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Farm Energy IQ

Farms Today Securing Our Energy Future

Bioenergy Feedstock Production

Greg Roth, Penn State Department of Agronomy

Farm Energy IQ

Bioenergy Feedstock Production for Agricultural Service Providers

Greg Roth Penn State, Department of Plant Science

• Review adaptation of crops and residues such

as corn, corn cobs, oilseed crops (e.g., canola and soybeans), and biomass crops (e.g., Miscanthus and willow)

• Review crop management and infrastructure

requirements to produce bioenergy feedstocks

• Review methods for adding value to feedstock

production

• Estimate production costs of various feedstocks

Objectives

• Most widely used feedstock
• Experiences with corn ethanol

production applicable to other potential bioenergy commodities

• Main bioenergy product is

ethanol, with valuable co‐ products including distillers grains, corn oil, and CO2

• Key drivers in building ethanol

market are RFS, exports, expanded co‐product markets, and reduced energy use

Corn

• Corn is widely

adapted across U.S. with bulk of production in Midwest

• Increased crop price

due to ethanol has caused expansion of growing area

Corn—Adaptation

Month Operation Inputs March/April Tillage Diesel April/May Spreading Fertilizer Fertilizer, Diesel April/May Planting Seed, Fertilizer, Diesel May Herbicide Application Herbicide, Diesel June Sidedress Fertilizer Fertilizer, Diesel October Harvest and Store Diesel Nov/April Haul Corn to Market Diesel December Chop/Harvest Corn Stalks Diesel

Corn—Management

• In 2014, production

costs are estimated to be $4.67/bushel. Price can vary with yield.

• Ethanol returns vary

with prices

• Good long term returns

for producers and processors are essential

Production Costs

Price Amount Total

Corn Price $5.00 160 bu/acre $800 Variable Costs Seed $3.44 /1000 34,000 $117 Fertilizer NPK + Lime $134 Pesticides $51 Other Trucking, Ins., Interest, Drying $126 Fixed Costs Land $150 Labor $45 Machinery $124 Net $53 Source: http://aede.osu.edu/research/osu‐farm‐management/enterprise‐budgets

• Ethanol returns vary with

prices

• One bushel of corn at

$4.54 can be processed into ethanol and distillers wet grain soluables (DWGS) worth $10.52

• Take home message for

bioenergy industry: good long term returns for producers and processors are essential

2/3/12 3/28/2014 Corn Price $ 6.38 4.54 Ethanol $/gal 2.00 3.15 Ethanol/bu gal 2.8 2.8 Value $ 5.60 8.82 Wet distillers $/to n 74.00 69.30 DWGS/bu lb 49.00 49.00 DWGS Value $ 1.81 1.70 Value Ethanol + DWGS $ 7.41 10.52 Bioenergy value minus corn price $ 1.03 5.98

Corn Ethanol—Production Costs

Source: http://www.ams.usda.gov/mnreports/nw_gr213.txt

• Corn cobs can

potentially be harvested and used for bioenergy

• Historically corn cobs

were used as a heat source in the Midwest and Europe

• Cob removal has little

to no environmental impacts

Corn Cobs

• Corn cobs can be:

– Shelled from ear corn – cleaned from a corn cob mix harvested with the combine and then cleaned from the grain – Collected from the back of the combine, sometimes mixed with husk and stover

• Corn cobs and stover

can also be collected following harvest

Corn Cob–Management

• One example is this

H120 cob harvester from Redekop

• Tow‐behind

cleaner separates cobs and discharges into a wagon

• Adjustable to

include material

• ther than cob

(MOC)

Corn Cob–Combine Separation

Source: http://www.cobharvest.com/h120‐cob‐harvester/

• Cobs collected with

MOC

• MOC increases

yield per acre and captures some of the best fraction of the stover above the ear

Corn Cobs–Management

• POET developed a

system (EZ bale) which consists of a headed that stomps and rolls the stalks and discharges the cobs and upper stover into a windrow

• In a second pass, cobs

and stover from plant tops are collected with a baler set to minimize soil contamination

