Farm-level feasibility of bioenergy depends on variations across multiple sectors

The potential supply of bioenergy from farm-grown biomass is uncertain due to several poorly understood or volatile factors, including land availability, yield variability, and energy prices. Although biomass production for liquid fuel has received more attention, here we present a case study of biomass production for renewable heat and power in the state of Wisconsin (US), where heating constitutes at least 30% of total energy demand. Using three bioenergy systems (50 kW, 8.8 MW and 50 MW) and Wisconsin farm-level data, we determined the net farm income effect of producing switchgrass (Panicum virgatum) as a feedstock, either for on-farm use (50 kW system) or for sale to an off-farm energy system operator (8.8 and 50 MW systems). In southern counties, where switchgrass yields approach 10 Mg ha−1 yr−1, the main determinants of economic feasibility were the available land area per farm, the ability to utilize bioheat, and opportunity cost assumptions. Switchgrass yield temporal variability was less important. For the state median farm size and switchgrass yield, at least 25% (50 kW system) or 50% (8.8 MW system) bioheat utilization was required to economically offset propane or natural gas heat, respectively, and purchased electricity. Offsetting electricity only (50 MW system) did not generate enough revenue to meet switchgrass production expenses. Although the opportunity cost of small-scale (50 kW) on-farm bioenergy generation was higher, it also held greater opportunity for increasing farm net income, especially by replacing propane-based heat. (letter)