Evaluating Local Crop Residue Biomass Supply: Economic and Environmental Impacts

Abstract

The increasing interest in energy production from biomass requires a better understanding of potential local production and environmental impacts. This information is needed by local producers, biomass industry, and other stakeholders, and for larger scale analyses. This study models biomass production decisions at the field level using a case example of a biomass gasification facility constructed at the University of Minnesota—Morris (UMM). This institutional-scale application has an anticipated feedstock demand of about 8,000 Mg year−1. The model includes spatial impacts due to sub-field variation in soil characteristics and transportation costs. Results show that the amount of biomass producers could profitably supply within a 32.2-km radius of UMM increases as plant-gate biomass price increases from $59 to $84 Mg−1, with 588,000 Mg annual biomass supply at $84 Mg−1. Results also show that the most profitable tillage and crop rotation practices shift in response to increasing biomass price with producers shifting from a corn-soybean rotation toward continuous corn. While biomass harvest is conducive to increased soil erosion rates and reduced soil organic carbon levels, changes in crop production practices are shown to at least partially offset these impacts. Transportation costs tend to concentrate and intensify biomass production near the biomass facility, which also tends to concentrate environmental impacts near the facility.