Beyond Biofuels: Renewable Energy Opportunities for US Farmers Speakers: Arne Jungjohann, Heinrich Böll Foundation Amanda Chiu, Worldwatch / Energetics Hilary Flynn, Meister Consultants Wilson Hambrick, Meister Consultants Moderator: Ernie Shea, 25 x 25 Heinrich Böll Foundation North America 1638 R Street, NW, Suite 120 Washington, DC 20009, USA www.hbfus.org July 27, 2010
Part 1: How German Farmers Harvest the Fields, the Wind and the Sun
Why is Germany moving aggressively towards renewable energies? 1. Fighting climate change 2. Global markets for green technologies 3. New and well-paying jobs 4. Energy security (e.g. Russian natural gas)
Share in [%] Germany renewables across all sectors Share of renewable energy sources in total final energy consumption in Germany 2008/2009 18.0 16.0 14.0 0.7 1.1 Hydropower Biomass Solar thermal energy Biogenic fuels Wind energy Photovoltaics Geothermal energy 12.0 4.5 5.2 10.0 8.0 6.0 6.6 6.5 0.3 0.3 0.4 0.4 4.0 2.0 3.3 3.3 6.8 7.7 5.9 5.5 0.0 2008 (15.2 %) 2009 (16.1 %) 2008 (7.4 %) 2009 (8.4 %) 2008 (5.9 %) 2009 (5.5 %) Electricity * Heat ** Biogenic fuels * Biomass: solid, liquid, gaseous biomass, biogenic share of waste, landfill and sewage gas; ** Biomass: solid, liquid; gaseous biomass, biogenic share of waste; Deviations in the totals are due to rounding; Source: BMU-KI III 1 according to Working Group on Renewable Energies-Statistics (AGEE-Stat); Image: BMU / Dieter Böhme; all figures provisional
2 52 52 258 310 516 825 1,032 1,341 5,674 8,253 10,833 18,570 29,310 33,677 27,806 25,972 2,579 3,611 [GWh] 4,194 7,426 4,694 8,066 Germany renewables for transport Contribution of renewable energy sources to fuel supply in Germany 1991-2009 50,000 45,000 40,000 35,000 Bioethanol Vegetable oil Biodiesel 3,540 3,412 6,748 1,045 30,000 25,000 1,674 2,047 20,000 15,000 10,000 292 481 345 5,000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Vegetable oil as a part of biogenic fuels used since 1992, Bioethanol since 2004; Source: BMU-KI III 1 according to Working Group on Renewable Energies-Statistics (AGEE-Stat); Image: BMU / Dieter Böhme; all figures provisional
[GWh] Germany renewables for heating Contribution of renewable energy sources to heat supply in Germany 1997-2009 120,000 Biomass * Solar thermal energy Geothermal energy 100,000 80,000 60,000 40,000 Biomass share of RES - heat: 91 % 20,000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 * Solid, liquid, gaseous biomass, biogenic share of waste, landfill and sewage gas; Source: BMU-KI III 1 according to Working Group on Renewable Energies-Statistics (AGEE-Stat); Image: BMU / Brigitte Hiss; all figures provisional
Electricity generation [GWh] Germany: Development renewable of electricity electricity generation from renewable energy sources in Germany 1990-2009 Feed-in tariffs drive wind, biomass, solar 120,000 100,000 80,000 Hydropower Biomass * Wind energy Photovoltaics EEG: April 2000 EEG: August 2004 EEG: January 2009 60,000 Amendment to BauGB: November 1997 40,000 StrEG: January 1991 - March 2000 20,000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 * Solid, liquid, gaseous biomass, biogenic share of waste, landfill and sewage gas; Electricity from geothermal energy is not presented due to the negligible quantities of electricity produced; StrEG: Act on the Sale of Electricity to the Grid; BauGB: Construction Code; EEG: Renewable Energy Sources Act; Source: BMU-KI III 1 according to Working Group on Renewable Energies-Statistics (AGEE-Stat); Image: BMU / Christoph Edelhoff; all figures provisional
