Energy Crops Forum
Fall 199y
U.S. Department of Energy
Bioenergy Feedstock Development Program at
Oak Ridge National Laboratory

Energy Crops Forum was published periodically by the Bioenergy Feedstock Development Program, Environmental Sciences Division, Oak Ridge National Laboratory, managed by UT-Battelle, LLC., for the U.S. Department of Energy under Contract No. DE-AC05-00OR22725.

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Table of Contents

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Editor's Note

Each year, the Bioenergy Feedstock Development Program (BFDP) collects its U.S. Department of Energy (DOE) program sponsors, collaborators, cooperators, and subcontractors in one place to hear about their recent achievements and to plan for future ones. This year's conclave was held on the campus of Oklahoma State University in Stillwater, Oklahoma, on September 8–11. Unique to this year's mix was a big contingent from several agencies within the U.S. Department of Agriculture (USDA) who attended to establish more formal linkages between the research funded by the two cabinet–level departments. The first day's plenary sessions featured updates from the DOE managers, status reports by the BFDP Task Leaders, and presentations describing USDA research and analysis activities that are relevant to BFDP's research. On the second day, we all scattered into task-specific sessions for more in-depth discussions. This issue of Forum presents the BFDP Task Leader's 1997 summary reports.


Woody Crops Research Achievements
Jerry Tuskan

The major objective of BFDP's Short Rotation Woody Crop task is to select and improve short-rotation woody crops and cropping systems so that biomass can ultimate supply up to 15% of the nation's total energy requirements. The task currently includes 12 projects and maintains an integration of genetics, breeding, physiology, and/or biotechnology to allow for continued progress towards the development of a model wood energy crop, Populus. Limited work on Salix (willow) is also being supported. BFDP Populus and Salix research projects have been strategically placed in the United States based on the natural range for the species and productivity potentials of the region, and U.S. energy needs.

In each region of the country, new information and materials were generated by BFDP woody crop research in FY 1997. In the South, 232 new crosses of Populus were made to produce improved varieties. Seventy-eight new genetic geographic sources of Populus germ plasm were collected and added to the southern regional breeding and testing projects. New trials to evaluate more than 20 Salix clones were established in New York and Wisconsin using crop management systems that have proven successful in Sweden. First-year survival and growth at both locations have been good. In the North Central region, 107 selected clones planted in four regional hybrid poplar tests sites in 1996 (56 clones) and in 1997 (51 clones) continue to exceed the average height and diameter growth of the two commercial check clones. Twelve new clones with commercial potential have been identified and are being scaled up for future large–block clonal tests. Work being performed in the Pacific Northwest, applicable to the whole United States, includes development of transgenic materials and DNA markers. Three new sets of transgenic Populus clones have been developed; these clones express Round-up™ resistance , Bt-mediated (a natural insecticide) insect resistance, and male sterility. The "Round-up Ready" transgenic clones in Oregon continue to perform well in field tests. Ten new DNA markers were linked to quantitative trait loci in Populus. These new markers are associated with rooting ability, phenolic glucoside concentrations (associated with drought tolerance), and resistance to Melampsora, a fungal disease. New work includes a marker-aided selection experiment based solely on the presence or absence of the disease resistance marker.


Herbaceous Project Developments
Sandy McLaughlin

The objective of this task is to select and improve herbaceous biomass crops in an environmentally and sound manner that can be economically produced on a wide variety of sites. In screening trials, switchgrass (Panicum virgatum) was very productive on a wide range of sites with relatively low levels of fertilizers and pesticides, leading to its selection as a model species for the BFDP.

Nine switchgrass research projects were under way in 1997. Most were conducted by cooperators at the USDA or universities. The South Eastern and South Central states, where warm–season perennial grasses such as switchgrass typically attain their highest yields, were the prime focus. Additional breeding and management studies were conducted in the Upper Plains and Lake States. Accomplishments include identifying the best current switchgrass varieties for southern, middle, and upper latitudes in the United States; documenting both the genetic makeup and breeding requirements of over 100 available switchgrass varieties; and completing initial tests on new varieties selected through 3 years of successive breeding to improve yields. New understanding has been gained about the most effective management strategies to improve and sustain high yields, including both fertilization requirements and cutting frequency. Documentation of improvements in soil quality, notably increases in soil organic matter, are enhancing our understanding of the benefits of switchgrass cultivation for long–term improvement of soil fertility and carbon storage. In connection with efforts of a major chemical company, this research has also contributed to the development of a new herbicide that will aid in controlling weeds during the critical establishment phase of switchgrass cultivation. New techniques to produce hundreds of clonal switchgrass plantlets from a single parent plant through tissue culture have also been developed.

