News Release Distributed 04/26/06
WOODWORTH – Louisiana farmers and forest producers could find a silver lining in the cloud of rising fuel prices – with the development of new fuels from crops they already grow or could grow.
"Biofuels is poised for explosive growth," Kelsey Short, director of the Agriculture, Forest and Food Technology Division of Louisiana Economic Development, told researchers and extension specialists from the LSU AgCenter last week (April 20-21) at a conference held here.
An industry rooted in bio-based energy could join wood panels, food processing and distribution and horse racing as a growth area for Louisiana agriculture, Short said. Dr. David Boethel, LSU AgCenter vice chancellor for research, said the meeting was held because the AgCenter’s traditional client base is looking for ways to improve the value-added components of their farming and forestry operations. In addition, interest is growing in alternative fuels and how agriculture can play a role in that area.
"The LSU AgCenter has the resources to help develop value-added opportunities for rural Louisiana," Boethel said. "The agricultural industry is looking for us to help them as they explore these opportunities."
Short pointed to the availability of agricultural production as a leading reason for supporting a biofuels industry in Louisiana. He also cited the state’s proximity to Houston, the fourth largest U.S. market, and the state’s broad-based transportation system, as well as federal economic development incentives through the Gulf Opportunity Zone and tax-exempt bond financing, as grounds for pursuing research and development in bio-based fuels.
During the meeting, the researchers and extension specialists reached consensus that ethanol and biodiesel offer the primary opportunities for Louisiana agriculture to take advantage of new energy technologies.
While ethanol generally is made from corn in the Midwest, other Louisiana crops – primarily sugarcane and grain sorghum – could provide affordable feedstocks for an ethanol plant. The major component of biodiesel currently is soybean oil, although other oilseeds also can provide equally good or better sources for the product.
"Our big push is to make big impacts," said John Ferrell, program leader in the Energy Efficiency and Renewable Energy Division of the U.S. Department of Energy and another speaker at the conference.
Ferrell said corn ethanol requires 26 percent less fossil energy to produce than it contains, while cellulosic ethanol – made from whole sugarcane plants and similar plant materials such as grasses and wood – requires as much as 90 percent less energy to produce.
Soy diesel requires 69 percent less energy than it contains, he said. Other oilseeds, such as sunflowers, can produce as much as four times the amount of biodiesel per acre as soybeans.
"The future of ethanol production in Louisiana can be divided into two segments," said Dr. Don Day of the LSU AgCenter’s Audubon Sugar Institute in St. Gabriel. "That which can be produced immediately – traditional feedstocks such as molasses, milo or corn – and areas that must be expanded and are longer-term in development – ethanol from cellulose or new energy crops.
"Biodiesel seems to hold the promise of freeing the Louisiana farmer from the rising fuel cost of producing his crops," he added.
Ferrell said the Department of Energy and the U.S. Department of Agriculture produced what is called "The Billion Ton Study." It found that the biomass potential in the United States exceeds 1.3 billion tons per year – enough to produce biofuels to meet about 30 percent of the country’s annual oil consumption.
"Forest resources and agricultural resources are available," Ferrell said. "Feedstock becomes a very important cost component."
Ferrell said farmers can benefit through more production per acre and the opportunity for grower equity in energy production.
Short said six biofuel projects are in the pipeline in Louisiana – three ethanol plants and three bio-diesel plants – that are backed by "legitimate investors."
One those projects being developed by BC International Corp. is a 55-million-gallon ethanol production facility in Jennings. It is projected to produce 45-50 million gallons per year from grains such as corn and sorghum and 5-10 million gallons per year from bagasse – a sugarcane byproduct.
David McGee of the Louisiana Department of Natural Resources said transportation is a consideration for materials that aren’t currently being removed from a field or forest. He also suggested some alternative crops may require producers to invest in new equipment.
Dr. Paul Coreil, LSU AgCenter vice chancellor for extension, said the meeting was intended to "find solutions and ways of keeping agriculture viable for our clients. We have to look at alternatives.
"We can’t afford to be as vulnerable as we are now," he said. "We have to pull together a viable, focused plan."
Organizers hope the meeting will lead to focused research and outreach plans to support the sustainable use of biomass for energy and fuels in Louisiana.
"We had representation from a large cross-section of the LSU AgCenter faculty who are involved in the resource analysis, production or processing of biomass for energy," said Dr. Dan Thomas, head of the AgCenter’s Department of Biological and Agricultural Engineering.
. "The potential to develop a comprehensive plan for leadership and partnering opportunities is real.
"The input from organizations like DOE, Louisiana Economic Development, Rural Development, industry and the LSU Energy Center greatly enhanced our understanding of the issues for effectively meeting current and future challenges," he added.