Industry Experts Predict Economic Impact of Oklahoma’s Biofuel Growth

The biofuels industry has taken root in Oklahoma and as it begins to grow, researchers, capital investors, farmers and ranchers grapple with the decisions that will ensure this emerging industry’s success.

Other states, such as Nebraska, have a robust biofuels industry that is dependent upon corn to produce starch-based ethanol. This approach has resulted in higher grain prices for ranchers and rising food prices for consumers nationwide. Oklahoma is positioned to not only produce starch-based ethanol and seed oil based-biodiesel but to use cellulosic biomass to create ethanol. Cellulosic biomass is plant material from grasses and forage, crops and crop residue, forestry waste and other sources that can be converted into cellulosic ethanol.

“Oklahoma has the opportunity to develop and invest in ways to produce biofuels that don’t affect food, feed or fiber,” said Ray Huhnke, P.E., professor of Biosystems and Agricultural Engineering at Oklahoma State University. “Evaluating the best types of biomass to grow, the best conversion processes to use and the best places to locate conversion facilities in our state will create an industry that is successful and sustainable, without the negative impacts of using a already dedicated food source to produce biofuel.”

Calculations from OSU indicate that a biorefinery producing 50-million gallons per year will create more than 270 jobs including 30 plant personnel, 50 truck drivers and 190 agricultural workers. Biomass from approximately 45,000 acres would be needed by a biorefinery for the ethanol conversion process. Conservatively, the economic impact for Oklahoma per biorefinery could be $40 million each year.

Over the last 15 months, various organizations have announced plans to build four biorefineries in Oklahoma communities including Shattuck, Guymon, Enid and Blackwell. Oklahoma’s goal is to produce and market 200 million gallons of ethanol per year within the next 10 years.

The federal government has also recognized the need for alternatives to foreign oil and mandated the annual production of 35 billion gallons of biofuels by 2017. In 2006, the U.S. only produced about 5 billion gallons of biofuels, mostly from ethanol.

“We are witnessing the creation of a new industry,” said Joe Bouton, Ph.D., senior vice president, director of the Forage Improvement Division and scientist for The Samuel Roberts Noble Foundation. “This industry can provide the world what it’s been waiting for – a renewable, economically viable and environmentally friendly source of fuel. Oklahoma is well positioned to take a leadership role in this new industry”

The demands of a thriving biofuel industry also will impact Oklahoma higher education. While the need for chemical, mechanical, microbiology and biosystems engineers will increase, other states in the Midwest experiencing biofuels industry growth have progressively created new educational opportunities and trainings to keep the workforce in-step with the demands of the industry. For example, at Southern Illinois University, the university now offers intensive, work force training “boot-camps” to educate potential ethanol plant operators.

OSU, the University of Oklahoma as well as the Noble Foundation are actively engaged in research that will position Oklahoma as a leader in production of cellulosic ethanol.

The Oklahoma Biofuels Conference, October 16 and 17, 2007 in Oklahoma City will offer those in the agriculture, biotechnology and the energy industries the opportunity to discover more about the biofuel future from national, regional and local presenters. Conference attendees will be updated on developments related to the new Oklahoma Bioenergy Center research initiative, development of feedstock varieties, advances in biorefinery technology, new federal funding for energy crops, the debate over fuel versus food, water usage, carbon control policies and more.

James Woolsey, former director of the CIA, will be a keynote speaker at the Oklahoma Biofuels Conference and will address the relationship between national security and the development of alternative transportation fuels. Other topics will include the growth in the U.S. biofuels industry, current and emerging research and development initiatives and Oklahoma’s emerging biorefining sector. Additional national presenters include: John Ferrell, U.S. Department of Energy; Duane Grant, USDA Advisory Committee on Biotechnology and 21st Century Agriculture; Richard Hess, Idaho National Laboratory; Anna Rath, Ceres, Inc.; Robert White, Ethanol Promotion and Information Council; Dr. Steven Phillips, National Renewable Energy Laboratory; Curt Rich, Van Ness Feldman; David Terry, Governors’ Ethanol Coalition and Dr. Jeffery Dahlberg, National Grain Sorghum Producers.

Registration is $45. For more information, a complete list of speakers or registration, visit http://www.growok.com/ or call 1-800-203-5494. The Oklahoma Biofuels Conference is presented by the Office of the Secretary of Energy, State of Oklahoma, in collaboration with the Oklahoma Department of Agriculture and the Office of the Secretary of Environment, State of Oklahoma.