Corn Cob–Harvest from Windrow

Photo credit: http://poet‐dsm.com/biomass

• While most production

costs are incurred in corn production, harvesting results in additional costs

• A Purdue study

indicated that cob harvesting cost approximately $54/ton

• Some farmers feel it

can be done for less

Corn Cobs—Production Costs

Price Amount Total Cob Price $100 1 ton/acre $100 Variable Costs Storing, Piling $4.72 Fertilizer Replacement $8.62 Other (Fuel, Labor, Lubrication, Etc.) $18.76 Total $32.10 Fixed Costs Machinery (Harvest Wagon) $22.34 Net Return $46

Source: https://www.extension.purdue.edu/extmedia/ID/ID‐417‐W.pdf

• Increasing the amount
• f MOC could increase

yields per acre from 20 to 30% and reduce cost per ton of material collected

• Increased yields would

make the biomass a more attractive feedstock

Corn Cobs—Production Cost

• Alternative markets for corn

cobs include mushroom compost, animal bedding, and metal polishing compound

• Stover removal can reduce

the need for residue management practices like stalk chopping or tillage and provide some value to cob harvest as well

Corn Cobs/Stover–Added Value Uses

Soybeans

Typical yield: 3,000 lb/acre (50 bu/acre) Potential use: Biodiesel Animal ag co-product: Soybean meal Other potential products: Straw (1,000 lb/acre) Biodiesel yield/ac:74 gal/acre or 9.1 million Btu Adaptability to no-tillage: High Existing infrastructure: High N fertilizer Inputs: 0 lb/acre Other Comments: Widely grown for protein

• n livestock farms; oil used for food and
• biodiesel. Good rotational crop to break

pest cycles and produce nitrogen for subsequent crops. Also, soybeans are drought tolerant and can be double cropped following barley or wheat. Soybean straw can be used as direct combustion feedstock.

• Soybeans are widely

grown through Mid‐ Atlantic and Midwest states

• Processing plants in

Northeast extract oil to produce soybean meal

• A portion of that oil is

used for biodiesel production

Soybean–Adaptation

Month Operation Inputs April/May Spreading fertilizer Fertilizer, Diesel May Planting Seed, Fertilizer, Diesel May Herbicide application Herbicide, Diesel October Harvest and store Diesel Nov/April Haul to market Diesel

Soybean–Management

Price Amount Total Soybean Price $14.00 55 bu/acre $770 Variable costs Seed 0.41/ 1000 180000 $74 Fertilizer NPK + Lime $59 Pesticides $32 Other Trucking, Ins., Int., Drying $63 Fixed Costs Land $150 Labor $30 Machinery $108 Net $254/acre

Soybean—Production Costs

Canola/Rapeseed

Typical PA yield: 2500 lb/acre (50 bu/acre) Potential use: Biodiesel Animal ag co-product: Canola meal Other potential products: Straw (1000 lb/acre) Biodiesel yield/ac: 143 gal or 17.5 million Btu Adaptability to no-tillage: Medium Existing infrastructure: Medium N fertilizer inputs: 100 lb/acre Other Comments: Limited production in PA but widely grown in Europe because of high

• il yield per acre and low saturated fat in oil,

which contributes to high quality for

• biodiesel. Canola meal is high protein feed

comparable to soybean meal. Winter and spring varieties exist. Winter canola is more adapted to southern half of state. Higher N requirement than soybeans.

