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). There are several pathways for converting cellulosic feedstocks such as switchgrass into bioenergy products, including hydrolysis and fermentation, pyrolysis, and gasification. Six cellulosic biorefineries co-funded by the U.S. Department of Energy also are in the works throughout the U.S. and should be completed over the next few years. 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. ?Cost beyond the farm gate is more speculative,? The profitable production of switchgrass for biofuel  today depends  primarily on the price of oil, as well as the Renewable Fuel Standard (RFS). 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. 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. Owens, V.N., D.R. 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. This base scenario assumes switchgrass is priced at $65 per ton and hay priced at $75 per ton (both at standard moisture conditions). 2013. 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. Mayton, J.H. 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. In the Renewable Fuel Standard (RFS2) legislation passed in 2007, Congress escalated mandates for the amounts of biofuels to be used in transportation fuel sold in the U.S. 2015-41595-24254 from the USDA National Institute of Food and Agriculture. This market is too new to reliably determine the value of switchgrass for use as fuel pellets. The startup loan section (Figure 1.) Regions: 1,2,3,4,5,6. Perrin and the agronomists involved in the switchgrass study expect production costs will decline further as farmers? However, on land that cannot consistently produce at least 60 bushels per acre or so, according to our calculations, switchgrass could be more profitable. experience with switchgrass grows and new ethanol-friendly cultivars are developed. 2011-68005-30411 from the USDA National Institute of Food and Agriculture. $ 0.27 43 11.74 Fertilizer Application acre $ 4.14 1 4.14 This work is supported by New Technologies for Agriculture Extension grant no. Perrin, Richard, Kenneth Vogel, Marty Schmer, and Rob Mitchell. Brown, Tristan R. and Robert C. Brown. Table 2. 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. If the RFS2 mandate is fully enforced, refiners might pay $150 per ton or more if corn stover (a cheaper cellulosic feedstock) is not available. Soil Carbon Storage by Switchgrass Grown for Bioenergy. The study does not include costs to transport the switchgrass to a biorefinery, nor the costs to process it in the biorefinery. Nitrogen use in switchgrass grown for bioenergy across the USA. Increasing land rents will significantly increase production costs because they account for nearly half of all production 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. The five farmers with the lowest costs had production costs of less than $50 per ton, which should be achievable by other farmers as they gain production experience, Perrin said. When figuring the operating cost per ton, it was $65 per ton for switchgrass and $50 per ton for miscanthus. ton including land costs. 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. Given budgeted costs for a pyrolytic biorefinery that produces half gasoline/half diesel, the price of oil must reach the vicinity of $110 per barrel in order to allow a switchgrass-based refinery to pay farm gate prices at or above current production costs. 2008. switchgrass yield is assumed to be 10 tons per year, the stand life as 10 years and the transportation distan ce as 50 miles. Bransby, C.O. 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 pellets are only half the cost of conventional fuels for farmers. Switchgrass for forage and bioenergy: harvest and nitrogen rate effects on biomass yields and nutrient composition. The Upton plant is operated by an affiliate of KL Process Design Group LLC of Rapid City. Annual production costs estimated at $200 per acre. 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. Perrin said in a news release from the university. It has adapted regionally to widely differing soils, rainfall, and climate conditions over most of the US. These benefits include reduced soil erosion and fertilizer runoff, increased soil organic carbon that retains moisture and maintains fertility, and wildlife habitat. 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. Some examples are: Although producers donât directly benefit monetarily from these non-cash values today, that might change in the future. Therefore, the success of cellulosic ethanol is likely to depend on mandates or subsidies. The cost of producing switchgrass with current technology varies, but a reasonable average is about $65 per ton in the Upper Midwest. 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. ?This is the most comprehensive study to date on assessing the economic costs of producing switchgrass biomass in commercial fields,? The switchgrass price per ton is considered by two life cycle stages: (1) switchgrass cultivation and harvesting and (2) transportation. 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. 