regions, respectively.
Results suggest that sweet sorghum may have a cost advantage over biomass sorghum.
However, the feasibility of each crop can vary greatly and depends on the type and location of
the processing plant being considered. Further research should be conducted to analyze the
feasibility of different types of potential processing plants before they are established in the state.
References
Renewable Fuels Association. 2008. Renewable Fuels Standard.
http://www.ethanolrfa.org/pages/renewable-fuels-standard. Accessed February 8, 2008.