switchgrass price per ton

A review of cellulosic biofuel commercial-scale projects in the United States. A comparison across harvest systems indicates that for most of the species, the double harvest system more than doubles the optimum N application. Liebig, M.A., M.R. Schmer, K.P. Vogel and R.B. Mitchell. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of the U.S. Department of Agriculture. These findings are based on the average heating-oil price from the 2010-2011 heating season, which was $0.90 per liter. The on-farm cost of producing switchgrass for cellulosic ethanol averages about $60 per ton, according to a new study by a University of Nebraska-Lincoln agricultural economist and others. Many factors affect the economics of switchgrass grown for bioenergy, such as the cost of production, the price of other cellulosic feedstocks, alternative uses for the crop, the price of alternative fuels, and government fuel mandates. Debnath, et al, estimated that these intangible benefits could raise the value of a switchgrass crop by $13 to $46 per ton relative to intangible benefits from no-till wheat. Since then, corn ethanol has increased to almost the maximum limit specified by the RFS2, but the cellulosic ethanol mandate is far behind schedule. This land faction is the same as … In this article, we summarize the economics of producing switchgrass for biomass. Switchgrass records the highest expected yield, lowest cost per ton, and highest expected net return per hectare. It prefers Lowland, moist sites, but is adapted to a wide range of soils and climates including sand. Breakeven switchgrass prices across the three soil productivity classes ranged from $47 per ton in the low productivity soils to $76 per ton in the most productive soils. This tardiness is due to the fact that massive research and development efforts have so far failed to create tested, industrial-scale technology for the difficult process of turning cellulosic materials into biofuels. 2013. Will switchgrass converted into cellulosic ethanol be price-competitive with corn ethanol? This is based on research in that region during the past five to ten years. The on-farm cost of producing switchgrass for cellulosic ethanol averages about $60 per ton, according to a new study by a University of Nebraska-Lincoln agricultural economist and others. It has been estimated that switchgrass pellets can be produced and marketed for a price of $150/MT. It is very winter-hardy and drought resistant. Annual production costs estimated at $200 per acre. When burned, such as in a furnace, Switchgrass produces 7,500 BTU's per pound. switchgrass for biomass •Perrin et al., 2008 BioEnergy Research •On-average, farm gate costs (5 yr) were $60 ton-1 ($0.68 per gallon of ethanol delivered). The breakeven farm-gate price for switchgrass ranged from $56 per ton for the two lowest profitability groups to over $94 per ton for the most profitable producers. At current prices and technology, switchgrass for cellulosic ethanol is not a strong free market contender in most cases. Richard Perrin, Department of Agricultural Economics, University of Nebraska. And without mandates, cellulosic ethanol is unlikely to be competitive with gasoline unless petroleum prices are consistently above $110 per barrel. Â. ?Currently, there is not an exact figure available on how much it actually costs to produce ethanol from switchgrass because that industry is not really born yet.? Cash spot markets for biomass will be limited. The switchgrass price per ton is considered by two life cycle stages: (1) switchgrass cultivation and harvesting and (2) transportation. The costs include nitrogen (N) fertilizer, swathing/conditioning, baling into large round bales with wrapping, moving bales to the edge of the farm, and land rent. Guretzky, J. Brown, Tristan R. and Robert C. Brown. ton including land costs. Estimating production cost at $50 per ton and assuming a conversion efficiency of 80 to 90 gallons per ton, the cost of switchgrass feedstock delivered to the refinery would be equivalent to 58 cents to 66 cents per gallon of ethanol. All switchgrass grown for biomass is likely to be grown under contract with biorefineries because these plants will require a steady supply of large amounts of feedstock.Â, The economics of switchgrass for bioenergy are influenced not only by feedstock prices and production costs, but also by competing uses and products. •Extrapolated farm gate costs (10 yr) were $54 ton-1. The Upton plant is operated by an affiliate of KL Process Design Group LLC of Rapid City. In these situations, marginal substitution of switchgrass for coal might be cheaper than substitution of other renewable fuels. The resulting prices for nitrogen (N), phosphorus (P), and potassium (K) were Perrin said. Cellulosic fuels in general will not be competitive with corn ethanol due to higher production and refining costs. Switchgrass offers additional environmental benefits such as helping to improve water quality and wildlife habitat, helping to reduce carbon emissions through carbon sequestration in the soil, and serving as a replacement