Georgia County Government - December 2008 - (Page 31)

ExtensionNews Biofuels or Bust Is There Money in That Cornfield? By Faith Peppers, University of Georgia O ver the past decades, Georgia counties have seen an inf lux of investors looking to develop new industries. From filmmaking to automobile factories, opportunities abound in many fields. But one of the biggest has been biofuels and the state’s biomass abundance. “We are currently working with local development authorities and other community groups on local projects,” said John McKissick, an agricultural economist with University of Georgia Cooperative Extension. “Most seem to be disappointed that our work doesn’t justify their projects.” McKissick directs the UGA Center for A g r ibu si ne s s a nd E c onom ic Development (CAED). It’s his duty to help communities make wise decisions when considering these new investment opportunities. “Local officials have an unbiased, research-based unit that they can come to find the answer to such questions when approached by investors in search of taxpayers’ money to invest,” he said. “CAED was created for just that purpose.” A unit of t he UGA Col lege of Ag r ic u lt u r a l a nd Env i ron ment a l Sciences (CAES), CAED combines the College’s missions of research and extension. It provides feasibility and marketing services, agricultural and demographic data for private and public decision makers and analysis related to policy issues in Georgia agriculture. The need for alternative fuel sources in the Unites States is a given. But where to get that fuel and the best economic approach for it in Georgia isn’t so clear cut. The CAED has conducted research on Georgia’s bioenerg y production since 2000. “Our work has always suggested that we are not going to be major supplier of transportation biofuels any time soon, or at least not until such time that cellulosic ethanol really becomes feasible,” McKissick explained. “Producing food from land is still the most economical use of a scarce land base. In other words, we aren’t likely to see dedicated energy crops in Georgia soon.” Converting food and fiber production by-products like animal fats, used vegetable oil and waste from tree harvest into fuel is where the state should first look, he said. These products are a proven economical source for it right now. For example, Oglethorpe Power and other power companies have explored alternative fuel sources like poultry litter and fat, he said. “Oglethorpe Power recently announced two new plants to use wood to burn for electricity. They could likely use other crop by-products, as well.” With technology at work, processing and producing biofuels can be done by relatively few people. But alternative fuel industries, especially those related to bio-energy production, do help create jobs. Not only are jobs created by a new processing facility, but additional jobs are created to support the industry. Bioenergy projects require feedstock for production. Most of the new jobs are related to producing the feedstock. This influx of new jobs and the economic advantages job creation brings to a community are often what makes a proposed bio-energy project attractive to local officials. One of the biggest hurdles for the alternative fuel industry is government policy. Plus, converting dedicated food production to fuel production has economic realities for consumers at the grocery store. “The current corn ethanol subsidies and policy – which includes escalating mandates – most certainly have an impact on the higher food prices we are seeing in the stores, although that is only a part of the problem,” McKissick said. “You cannot take a third of the base ingredient of all animal feeds (corn) out of the market and not have impacts. Remember, animal agriculture is a far greater contributor to Georgia’s economy than any other part.” Last year, Georgia’s poultry industry alone contributed $5.4 billion to the state’s economy. The industry relies on corn as feed. “When a bushel of corn goes up by a dollar, it costs the State of Georgia about $250 million in negative economic impact,” McKissick said. Georgians who sat in long lines at the gas pump this fall probably wished for a fuel source, such as ethanol, that didn’t come from Gulf Coast refineries. McKissick suggests they look beyond corn ethanol. Alternatives to corn are being studied now. UGA researchers were recently awarded two grants totaling $2.5 million to find better ways to produce biofuels from switchgrass, a nonfood crop, and sunflowers, which are grown mostly for vegetable oil. UGA was one of eight schools to receive grants from a program jointly funded by the U.S. Department of Agriculture and U.S. Department of Energy. The program aims to accelerate research in biomass genomics and further the use of cellulosic plant material for bioenergy and biofuels. The grants were awarded to scientists in the CAES and the UGA Franklin College of Arts and Sciences (FCAS). CAES professor and Georgia EXTENSION continued on page 32 DECEMBER 2008 www.accg.org 31 http://www.accg.org

Table of Contents Feed for the Digital Edition of Georgia County Government - December 2008

Georgia County Government - December 2008 Contents President's Message County Matters 2009 Legislative Forecast: ACCG's Platform for the Coming Legislative Session ACCG Policy Staff 2008 Legislative Awards Honor Georgia Lawmakers Cell Towers and Local Governments Oglethorpe Power Plans Biomass Electric Facilities Georgia's Grand Old Courthouses: Dawson County Extension News: Biofuels Development Research Corner: Implementing a Record Retention Policy County Parade Index of Advertisers/Advertiser.com

Georgia County Government - December 2008

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