Miscanthus among perennial bioenergy crops in northern EU, has been promoted during last decade for heat and power production. After cultivating more than 12,000 hectares in UK, too low average yields (10-12 odt/ha per year) and high costs of delivered biomass (60-140 €/odt) are becoming major constraints suggesting that other options could be better suited in higher latitudes. We analyze main barriers for Miscanthus expansion and suggest alternative cheaper feedstock and approach.
Miscanthus, also known as elephant grass some times, is another specialized energy crop being grown in the UK. It grows to about 3 metres in height per annum and can produce very high yields with little by way of secondary inputs like pesticides or fertilizer. As a perennial it also sequesters more carbon to the soil than most annual crops. The UK government believes there is significant scope to expand the UK supply of biomass, without any detrimental effect on food supplies and in a sustainable manner, by sourcing an additional one million dry tonnes of wood per annum from currently unmanaged woodland in England alone, and from increasing the recovery of wood for energy from managed woodland and other sources of wood waste products across the UK. In addition, perennial energy crops produced in the UK have the potential to use up to a further 350,000 hectares across the country by 2020, bringing the total land availability for biofuel and energy crops to around a million hectares, equivalent to 17% of total UK arable land. Additionally, Miscanthus is one energy grass with really low ashes and chloride in the biomass and could be really well suited for power stations that admit many sources of biomass.
However, many governmental officers and researchers’ are realizing that UK national average yields for this C4 “warm” perennial grass is lower than 12 odt/ha (oven dried tons per ha) each year. They are giving average yields and performance in thousands of hectares accounting many years. It is clear that the potential yield of the species is high. It has been reported in several areas of the world to be more than 35 odt/ha.yr. Our internal reports have information from locations like Ohio, Arkansas, Illinois, Pisa (Italy), several tropical and subotropical countries (including Central America, Asian countries and Africa) and Australia and New Zealand too). The fact is that now many stakeholders and governmental agencies in UK are starting to admit that this warm grass requires warm climate, water availability and soil fertility. And this is a serious concern for some people in UK.
Our reports from several locations in European countries mention that the costs required for planting operations (rhizomes) range from 2000 up to 5000 € per one hecatre (operations included). We know about several cases in large scale projects with better results in North America, South America and Asia. A high yield is required to breakeven point if costs are high as in Europe, and this is particularly crucial if the plantation lifetime is lower than 10 years.
A recent (2013) study from Alexander and Moran (Scottish Agricultural College) showed that a broader mix of crops would be more suitable for UK conditions to reduce risks and increase acceptance by farmers.
Considering a high establishment cost with rhizomes and personnel planting propagation materials, most cost estimations rank 80-140 € per dried ton (on the truck, with equivalent to zero % moisture). That includes of course land leased, fertilizers, land preparation first year and successive operations as well as yearly harvesting costs. All those items divided an average yield of 12 odt/ha will result in too high cost for the industry. If confirmed, other “cheaper” (lower inputs and yields but lower production costs per ton) might be a more reliable alternative in large scale agriculture under the conditions in UK. In the news from FCC 300 tons are expected from 30 ha. That’s only 10 tons/ha, same amount several perennial grasses established from seeds produce with half of the cost (in €/t). Even other crops like Virginia fanpetals could offer lower delivered biomass costs.
Once we read news like the FCC harvest averages yields,we wonder if farmers and companies know about realistic yield expectations and lifespan of Miscanthus plantations considering UK experiences and current knowledge and research. We also wonder if the industry is aware about what they have to expect from this crop in Northern Europe or Northern US.
Plantation lifetime and realistic yields
The faact is that in cold environments a tropical grass (warm C4 photosynthetic methabolism pathway converting CO2 in glucose) will be not as efficient as in New Zealand, Argentina, Brazil or many other areas in Southern Europe. Most research plots in Italy (Pisa) or in irrigated conditions of the Mediterranean, have showed higher yields compared to those in UK and Poland. Even in Germany some plots give higher yields. Daylight period, radiation interception, leaf area index and biomass produced are all affected as we move to higher latitudes.
