1. Energy Options for the Farm: An Overview How farmers can increase revenues with energy options.

2. Farms are much more efficient now than in the past. Direct energy consumption…  Electricity used for irrigation and lighting and HVAC for livestock  Fuel for machinery used in planting, harvesting, drying and transportation …down 30% since 1978.

3. Farms are much more efficient now than in the past. Indirect energy consumption…  Fertilizer and pesticide use down 38% since 1980.

4. Farms are much more efficient now than in the past. Direct energy consumption down 30% Advent of diesel-powered equipment on the farm since late 1970s More fuel efficient Diesel fuel traditionally less expensive Can handle needs of larger farms

5. Farms are much more efficient now than in the past. Indirect energy consumption down 38%  Fertilizer and pesticide use accounts for 29 percent of total farm energy input.  Energy inputs for fertilizers have decreased significantly since 1980. 11 percent for nitrogen fertilizers 27 percent for phosphorous fertilizers

6. New energy options Farmers can take advantage of a new harvest - energy from: Crops Residue Technology Wind and solar

7. Biodiesel Diesel engines designed to run on plant oil Relatively simple refining process removes esters and leaves fuel Uses on the farm include equipment and space heating Existing market for fuels up to B20 Emerging market for fuels up to B100 Infrastructure in place

8. Biodiesel Considerations –Fuel quality –Fuel temperature and gelling –Needs time, expense analysis farm-by-farm –Reduces most pollutants –Reduces CO 2 but not carbon-neutral –Positive energy balance –Taxed if used as on-road fuel

9. Biomass Most exciting new fuel potential High-yield refining process still in R&D –Will use any cellulose, include crop residue, wood fiber, etc. –Will require new techniques, shift in crops –Potential for 1 billion dry tons by 2050 Market and infrastructure already in place for use of wood and grasses in pellet fuels

10. Biomass Considerations –Changes in crops, tilling, land use, transport –Effect of removing residue from soil –Increased use of perennial crops –Changes in economics of producing distiller and feed grains –Process not ready for farm use –Probably not suitable for small coops or individual farms

11. Ethanol Best known, most controversial Latest research indicates positive energy balance, but not long-term success from corn Most success may come from grasses and short-term woody crops Infrastructure, market growing because of MTBE replacment Driver for other cellulose markets

12. Ethanol

13. Considerations –More than 20% of US crops in corn-ethanol production will adversely impact markets –Other cellulose fuel stocks may be more economical than corn –Trade offs for valuable land –Small grower tax incentives

14. Geothermal Ground-source heat pumps attractive in areas with wide temperature differences –Cold winters, hot summers increase feasibility –Constant underground temperature Economic feasibility –25% to 50% energy savings make ROI short Same closed-loop system heats & cools

15. Geothermal Closed-loop system delivering ground-source heat to a building

16. Geothermal Simultaneously heat & cool different parts of the same building Can be set up in multiple zones, with each zone having an individual room control Greater freedoms in building design due to 50- 80% less mechanical room space Pipes have 40+-year life expectancy All electric, which eliminates multiple utility services Ground heat exchanger is maintenance free and will last 40+ years

17. Biogas (Methane) Methane from livestock is a major challenge for dairy, swine, and other farms. Methane 20 times more powerful than CO 2 as a greenhouse gas Anaerobic digesters turn biogas (60- 70% methane) into fuel Biogas has 60% the BTUs of natural gas

18. Biogas (Methane) Considerations –Digesters reduce smell and ground- and surface-water contamination –Biogas is explosive and poses a safety hazard and cannot be economically liquified for storage or shipment –Digester lagoons must maintain temperature and systems must be monitored regularly –Systems are expensive

19. Solar Solar energy economical for remote power applications –Cost of power lines –Loss of arable land to power lines Systems of less than 1 kW –Stock watering –Irrigation –Ventilation

20. Solar Solar water heating –Relatively inexpensive Maintain temperature for anaerobic digesters Space heating Passive solar –Use of simple black-roof designs Hay drying Heating for livestock barns Utility incentive programs

21. Wind First consideration – Is there wind? –Minimum of 12 to 15 mph Two possibilities –Lease land to wind developer ($1500 - $2000 per year for @ large turbine) for 30 years –Put up your own turbine of 75kW or less Cost is the issue –$3000 per kW –10 kW system is about $50,000

22. Wind Considerations –Presence of wind –How will the power be used on the farm? –Cost-benefit –Turbines may be 100s of feet high –Local ordinances –Grid connection and net-metering –Local, utility, state, and/or federal incentives