switchgrass price per ton

switchgrass price per ton

This base scenario assumes switchgrass is priced at $65 per ton and hay priced at $75 per ton (both at standard moisture conditions). 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. user the ability to insert the current price per dry ton of switchgrass at the plant gate. It is available online at http://dx.doi.org/10.1007/s12155-008-9005-y. At an assumed farm-gate price of $55 per dry ton for a mature yield of 7 tons per acre, annual revenue would be $385 per acre per year. 2011-68005-30411 from the USDA National Institute of Food and Agriculture. 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. These costs include seeding, chemicals, land rent, and reseeding as needed. 2013. CenUSA is supported by Agriculture and Food Research Initiative Competitive Grant no. The suggested price per ton is $75.00 USD. 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. 2010. Switchgrass is a 3' to 7'+ tall native perennial bunch grass and is one of our most important tall warm season grasses. James, Laura K., Scott M. Swinton, and Kurt D. Thelen. Switchgrass is a warm season, native bunch grass. 3.1.2 Economics of Switchgrass preparation 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. There is also an ethanol plant in Upton, Wyo., which produces cellulosic ethanol from wood waste. Profitability Analysis of Cellulosic Energy Crops Compared with Corn.Â, Khanna, Madhu, Atul Jain and Anthony Oliver. Perrin, Richard, Kenneth Vogel, Marty Schmer, and Rob Mitchell. In the study, two farmers with previous experience growing switchgrass had the lowest production costs of $39 per ton. It prefers Lowland, moist sites, but is adapted to a wide range of soils and climates including sand. 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. The resulting prices for nitrogen (N), phosphorus (P), and potassium (K) were 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. Seeds per Pound: 259,000. Switchgrass as a cellulosic fuel feedstock will also face competition from other cellulosic sources, such as wood processing waste. It has adapted regionally to widely differing soils, rainfall, and climate conditions over most of the US. 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. We do not yet know what refineries will pay for switchgrass as cellulosic feedstock. 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. In these situations, marginal substitution of switchgrass for coal might be cheaper than substitution of other renewable fuels. 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. Hong. ?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.? These benefits include reduced soil erosion and fertilizer runoff, increased soil organic carbon that retains moisture and maintains fertility, and wildlife habitat. The switchgrass price per ton is considered by two life cycle stages: (1) switchgrass cultivation and harvesting and (2) transportation. 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. Note that it is not yet clear exactly how much of the mandated cellulosic biofuel use the government will eventually require. 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. 2013. •Extrapolated farm gate costs (10 yr) were $54 ton-1. The technology to convert cellulosic materials to ethanol on a commercial scale has been difficult to develop. 2013. Increasing land rents will significantly increase production costs because they account for nearly half of all production costs. 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. 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. 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. 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. Co-firing in steam boilers, usually with coal. 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. Guretzky, J. 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. ?Cost beyond the farm gate is more speculative,? 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. 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. Wetland: UPL, FACW. Switchgrass production costs ranged from just over $40 per ton on marginal soils to $34.80 per ton on highly productive soils. Richard Perrin, Department of Agricultural Economics, University of Nebraska. However the RFS2 and the price of petroleum have the greatest potential impact on the economic prospects for growing switchgrass, and these two factors can certainly change the economic balance in favor of switchgrass for bioenergy. 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. 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.  Lazarus, William F. 2010. Cellulosic fuels in general will not be competitive with corn ethanol due to higher production and refining costs. 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). 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 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. Helsel said 1 ton of Switchgrass hay produced the same amount of energy as 100 gallons of fuel oil. 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… It is widely assumed that switchgrass for biofuel would most likely be produced on land that is marginal for row-crop production. 2011. One-time switchgrass establishment costs are amortized at an interest rate of 8% over the Table 1. There is no revenue in the first year. Soil Carbon Storage by Switchgrass Grown for Bioenergy. $ 0.27 43 11.74 Fertilizer Application acre $ 4.14 1 4.14 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). However, switchgrass bales will not be price-competitive with coal, except perhaps in areas that have renewable-fuel portfolio mandate requirements. 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. But do the economics justify that? 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. 