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DEMAND FOR BIOMASS-SOUTHEAST

Giant Miscanthus Market #1: Biomass for Biofuel

In December 2007, the Energy Independence and Security Act was signed into law. This legislation updated the Renewable Fuels Standard (RFS) and mandates the use of 36 billion gallons of renewable fuels by 2022, a sharp increase from current levels. Of the total, 21 billion gallons must be “advanced biofuels” produced from materials other than corn or sugarcane. Cellulosic ethanol qualifies as an advanced biofuel and the race is on to identify cellulosic feedstock sources, with Freedom Giant Miscanthus leading the way among known energy crops.

Biofuels provide a unique opportunity to address needs ranging from energy independence to environmental sustainability and economic development, with solutions that include the creation of new opportunities and jobs. These demands have led to U.S. government initiatives and accelerated research and development at universities and among leaders in the energy industry.

The US is going to watch the biofuel industry go from producing basically zero gallons of cellulosic ethanol to production of 16 billion gallons, and in short order. That's a +15,900% increase in only a dozen years.

Giant Miscanthus Market #2: Biomass for Power

Over one-half of the states have enacted a renewable power mandate, generally requiring 10 – 20% of fuel for power generation to come from renewable sources. For other states, planned coal-fired power plant projects are either delayed or being cancelled due to more stringent environmental restrictions. Existing non-biomass alternatives to coal-based power present limitations:
•Natural gas – high price volatility and not carbon neutral
•Wind – Not consistent or reliable and not always near the population centers and major grids
•Solar – Projected population growth not expected where solar is most feasible, namely, the dry, western states

The US Southeast and many parts of the Midwest are optimal regions for biomass production from high yielding perennial grasses, and renewable fuel sourced from Freedom Giant Miscanthus could easily meet this growing need.

At commercial scale, our crops should be a price-competitive source of renewable fuel in much of the country before factoring in government subsidies, tax credits, and carbon value. The grass can be pelletized—turned into energy pellets. The pellets will then be used by coal-fired electricity generating plants as a source of low-emissions fuel. Currently, power plants from all over the world are buying pelletized miscanthus. Europe is an especially strong market.

Over one-half of the states have enacted a renewable power mandate, generally requiring 10 – 20% of fuel for power generation to come from renewable sources.

• Biomass Basics
• Environmental Advantages
• Demand
• Biomass for Fuel
• Biomass for Power
• Other uses for Biomass
• More Information