Switchgrass is Important to Utilities and Cooperatives

By Joan Sanstadt News Editor
Thursday, September 11, 2008 6:15 AM CDT

Right now there are a lot of “ifs” when it comes to whether or not switchgrass will be used at a proposed expansion of the Nelson Dewey Generating Station in Cassville.

First of all there is no guarantee the Public Service Commission (PSC) will allow the expansion of the proposed plant owned by Alliant Energy.

Hearings on the proposal, originally scheduled for last spring, were cancelled due to weather conditions and have just now been rescheduled for Sept. 29 and 30.

Plans for the expansion call for the use of biomass feedstock to produce 20 percent of the power at the station.

Bill Oemichen, president and CEO of the Wisconsin Federation of Cooperatives (WFC), is excited about the possibilities for one of WFC’s members n Premier Cooperative in Mount Horeb.

According to Andy Fiene, Premier’s general manager, Premier is one of five companies chosen by Alliant to work on a plan to aggregate and supply biomass to the proposed expanded Cassville plant.

Even though there are no guarantees Premier will be chosen, Fiene and Oemichen both know it takes time to prepare such a plan.

“It is my understanding that each of the five companies will be presenting its proposals to Alliant about their ability to supply biomass,” Fiene told Agri-View. This will happen when Alliant is ready to choose its supply partners. Right now, neither Premier nor any of the other four companies has any kind of a supply agreement.

Because of what being a supplier of biomass could mean to its members, Premier has undertaken a feasibility study to evaluate what it would take to aggregate biomass in southwestern Wisconsin, turn that biomass into a usable form and market the resulting biomass product. The study is partially funded by a grant from the State Office of Energy Independence and the Department of Agriculture, Trade and Consumer Protection (DATCP).

“Alliant has already been working on biomass projects in other parts of their supply territory,” Fiene noted, adding “one is for a facility in Iowa. During this and other work, Alliant has amassed a lot of information on potential sources of biomass, the fuel quality of these sources (as well as the pros and cons of the sources), handling and other operational information.”

Oemichen, who served on the Governor’s Task Force on Global Warming, said the issue of biomass “played itself out a lot” during the task force’s discussions.

“Some environmental representatives on the task force oppose the Nelson Dewey plant because it will mean continuing use of some coal,” Oemichen told Agri-View. “They don’t realize how rapidly (Clean Coal) technology has advanced in just a few years.”

Emphasizing it was his own opinion, Oemichen said “it is unrealistic to think we can move rapidly away from the use of coal in power generation. We are already placing great demand on natural gas as a generating source for power.”

“There are national security issues around some other types of fuel imports, particularly those from Venezuela and the Middle East. Those are pretty unstable areas of world for us to depend on for our energy supplies. It seems to me it would make sense to use the natural advantages we have in the U.S. to generate some of our energy needs,” Oemichen said.

Oemichen said switchgrass was part of his childhood. “My parents had about 40 acres of it on our Minnesota farm. They had it for two reasons n erosion and wildlife. My dad received the Minnesota Conservationist of the Year award,” he said.

“It intrigues me that those 40 acres could have been harvested and used to produce energy while still retaining the erosion control and wildlife benefits,” Oemichen added.

Using his “pretty sensitive consumer protection radar,” Oemichen believes “Alliant is pretty serious about this. It is not just political talk for the purpose of getting plant approval. They are actively working with us and others to determine the feasibility of using switchgrass.”

Fiene pointed out that “switchgrass takes about three years to get into full production. After that it can remain productive for 10 to 20 years or more, with little maintenance. Harvesting is done once a year, typically cut in the late fall after it has dried down in the field.”

The study Premier is undertaking over the next six or so months “will be looking at the most economically feasible way to grow, harvest and transport a usable form of this and other biomass. We’ll also be looking at the ability to secure marginal land for growing switchgrass, the potential/viability of harvesting some corn stover and the availability of wood biomass to see what volume is sustainable,” Fiene indicated.

For Oemichen, the possibilities of having Alliant and other utilities look to the cooperative system “as a key partner in aggregating, processing and transporting the biomass they need” has the potential to be a very unique national model that spreads beyond the state’s borders.

“This is an incredibly innovative project. No major utility right now is generating a significant amount of its power from biomass. Wisconsin is uniquely able to produce a large amount of biomass. This would allow us to capture those energy dollars currently being sent out of state and keep them working within the state,” Oemichen said.

Not only does the growing of switchgrass fit into the aims of the Global Warming Task Force and also the Working Lands Initiative, “it will help to give producers stability, a predictable price and will allow them to be in a better position with their lenders. Lenders look at production over a number of years n not just year to year,” Oemichen noted, “and this is true whether you are a large producer or a small producer.

“What’s more, switchgrass qualifies as a crop that can be grown and harvested on CRP land while still benefitting from the CRP contract. It’s a way of getting additional economic value off of environmentally-sensitive land,” Oemichen said.

Cranberry growers have also expressed interest in working together with WFC to form co-ops and harvest biomass from woodlands surrounding their marshes,” Oemichen added.

As for Premier, it has 23 facilities in and around 15 different communities in southwestern Wisconsin. Closest to Cassville are locations in Bloomington, Lancaster, Fennimore, Platteville and Hazel Green.

Senator Dale Schultz (R-Richland Center) has also expressed a keen interest in Alliant’s plan to use biomass. “The Cassville biomass plan builds on the great resource stewardship of our farmers and landowners. Creating value from waste wood and planting greases that add habitat for birds support our goals to save family farms and benefit the environment,” Schultz said.

Besides Premier, other Wisconsin companies chosen to submit biomass plans include Midwest Forest Products/InDeck Energy Services, Inc., Hayward; Bioenergy Products LLC, Lancaster; Futurewood, Hayward; and Marth Wood Shaving Supply Inc., Marathon.

What’s next?

There are two types of public hearings coming up. On Sept. 29 and 30 the hearings in Cassville and Portage will be on the proposed expansion itself.

The hearings that begin at the PSC, Whitney Way in Madison, on Sept. 19 will examine technical aspects of the proposal.

Upcoming hearings on the proposed expansion will be held:

- Sept. 29 n 4 to 6:30 p.m. at the Cassville Elementary School gymnasium, 412 Crawford Street, Cassville.

- Sept. 30 n 4 to 6:30 p.m. at the VFW Post 1707 Hall, 215 West Collins St., Portage.

Technical hearings will begin on Sept. 19 at the PSC and are expected to last about a week. During these hearings, the PSC commissioners will have the opportunity to ask questions of Alliant and also some of the intervenors who have filed written testimony with the commission. The parties will also have the opportunity to question one another’s witnesses.

Later in the fall the PSC will close its public record and is expected on or near Dec. 15 to issue its written order/decision.

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