energy options for the farm: an overview how farmers can increase revenues with energy options

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Energy Options for the Farm: An Overview How farmers can increase revenues with energy options.

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Page 1: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Energy Options for the Farm:An Overview

How farmers can increase revenues with energy options.

Page 2: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Farms are much more efficient now than in the past.

• Direct energy consumption… Electricity used for irrigation and

lighting and HVAC for livestock Fuel for machinery used in

planting, harvesting, drying and transportation

…down 30% since 1978.

Page 3: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Farms are much more efficient now than in the past.

• Indirect energy consumption… Fertilizer and pesticide use

down 38% since 1980.

Page 4: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Farms are much more efficient now than in the past.

• Direct energy consumption down 30%

Advent of diesel-powered equipment on the farm since late 1970s

More fuel efficientDiesel fuel traditionally

less expensiveCan handle needs of

larger farms

Page 5: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Farms are much more efficient now than in the past.

• Indirect energy consumption down 38%

Fertilizer and pesticide use accounts for 29 percent of total farm energy input.

Energy inputs for fertilizers have decreased significantly since 1980.

11 percent for nitrogen fertilizers27 percent for phosphorous fertilizers

Page 6: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

New energy optionsFarmers can take advantage of a

new harvest - energy from:

• Crops

• Residue

• Technology

• Wind and solar

Page 7: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Biodiesel

• Diesel engines designed to run on plant oil• Relatively simple refining process removes

esters and leaves fuel• Uses on the farm include equipment and

space heating• Existing market for fuels

up to B20• Emerging market for fuels

up to B100• Infrastructure in place

Page 8: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Biodiesel

• Considerations– Fuel quality– Fuel temperature and gelling– Needs time, expense analysis farm-by-farm– Reduces most pollutants– Reduces CO2

• but not carbon-neutral– Positive energy balance– Taxed

• if used as on-road fuel

Page 9: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Biomass

• Most exciting new fuel potential

• High-yield refining process still in R&D – Will use any cellulose, include crop residue,

wood fiber, etc.– Will require new techniques, shift in crops– Potential for 1 billion dry tons by 2050

• Market and infrastructure already in place for use of wood and grasses in pellet fuels

Page 10: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Biomass

• Considerations– Changes in crops, tilling, land use, transport– Effect of removing residue from soil– Increased use of perennial crops– Changes in economics of producing

distiller and feed grains– Process not ready for farm use– Probably not suitable for

small coops or individual farms

Page 11: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Ethanol

• Best known, most controversial• Latest research indicates positive energy

balance, but not long-term success from corn

• Most success may come from grasses and short-term woody crops

• Infrastructure, market growing because of MTBE replacment

• Driver for other cellulose markets

Page 12: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Ethanol

Page 13: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Ethanol

• Considerations– More than 20% of US crops in corn-ethanol

production will adversely impact markets– Other cellulose fuel stocks may be more

economical than corn– Trade offs for valuable land– Small grower tax incentives

Page 14: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Geothermal

• Ground-source heat pumps attractive in areas with wide temperature differences– Cold winters, hot summers increase feasibility– Constant underground temperature

• Economic feasibility– 25% to 50% energy savings make ROI short

• Same closed-loop system heats & cools

Page 15: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Geothermal

Closed-loop system delivering ground-source heat to a building

Page 16: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Geothermal

• Simultaneously heat & cool different parts of the same building

• Can be set up in multiple zones, with each zone having an individual room control

• Greater freedoms in building design due to 50-80% less mechanical room space

• Pipes have 40+-year life expectancy • All electric, which eliminates

multiple utility services • Ground heat exchanger is

maintenance free and will last 40+ years

Page 17: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Biogas (Methane)

• Methane from livestock is a major challenge for dairy, swine, and other farms.

• Methane 20 times more powerful than CO2 as a greenhouse gas

• Anaerobic digesters turn biogas (60-70% methane) into fuel

• Biogas has 60% the BTUs of natural gas

Page 18: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Biogas (Methane)

• Considerations– Digesters reduce smell and ground- and

surface-water contamination– Biogas is explosive and poses a safety

hazard and cannot be economically liquified for storage or shipment

– Digester lagoons must maintain temperature and systems must be monitored regularly

– Systems are expensive

Page 19: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Solar

• Solar energy economical for remote power applications– Cost of power lines– Loss of arable land to power lines

• Systems of less than 1 kW– Stock watering– Irrigation– Ventilation

Page 20: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Solar

• Solar water heating– Relatively inexpensive

• Maintain temperature for anaerobic digesters• Space heating

• Passive solar– Use of simple black-roof designs

• Hay drying• Heating for livestock barns

• Utility incentive programs

Page 21: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Wind

• First consideration – Is there wind?– Minimum of 12 to 15 mph

• Two possibilities– Lease land to wind developer ($1500 - $2000

per year for @ large turbine) for 30 years– Put up your own turbine of 75kW or less

• Cost is the issue– $3000 per kW– 10 kW system is about $50,000

Page 22: Energy Options for the Farm: An Overview How farmers can increase revenues with energy options

Wind

• Considerations– Presence of wind– How will the power be used

on the farm?– Cost-benefit– Turbines may be 100s of feet high– Local ordinances– Grid connection and net-metering– Local, utility, state, and/or federal incentives