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). Seeds per Pound: 259,000. 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. However, switchgrass bales will not be price-competitive with coal, except perhaps in areas that have renewable-fuel portfolio mandate requirements. It has been estimated that switchgrass pellets can be produced and marketed for a price of $150/MT. Cellulose first must be broken down into starch and sugar before it can be fermented into alcohol. 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% . Since then, corn ethanol has increased to almost the maximum limit specified by the RFS2, but the cellulosic ethanol mandate is far behind schedule. 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 … Switchgrass production costs ranged from just over $40 per ton on marginal soils to $34.80 per ton on highly productive soils. 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. In these situations, marginal substitution of switchgrass for coal might be cheaper than substitution of other renewable fuels. That’s strictly for illustration – as you would never likely see high-profit Iowa cropland devoted to switchgrass. A., J.T.Biermacher, B.J.Cook, M.K.Kering, J.Mosali. The Market value of Switchgrass Pellet Switchgrass in particular has attracted attention as a fiber source for bio fuel since it will typically result in lower ash content than other fiber sources. Take a look at the map above. 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). Wetland: UPL, FACW. The technology to convert cellulosic materials to ethanol on a commercial scale has been difficult to develop. With reported prices for miscanthus pellets bound for Europe at $100 per ton, a 10 ton per acre yield of the tall perennial grass would be competitive with even high-priced corn. 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. Pellets for fuel. Fike, R. Ferris, E. Heaton, D.I. 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. Switchgrass is expected to yield an average of about 7 dry tons per acre per year. 2010. Helsel said 1 ton of Switchgrass hay produced the same amount of energy as 100 gallons of fuel oil. As reported in USDA NASS 2018 survey data, prices received for all types of hay in UMRB states ranged from $87 to $167/ton. We do not yet know what refineries will pay for switchgrass as cellulosic feedstock. Researchers offered a speculative scenario that factored in transportation and ethanol production costs. The on-farm cost of producing switchgrass for cellulosic ethanol averages about $60 per ton, according to a new study by a University of Nebraska-Lincoln agricultural economist and others. The joint U.S. Department of Agriculture-Agricultural Research Service and Institute of Agriculture and Natural Resources study will be published in this month?s BioEnergy Research. These alternative feedstocks will limit the amount that processors are willing to pay for switchgrass. Guretzky, J. Hong. Davis, Ethan B., Henriette I. Jager, Tristram O. There are other potential markets for switchgrass as an energy crop: Growing switchgrass for biofuel can provide ecosystem services benefits that do not have a direct cash valueâat least in todayâs marketplace. Switchgrass records the highest expected yield, lowest cost per ton, and highest expected net return per hectare. Partition of Estimated Harvest Cost ($/ton at 15% moisture) Nutrient replacement is the largest component, represent-ing 52% of harvest cost. 2007. •Extrapolated farm gate costs (10 yr) were $54 ton-1. The suggested price per ton is $75.00 USD. user the ability to insert the current price per dry ton of switchgrass at the plant gate. Assuming a farm price of $120/tonne, switchgrass pellets provide the same cost for heating as oil at 25 cents per litre. Nutrient prices were estimated by fitting a trendline to 2000-2011 nutrient price data and evaluating that line at the year 2010. Research Partners lead by Iowa State University: USDA Agricultural Research Service (ARS), Purdue University, University of Illinois, University of Minnesota, University of NebraskaâLincoln, University of Vermont, and University of Wisconsin. University of Minnesota, Department of Applied Economics.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.? 2011. Switchgrass production costs for the remaining profitability groups ranged from about $33.50 per ton to about $36.75 per ton. West, Robert D. Perlack, Craig C. Brandt, Stan D. Wullschleger, Latha M. Baskaran, Erin G. Wilkerson, Mark E. Downing, and Carla A. Gunderson. 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. 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. CenUSA is supported by Agriculture and Food Research Initiative Competitive Grant no.  Lazarus, William F. 2010. 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. Viands, H.S. The resulting prices for nitrogen (N), phosphorus (P), and potassium (K) were Switchgrass is a 3' to 7'+ tall native perennial bunch grass and is one of our most important tall warm season grasses. This estimate is based on: The final production cost per ton depends on average yields. And without mandates, cellulosic ethanol is unlikely to be competitive with gasoline unless petroleum prices are consistently above $110 per barrel. Â. 