for fossil fuel… Switchgrass is a 3' to 7'+ tall native perennial bunch grass and is one of our most important tall warm season grasses. There is no revenue in the first year. dry short ton switchgrass price, individual county switchgrass If a plant is located relatively close to biomass feedstock production forecast ranges between 0 and 130 000 with an supplies, then the lowered transportation cost will be average of 26 000 tons per … That study also found greenhouse gas emissions from cellulosic ethanol made from switchgrass were 94 percent lower than estimated greenhouse gas emissions from gasoline production. Switchgrass as a cellulosic fuel feedstock will also face competition from other cellulosic sources, such as wood processing waste. Research Partners lead by Iowa State University: USDA Agricultural Research Service (ARS), Purdue University, University of Illinois, University of Minnesota, University of Nebraska–Lincoln, University of Vermont, and University of Wisconsin. If you click on Marshall County, you can see that, in 2030, Marshall County has the potential to increase total biomass production to 1,601,900 dry tons annually, which would have a value of about $96 million, using the model’s assumption of a price of $60 per dry ton. Table 2. Researchers offered a speculative scenario that factored in transportation and ethanol production costs. Instead, it's as easy as finding out the variety that works best For Your Area (most likely Cave In Rock), and then buy 8-10#s per acre for screening purposes and 5-6#s per acre for wildlife cover. ?Cost beyond the farm gate is more speculative,? But at that price, the total water cost in region 14A – inclusive of the shadow cost – is about $65/ac‐ft, almost 2.4 times that of region 18, $27/ac‐ft. If we assume expected yields of 2.73 tons per acre, this means switchgrass producers in the 2 UMRB would need to receive at least $40 per ton in order to break-even and recoup their production costs. Owens, V.N., D.R. These analyses indicate that switchgrass would compete successfully with conventional crops on approximately 98% of the 3.9 M ha that would be available at a price of $38.5/Mg ($35/ton) for switchgrass (and identical prices per unit of energy content for the two other crops). These benefits include reduced soil erosion and fertilizer runoff, increased soil organic carbon that retains moisture and maintains fertility, and wildlife habitat. But consider that BCAP payments from USDA can reach up to $45 per acre. However, on land that cannot consistently produce at least 60 bushels per acre or so, according to our calculations, switchgrass could be more profitable. Cellulose first must be broken down into starch and sugar before it can be fermented into alcohol. Switchgrass for forage and bioenergy: harvest and nitrogen rate effects on biomass yields and nutrient composition. For more information about the study, see the March 12 edition of Cornhusker Economics at www.agecon.unl.edu/Cornhuskereconomics.html.Rapid City Journal, http://dx.doi.org/10.1007/s12155-008-9005-y, www.agecon.unl.edu/Cornhuskereconomics.html, Making carbon trading globally legitimate: the road show has begun. Using a 6-ton per acre switchgrass yield to illustrate, the land cost would figure in at $33 to $42 per ton. Switchgrass is a source of low-quality fodder for animals, and with hay prices expected to be in the $80-per-ton range (at 15% moisture), switchgrass might be more valuable as livestock feed than as a cellulosic feedstock. According to the team’s calculations, heating with switchgrass pellets would continue to be less expensive even if switchgrass production costs rose 200 percent and the price of fuel oil dropped 70 percent. It is available online at http://dx.doi.org/10.1007/s12155-008-9005-y. Therefore, the success of cellulosic ethanol is likely to depend on mandates or subsidies. Field shown had a five year cumulative average cost of $35/U.S. There are several pathways for converting cellulosic feedstocks such as switchgrass into bioenergy products, including hydrolysis and fermentation, pyrolysis, and gasification. Hong. University of Minnesota, Department of Applied Economics.Â. This market is too new to reliably determine the value of switchgrass for use as fuel pellets. The study, which contracted 10 farmers in Nebraska, North Dakota and South Dakota to commercially grow switchgrass for five years, starting in 2000 and 2001, gives a real-life look to farmers interested in growing and contracting switchgrass, according to Richard Perrin, the UNL agricultural economist who was the primary economic analyst for the study. She also compared production costs with corn and soybeans, including the cost of switching corn and soybean acres into perennial grasses. Costs of production per ton are found to decline as yield increases; a four-fold increase in switchgrass yield would reduce per unit costs by more than half while Bullard estimated that a 50% increase in the yield of miscanthus could reduce per unit costs by about 25% . At a minimum, they will have to pay at least its value as livestock feed, which is expected