Biomass has Future in Ethanol, with 'No-Till' cropping

US: November 22, 2006

WASHINGTON - The United States could soon use a billion tons of cellulosic biomass to ease the country's dependence on corn to make renewable fuel, but it must first address costly issues tied to harvest, storage and transportation, a report showed on Tuesday.

The study, released by the Biotechnology Industry Organization, said farmers could use biomass -- made by using waste from corn, wheat and other crops -- to produce ethanol. But removing it from their land would require farmers to adopt new land management practices and a costly upfront investment of about US$100,000 in new planting equipment.

An industry shift toward embracing biomass products would first require farmers to view them as economically feasible, the report said. Once they provide sufficient amounts of feedstocks, biorefineries and railroads will boost their infrastructure.

"Are we going to have a billion gallons in the next couple years?" asked James Hettenhaus, who wrote the report. "No, not necessarily, but we will certainly have several plants coming online during the next few years," he added.

Hettenhaus said one in Idaho was ready to process cellulosic plants, and another facility in Iowa was being expanded that will allow biomass to be converted into ethanol by 2009.

As more commercial-scale plants come on line, BIO estimated some 200 million dry tons of feedstocks could be processed within three to five years, enough to triple current ethanol production.

The price tag to remove cellulosic ethanol -- manufactured from corn stover, straw from wheat and rice and other agricultural waste products -- would be tied largely to new equipment needed to adopt no-till cropping.

The study said a 1,000-acre farm could recoup costs in two years if it received US$41 per acre for the biomass.

Currently, less than 20 percent of the land planted in the United States with corn, wheat and other cereals is operated under no-till cropping -- a process in which a seed is placed or drilled into the ground without a plow.

Changing to no-till cropping would have a wide range of advantages, including doubling the amount of residue that can be collected, keeping more carbon dioxide in the soil, rather than allowing it to escape into the atmosphere, reducing fertilizer needs and cutting energy costs to operate a field.

"Ultimately, growing demand for crop residues will likely prove a strong additional driver for the transition to more widespread no-till cropping," BIO said its report.

The 106 US ethanol refineries are forecast to produce 4.7 billion gallons of the fuel this year, up from 3.9 billion gallons a year ago.

Corn prices surged to a 10-year high this month amid concerns the 10.7-billion-bushel US crop in 2006 would not be enough to offset demand from ethanol, which uses 20 percent of the crop.

Hettenhaus said a pivotal moment for cellulosic biomass could come early next year, when Congress begins writing a new farm bill.

Legislation should include assistance to farmers to discourage them from tilling, provide incentives to expand rail transportation and fund research for improved harvesting equipment of cellulosic feedstocks.

Story by Christopher Doering

REUTERS NEWS SERVICE