Emerging Ag & Natural Resources Issues from the College of Agriculture: Departments’ Perspective

1. Emerging Ag & Natural Resources Issues from the College of Agriculture: Departments’ Perspective S.A. Shearer Biosystems and Agricultural Engineering

2. Strategy 1Improve the energy efficiency of Kentucky’s homes, buildings, industries, and transportation fleetGoal: Energy efficiency will offset at least 18 percent of Kentucky’s projected 2025 energy demand. • Strategy 2Increase Kentucky’s use of renewable energyGoal: By 2025, Kentucky’s renewable energy generation will triple to provide the equivalent of 1,000 megawatts of clean energy while continuing to produce safe, abundant and affordable food, feed and fiber. • Strategy 3 Sustainably grow Kentucky’s production of biofuelsGoal: By 2025, Kentucky will derive from biofuels 12 percent of its motor fuels demand, while continuing to produce safe, abundant and affordable food, feed and fiber. Strategies and Goals

3. KDA Energy Efficiency Program • 2008 Farm Bill Opportunities • Governor’s Task Force on Biomass/Biofuels in KY Agenda

4. GOAP has applied for funding from the ARRA of 2009 • Applicants may be eligible for an additional 25% of project cost not to exceed $5,000 • Only projects initiated after February 17, 2009 will be eligible • Projects to be considered… • Upgrades to all Applicable Farms • Energy Efficient Building Components & Renewable Energy Projects • Professional Fees and Training (i.e., Section 9007 Audits) • Biomass Energy Crop Production • Equipment and Infrastructure for On-Farm Energy Production KDA On-Farm Energy Efficiency and Production Program

5. KDA Energy Efficiency Program • 2008 Farm Bill Opportunities • Governor’s Task Force on Biomass/Biofuels in KY Agenda

6. Continues and expands funding for Federal agency procurement of biobased products, construction and development of advanced biofuel refineries, biomass research and development, and biodiesel education. • New programs encourage renewable energy use by biorefineries, renewable energy systems and energy efficiency improvements, rural energy self sufficiency, development of next generation feedstocks, and use of forest and woody biomass for energy production. 2008 Farm Bill – Title IX Energy

7. Section 9007

8. BCAP Program

9. ADB funded KPF to study poultry house energy use and efficiency • Increase production efficiency • Reduce energy cost • Evaluate cost-effectives of upgrades • Develop educational workshops Broiler House Evaluation Program

11. Assume 50% of producers upgrade houses and see same benefits of example Farm B. • KY producers may be eligible for up to $3.4M in USDA Section 9007 funding! • With upgrades KY producers may net up to $3.5M annually! • Goal: Help KY producers upgrade houses over five years w/ 85 successful applications per year. USDA 9007 Potential Impacton Broiler Production

12. KY farmers produced 152 M bu. of corn in 2008. • Assuming 75% was stored on farm, with 80% of that being dried (5 points), KY farmers dried 91 M bu. • Assuming there are 880 grain dryers in KY, 50% upgraded to reduce energy use by 40% (fuel use reduced from 0.20 to 0.12 gal LPG/bu). KY farmers may be able to save 3.6M gal LPG, or $7.2M per year by upgrading! Grain Dryer Upgrade Program

13. Assume 50% of KY grain producers upgrade dryers (440 total) • KY producers may be eligible for up to $3.4M in USDA Section 9007 funding! • KY producers may net up to $7.2M annually (3.6M gal LPG)! • Goal: Help KY producers upgrade dryers over five years w/ 85 successful applications per year. Impact to Grain Drying

14. KDA Energy Efficiency Program • 2008 Farm Bill Opportunities • Governor’s Task Force on Biomass/Biofuels in KY Agenda

15. White paper authored by Frank Moore (DEDI) • Beshear’s Energy Plan – 7 Strategies • 2006 FRS – KY uses 10% ethnol in 70% of gasoline • Blend could go as high as 20% in next 13 years • Without biofuel expansion, KY will import up to 90% of renewable fuel in 2022 • A 20% federal mandated RPS will require KY to develop 2400 MW of renewable generating capacity Governor’s Task Force

