ScienceDaily (Feb. 26, 2009) — The payback period from investing in willow as an energy crop is 16 years and for miscanthus is nine years, according to an article by Daragh Clancy and colleagues in the  Teagasc Rural Economy Research Centre and UCD, who have been analysing the returns from willow and miscanthus production in Ireland.

Farmers who diversify into biomass crops can receive establishment grants to offset part of the initial set-up costs.

The research addresses some of the information deficit about the economics of biomass crops in Ireland. They found that, given realistic assumptions and costings, both willow (1.62%) and miscanthus (10.15%) generate positive internal rates of return and can, therefore, be considered financially viable.

However, at least in the case of willow, the additional return is probably too low for most farmers to invest in this enterprise, while foregoing average returns from a conventional enterprise. Miscanthus consistently outperformed willow in terms of investment performance. Consequently, based on these results, miscanthus is most likely to be the biomass crop of choice.

The price level is also highly uncertain as the market for energy crops in Ireland is still in its infancy. Moreover, the lengthy production lifespan of energy crops serves to heighten the level of risk associated with key parameters. Uncertainty about critical variables such as the annual yield level and the energy price make it difficult to accurately calculate the returns of such investments. However, ongoing research projects in Teagasc Oak Park Crops Research Centre are addressing these knowledge deficits.

“Accordingly, it can be expected that the risk-averse nature of many farmers is likely to hinder widespread adoption during the pioneer stage of the bioenergy market in Ireland. More widespread adoption is only likely when the economic merits of these crops have been proven over an extended period,” concluded Clancy.

This article was featured in 'TResearch', Volume 4, Number 1, Spring 2009.

Related Stories

Perennial Energy Crops Could Be Good For Carbon Savings And For Wildlife (Sep. 29, 2009) — Growing the energy crops short rotation coppice (SRC) willow and miscanthus grass could help the United Kingdom to reduce carbon emissions and benefit wildlife, according to ...  > read more

Bioenergy Crops Compared: Miscanthus More Productive Than Switchgrass (July 13, 2007) — Scientists will present findings on how to economically and efficiently produce plant crops suitable for sustainable bioenergy. Improving the production of such biomass is important because it should ...  > read more

Giant Grass Miscanthus Can Meet US Biofuels Goal Using Less Land Than Corn Or Switchgrass (Aug. 4, 2008) — In the largest field trial of its kind in the United States, researchers have determined that the giant perennial grass Miscanthus x giganteus outperforms current biofuels sources -- by a lot. Using ...  > read more

Biofuels: Process Used To Roast Coffee Beans May Give Biomass A Power Boost (May 21, 2008) — A process used to roast coffee beans could give Britain's biomass a power boost, increasing the energy content of some leading energy crops by up to 20 per ...  > read more

Search ScienceDaily

Preparing For A Walk On The Moon