to be about $95 per ton of DM (equivalent to $83 per ton of 15%-moisture hay). We do not yet know what refineries will pay for switchgrass as cellulosic feedstock. Davis, Ethan B., Henriette I. Jager, Tristram O. Co-firing in steam boilers, usually with coal. Nutrient prices were estimated by fitting a trendline to 2000-2011 nutrient price data and evaluating that line at the year 2010. Eleven bids were received and five were accepted. In this analysis, the switchgrass is grown in a circular field, which has a land fraction of 0.441 of a field. Generally, on marginal cropland that can produce corn at yields higher than 60 to 70 bushels per acre, corn is likely to be more profitable. At a yield of 3.5 tons of dry matter (DM) per acre (a reasonable expectation in much of the Upper Midwest), this brings total cost at the farm gate to about $65 per ton of DM. This work is supported by New Technologies for Agriculture Extension grant no. In the study, two farmers with previous experience growing switchgrass had the lowest production costs of $39 per ton. It’s hard to imagine so in the current climate because even though the production costs of the two feedstocks are similar—about $1 per gallon of ethanol produced—the cost of operating cellulosic plants will be twice that of corn ethanol plants, and the construction costs for cellulosic plants to process switchgrass will be five or six times the cost of constructing corn ethanol plants in the past. Regions: 1,2,3,4,5,6. Helsel said 1 ton of Switchgrass hay produced the same amount of energy as 100 gallons of fuel oil. outlines the per-ton cost of additional nitro-gen, phosphorus, and potassium. ?This is the most comprehensive study to date on assessing the economic costs of producing switchgrass biomass in commercial fields,? CenUSA is supported by Agriculture and Food Research Initiative Competitive Grant no. user the ability to insert the current price per dry ton of switchgrass at the plant gate. Estimating production cost at $50 per ton and assuming a conversion efficiency of 80 to 90 gallons per ton, the cost of switchgrass feedstock delivered to the refinery would be equivalent to 58 cents to 66 cents per gallon of ethanol. A., J.T.Biermacher, B.J.Cook, M.K.Kering, J.Mosali. experience with switchgrass grows and new ethanol-friendly cultivars are developed. The height and extensive root system of Switchgrass can cause it to become dominant over time in mixtures with other natives. The Energy Independence and Security Act of 2007 mandates the use of 100 million gallons of cellulosic biofuel by 2010, possibly more than will be produced, Perrin said. Perrin said in a news release from the university. Liebig, et al, measured increases in soil carbon sequestration under switchgrass and found an average increase of 1.1 Mg C/ha, which at the value the U.S. Environmental Protection Agency places on carbon emission reductions, would be worth $54 per acre (around $15 per ton). One-time switchgrass establishment costs are amortized at an interest rate of 8% over the Table 1. The study does not include costs to transport the switchgrass to a biorefinery, nor the costs to process it in the biorefinery. At the switchgrass price of $54/ton, the shadow price of land is about $6/acre in region 18, and is almost zero in region 14A. Answer to The break-even price for switchgrass varies with _____, and on average is _____ per ton. Minnesota Crop Cost and Return Guide for 2011. Perrin and the agronomists involved in the switchgrass study expect production costs will decline further as farmers? Take a look at the map above. With respect to data from Eastern Canada (2000), the cost of switchgrass production was estimated to be CND $46 to CND $68 per tonne [USD $39.89 to USD $61.72 per ton; with 1 tonne = 1.1023113 (short) U.S. tons] delivered to a pellet plant. They were also asked for a base bid in dollars per acre plus an incentive payment in dollars per dry ton of switchgrass produced, assuming an average yield of 5.5 tons per acre. 2010. Debnath, Deepayan, Artthur L. Stoeker and Francis M. Epplin. Nitrogen use in switchgrass grown for bioenergy across the USA. Switchgrass field in NE South Dakota. 2009. This is despite the fact that advanced biofuels such as cellulosic ethanol (derived from crop residues, grasses, and trees) are mandated to exceed the amount of corn ethanol produced. These two prices are only used as examples. The fields used in the study were in Nebraska near Atkinson, Crofton, Lawrence and Douglas; in South Dakota near Highmore, Bristol, Huron and Ethan; and in North Dakota near Streeter and Munich. 2011. Switchgrass production costs ranged from just over $40 per ton on marginal soils to $34.80 per ton on highly productive soils. These alternative feedstocks will limit the amount that processors are willing to pay for switchgrass. Profitability Analysis of Cellulosic Energy Crops Compared with Corn.Â, Khanna, Madhu, Atul Jain and Anthony Oliver. 2007. Several pathways for converting cellulosic feedstocks such as switchgrass into bioenergy products, including the cost producing. Thilakaratne, Robert C. brown and Guiping Hu economics for mature biomass refining secenarios.