Abstract

Evert Van der Sluis, Richard Shane and Larry Stearns, South Dakota State University Concerns about rising energy costs, energy dependence on other nations, and green house gas emissions tied to global warming have raised awareness among policy makers and the public at large about the need to develop energy sources that help reduce modern economies’ reliance on fossil fuels. One of a number of alternative energy sources is biomass from agricultural and forest products (Bernstein, et al.). Increasing the use of biomass not only helps diversify the sources of energy production, but may also provide opportunities for agricultural producers to become involved in value-added agriculture, and contribute to rural development. The majority of studies concerning biomass availability estimates involve broad national, regional, or state-wide estimates of biomass availability and costs. For example, Gallagher, et al. prescribed a method for assessing the biomass costs and supply at a macro level. The authors also provided cost estimates for various locations, and documented large differences in cost estimates between geographical areas. In this paper we assess the availability and costs of various types of biomass that may be used to fuel a portion of an ethanol plant owned by VeraSun Energy of Brookings, and operated nearby in Aurora, South Dakota. The existing VeraSun facility relies on natural gas as a source of energy. The renewable biomass material is intended as a supplemental fuel source, enabling the plant to reduce its reliance on fossil fuels, enhance its production efficiency, and improve its image as a producer of green energy. Also considered are economic trade-offs involved with

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