Identifying agricultural sites for biomass energy production in Minnesota

This research examines the potential of producing hybrid poplar on location specific marginal agricultural lands in Minnesota. It is assumed that all poplar production would be used to meet biomass energy requirements for two potential 100 MW power plants located in Alexandria and Granite Falls, Minnesota. The delivered fuelwood costs for each power plant are calculated using a cost minimization model. In addition to traditional production and harvesting costs, the model also incorporates landowners opportunity cost of fuelwood production as well as the actual transportation costs associated with supply from each individual analysis area to each power plant. The inclusion of any analysis area as a potential fuelwood supplier is greatly dependent on the interaction and combination of variables such as the opportunity cost, yield rates, and the distance from the power plants. The results show that approximately 40×103 hectares of land capable of producing about 3.2×10[6] dry Mg of wood would be required to fuel each power plant for a 10 year planning period. The average present value costs of delivered (to the plant gate) fuelwood is about $32 dry Mg−1 for Alexandria and $37 dry Mg−1 for Granite Falls.