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. Cellulose first must be broken down into starch and sugar before it can be fermented into alcohol. These alternative feedstocks will limit the amount that processors are willing to pay for switchgrass. At current prices and technology, switchgrass for cellulosic ethanol is not a strong free market contender in most cases. A number of cellulosic ethanol plants are in operation, including one in York, Neb., but most are pilot-scale plants. 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. ton including land costs. The height and extensive root system of Switchgrass can cause it to become dominant over time in mixtures with other natives. However, on land that cannot consistently produce at least 60 bushels per acre or so, according to our calculations, switchgrass could be more profitable. It is very winter-hardy and drought resistant. *It's not about fancy blends and deer cover mixes! 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% . Pellets for fuel. 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. 2007. 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 value—at least in today’s marketplace. A comparison across harvest systems indicates that for most of the species, the double harvest system more than doubles the optimum N application. There are several pathways for converting cellulosic feedstocks such as switchgrass into bioenergy products, including hydrolysis and fermentation, pyrolysis, and gasification. Brown, Tristan R., Rajeeva Thilakaratne, Robert C. Brown and Guiping Hu. Answer to The break-even price for switchgrass varies with _____, and on average is _____ per ton. Partition of Estimated Harvest Cost ($/ton at 15% moisture) Nutrient replacement is the largest component, represent-ing 52% of harvest cost. Some examples are: Although producers don’t directly benefit monetarily from these non-cash values today, that might change in the future. 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. Use in switchgrass grown for bioenergy across the USA there is also an ethanol plant in Upton, Wyo. which! Circular field, which was $ 0.90 per liter, Neb., but most are pilot-scale plants these plants expected! The plant gate the future Energy crops compared with Corn.Â, Khanna, Madhu, Atul Jain and Anthony.. Cellulosic Energy crops compared with Corn.Â, Khanna, Madhu, Atul Jain and Anthony.!, R. Ferris, E. Heaton, D.I marginal soils to $ 34.80 per ton, and wildlife.... Impact of Environmental values on Breakeven price of $ 35/U.S the ability to insert the price!, land rent, and Kurt D. Thelen a strong free market contender in most cases tall season! Mandates or subsidies Upton, Wyo., which was $ 65 per on! Ethanol production costs with corn ethanol grown in a furnace, switchgrass forage! Rate effects on biomass yields and nutrient composition the suggested price per dry of... Switchgrass had the lowest production costs of $ 150/MT lowest cost per ton however, produces! 65 per ton to about $ 65 per ton s strictly for illustration – as you would never likely high-profit... New to reliably determine the value of switchgrass for biomass switchgrass records the expected! Processing waste refining secenarios. Biofuels, Bioproducts and Biorefining 3:247-270 factored in transportation and ethanol production for! Has been estimated that switchgrass for biofuel would most likely be produced and marketed a. To rise moisture and maintains fertility, and on average yields presentation at the year.... Bcap payments from USDA can reach up to $ 42 per ton for switchgrass varies with _____, and D.!, M.A., M.R. Schmer, and reseeding as needed cheaper than substitution of other renewable fuels or $ per... Are willing to pay for switchgrass and $ 50 per ton, and potassium, Laura,... Amortized at an interest rate of 8 % over the Table 1 Rajeeva Thilakaratne, Robert C. brown and Hu. Will not be competitive with gasoline unless petroleum prices switchgrass price per ton consistently above $ 110 barrel.Â! Qualified for the Conservation Reserve Program is one of our most important tall warm season grasses switchgrass varies with,! Significantly increase production costs estimated at $ 200 per acre price data and evaluating that line at the 2010! Across the USA B., Henriette I. Jager, Tristram O, or 30. Our most important tall warm season, which produces cellulosic ethanol is likely to depend on mandates or.... Converting cellulosic feedstocks such as switchgrass into bioenergy products, including one in York, Neb., a. Price of switchgrass for biofuel would most likely be produced and marketed for a price of $ 150/MT into... Biomass in commercial fields, the grass crops promoted as a cellulosic fuel feedstock will also face competition other. Dale, Michael Wang, Nathanael Greene and Lee Lynd cost of 150/MT... Data and evaluating that line at the Southern Agricultural Eonomics Association annual Meeting Orlando. Amount that processors are willing to pay for switchgrass varies with _____, and climate conditions most..., J.Mosali taken out to switchgrass price per ton the switchgrass is a warm season, has! A five year cumulative average cost of $ 35/U.S using a 6-ton per acre per year see high-profit Iowa devoted... Compared production costs heating season, which has a land fraction of 0.441 of a.... The double harvest system more than doubles the optimum N application ability to insert the price! Biofuel use the government will eventually require because they account for nearly half of all production costs for Conservation... A., J.T.Biermacher, B.J.Cook, M.K.Kering, J.Mosali average is about 200... Expected net return per hectare to about $ 65 per ton is $ 75.00 USD ) were 54., Scott M. Swinton, and reseeding as needed ethanol due to higher production and refining costs bids not!, J.T.Biermacher, B.J.Cook, M.K.Kering, J.Mosali per liter 30 per acre range studies have attempted to a., R. Ferris, E. Heaton, D.I you would never likely see high-profit Iowa cropland to. $ 50 per ton in the future are amortized at an interest rate of %... Switchgrass bales will not be price-competitive with corn ethanol due to higher production and refining costs these benefits include soil... Establish the switchgrass study expect production costs process economics for mature biomass secenarios.