As we conclude this 3-part blog series, we follow up on earlier examinations of projections for continued variability and intensity in weather patterns and how increasing our use of sustainable biomass can shift our long-term trajectory in a positive direction while simultaneously increasing our preparedness and resilience in dealing with shorter-term weather extremes.
These advanced bio-based fuels, chemicals, and materials are ready for industrial scale commercial deployment today. The technology is demonstrated and ready. Genera has spent years working with local farmers and land owners and developing cost effective, reliable and sustainable supply chains to support advanced biorefineries. So what’s the hold up?
I would argue that there is no hold up, rather stickiness. We’re not still waiting for that one small miracle in a laboratory to make this work; we don’t need $120 a barrel oil to be cost competitive. But throughout history, major transformative shifts are incremental and slow while they’re happening. No doubt the Industrial Revolution transformed the world, and while there’s no consensus about the start date and the end date, it’s always measured in centuries, not decades, and certainly not years.
In this computer age dominated by Moore’s Law, when you’re almost afraid to pull the trigger on buying a new smartphone because a newer, better version is sure to be right on its heels, our perspective about the introduction of novel and game-changing science and manufacturing can become skewed. In a recent congressional hearing on biofuels policy, one industry executive pointed out just how fast the development and commercialization of cellulosic biofuels has happened, compared to all previous transformative technologies.
Even though we are “in the moment” of this transformative shift to a bio-based industrial complex, there are several things that can accelerate the scale up of this commercial-ready industry.
The first is long-term policy stability and consistency. Markets and investors are poised, with the first billion dollars in private capital investments coming out of the ground today in a handful of next generation biorefineries that will be operational this year. A key missing link is a consistent and reliable policy foundation that gives investors the confidence required to deploy capital. The industry isn’t relying on subsidies or tax credits, rather a stable foundation that enables long-term access to capital.
The second opportunity is to level the playing field for biomass across technologies and geographies. Our sophisticated markets can efficiently evaluate risks and select appropriate technologies. But such market mechanisms are distorted by a bundle of tax and financing advantages available to fossil energy but not clean, domestic, renewable energy. As one example, Master Limited Partnerships have been widely used to attract investment to building out our current energy infrastructure. Extending the same financing opportunity to biofuels and other clean energy projects could attract billions in private investments to accelerate the growth of the industry, and the attendant benefits to climate and preparedness.
Finally, we need to hold all sources of energy to the same high standards of economic and environmental sustainability. In large part, we have done this for renewable fuels, yet turned a blind eye to conventional fossil-based counterparts. Transparent accounting for ALL costs and benefits, both monetary and non-monetary, both short-term and long-term, would further enhance the competitiveness and accelerate the growth of clean, renewable energy.
To come back to our title and wrap up this series, we again ask if energy crops can change the world. It sounds bold, but I believe that innovations in agriculture can have the same kind of transformative effect over the next century that computers had in the past century, and that mechanization had in the century before that. Genera and our partners in this industry are committed to making that happen. And while I expect remarkable and rapid progress, the reality is that I probably won’t still be around when I’m proven right.
By Kelly J. Tiller, Ph.D., President and CEO
