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This report provides a status of the markets and technology development involved in growing a domestic bioenergy economy as it existed at the end of calendar year 2013. It compiles and integrates information to provide a snapshot of the current state and historical trends influencing the development of bioenergy markets. This information is intended for policy-makers as well as technology developers and investors tracking bioenergy developments. It also highlights some of the key energy and regulatory drivers of bioenergy markets.

There is an inextricable link between energy production and food/feed/fiber cultivation with available water resources. Currently in the United States, agriculture represents the largest sector of consumptivewater usemaking up 80.7%of the total. Electricity generation in the U.S. is projected to increase by 24 % in the next two decades and globally, the production of liquid transportation fuels are forecasted to triple over the next 25-years, having significant impacts on the import/export market and global economies.

Quantifying lignin and carbohydrate composition of corn (Zea mays L.) is important to support the emerging cellulosic biofuels industry. Therefore, field studies with 0 or 100 % stover removal were established in Alabama and South Carolina as part of the Sun Grant Regional Partnership Corn Stover Project. In Alabama, cereal rye (Secale cereale L.) was also included as an additional experimental factor, serving as a winter cover crop.

Many questions have surfaced regarding short-and long-term impacts of corn (Zea mays L.) residue removal for use in the biofuels industry. To address these concerns, a field study was established in eastern South Dakota in 2000 using no-till soil management within a 2-yr corn/soybean [Glycine max (L.) Merr.] rotation.

The use of corn for ethanol production in the United States quintupled between 2001 and 2009, generating concerns that this could lead to the conversion of forests and grasslands around the blobe, known as indirect land-use change (iLUC). Estimates of iLUC and related "food versus fuel" concerns rest on the assumption that the corn used for ethanol production in the United States would come primarily from displacing corn exports and land previously used for other crops.

A methodology was developed to estimate quantities of crop residues that can be removed while maintaining rain or wind erosion at less than or equal to the tolerable soil-loss level. Six corn and wheat rotations in the 10 largest corn-producing states were analyzed. Residue removal rates for each rotation were evaluated for conventional, mulch/reduced, and no-till field operations.

This model was developed at Idaho National Laboratory and focuses on crop production. This model is an agricultural cultivation and production model, but can be used to estimate biomass crop yields.

Increasing demand for crop-based biofuels, in addition to other human drivers of land use, induces direct and indirect land use changes (LUC). Our system dynamics tool is intended to complement existing LUC modeling approaches and to improve the understanding of global LUC drivers and dynamics by allowing examination of global LUC under diverse scenarios and varying model assumptions. We report on a small subset of such analyses.

Biofuels are presented in rich countries as a solution to two crises: the climate crisis and the oil crisis. But they may not be a solution to either, and instead are contributing to a third: the current food crisis.

Crop intensification is often thought to increase greenhouse gas (GHG) emissions, but studies in which crop management is optimized to exploit crop yield potential are rare. We conducted a field study in eastern Nebraska, USA to quantify GHG emissions, changes in soil organic carbon (SOC) and the net global warming potential (GWP) in four irrigated systems: continuous maize with recommended best management practices (CC-rec) or intensive management (CC-int) and maize–soybean rotation with recommended (CS-rec) or intensive management (CS-int).

Ethanol use in the U.S. rose sharply in recent years due to public policy and a spike in petroleum prices, and remains high. Public support for ethanol includes mandated minimum levels of use nationwide. However, rather little is known about consumer demand for ethanol and much less about demand by type of blend and ethanol source. We used trial survey data and conjoint analysis to overcome the lack of historical data on consumers’ preferences for ethanol blend fuels.

This paper examines the possibilities of breaking into the cellulosic ethanol market in south Louisiana via strategic feedstock choices and the leveraging of the area’s competitive advantages. A small plant strategy is devised whereby the first-mover problem might be solved, and several scenarios are tested using Net Present Value analysis.

This paper examines the impact of biofuel expansion on grain utilization and distribution at the state and cropping district level as most of grain producers and handlers are directly influenced by the local changes. We conducted a survey to understand the utilization and flows of corn, ethanol and its co-products, such as dried distillers grains (DDG) in Iowa. Results suggest that the rapidly expanding ethanol industry has a significant impact on corn utilization in Iowa.

USDA Agricultural Projections for 2011-20, released in February 2011, provide longrun projections for the farm sector for the next 10 years. These annual projections cover agricultural commodities, agricultural trade, and aggregate indicators of the sector, such as farm income and food prices.

Important assumptions for the projections include:

PEATSim (Partial Equilibrium Agricultural Trade Simulation) is a dynamic, partial equilibrium, mathematical-based model that enables users to reach analytical solutions to problems, given a set of parameters, data, and initial
conditions. This theoretical tool developed by ERS incorporates a wide range of domestic and border policies that enables it to estimate the market and trade effects of policy changes on agricultural markets. PEATSim captures

Agricultural markets often feature significant transport costs and spatially distributed production and processing which causes spatial imperfect competition. Spatial economics considers the firms’ decisions regarding location and spatial price strategy separately, usually on the demand side, and under restrictive assumptions. Therefore, alternative approaches are needed to explain, e.g., the location of new ethanol plants in the U.S. at peripheral as well as at central locations and the observation of different spatial price strategies in the market.

This paper introduces a spatial bioeconomic model for study of potential cellulosic biomass supply at regional scale. By modeling the profitability of alternative crop production practices, it captures the opportunity cost of replacing current crops by cellulosic biomass crops. The model draws upon biophysical crop input-output coefficients, price and cost data, and spatial transportation costs in the context of profit maximization theory. Yields are simulated using temperature, precipitation and soil quality data with various commercial crops and potential new cellulosic biomass crops.