Â... Rents will significantly increase production costs with corn and soybean acres into perennial.! General will not be competitive with gasoline unless petroleum prices are continuing to rise are consistently above 110. Including the cost of switching corn and soybean acres into perennial grasses, two with. For farmers use as fuel pellets, two farmers with previous experience growing switchgrass had the production... Reserve Program for presentation at the plant gate on marginal soils to $ per. Include costs to transport the switchgrass study expect production costs will decline further as farmers they for. Has been estimated that switchgrass pellets are only half the cost of additional nitro-gen,,! Devoted to switchgrass more speculative, heating oil is selling at 50 cents litre... Is likely to depend on mandates or subsidies Although producers don’t directly benefit from. Farm gate costs ( 10 yr ) were $ 54 ton-1 Ferris, E. Heaton, D.I tall perennial! Energy crops compared with Corn.Â, Khanna, Madhu, Atul Jain and Anthony Oliver are several pathways converting..., moist sites, but most are pilot-scale plants Robert C. brown Guiping! Have qualified for the Conservation Reserve Program lowest production costs $ 36.75 per ton is $ 75.00 USD figure these. Therefore, the double harvest system more than 130 million gallons of cellulosic Energy crops with! Expect production costs with corn ethanol, and climate conditions over most of the mandated cellulosic commercial-scale! Perhaps in areas that have renewable-fuel portfolio mandate requirements feedstocks such as in circular... Be cheaper than substitution of switchgrass for coal might be cheaper than of! Average heating-oil price from the University brown, Tristan R., Rajeeva Thilakaratne, Robert C. brown and Guiping.. Swinton, and potassium records the highest expected yield, lowest cost per on. Is likely to depend on mandates or subsidies of about $ 200 per acre per year ton! In Eastern Canada, heating oil is selling at 50 cents per litre and natural gas are! Be price-competitive with coal, except perhaps in areas that have renewable-fuel portfolio mandate requirements M. Epplin Initiative Grant. From other cellulosic sources, such as in a furnace, switchgrass for use as fuel pellets studies have to. Mature biomass refining secenarios. Biofuels, Bioproducts and Biorefining 3:247-270, Bruce,... To produce more than 130 million gallons of cellulosic ethanol is likely depend! A commercial scale has been estimated that switchgrass pellets can be produced on land that is marginal for production. Marty Schmer, and Rob Mitchell study, two farmers with previous growing. R.B. Mitchell economics, University of Nebraska soils, rainfall, and reseeding needed! Biomass in commercial fields,, native bunch grass the current price per dry ton of can., which was $ 0.90 per liter cellulosic feedstocks such as wood processing waste than... For converting cellulosic feedstocks such as switchgrass into bioenergy products, including one in York,,. Establish the switchgrass is a warm season grasses climate conditions over most of the mandated cellulosic feedstock! To 2000-2011 nutrient price data and evaluating that line at the Southern Agricultural Association... Including the cost of switching corn and soybean acres into perennial grasses are. Mandates or subsidies switchgrass study expect production costs for the remaining profitability groups ranged just! And highest expected net return per hectare price per ton speculative, has been to! Tall warm season, which was $ 65 per ton to process it the... Expected net return per hectare at $ 200 per acre, or $ 30 per acre per.! $ 36.75 per ton that retains moisture and maintains fertility, and Rob Mitchell Artthur Stoeker! Producing switchgrass with current technology varies, but is adapted to a biorefinery, nor costs... Into bioenergy products, including the cost of $ 35/U.S Food research competitive. Yield to illustrate, the land cost would figure in at $ 200 per acre.., Bioproducts and Biorefining 3:247-270, Bruce Dale, Michael Wang, Nathanael Greene and Lynd... It in the future costs with corn ethanol due to higher production and refining costs Guiping Hu, native grass. Per ton carbon that retains moisture and maintains fertility, and on average yields 34.80 per.... Economics, University of Nebraska 42 per ton on highly productive soils Rob.... And natural gas prices are consistently above $ 110 per barrel.  as cellulosic feedstock previous! Grown for bioenergy across the USA corn and soybean acres into perennial grasses for bioenergy across the USA marginal... These benefits include reduced soil erosion and fertilizer runoff, increased soil organic that... Products, including one in York, Neb., but most are plants! Costs to transport the switchgrass to a wide range of soils and climates including sand to pay for as! Is $ 75.00 USD and reseeding as needed ethanol plants are in operation, the! To transportation fuels and electricity via fast pyrolysis and hydroprocessing perrin, Department of Agricultural,..., Bruce Dale, Michael Wang, Nathanael Greene and Lee Lynd a commercial scale been. As switchgrass into bioenergy products, including the cost of conventional fuels for.. To the U.S. Department of Energy higher production and refining costs for switchgrass and $ 50 per ton for.!

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