The herbaceous research has also contributed to planning efforts in the commercial bioenergy sector. Projects to produce electrical power in Iowa and ethanol in Tennessee are providing important opportunities to apply the results of the BFDP's switchgrass research to commercial–scale bioenergy production.


Analyzing the Present and Predicting the Future
Robin Graham

The Systems Integration and Analysis task provides timely tools and analysis to public, industrial, and government organizations interested in or engaged in biomass energy research and development. The task's objective is to understand the potential for energy crop production; the constraints to energy crop economic competitiveness; and to assess the extent to which social goals such as jobs, clean air and water, and national security can be satisfied with bioenergy crop production. This task is also responsible for identifying locations where energy crop development will be most advantageous economically. Work in this task incorporates and synthesizes results from all BFDP research and scale-up efforts.

In 1997, a major study was undertaken for DOE to evaluate how a bioethanol market might develop over the next 30 years. Two analysis tools – BIOCOST and ORECCL – were also released to the public. BIOCOST is a user-friendly Excel™-based program for evaluating the production costs of switchgrass and hybrid poplar. ORECCL is a national database that contains the current best estimates for switchgrass and hybrid poplar yields in the United States, county-level information on acreages of various types of land (cropland, pasture, Conservation Reserve Program) that might be available for energy crop production, and the likely costs of producing the crops.

An 11-state geographic information system for evaluating the spatial variability in the cost and environmental consequences of supplying feedstocks from energy crops to bioenergy facilities reached near-completion, as did a model (EPIC-ECOPHYS) for predicting hybrid poplar stand growth and environmental impacts. EPIC-ECOPHYS was developed for the BFDP by the U.S. Forest Service and the Minnesota Natural Resources Research Institute.

FacilitatingMarket Development
Mark Downing

The Market Development task focused on analyzing the potential of various marketing mechanisms for bioenergy crops and facilitating interactions between the many parties that must work together to make bioenergy projects succeed: policymakers, government agencies, entrepreneurs, financial institutions, industries, landowners, and farmers. Several DOE-supported projects involved the development of farmer-owned agricultural cooperatives. Each of the cooperatives under consideration will use a different bioenergy crop: willow in New York, hybrid poplar in Minnesota, switchgrass in Iowa, and alfalfa in Minnesota.

Agricultural marketing mechanisms for biomass crops could take different forms such as long–term contracts, short–term contracts, and sales through agricultural cooperatives. Profits and losses may hinge on the market sales mechanism chosen. As agricultural producers search for ways to reduce risk and maximize profit, the BFDP seeks to understand their concerns and help them explore the various options with inductries or utilities interested in purchasing energy crops.

In several circumstances where energy crops are beginning to be produced, farmers and electric utilities are signing long–term contracts. These contracts typically include the quantity and quality of biomass to be delivered, the timing and method of delivery, and the price to be paid. Many of these contracts include clauses that impose penalties to suppliers and users of the bioenergy feedstock who fail to carry out the terms of the contract.


Understanding the Environmental Issues
Virginia Tolbert

The Environmental Effects Research Task focuses on research to determine how the establishment, management, and harvest of woody and herbaceous crops can maximize environmental benefits for soil quality, water quality and biodiversity. Three studies in the Southeast are measuring erosion, runoff quality and quantity, chemical infiltration, and physical and chemical changes in soil associated with production of biomass crops. These field studies are also investigating how the environmental effects of biomass crop production change with crop maturity and canopy closure. Data from the three sites are being used in conjunction with a watershed-scale study established to identify management techniques to maximize the sustainability of biomass crop production. Results from the studies in the Southeast and from monitoring chemical movement at hybrid poplar sites in Minnesota will be used to model nutrient and hydrologic budgets for biomass crop plantings. In 1997, a larger watershed-scale study was established and instrumented in the Southeast. A biodiversity survey was completed and data analysis is in progress.