Several studies show that a plantation’s lifespan of 20 years with stable productivity is realistic but it is true that most experiences take information from experimental small plots at university sites and not in large scale projects on demonstrative programs or in large parcels. There is a curve and long term progress with decreasing yields from the 8 -10th year. But that performance will mostly depend on productivity and management as well as soil fertility. As farmers cut every year, yields may decrease from a certain point and rhizome reserves can be depleted determining different performance and yield. A more realistic perspective tohave is a productivity curve of about 10 years or even less in some regions considering long term experiences.
That facts are difficult to prove in commercial plots, since most long run data come from small plots with border effects and several environment/genotype interactions that condition results and reliable conclusions when expecting productivity in large scale investments. Moreover, some researchers also argue on the fact warm grasses in temperate climates like UK are not always the best alternative to produce stable low cost biomass at the farm. Is this fact conditioning farmers to establish new plantations in UK? Should we have much more than about 10,000 hectares in England? Should national average yields be much higher than 12 odt/ha per year during the lifespan in a crop that requires thousands of pounds to establish just one hectare?
Results confirm earlier research findings that converting from annual to perennial crops and from traditional crops or production systems to new ones are important barriers.
Some possible alternatives to consider
Temparate areas seem best suited for tall high yielding C3 species (in particular “cool grasses”). They have lower requirements and can reach similar yields compared to Miscanthus and Switchgrass (another C4 crop best suited in lower latitudes). Analyzing productivity of most bioenergy crops, most research studies show that willows, poplars, eucalyptus and many C3 grasses have yields ranging from 6 to 12 odt/ha per year. Why not planting the chepeast option?
Many perennials can be establish with very low cost from seeds and produce similar yields (10 tons or more per ha per year with typical costs from 35 to 60 €/odt are very feasible in UK). C3 grasses and hardy grasses like tall wheatgrass but even several reeds and phalaris arundinacea may produce good results some times. In particular Virginia fanpetals have been tried inPoland, Latvia and UK with better results compared to Miscanthus.
- Virginia fanpetals. This unique species, when harvested in the dry stage, has applications in the bioenergy, insulation and cellulose-paper industries.
Sencescence and natural drying is a key issue to obtain cheaper crops producing 10-14 odt/ha-yr with lower establishment costs and easy renovation every 15 years even in marginal areas. No rhizomes, no expensive planting material or even plough requirements may limit the expansion of those species. Some good publications about grasslands can be read in our previous post here.
Traditional forage techniques with adaptation for biomas production systems are feasible. Our experience with perennial energy grasses that can have pasture renovation, non tillage establishment and re-sowing after 10 years using some herbicides show us much lower costs and feasibility application with no rhizome planting or high inputs. Additionally, most machinery equipment is already there and available for most farmers at the time Policy reforms in Europe are making less profitable grassland management for grazing and livestock. There is enough evidence that many species could provide cheaper biomass under similar conditions.
In higher latitudes, Tall wheatgrass plantations are taking place and our group is leading several experiments including cooperation with groups in Argentina, United States, Hungary, Poland and highlands of Spain. Despite of the ability of this species to tolerate drought and be a hardy winter perennial grass adapted to saline and alcaline soils, when it is cultivated in wetter areas, its performance is much better. Tall wheatgrass may yield as much as 16 dried tons per hectare each year with two cuttings.
I agree that the right energy crop has to be chosen by region and soil type. However, after having establishing 18,000 acres of miscanthus in the US in 2012 alone, I can say that the cost of miscanthus establishment is well under US$1000. If yields approaching the yield in the mid US latitude region of 12 ton per acre (29 tons per hectare) can be achieved, miscanthus is the best choice.
I agree with the post. In north dakota, Polonia, Germany and many other countries, the crop physology is quite limited by climate. Additionaly in marginal areas, this is worse.
Are your plantations in US (18000 acres mentioned) in a welll suited area for corn? A war grass in cold climate like Canada does not see to be well suited as many grasses. 12000 hectares in UK are good evidence about it as well as several publications on Poland.