• Winter and spring varieties

available

• Canola is widely adapted but

can have difficulty competing with other crops such as wheat or soybeans. Most production is in ND

• Canola oil has a low cloud

point and one of the best feedstocks for SVO or biodiesel

Canola/Rapeseed—Adaptation

Month Operation Inputs March Spreading fertilizer Fertilizer, Diesel April Planting Seed, Fertilizer, Diesel April Herbicide application Herbicide, Diesel August Harvest and store Diesel Sept./April Haul to market Diesel

Spring Canola—Management

Price Amount Total

Canola Price $0.20 2,000 lb $400 Variable costs Seed $27 Fertilizer NPK + Lime $58 Pesticides $16 Other Trucking, Ins., Int., Drying $21 Fixed Costs Land $75 Labor $15 Machinery $102 Total Costs 314 Net $86/acre

Canola—Production Costs

Source: http://www.ksre.ksu.edu/bookstore/pubs/mf2421.pdf

Canola Pressing

Canola Meal

Oilseed Economics

http://www.vsjf.org/resources/reports‐tools/oilseed‐calculator Source:

Oilseed Economics

http://www.vsjf.org/resources/reports‐tools/oilseed‐calculator

Switchgrass

Typical PA yield: 8,000 lb/acre Potential use: Direct combustion (DC), cellulosic ethanol Animal ag co-product: Aftermath grazing Other potential products/benefits: Wildlife habitat, bedding, absorbent Energy yield/ac: 56.4 million Btu (DC) Adaptability to no-tillage: High Existing infrastructure: High N fertilizer inputs: 0-100 lb/acre Other Comments: Widely adaptable, especially on droughty soils. Provides excellent conservation and wildlife habitat. Can be slow to establish. Harvest schedule can impact wildlife benefits and ash content.

Switchgrass—Management

Month Operation Inputs March Harvest Fertilizer, Diesel April Bale and store Diesel May Spread fertilizer Seed, Fertilizer, Diesel May/ December Haul to market Diesel

• Switchgrass is

widely adapted and has been grown from Florida to the corn belt on both productive and droughty soils

Switchgrass—Adaptation

Year 1 Years 3‐6 Yield (tons/ac) 0.75 6.0 Price ($/ton) $65 $65 Returns $49 $392 Variable Costs Production $234 $134 Labor $11 $34 Trucking and Loading $9 $69 Total Variable Costs $254 $237 Return above Variable Costs ($205) $155 Fixed Costs $41 $75 Total Costs $295 $312 Net Return/Acre ($246) $80

Switchgrass—Production Costs

Source: http://www.uky.edu/Ag/CCD/introsheets/switchgrass.pdf

Year 1 Years 4‐15 Yield (tons/acre) 7 Price ($/ton) $0 $385 Returns $49 $450 Variable Costs Seed $80 $0 Soil Fertility $155 $136 Weed Control $53 $0 Establishment and Maintenance $140 $0 Harvesting $0 $141 Total Costs $567 $277 Net Return/Acre ($567) $108 Annual Income over 15 yr $46

Switchgrass—Production Costs

Source: http://www.newbio.psu.edu/Extension/resources.asp

Switchgrass—Marginal Land

• Low impact production system
• Cost of production: $60‐80/ton and need for

densification

• Competition with wood chips in Northeast
• Some alternative markets include absorbents,

animal bedding, mulch, wildlife cover, conservation program crop, and hunting preserve use

• Can production costs be offset with other benefits

(conservation, wildlife, hunting, recreation, off season land management, subsidies)?

Switchgrass—Biomass Issues

Miscanthus

Typical PA yield: 15,000-20,000 lbs/ac/yr Potential use: Ethanol, direct combustion (DC) Animal ag co-product: None Ethanol yield/acre: 350 gal or 31.5 million Btu Energy yield/acre: 82 million Btu (DC) Existing infrastructure: Medium N fertilizer inputs: 50-75 lb N/ac/yr Other Comments: Expensive to establish, rhizome availability limited. Once established likely significantly higher yielding than switchgrass.

Photo credit: University of Illinois

• Widely adapted warm

season perennial grass, native to Eastern Asia, now grown in Europe and the Southern, Eastern, and Midwestern U.S.

• Although a warm season

species, it can grow early in spring even at relatively low temperatures (43°F). Growth stops with autumn frost.

Miscanthus—Adaptation

Miscanthus—Management

Month Operation Inputs April Mow Diesel April Plow site Diesel April Fertilize Fertilizer Diesel May Plant Rhizomes Diesel May Apply Herbicide

Establishment Year Current industry practice is to plant the rhizomes four inches deep and three feet apart within rows. Maintain three feet between rows. Some replanting to fill gaps may be necessary in the second year.