Surveys of breeding birds and small mammals in Minnesota have shown that hybrid poplar plantings provide habitat for a greater variety of species than row crops, though they are not used as extensively as natural forests. A study of sweetgum-sycamore plantings in the Southeast is evaluating how breeding birds use plantings of different acreages, species, ages, and landscape. The data will be compared to data from naturally regenerating forests that have the same characteristics. Habitation by breeding birds seem to be similar in the older plantings and natural forests.


USDA and DOE: Possibilities for Future Collaboration
Lynn Wright

Jim Craig of the USDA Agricultural Research Service (ARS) and the BFDP's Janet Cushman organized a session that focused on USDA's programs and capabilities. Presenters included Rodney Bothast, Robert Moreau, Richard Koegel, and Ken Vogel of the ARS; Howard Rosen and Jud Isebrands of the USDA Forest Service; David Burgdorf and Tom Kautze of the USDA Natural Resource Conservation Service and Bradley Karmen of the USDA Farm Service Agency. Daniel DeLa Torre Ugarte from the University of Tennessee described collaborative economic modeling efforts involving BFDP, University of Tennessee, and the USDA.

A meeting was also held to discuss mechanisms for establishing coordination between the BFDP and the various USDA agencies. Lynn Wright opened the session with an overview of BFDP's activities and planned directions. The ensuing discussions made it clear that DOE and USDA were not duplicating each other's efforts and that much of the USDA's feedstock effort is cost-shared through DOE interagency agreements. The group agreed on the importance of continued communication and coordination on biomass feedstock research and agreed to urge the reinitiation of the Memorandum of Understanding on bioenergy between DOE and USDA. In addition, participants discussed new areas for cooperation, such as co-products, environmental issues, harvesting equipment, and techniques.

To ensure ongoing communication after this initial meeting, individuals from the USDA agencies agreed to take responsibility for coordinating and establishing communication channels. Participants agreed that the greatest priority is to establish a dynamic process for communicating needs of the bioenergy program in sufficient specificity that action within USDA can be evaluated. Although some mechanisms were discussed, this is still an unsolved problem. One suggestion was to establish a program–level steering committee with responsibilities for assuring basic communication of issues. Establishing communication links to a broad range of the offices within USDA is a firm step towards future progress.


FYI

Each year, the National Association of State High School Associations selects a debate topic. This year, students will be arguing the merits of "Resolved: That the federal government should establish a policy to substantially increase renewable energy use in the United States." The BFDP has compiled a package of materials to respond to numerous requests. If you would like a copy, please send a request to the address on the last page of this newsletter.


Modeling – a Collaborative Effort
Marie Walsh

USDA and DOE have joined to modify POLYSYS, a modeling system, to include dedicated bioenergy crops. POLYSYS is a multiproduct, multisector, multiregion agricultural model developed and maintained by the University of Tennessee Agricultural Policy Analysis Center. The model is used for policy and economic analysis by the USDA Economic Research Service. Switchgrass, hybrid poplar, and willow will be added to this agricultural crop model. The BFDP's BIOCOST model and ORECCL database and USDA statistics will be used to provide energy crop data such as land suitable for production, expected yields, and expected production costs.

The modified POLYSYS model will be used to (1) estimate quantities of bioenergy crops produced under alternative energy/bioenergy crop price levels, (2) estimate changes in agricultural cropland use resulting from the introduction of bioenergy crops, (3) estimate the impact of agricultural and economic policy scenarios on the adoption of bioenergy crops, and (4) estimate the economic impact that introducing bioenergy crops will have on the agricultural sector. The model will also be used to examine the issue of competition between conventional and bioenergy crops and will address questions such as how many acres of cropland may be used to produce bioenergy crops, what prices will be needed to entice farmers to produce bioenergy crops, what impacts bioenergy crop production will have on the prices and quantities of conventional crops, and how different policies might affect the interaction of conventional and bioenergy crops. Preliminary results are expected by the end of calendar year 1997.