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Explore the on-farm energy consumption and production in agriculture, including leasing land for energy development and distributed energy generation projects. Get insights into renewable energy trends, wind and solar farm development, and lessons learned from energy leasing.
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Energy in Agriculture On-Farm Energy Consumption, Production, and Emerging Issues Ag Credit Seminar – Moving Your Farm Forward December, 2017
Program Overview Introduction to Energy in Agriculture Leasing Agricultural Land for Energy Development Distributed Energy Generation Projects in Agriculture Additional Resources
Energy Production and Consumption in Agriculture In 2014, the agricultural sector consumed 1,714 trillion BTU’s of energy. An estimated 57,000 farms were engaged in producing renewable energy, providing electricity to power their farm. Roughly 6% of US farms averaged $56,000 in leasing royalty payments from energy production. • Approximately 10,000 farms leased they're wind rights as part of a utility scale windfarm. • Nearly 35% of active U.S. farms and ranch land was located in counties overlaying a shale play. Source: USDA Economic Research Service Report, Trends in U.S. Agriculture Consumption and Production of Energy: Renewable Power, Shale Energy, and Cellulosic Biomass.
On-Farm Energy Production Source: USDA Economic Research Service Report, Trends in U.S. Agriculture Consumption and Production of Energy: Renewable Power, Shale Energy, and Cellulosic Biomass.
PUCO Certified Renewable Energy Facilities in Ohio by Type Solar = 2,448 Wind = 40 Biomass = 39 Hydroelectric = 2 Solid Waste = 2 Source: Ohio's renewable energy portfolio standard. www.puco.ohio.gov Updated November, 2017 Source: www.nrel.gov. February, 2016
Leasing Land for Wind Farm Development Ohio Wind Projects Greater than 5 MW 2009: American Municipal Power / OMEGA JV 6 – 7.2 MW 2011: Blue Creek Wind Farm – 304 MW 2011: Paulding Wind Farm II – 99 MW 2015: TrisheWind Ohio– 100 MW 2017: Paulding Wind Farm III - 100.8 MW Source: Ohio's renewable energy portfolio standard. www.puco.ohio.gov Updated November, 2017
Leasing Land for Wind Farm Development in Ohio Source: Ohio's renewable energy portfolio standard. www.puco.ohio.gov Updated November, 2017
Leasing Land for Solar Farm Development Ohio Solar Projects greater than 5 MW 2009: Wyandot Solar Facility – 12 MW 2011: BNB Napoleon Solar LLC – 9.7 MW 2017: DG AMP Solar Bowling Green – 28.7 MW • Vinton Solar Center (PUCO Case # 17-0774-EL-BGN) • 125 megawatts / approximately 1,950 acres • Hardin Solar Facility (PUCO Case # 17-0773-EL-BGN) • 150 megawatts / approximately 1,115 acres • Hillcrest Solar Farm (PUCO Case # 17-1152-EL-BGN) • 125 megawatts / approximately 2,100 acres Source: Ohio's renewable energy portfolio standard. www.puco.ohio.gov Updated November, 2017
Leasing Land for Energy Development - Lessons Learned Wind lease allows to continue farming while solar often converts land use. Lease typically fixed amount not influenced by system production • Wind lease typically pay amount per turbine • Solar lease typically pays based on amount per acre Who is offering the contract? Development vs. operational lease Taxation issues, CAUV, future use of property/access, surface/subsurface water, project decommissioning, insurance, maintenance This is a long term commitment, do your homework! • OSU Extension's Agricultural & Resource Law Program (farmoffice.osu.edu) • Attorney with experience with energy contracts • Accountant/financial advisor • Ohio Farm Bureau
Is Wind or Solar Best for my Farm? Photo by Warren Gretz, NREL 09614 https://images.nrel.gov
PUCO Certified Renewable Energy Facilities in Ohio by Type Solar = 2,448 Wind = 40 Biomass = 39 Hydroelectric = 2 Solid Waste = 2 Source: Ohio's renewable energy portfolio standard. www.puco.ohio.gov Updated November, 2017 Source: www.nrel.gov. February, 2016
Mid-Sized Wind Development in Ohio • Cooper Farms – 4.5 MW • Haviland Plastic Products – 4.5 MW • Marathon/Harpster Wind - 1.5 MW • Ball Corp./Zephyr Wind - 4.5 MW • Whirlpool Corp. (Findlay) - 3 MW • Whirlpool Corp. (Marion) – 4.5 MW • Whirlpool Corp. (Greenville) – 4.5 MW • Whirlpool Corp. (Ottawa) – 1.5 MW • Valfilm– 3 MW Source: Ohio's renewable energy portfolio standard. www.puco.ohio.gov Updated November, 2017
Business Energy Investment Tax Credit by Type (Source: dsireusa.org) Source: Public Utilities Commission of Ohio. Report reflects approved cases through Friday, July 29, 2016
Small Scale Wind Generators • 2012 - UNL installed small wind & solar to research reliability: • 5 kW Evanceturbine on a monopole tilt up tower • 6 kW Eoltecturbine on a guy wired tilt up tower • 6 Solar panels, 230 Watts each • 2014 - the two blade Eoltec turbine had a broken disk which connected the shaft to the generator. • 2015 - Evanceturbine inverter shut down due to over voltage. Source: University of Nebraska Extension, (2012-2015) Wind Turbines and Solar Array's at Haskell Ag Lab What We've Learned. www.cropwatch.unl.edu/bioenergy/sustainable-energy-options
Distributed Generation Renewable Energy Estimate Operations and Maintenance Costs ($ per/kW) Source: www.nrel.gov. February, 2016
Distributed Generation Renewable Energy Installed Costs ($ per/kW) Source: www.nrel.gov. February, 2016
Additional Resources go.osu.edu/farmenergy
Thank You! Eric Romich Field Specialist, Energy Development OSU CFAES, Department of Extension 109 S. Sandusky Ave Upper Sandusky, OH 43351 419-294-4931 Office 419-310-8147 Mobile romich.2@osu.edu