Genera Energy is focused on developing sustainable and economical energy crop supply chain systems. Our company sought to innovate the entire biomass supply chain, from agronomic management to improved logistical tools. This core focus is a recognition of the need to reduce supply chain risk, making biomass projects more easily financed and successful.
Genera sees four primary areas of risk in any supply chain based on dedicated energy crops. A primary risk point in any project is the ability to recruit the appropriate amount and type of land required for the long-term production of dedicated energy crops. Another risk factor is the ability to successfully establish the energy crop, a factor particularly pronounced in perennial crops. Mother Nature creates her own risk in the form of precipitation and environmental factors that can impact annual yield. This risk can directly impact the ability of a conversion plant to operate! The final key risk that many project developers overlook until it’s too late is feedstock quality. Feedstock quality control begins in the field and can have dramatic impacts on feedstock conversion economics. In this blog series, we’ll look at each of these risk areas and the things that Genera is doing to reduce or remove this risk.
Land recruitment is critical to the success of any biomass project. You must be able to grow the biomass to convert it in to more useful energy and products. How do you overcome the hurdle of finding and securing the appropriate land? Genera typically secures land via lease, production contract, or other methods. A primary decision factors landowners hold is economics. They must earn a return from their land. Any energy crop must prove to be profitable for the landowner. However, values beyond income, such as tax benefits, conservation, or environmental services, may fit with a landowner’s objectives for their land and change their views on pure profitability. Ultimately, the energy crop produced must provide an economic return, must not prove harmful to soil and environmental attributes, and must fit in with other agricultural operations in the area. The key to sealing any deal with a landowner is the personal relationship. Genera has extensive experience in developing one-on-one relationships with landowners. Once this trust is established, Genera utilizes tools such as flexible contracts and leases, cost-share programs, and other incentives to ensure the energy crop can provide the benefits desired for each landowner. Our agreements are structured to meet the needs of active farmers, absentee landowners, resident non-farmers, and many other situations.
Regardless of the landowner engagement and land recruitment model, a supply chain partner with on-the-ground experience in land and production contracting and contracting practices will reduce risk associated with land control and long-term uncertainty in the biomass supply. Contact Genera Energy today to learn how we can make your project a success!
By Sam Jackson, VP of Business Development
