Contracting for Biomass: Supply Chain Strategies for Renewable Energy

Cellulosic-based ethanol production is a cornerstone of current and proposed U.S. renewable fuels policy. Indeed, some recent proposals include a nearly five-fold increase in renewable fuels production, the majority of which would have to come from cellulosic ethanol. U.S. farmers will clearly play a significant role in the development and success of this industry. Aside from the technological hurdles, a number of supply chain barriers must also be overcome. One such barrier includes the marketing of cellulosic feedstock (e.g., wheat straw and corn stover) by farmers and the procurement of this feedstock by biofuels refineries. The exchange mechanism for cellulosic feedstock may develop in a number of alternative ways. This research specifically examines some early contracting and procurement strategies by an industry leader, the Iogen Corporation. An understanding of how biomass marketing may evolve will help farm managers better prepare for entering this emerging industry.

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Journal Article
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Journal of the ASFMRA (American Society of Farm Managers and Rural Appraisers), 2008
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 Record created 2017-04-01, last modified 2020-10-28

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