About the Biofuels Initiative

University of Tennessee Biofuels Initiative

The University of Tennessee Biofuels Initiative (UTBI) is a research and business model presented by the University of Tennessee that will position the state as a leader in the nation's efforts toward reduced dependence on petroleum.

The plan outlines the construction and operation of a pilot biorefinery to demonstrate and refine biofuels production technology. The plant will be pilot scale in size.

Cellulosic Ethanol

Unlike traditional corn ethanol, cellulosic ethanol is fuel made from biomass sources such as switchgrass, wood chips and other non-food plant material. Because it does not compete with food or feed uses, planting dedicated energy crops like switchgrass on marginal cropland is widely seen as a way to produce affordable, sustainable and renewable biofuels without raising food or feed costs.

Cellulosic ethanol production can also benefit the environment, since it emits fewer greenhouse gasses than traditional gasoline. Many dedicated energy crops, such as switchgrass, have positive effects on the environment, including carbon sequestration and soil stabilization.

Funding

Funding for the UTBI comes via a $70 million commitment over 5 years from the state of Tennessee. In 2007, the Tennessee Legislature appropriated $40.7 million for capital and $8.25 million for research, farmer incentives, and operating expenses for the Biofuels Initiative. Also contributing to the effort will be UT’s technology partner(s) in the development of the cellulosic biorefinery. Partners to date include DuPont Danisco Cellulosic Ethanol. The UT Research Foundation has formed a Joint Venture LLC to operate the facility called Genera Energy.

Establishing a New Energy Crop

Part of the State's commitment includes funding for a switchgrass incentive program. This comprehensive program will pay farmers on a per acre basis to produce switchgrass in advance of a mature market for the new energy crop. Participating farmers will receive high quality switchgrass seed for planting, as well as research and technical support related to switchgrass production.

The Initiative planted 725 acres of switchgrass in Spring 2008. Additional plans are to plant with an additional 2,000 to 3,000 acres in spring 2009 and another 2,000-3,000 acres to be planted in spring 2010. Subsequent rounds of applications will be accepted for switchgrass production in the pilot program for the 2009 and 2010 planting seasons.

If you are interested in participating in this program, please contact your local County Extension Agent.

Switchgrass

Switchgrass is a perennial warm-season grass that is native to Tennessee. Once established, it has a life span of 10-20 years, making it an attractive, low intensive management crop for producers. Switchgrass is drought tolerant and can adapt to a wide range of soils with limited need for fertilizer. Switchgrass works well as a biomass crop in that base yields are 6 dry tons per acre, with many sites reaching 8-12 dry tons per acre.

Commercialization

With continued improvements in production technology and economics, it is expected that government and private partners would invest in multiple commercial-scale biorefineries across the state. Potential benefits from commercial implementation of the business model include:

• 4,000 new jobs in rural Tennessee counties
• $400 million in new state and local taxes annually
• Satellite plants creating an additional 3,000 jobs and $1 billion in annual revenue from chemical coproducts useful in other manufacturing processes
• $100 million annually in new farm revenue to about 20,000 of the state's producers
• 1 billion gallons of Grassoline™ annually at the potential wholesale price of $1.20 per gallon. This level of production would displace approximately 30% of Tennessee's present petroleum-based consumption.