Germany: renewable electricity Structure of electricity supply from renewable energy sources in Germany 2009 Total: 93.5 TWh Hydropower 20.3 % Wind energy 40.4 % Biogenic share of waste 5.3 % Landfill gas 1.0 % Sewage gas 1.1 % Biogas 10.7 % Biogenic liquid fuels 1.6 % Biogenic solid fuels 12.9 % Photovoltaics 6.6 % Share of biomass*: approx. 33 % * Solid, liquid, gaseous biomass, biogenic share of waste, landfill and sewage gas; Deviations in the totals are due to rounding; Source: BMU-KI III 1 according to Working Group on Renewable Energies-Statistics (AGEE-Stat); all figures provisional
Total turnover from renewable energy sources in Germany 2009 (investments and operation) Renewable energies = good business Hydropower; EUR 1,420 million; 4.3 % Biomass; EUR 11,400 million; 34.2 % Wind energy; EUR 5,650 million; 16.9 % Geothermal energy 2) ; EUR 1,003 million; 3.0 % Turnovers: - Investments: approx. EUR 17.7 billion - Operation: approx. EUR 15.7 billion total: approx. EUR 33.4 billion Solar energy 1) ; EUR 13,900 million; 41.6 % 1) Photovoltaics and solar thermal energy; 2) Large plants and heat pumps; Deviations in the totals are due to rounding; Source: BMU-KI III 1 according to the Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW); all figures provisional
Renewable energies = new jobs Jobs in the renewable energy sector in Germany 2004, 2008 und 2009 Wind energy 63,900 87,100 85,100 109,000 Biomass 56,800 95,800 Solar energy 25,100 74,400 79,600 Hydropower Geothermal energy Public / non-profit - sector jobs 9,000 9,300 9,500 9,300 9,100 1,800 6,500 4,300 3,400 Increase: approx. 87 % 160,500 employments 278,000 employments 300,500 employments 2004 2008 2009 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 Figures for 2008 and 2009 are provisional estimate; Source: BMU-KI III Projekt "Gross employment from renewable energy in Germany in the year 2009, a first estimate"; Image: BMU / Christoph Busse / transit
Farms & renewables: Photovoltaic German farmers install each year 200-250 MW of PV (US: 207MW in 2007)
Farms & renewables: Wind more than 20,000 windmills (2009) Early driven by farmers in the 1990ies Windy northern Länder with strongest growth Schleswig-Holstein: 40% RE today, 100% by 2020 Community-owned windfarms (45% of market by 2005)
Installed Capacity (MW) Farms & renewables: Biogas 1,800 1,600 1,597 1,400 1,271 1,377 1,200 1,100 1,000 800 650 600 400 200 50 65 182 256 333 390 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year Sources: German Biogas Association 2010
Farms & renewables: Biogas 5,000 installations in 2010 Small (<190 kw) and large Power 3.8 mio households Germany is leading the EU in biogas production Biogas as complimentary energy to wind and pv Source: German Biomass Research Center 2009
Conclusion Part 1: What are the drivers for German farmers to invest in renewable energies?
Driver #1: comprehensive climate and energy policy with ambitious targets - > targets for 2020: 40% less GHG emissions (270 Mio. Tons) 30% share of renewable energy in electricity 14% share of renewable energy in heating (EU energy package: 20-20-20 by 2020) -> Policies: carbon taxes in 1999 feed-in tariffs in 2000 Cap & trade in 2005 etc.
Driver #2: pro-active German Farm Bureau and renewable energy industry Deutscher Bauernverband (DBV) is lobbying for ambitious renewable energy policies DBV is recognizing climate change as a threat renewable energy industry is well-organized (e.g. German Biogas Association in 1992) and collaborating
Driver #3: Social catalysts in Germany Machinery syndicates (>250) work as rural cooperatives and advise farmers, aggregate orders, and organize installations & maintenance. Banks: solid calculation by farmers, safe (=good) business for the banks.
