There is so much going on as the production of materials shifts towards biobased platforms. There is renewed media interest in agriculture's role in feeding the developing world and macro-world pressures change the dynamics of a growing industry in ways that are increasingly difficult to predict. This is apparent in board room meetings across the globe as executives know that issues such as global warming have major ramifications on their economics and yet this is difficult to quantify at this time. This new global prominence of all things green and yet often misunderstood has an interesting cast of characters including those from other tech sectors. The players include Vinod Khosla, Richard Branson, and now Google, and it is not just bioproducts and cleantech but an increased global awareness.
Recent headlines put farming and Bill Gates together as having something in common which may be the first time this has ever happened. The reason is that Bill Gates is investing over $300 million in developing new agricultural opportunities in Africa. This builds on investments that have been made over the last year in crops such as new cassava varieties, as well as investing in cotton programs which probably will do very little to offer upward mobilization to the people. It is difficult to see how much of this is a global play for feedstocks for the emerging biofuels/biobased products industry and inexpensive labor, and how much is truly from a humanitarian will. Cassava for example is high in starch which makes it a great industrial product, but is low in protein and may not be the best choice for developing increased supplies of food.
This notwithstanding, the attention and focus is positive for a global view of feeding, clothing, fueling and providing biobased products for the world's population. There is also a strong argument to be made that any development is a start, and that the basic infrastructure built around new agribusiness coupled with new information technology set the stage for more comprehensive upward transition.
Another example of the global factors that are in play in this growing industry is the increasing awareness of factors such as sustainability, labor conditions, and carbon footprint in the production of biofuels and food. For example, The New York Times reported last week that countries including Australia, Britain, France, Germany, and the Netherlands have began examining subsidies and incentives for the biofuels industry to make sure that the social and environmental benefits are quantified in the development of the industry. This means showing that the emissions from biofuels are superior to their fossil fuel counterparts. In the future this will include knowing where the crops are grown, if they have been produced with sustainable techniques, and if new environmental technologies are being used in the processing of the biofuels . In other words, canola grown locally using the best management and agronomic processes which reduce the use of pesticides and fertilizers, would take preference over feedstocks that result from deforestation in South America.
I got a great email this week from Bio Economic Research Associates (bio-era) which released a short report titled: "The Global Bioeconomy in 2008: A Year of Living Dangerously?" which details nine trends to expect. They are as follows:
1. High oil prices will allow "headroom" for producers of bio-derived products.
2. Global agricultural commodity prices will remain strong.
3. Sustained pressure on biofuel profit margins will drive consolidation among producers in major markets.
4. Tensions over biofuels trade issues will continue to escalate.
5. Increasing attention to climate change will further increase global investment in clean technologies and biobased processes.
6. Brazil's bioeconomy will position for future opportunities.
7. Avian Influenza pandemic risk will persist.
8. Advances in genome engineering & design.
9. Growth in concern over increasing loss of biodiversity.
To get a copy of the full report see 'Related Link' below or contact: Stephen Aldrich, 617-876-2400.
Now finally, I received a great letter from Beth Pihlblad in response to my last editorial which discussed the farmer's role in the emerging bioeconomy. She is with an agricultural consulting company working with Ty and Jay Stukenholtz who have invented an amazing method of one pass harvesting of cobs and corn kernel to maximize the value of the corn crop. They are a great example of innovation coming from the farm.
Beth wrote, "The problems you spoke of haven't really changed, Ty and Jay are both ag engineers, graduates of the University of Nebraska. Not only are they engineers, they are entrepreneurs and active farmers. They have spent 11 years and invested a tremendous amount of money and sweat equity developing their harvesting technology, which can provide biomass without mining the land or utilizing extra fuel. The knowledge they have is amazing. The overall problem with the renewable fuels industry is that, like many other things, it has been built from the top-down. high-profile industry, government and academics created this, and now are looking to farmers, who they do in fact treat like uneducated hickory nuts, to solve their immediate problems. OEM's are creating very elaborate, expensive equipment for biomass at a very slow pace, but how does this help the average size farmer become part of the solution? The average size farm in Nebraska is about 900 acres, and these farms account for over 80% of farms in the state. How do these farmers get involved in the solution? With expensive equipment they can't really afford more expensive operators for biomass collection? These farmers are already stretched thin, good help is hard to find, and corn and soybeans are at a premium. Why collect biomass? Where is the incentive? These potential providers of "cheap feedstocks" are not going to mess with ag residues or energy crops unless they get a good price, have competitive markets for material to keep that price stable, and have collection equipment that is user-friendly and affordable." Well said Beth. There is a great article in Biomass Magazine about their work (See 'Click here for full story' below). I have seen the machine when I was in Iowa and they have done a great job! If you want to reach Beth her number is 515-480-4575.
Peter Nelson is with BioDimensions and can be reached at pnelson@biobased.org or on the web at www.biodimensions.net.