16. Governor’s plan call for 12% of transportation fuels to be renewable by 2025 – 90 MGY current leaving 700 MGY gap • For biomass-based (non-food) fuel production we will need 10 MTY • 2400 MW of renewable generating may require up to 16 MTY of biomass • Can KY develop/support a 25 MTY biomass industry? Opportunity

18. All biomass will be reported on a dry weight basis – corn at 47.3 lb/bu (not 56 lb/bu) dry matter. • Some ag residue must be left on field to protect soil. • Dry weight of plant is about equal to weight of grain. • Biomass energy content - 7,500 Btu/lb; Coal - 12,000 Btu/lb. Ground Rules

19. Electricity generated using biomass is by direct combustion using conventional boilers: • Boilers burn waste wood products • Coal-fired power plants also add biomass to their coal-burning process (i.e., co-firing) to reduce the emissions • Biomass can also be gasified prior to combustion: • Gases generally burn cleaner and more efficiently • Biomass can be used combined-cycle gas turbines (used in the latest natural gas power plants) • Modular biomass gasification systems provide electricity for isolated communities Biopower vs. Biofuel

20. Cellulosic ethanol is a biofuel produced from lignocellulose (structural material comprising much of the plant) • Ethanol from lignocellulose has the advantage of abundant and diverse raw material • Greater processing to make the sugar available to microorganisms for fermentation • Pyrolysis is the basis of several methods that are being developed for producing fuel from biomass • Bio-oil, resembling light crude oil,can be produced by hydrous pyrolysis from many kinds of feedstock Biopower vs. Biofuel

21. Kentucky consumes 44 MTY of coal. • Kentucky has a land area of 25.4 M acres. • If we were to replace coal (12,000 Btu/lb) with biomass (7,500 Btu/lb), we would need to harvest 2.8 T/ac of biomass every year from every acre in Kentucky. Perspective

22. Table 1. Available land resources (ac) on Kentucky farms1. 1 http://www.nass.usda.gov/Census/Create_Census_US.jsp

23. Table 2. Potential forest resources (ac) in Kentucky1. 1 http://fiatools.fs.fed.us/fido/index.html- US Forest Service. 2Forest land not included in woodland category for farms.

24. Scenario 1: Existing ag production harvested for energy biomass.

25. Scenario 2: One-half of ag residues harvested for energy biomass.

26. Scenario 3: One-half of wood waste processed for energy biomass.

27. Scenario 4: 10% of hay, pasture and range land sown to switchgrass.

28. Scenario 5: 10% of hay, pasture and range land planted to miscanthus.

29. Scenario 6: 5% of forests and woodlands (farm) planted to dedicated woody biomass crops.

30. Scenario 6: 50% of reclaimed mine lands planted to dedicated woody biomass crops.

31. Scenario 1 (convert food to fuel) is not plausible. • Scenarios 2, 3, 4 or 5, 6 and 7 are possible and will result in 11.9 MTY to 14.6 MTY of production per year. • Can we reach 25 MTY? Will depend on the value of biomass and competing land use. KY does have the natural resources base! Production Potential

32. Kentucky has: • Excellent barge transportation – Ohio River • Excellent rail – Coal Industry • Well developed highway system • New law - 10% weight variance • Problem: • Moving a low bulk and low energy density material Logistics

33. Solution • Must densify biomass to a minimum of 14 lb/ft3 to overload a tractor-trailer. • Round bales are not dense enough to transport cost-effectively (7-8 lb/ft3) plus void space. • Large rectangular bales are better (10-12 lb/ft3). • Need a better solution…. Logistics

34. For co-firing, utilities want biomass that: • handles like coal… • stores like coal… • burns like coal, and… • costs about the same as coal. Logistics

35. Questions?