Driver #4: Rural Communities striving for 100% renewables Regional economic development: farmers, planners, craftsmen Jühnde was the 1st village to be energy independent in power and heat (biogas for CHP, additional wood chips in winter) www.100-ee-kongress.de by Federation of German Municipalities (DStGB)
Summary: German farmers are becoming energy entrepreneurs, because 1. A comprehensive national climate and energy strategy, including a feed-in tariff (FIT) for investment certainty 2. Pro-active farm bureau and renewable energy industry lobby (German Biogas Association: 1992) 3. Social catalysts like banks and machinery syndicates 4. Communities striving for 100% RE regions
Part 2: How US Farmers Can Profit From Wind, Biomass, and Solar
The Role of Renewable Energy in the Nation s Energy Supply, 2008 Source: U.S. EIA.
Renewables on American Farms Situation: Ethanol is the biggest renewable energy success story in the US, with wind, solar, biogas and biodiesel resources being underutilized. Challenge: American farmers could reap benefits of the same level as their German counterparts, if the right political and social support mechanisms were in place and barriers removed.
Wind & Solar Power In 2009, farmers & local landowners owned 638 MW (1.8%) of total installed wind capacity. Farmers more likely to lease land to wind farms than own turbines themselves: lost revenue opportunity. Policies: RPS, PTC boom-bust cycles. No estimates of PV on farms, but ~200 MW were installed in the U.S. in 2007. German farmers alone install the same amount annually.
Biomass DOE/USDA determined that the U.S. has the capability of supplying 1 billion dry tons of biomass from farms by 2030. Biomass was 4% of total US energy consumption (2008). At 6%, bioenergy could generate $20 billion in new income for farmers. Source: NREL.
Biomass for Transportation Ethanol U.S. is the largest producer of ethanol in the world, with 53% in 2008. 6.7 billion gallons consumed in 2007 ~5% of non-diesel motor fuel (2007) Biodiesel U.S is the 3rd largest producer of biodiesel in the world, following Germany and France in 2008. 0.358 billion gallons consumed in 2007 ~0.7% of total diesel fuel (2007)
Biomass for Electricity and Heat Biomass share of net renewable electricity generation: 13.1% Biomass share of net electricity generation: 1.37% (2009) Recent study: electricity from biomass is a more efficient transportation fuel than ethanol (Campbell et al, 2009). Little data on bioheat, but thermal uses of biomass could reduce GHG emissions earlier than through electricity generation.
Biogas In comparison, 5,000 anaerobic digesters in Germany.
Part 3: Differences Between Germany and the United States
Germany Driver #1: Comprehensive climate and energy policy with ambitious targets However, in the US, energy policies are often developed at a state level. 29 States + DC have an RPS. Growing interests in FiTs at state and municipal level. Lack of targets on federal level (except biofuels) Federal policies lack continuity and differ greatly between administrations.
Germany Driver #2: A pro-active German Farm Bureau and renewable energy industry In the US, major farm lobbies have traditionally been skeptical of climate change. Some US farm lobbies not convinced that climate legislation is affordable. However, there are differing views among major farm lobbies. Lack of cohesion among renewable energy associations Growing support for a RES, especially with a broad definition of biomass.
Germany Driver #3: Social catalysts in Germany US biofuels industry is strongly supported from crop-specific political organizations US banks are generally geared towards a few, large-scaled projects.
Germany Driver #4: Rural Communities striving for 100% renewables Community owned projects only account for 2% of total wind capacity in the US Rural electric cooperatives in the US, though they traditionally generate electricity from coal sources, are slowly gaining an interest in power from renewable sources..
Part 4: Concluding Remarks and Recommendations
Recommendations US Farmers and their representatives should advocate for state renewable energy policies (specifically feed-in tariffs) US agriculture lobbies should support a comprehensive national climate and energy strategy. Rural communities should develop strong stakeholder networks. The US should diversify feedstocks used for biofuels.
Suggestions for further research and action Raise awareness of farmers and rural communities with an outreach campaign. Increase farmer-to-farmer exchanges. Develop a biogas roadmap for the US. Create sustainability criteria for biomass in power, heat, and transport. Support research on policy options. Evaluate the benefits of renewable energy, distributed generation and energy independence with quantitative analysis.
Thank you!