Biofuels not without risk speakers say The realities of wood-based biomass biofuel production, according to engineering consultant Jim Wimberly, can be summarized in a few terse words: There are no zero-risk options. His was one of the most direct of almost two dozen presentations in the two-day conference in Baton Rouge last month on the current state of the developing biofuel industry. Entitled "Wood Based Biofuels, Biomass & Bioenergy Opportunities and Challenges in Louisiana," coordinated by the Louisiana Forest Produicts Development Center, the conference explored what is going on, and what is possible in the present state of technology. About 80 representatives from the forest industry, industrial development community, and academia, attended. The lead speaker, Pete Stewart, president and CEO of Forest2Market, a consulting and research firm, set the early tone, stating that progress will be very slow for biofuels. Factors driving feasibility of biofuels begin with the price of fossil fuels--petroleum, natural gas, and coal--and include the cost of equipment, cost of obtaining biomass raw material. The market for wood pellets will drive U.S. production, mostly for European Union countries. The U.S., he said, is not yet ready to pay the premium price for "green energy" products, including wood pellets. Stewart said biofuel is still "a wild card," with technical challenges. Federal mandates suggest an output of 36 billion gallons annually, and currently the U.S. is at three billion. Liquid fuels from wood will likely never develop in a meaningful way, Stewart said, because of technical issues, and competition with a host of other feed stocks. Domestic biopower will develop slowly, as coal is phased out over 50 years, natural gas prices ebb and flow, and the U.S. becomes more energy efficient. Other presenters during the first day program: Ken Skog, USDA Forest Service Forest Products Laboratory, Madison, Wisconsin, on Status and outlook for wood based biomass and fuels in the U.S. South. The current potential harvest comes from some logging residue, and thinning for fire hazard removal. Economic feasibility of developing sources for biomass fuel depends on oil above $80 per barrel, Skog said. Dr. Les Groom, USDA Forest Service, research on utilization of Southern Forest Resources Unit, presented findings of the biomass conversion unit at the WInn Ranger District in Winn Parish, Louisiana. He presented statistics on energy output resulting from various feed stocks, including chips, and mixtures of various types of hardwood and pine. Jim Wimberly, president, BioEnergy Systems LLC, addressing Economic, Financial, and Engineering Realities of wood based bio facilities, summed up candidly that bioenergy will be an important piece of the future, and cautioned that "There is no silver bullet, no zero-risk options, and no substitute for doing your homework." Wimberly advised anyone considering going into biofuels production make sure of a long-term source of supply for feed stock, long term commitment for markets, and a profitable operating margin at least for the life of debt financing. "Be relentless in identifying the risks," he said, and "make some money." |