Aloterra has planted in Arkansas. As it shown in their website @ http://www.aloterraenergy.com/who_we_are.html
They achieved average yields of 12 tons / acre (about 30 tons / ha). Normal thing, as many companies have done in several similar areas.
The post is on cold climates and high latitude (and marginal regions with lower competitiveness).
Thanks for writing. Yes, we are focusing in this post in other regions. Examples on UK, Poland and northern areas of US and Canada. ALOTERRA ENERGY did a great job in Ohio and central corn belt (in general seem all of them good areas for food production).
Great work but the post was about the need to invest in a expensive crop in northern areas where yield is more limited and supply and productivity risks can be higher. We had similar costs in large scale projects with Miscanthus comparable to those of Aloterra (I don’t know if they are considering land leasing as we did here or many other opportunity costs that most economist would include in gross margins and farm production costs.
C4 species in colder areas are not so well suited as other crops. Cheaper biomass can be feasible if cold climate limit yields of a C4 grass…. Many other solutions we have are better options too (in those specific conditions). But some companies work on specific crops. That’s also normal but not always best options everywhere.
Miscanthus establishment in the US is now substantially lower than the $2000 per acre. With NEF CEEDS technology costs can be <$600 per acre via direct precision drilling. Miscanthus is a great option, but there are other grasses (and crops) to consider as well for more northerly areas, its is all about having multiple choices, one cultivar or species cannot be suitable for the whole of the US. Arundo donax is a good example, as proposed by Chemtex for NC, its more cold tolerant than people think and can grow up to Canada were it successfully overwinters.
Great Paul, thanks!.
Indeed, that’s our idea. In Europe, small plots and higher costs are now giving these results. NEF have reduced the costs in recent years and that’s simply great. In US and other large scale projects we see in Latin America, establishment costs and higher yields give lower costs too. But not in the cold UK. If you pay a lot for a plantation, then you better have huge yields. Otherwise, there will be a big risk for farmers!
Your cost of 600 $ per acre are like 1500 $ per hectare (equivalent). If you sum planting you are close to 2000 dollars anyway. I think your products (CEEDs) are an amazing solution that will make many farmers happy to plant.
I copy the text from the post
Our reports from several locations in European countries mention that the costs required for planting operations (rhizomes) range from 2000 up to 5000 € per one hectare (operations included). We know about several cases in large scale projects with better results in North America, South America and Asia. A high yield is required to breakeven point if costs are high as in Europe, and this is particularly crucial if the plantation lifetime is lower than 10 years.
Emiliano,
Just to clarify these are planted costs, so <$600 acre is with all planting costs. We will be showing this at the New Energy Farms open day on the 19th September if any farmers or end users want to come and see the system working and crops established crops. Link here for the open day http://newenergyfarms.com/site/news.html
Kind regards
Paul.
I was at a symposium in Illinois last year and the researchers on large scale fields with perfect stands are hitting 9-9.5 ton dm per acre. Perfect stands on perfect soils where next door growers are hitting 190 bushel corn averages. Imperfect stands, on marginal land, with low rainfall will not produce more. I also visited a farm in Canada in 2010 that had planted a few hundred acres of miscanthus that told me that he was yielding 8.25 tons dm in a early winter harvest and 7.5 ton dm per acre in the early spring. This again was what I was told though every field I saw was perfect and grown on land that is some of the best in all of Canada. Try this on marginal land and I bet the yields would not be too far off of that in this article.
I left quite skeptical and felt he was not telling me everything. I ate in a restaurant the next day and talked with a few farmers from the community and they thought these fields were established with plug plants not roots like I was told. I am from the USA and have visited a few of the Aloterra and MFA sites and from what I understand it was planted in 2012 and replanted in 2013 (same fields) with still not the best results all funded from grants.
Who is telling the truth? I think the truth lies in places that make it hard for economics to exist.
I read of companies that claim 25 ton dm per acre yields per yr to establishment costs of less than 1000$ per acre (call any company and ask that you want to establish 200 acres and you will see the actual cost of establishment- and what assurance does one have of the stand, does it have to be planted more than once). the truth will come out over time. I applaud this article in that much of what is said is true and unfortunately the hard facts. The industry needs real options and solutions.
