Agriculture and Renewable Fuels

Biofuels and renewable energy have been a hot-button topics in recent years. One need look no further than the recent launch of the USDA Biomass Crop Assistance Program (more on that later) to see that biofuels and renewable energy will continue to be a part of our country's efforts to reduce our dependence on foreign crude. Because production of renewable fuels is so closely tied to agriculture, the firm sponsored, and Joel and I attended, two different events in recent weeks: the Louisiana Natural Resources Symposium, sponsored by the LSU AgCenter, and the Mississippi State University Biofuels Conference. Both events were excellent, with interesting presentations and a good cross-section of participants from both industry and academia.

One thing made clear at both events was that successful participants in this emerging industry must leverage the renewable natural resources unique to their locations. Translation: renewable energy is local. The Midwest, for example, has done well to use its abundant corn crop to drive ethanol production. The Southwest is well-positioned geographically to take advantage of advances being made in solar technology. Both the Midwest and the Southwest can also take advantage of their climate in the production of wind energy. The South has an opportunity to leverage biomass, both as a feedstock for biofuel production as well as electricity generation.




Developing technologies in cellulosic ethanol have the opportunity to give southern farmers alternative cash crops, like switchgrass, sweet sorghum, or energy cane. Researchers are also improving processes that use wood products and other biomass to generate electricity or produce bio-oil, which can be further refined into commonly used fuels, meaning that the forestry industry stands to benefit as well.

Many of these technologies are on the cusp of commercialization, and the next five to ten years should see many technological breakthroughs. There is no reason that the South cannot be an active participant in this rapidly developing industry.