The mission of the agro division of GenX is the identification and evaluation of opportunities to involve regional growers, processors and other entrepreneurs in biofuel production.
This mission includes analyzing the potential role of a new crop and justifying further development. Several factors require evaluation, including the unique attributes of crop varieties, optimum growing conditions and economic returns. These factors must be investigated on test plots and production equipment.
To this end, the agro division of GenX has identified two potential agricultural commodities, Camelina and Canola, that could be grown and harvested as biodiesel feed stocks in Northeast Pennsylvania. All of our edible oil crops are used in the food industry first, then we recycle this oil to a clean burning biodiesel.
Canola-based biodiesel: Opportunity for a Made in Pennsylvania Crop
More than 40 years ago, Canadians seized the opportunity to build a new industry with the development of canola. Today, canola contributes over $11 billion to Canada's economy. A window of opportunity exists for the development of a US domestic biodiesel industry with the potential to stabilize acreage and improve the net return from growing canola by providing an important market to the United States food industry and raw seed export markets. But we need to act now before investments are made outside of Pennsylvania in production facilities that will use Pennsylvania or United States grown canola to supply biodiesel for local and export use.
What is Biodiesel?
Biodiesel is produced from oilseeds like canola by a process called transesterification. Canola seed is crushed and the oil is reacted with an alcohol to produce biodiesel. Two valuable co-products are also produced; a high protein meal for livestock from the crushing operation, and glycerin, which can be used in pharmaceutical, cosmetics and food processing industries from the reaction that produces the biodiesel.
Why Biodiesel?
Biodiesel is a proven, renewable and clean-burning fuel source that is supplying an increasing amount of energy in the EU and US. In fact, biodiesel is the fastest growing alternative fuel in the USA. As suppliers of the feedstock and major users of fuel on farm, canola growers are uniquely positioned to benefit from this emerging industry.
Why Canola-based biodiesel?
Canola is the preferred feedstock for biodiesel because of its quality standards and unique characteristics including high oil content (more oil is available per unit seed); low levels of saturated fats (low levels mean improved performance in cold climates) and low iodine values that lead to fewer engine deposits. In fact, the EU is currently importing American canola oil for use in its biodiesel production facilities, and US biodiesel production plants are being built that will source Pennsylvania and United States grown canola for local as well as possible export use.
Do we have enough canola to support this emerging industry?
By 2015, canola production in America is expected to exceed 14 million tonnes; enough to supply growing food use and raw seed export markets, as well as over 1.3 billion liters of canola oil for biodiesel production. These increases in production will come from continued technological advances in higher yielding varieties with improved oil content, and from expanding acreage into non-traditional areas as a result of better-adapted varieties. Biodiesel is a proven, renewable and clean-burning fuel source that is supplying an increasing amount of energy in the EU and US. In fact, biodiesel is the fastest growing alternative fuel in the US. As suppliers of the feedstock and major users of fuel on farm, canola growers are uniquely positioned to benefit from this emerging industry.
How will a domestic biodiesel industry help growers?
Every $100 million in additional demand for canola generates $83 million in USD, $5.2 million in tax revenue and 730 jobs in value-added industries. In addition to the impact on grower income, the co-products of meal and glycerin would provide additional opportunities for value added processing. As biodiesel production facilities tend to locate close to the source of the feedstock, the majority of the investment and resulting benefits would be in Northeastern Pennsylvania.
What is needed?
The United States government has played a central role in supporting emerging industries to ensure opportunities remain in the country and contribute to our standard of living and quality of life. A sustainable domestic biodiesel industry requires government action to ensure Americans participate in the value-added processing associated with biodiesel rather than simply supplying the raw products. It creates a natural full circle cycle from farms to fuel.
For the potential of the industry to be realized we need:
A renewable fuels strategy for transportation fuels including diesel to ensure demand. Given the time lag required to bring oilseed crushing and biodiesel production facilities online, careful consideration should be given to a phased in mandate. For example, an initial mandated 2% biodiesel inclusion level in 2010, rising to a 5% inclusion level by 2012, and to 10% by 2015 would provide a strong investment signal. reguardless we as Americans can create the soulution, We need to place our investments back into building up the manufacturing industry with in our country, taking every advantage in recycled and renewable fuels and energy.
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