Source: http://www.nrcs.usda.gov/Internet/FSE_DOCUMENTS/stelprdb1045274.pdf

Miscanthus—Management

Month Operation Inputs April Spread fertilizer Seed, Fertilizer, Diesel March Harvest Fertilizer, Diesel April Bale and store Diesel May/December Haul to market Diesel

Post Establishment Years

Year 1 Years 4‐15

Yield (tons/acre) 10 Price ($/ton) $0 $45 Returns $0 $450 Variable Costs Rhizomes $700 $0 Soil Fertility $155 $134 Weed Control $48 $237 Establishment and Maint. $115 $155 Harvesting $0 $75 Total Costs $1018 $312 Net Return/Acre ($1018) $80 Annual Income over 15 yrs $94

Miscanthus—Production Cost

Photo credit: http://www.newbio.psu.edu/Extension/resources.asp

• Low impact production system—Nutrient

removal for N‐P2O5‐K20 is approximately 7.5‐1.5‐5.5 lbs per ton

• Cost of production: $30‐35/ton and need for

densification

• Need for buffer surrounding field to monitor

and prevent spreading

Miscanthus—Biomass Issues

Shrub Willow

Typical PA yield: 10,000 lb/ac/yr Potential use: Ethanol, direct combustion (DC) Animal ag co-product: None Ethanol yield/ac: 350 gal or 31.5 mil Btu Energy yield/ac: 82 mil Btu (DC) Existing infrastructure: Medium Other Comments: Grown in a five to ten year cycle, with annual yields potential similar to

• switchgrass. Can be chopped as

needed for fuel source. Low annual maintenance costs. Adaptable to a wide range of soil conditions.

• Willows can grow well on

marginal soils

• Soils should be 18 inches

deep and not droughty or excessively wet

• Slopes should be less than

8% to facilitate harvest under winter conditions.

Willow—Adaptation

Photo credit: http://willow.cals.cornell.edu

Willow—Management

Year Operation Inputs 1 Prepare field Fertilize, Plant Weed Control Cuttings, Fertilizer, Diesel 2 Coppice first year plants to shrub Diesel 5 Harvest Diesel 9 Harvest Diesel 13 Harvest Diesel 17 Harvest Diesel 21 Harvest Diesel

Photo credit: http://willow.cals.cornell.edu

Year 1 Years 4‐21 Yield (tons/acre/3 yr) 12 Price ($/ton) $0 $45 Returns /Harvest (Harvest: yrs 4, 7, 10, 13, 16, 19, 22) $0 $3780 Variable Costs Site Prep $193 $0 Planting $640 $0 Weed Control $186 $0 Other Establishment $115 $0 Harvesting $0 $2520 Total Costs $1019 $2520 Net Return/acre every 3 yr ($1019) $267 Annual Income over 21 yrs ‐$16

Willow—Production Costs

• Low impact production system
• Cost of production: $31/ton with 23 year

investment

• Competition with wood chips in Northeast
• Some alternative uses
• Harvest costs can be reduced relative to

crops with annual harvests

Willow Biomass Issues

• Various options exist for growing bioenergy

crops in our region

• Markets vary for these crops—be sure you

have a market before investing

• Some crops have alterative uses that can

add to profitability

• Co‐product values are also important for

some crops such as corn and soybeans

Summary

• Based on corn ethanol experience, having a

value chain that provides returns to farmer, landowner, industry, and processor is critical

• The ideal bioenergy crop has multiple uses,

prices above production costs, stable long term demand, minimal environmental impact, and low carbon footprint

Summary

• There is potential to grow bioenergy feedstocks

in our region

• Markets are limited for a few options, but are

developing, along with alternative markets

• Developing higher yielding and lower cost

production, use of marginal soil resources and higher prices could lead to more production potential

Summary

Farm Energy IQ

Bioenergy Feedstock Production

Questions?