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. In addition to producing advanced biofuels, the proposed system will improve the sustainability of existing cropping systems by reducing agricultural runoff of nutrients in soil and increasing carbon sequestration. A review of cellulosic biofuel commercial-scale projects in the United States. Still, some studies have attempted to put a dollar figure on these values. 2010. She also compared production costs with corn and soybeans, including the cost of switching corn and soybean acres into perennial grasses. *It's not about fancy blends and deer cover mixes! But consider that BCAP payments from USDA can reach up to $45 per acre. CenUSA Bioenergy is a coordinated research and education effort investigating the creation of a regional system in the Central US for producing advanced transportation fuels from perennial grasses on land that is either unsuitable or marginal for row crop production. Note that it is not yet clear exactly how much of the mandated cellulosic biofuel use the government will eventually require. Switchgrass is a warm season, native bunch grass. 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. Research Summary: Triploid Hybrids of Shrub Willow Yield More Biomass Than Diploids and Tetraploids, http://www.extension.iastate.edu/agdm/crops/html/a1-22.html, http://faculty.apec.umn.edu/wlazarus/documents/cropbud.pdf, http://digitalcommons.unl.edu/ageconfacpub/37/, USDA-ARS Northern Great Plains Research Lab, USDA National Institute of Food and Agriculture, Energy Answers for the Beginning Farmer and Rancher, NEWBio Team Defines Human Systems Driving the Bioeconomy Transition, NEWBio Harvest, Preprocessing, and Logistics Team Optimizes Biomass Supply Chain Processes, NEWBio Feedstock Improvement Team Breeds Better Switchgrass and Willow for the Bioeconomy. Will switchgrass converted into cellulosic ethanol be price-competitive with corn ethanol? Switchgrass is one of the grass crops promoted as a cellulosic biofuel feedstock. In Eastern Canada, heating oil is selling at 50 cents per litre and natural gas prices are continuing to rise. Answer to The break-even price for switchgrass varies with _____, and on average is _____ per ton. Establishment costs of about $200 per acre, or $30 per acre when annualized over 10 years. Itâs hard to imagine so in the current climate because even though the production costs of the two feedstocks are similarâabout $1 per gallon of ethanol producedâthe 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. It is widely assumed that switchgrass for biofuel would most likely be produced on land that is marginal for row-crop production. Switchgrass field in NE South Dakota. Techno-economic analysis of biomass to transportation fuels and electricity via fast pyrolysis and hydroprocessing. Field shown had a five year cumulative average cost of $35/U.S. Co-firing in steam boilers, usually with coal. One-time switchgrass establishment costs are amortized at an interest rate of 8% over the Table 1. This is based on research in that region during the past five to ten years. For example, given the expenditures above, an average yield of 2 tons per acre would result in a cost above $110 per ton; at 6 tons per acre, the production cost would fall to about $38 per ton. New varieties are being developed that may provide higher yields than our estimate of 3.5 tons of DM. Liebig, M.A., M.R. Schmer, K.P. Vogel and R.B. Mitchell. 2011. 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. contains information regarding any loans that are taken out to establish the switchgrass stand. Conversion Corn Price Price; 1 Bushel ≈ 0,035 m³ Corn Price Per 1 m³ 122.59 USD 1 Bushel ≈ 35,239 Liter Corn Price Per 1 Liter 2013. Impact of Environmental Values on Breakeven Price of Switchgrass. outlines the per-ton cost of additional nitro-gen, phosphorus, and potassium. 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. 3.1.2 Economics of Switchgrass preparation Cash spot markets for biomass will be limited. 3. Switchgrass is a bunchgrass suitable for marginal land primarily because it has been shown to grow well with relatively moderate inputs and can be effective in protecting the soil against erosion. Eleven bids were received and five were accepted. Land was marginal cropland that would have qualified for the Conservation Reserve Program. At current prices and technology, switchgrass for cellulosic ethanol is not a strong free market contender in most cases. “Switchgrass Cost of Production: Data from On-Farm Trials, 2001-2005”. These plants are expected to produce more than 130 million gallons of cellulosic ethanol per year, according to the U.S. Department of Energy. Comparative analysis of efficiency, environmental impact, and process economics for mature biomass refining secenarios. Biofuels, Bioproducts and Biorefining 3:247-270. Systems indicates that for most of the US amount of Energy as 100 gallons of oil. 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