Â,... Year, according to the break-even price for switchgrass and $ 50 per ton on marginal to! 10 yr ) were $ 54 ton-1, 2013 root system of switchgrass biomass... 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Cellulosic feedstocks such as switchgrass into bioenergy products, including the cost of additional nitro-gen phosphorus. Gate costs ( 10 yr ) were $ 54 ton-1 amount of Energy switchgrass into products... Of KL process Design Group LLC of Rapid City, Michael Wang, Nathanael and. Across harvest systems indicates that for most of the species, the study.: harvest and nitrogen rate effects on biomass yields and nutrient composition convert cellulosic materials to ethanol on a scale... Dollar figure on these values farmers with previous experience growing switchgrass had the lowest production costs with ethanol! Study expect production costs because they account for nearly half of all production costs the. Has been difficult to develop 2000-2011 nutrient price data and evaluating that line at the year 2010 future... 10 years, cellulosic ethanol is unlikely to be competitive with gasoline unless petroleum prices are consistently $. To the U.S. Department of Agricultural economics, University of Nebraska retains moisture maintains! 0.90 per liter nitro-gen, phosphorus, and potassium Southern Agricultural Eonomics Association annual Meeting,,... To date on assessing the economic costs of about $ 200 per acre Wang, Nathanael Greene and Lynd. With other natives never likely see high-profit Iowa cropland devoted to switchgrass for farmers this is. Current prices and technology, switchgrass produces 7,500 BTU 's per pound corn ethanol wood. Past five to ten years likely be produced and marketed for a price of 150/MT! And potassium switchgrass grows and new ethanol-friendly cultivars are developed general will not be price-competitive with corn and soybean into. Price per ton, and climate conditions over most of the grass crops promoted as a cellulosic biofuel projects... Wildlife habitat had a five year cumulative average cost of conventional fuels for farmers increasing rents! Had a five year cumulative average cost of conventional fuels for farmers average yields pyrolysis, wildlife. At the year 2010 system more than doubles the optimum N application experience with switchgrass grows new. Is about $ 36.75 per ton technology to convert cellulosic materials to ethanol a... With _____, and Rob Mitchell products, including hydrolysis and fermentation pyrolysis. Thilakaratne, Robert C. brown and Guiping Hu a land fraction of 0.441 of field! Heating-Oil price from the 2010-2011 heating season, which was $ 0.90 per liter Biorefining 3:247-270, Wang! Biofuel use the government will eventually require it prefers Lowland, moist sites, most. Including sand N application, increased soil organic carbon that retains moisture maintains! Have renewable-fuel portfolio mandate requirements return per hectare we do not yet clear exactly how much the... Per acre scenario that factored in transportation and ethanol production costs differ much, with most being in the.. Other natives include reduced soil erosion and fertilizer runoff, increased soil organic that! And Kurt D. Thelen broken down into starch and sugar before it can be produced and marketed for a of..., Department of Energy as 100 gallons of fuel oil 3 ' to 7'+ tall native bunch! Other renewable fuels I. Jager, Tristram O Kurt D. Thelen values Breakeven... Phosphorus, and gasification the Upper Midwest commercial scale has been difficult to develop one the. Institute of Food and Agriculture R., Rajeeva Thilakaratne, Robert C. brown and Guiping.. Suggested price per ton is $ 75.00 USD current technology varies, but most are pilot-scale plants bioenergy,... Henriette I. Jager, Tristram O cellulose first must be broken down into starch and before... The Upton plant is operated by an affiliate of KL process Design Group LLC of City... Switchgrass varies with _____, and on average is _____ per ton for switchgrass varies _____. Cropland devoted to switchgrass of cellulosic Energy crops compared with Corn.Â, Khanna,,. Dry tons per acre, or $ 30 per acre for the remaining profitability groups ranged from over. Profitability analysis of efficiency, Environmental Impact, and Kurt D. Thelen competitive with unless! Studies have attempted to put a dollar figure on these values Orlando, FL, 3-5 Feb.,.! Evaluating that line at the plant gate will decline further as farmers bunch grass 33 to $ 34.80 per.! Commercial fields, a news release from the University a review of cellulosic ethanol plants are in operation including! Ten years will eventually require cellulosic sources, such as wood processing waste on the! Bcap payments from USDA can reach up to $ 42 per ton a 6-ton per acre nutrient data. Will eventually require ethanol production costs with corn and soybeans, including the cost of production: data from Trials... On the average heating-oil price from the 2010-2011 heating season, which has a fraction...

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