Without policy or government grants it will be difficult today to see this be a real option. Look in North America and UK and I am sure it would be hard to find any crops planted without grant money. If i am incorrect please correct me. When I studied this over the past few years all the companies start with a alternative green energy option and quickly go to other end uses and bio products that are just one off samples that never make true market penetration. I think in the Uk the only real success story is bedding. If I open the book from the UK in the early 2000’s it is exactly what is going on here in North America a decade later. Companies living off of grants and then have to change direction to keep the grant money flowing.
Sorry for being so harsh but lets get to the truth.
My advise is to get around an see the it for yourself and if you have any common sense you will find the truth quickly. At the end of the day the grower or land owner will be left with the what the truth actually is.
My colleague sent me a link to this string this evening and if I could I would like to respond.
I would like to respond to the above comment “Getting to the Truth”. First off your honesty is refreshing!! And I would agree this article and some of your comments are quite accurate and a breath of fresh air.
Time will heal many of the issues and looking back actually not that far in the past 100’s of millions of dollars have been spent and groups have come and gone. It is a small fragile industry.
I believe I am the Canadian you speak of in your comment. Our crops have matured further since 2010 and some of them are 5 yrs old and at peak yield. I would say we have some of the oldest commercial scale crops in North America. We now harvest mostly in the early spring before the new shoots come up and average 20-24 dm tonne per ha. Yes you are correct with the land, it is very high quality and above average. We also farm in Georgia and actually harvest less there per ha than we do here in Canada. Much has to do with the soil types and MxG flowering too early, though our intention was to grow high quality plant material not biomass.
Yes we did plant many fields of the 100’s of acres planted with plug plants (Actually plugs derived from plant material that was the beginning of our CEEDS discovery) , but also rhizomes. Rhizomes are a great option done correctly, unfortunately many feel they have to make the same mistakes as groups before them. You are very right having a good stand makes a very big difference. Modern day agriculture’s success relies on good crop stands that are delivered by strong genetics and technology, why should this industry be any different.
What has sustained us over the years has been that we started with the end use and worked backwards. Though you highlighted the evolution of biomass and sadly your are very correct. We started with Energy (nat gas was at 14$ a GJ- now today 4.50$) and worked toward the very illusive bio-products. I want to tell you though after 6 yrs we are getting there. Strong IP from leading academics gave us our breakthrough, and the tenacity to never give up got us here.
I was at a conference in Germany in 2007 and saw displays of many things made from miscanthus- Paper, packing material, plastics, pellets, pulp moulded products, wood replacement composites,….etc(all products that replace a very efficient and competitive wood industry), all samples of ideas that never to this day made it to store shelves at scale. And 5 yrs before this I was told there were the same products in UK trade shows. Well you can see them now today in North American business plans.
One highlight is today we see more real companies with real need for biomass. If we focus on proven technologies like biogas and feed (livestock-protein) the demand is larger than ever. The companies that are left standing in the cellulose revolution are real and demonstrating this at scale. I am more optimistic than ever.
As to the various personalities in this industry, all industries have them. I agree there is a bit of a divide between yield claims and reality, but again time will deal with this. I too find it frustrating at times and it really does take away from the companies that are providing the correct information and trying to build a real business.
Only 20 acres of our fields in the USA and Canada were established under early grants, all the rest were with our own resources. I would agree most of the crops in NA and UK have been established with grant support. Though in such a fragile industry policies like this are needed to break the chicken and egg syndrome. Grant support if not abused can accelerate an industry and create confidence in the financial community to fund projects. Unfortunately many of these resources are spent without much accountability.
Your advise to go see things for yourself and with a dash of common sense you will see the reality, is spot on. My partner Dr. Carver in the above comment gave a link to our open day. If you can make it to the event you will see significant advancements in crops and cropping systems, conversion, and new technologies. Since 2010 there has been significant advancements to our company and the people we work with.
And please call us for a 200 acre quote, I think you will see a change here also.
I would like to thank BioEnergy Crops for this article and the others bringing some “truth” to the industry.
Great site!!!
Kind Regards,
Dean Tiessen