New Energy Economics: Future Biomass Markets

cattlenetwork.com
12/01/2010 07:30AM

Farmers in the northern Plains have the potential to supply large quantities of biomass. With respect to demand for biomass, federal policies, including the Energy Independence and Security Act of 2007, and the creation of a national Renewable Electricity Standard, form important future market opportunities.

Moreover, several state renewable energy initiatives foster additional regional demand.

Before a farmer begins establishing a biomass crop, he or she is encouraged to research and indentify biomass market purchasers that offer an economic return above production and transportation costs. Increasing federal and regional biomass demand does not always imply that those same market opportunities exist locally.

Two different markets for biomass are likely to develop in the future. One market will utilize chemical or enzymatic processes to convert biomass into liquid biofuels and other high-value renewable products. A second market will use thermal, pyrolysis or gasification processes to use biomass energy for the production of electricity, syngas, steam and other forms of energy.

In both markets, the two most important criteria buyers will utilize to determine the value of the biomass delivered to a plant site are the quantity of biomass supplied as measured by weight in tons and the moisture content. If the biomass buyer is using either an enzymatic or thermal process, they would prefer to purchase "bone dry" biomass, which is biomass that contains no water.

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