May 4th, 2009 12:06pm PST
Biomass Possibilities
Posted By Elizabeth Cutright
I’ve avoided discussing biofuel in the past not only because of its tenuous
connection to onsite power, but also because the amount of resources needed
for many biofuel crops (including soil and water) appear to negate their
associated benefits. But what if biomass could be directly linked to onsite
power with the intent of creating a localized, distributed energy system?
After all, biomass does not just involve biofuel crops, but mill wastes,
urban wastes, forest residues, and agricultural residues. And throughout the
country, waste-to-fuel options continue to remain significantly
under-utilized.
Last month, the Wisconsin Department of Agriculture, Trade, and Consumer
Protection released a Program on Agricultural Technologies (authored by Gary
Radloff, director of policy and communications with the Wisconsin Department
of Agriculture, Trade, and Consumer Protection, and Alan Turnquist, outreach
specialist at the Program on Agriculture Technology Studies at the
University of Wisconsin-Madison) entitled “How Could Small Scale Distributed
Energy Benefit Wisconsin Agriculture and Rural Communities.” According to
the study, by enacting policies designed to encourage “small-scale renewable
energy solutions,” Wisconsin’s agricultural sector and rural communities
could be uniquely poised to capitalized on the state’s 15 million tons of
potential biomass for energy. The study concludes that “local energy
production represents an important enough part of our state’s economic
future that new policy steps should be crafted to assure that the economic
and energy returns go to rural Wisconsin residents, and that groups
undertaking distributed energy projects are able to manage risk in the
nascent bioenergy market.”
Ultimately, the hope is that by focusing on small-scale energy systems,
Wisconsin can achieve the goal of increasing renewable energy sources, while
at the same time overcoming some of the difficult logistics involved in
creating a large-scale, centralized system. Based in part on location and in
part on the massive amount of potential biomass available, Wisconsin is
uniquely poised to capitalize on a biomass-based, distributed energy system.
Additionally, the new federal Biomass Crop Assistance Program will allow for
payment of up to 75% of implementation costs (costs to convert land from its
existing use to an energy crop). This funding could assist agricultural
producers to make the switch to biomass not just through dedicated biofuel
crops, but also by supplying forest waste for energy.
The report itself is quite clear when it comes to the benefits of creating a
system based on localized renewable energy in a rural setting. “Studies and
real-world examples indicate that a combination of technology options
including biomass for heat, biomass for combined heat and power at small to
mid-size businesses, fuels for schools and local government buildings,
anaerobic digesters, and small to mid-size ethanol plants can provide
economic efficiency and diversity when located in rural settings.” What is
particularly striking, is that the study highlights the idea that onsite
power from renewable energy sources does not have to exist solely to
supplement the grid. By promoting biomass as an energy source in rural
areas, the communities would be able to move beyond merely energy suppliers
for the grid and, instead, integrate the source into their own localized
system in order to meet their own needs. In that scenario, everybody
wins—“constructing a system where a portion of the renewable energy
dividend stays at home, and the long-term economic benefits are shared by
the landowner, farmer, forester, or local community, is quite possible.”
As to implementing and funding this type of project, the study looks to
Europe for answers. The study points out that in Germany, Denmark, and other
European nations, renewable energy buyback programs—those that guarantee
reasonable payment rates by utilities to small renewable energy producers
who “feed energy into the electric grid”—have “transformed Germany, Denmark,
and other European countries to renewable energy powerhouses.” These
renewable buyback (or tariff programs) can even the playing field for
renewable systems by providing “long-term investment security” for
communities, businesses, and local governments—thereby helping to justify
the initial investment and financial commitment required for the creation of
a local renewable energy infrastructure, because “investors can literally
take the guaranteed tariff payback rate to the bank as a revenue stream for
long-term financing of renewable energy projects.” Several states,
including California, Minnesota, Michigan, and Illinois, either already have
similar tariff programs in place or plan to implement them within the next
couple of years.
So what do you think? Is the idea of harnessing biomass for a rural
distributed energy system worth it? Could other ag-heavy states (like
Indiana and Iowa) find similar ways to capitalize on their own biomass
resources?
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