Barriers and incentives to the production of bioethanol from cereal straw: A farm business perspective

• Published in: Energy policy 2013-08, Vol.59 (100), p.161-171
• Main Authors: Glithero, N.J., Ramsden, S.J., Wilson, P.
• Format: Article
• Language: English
• Subjects: Agribusiness; Agricultural industry; Alternative energy; Alternative energy sources; Applied sciences; barley; Benefits; Biodiesel fuels; Bioenergy; Biofuels; Biomass energy; Business; Cereal straw; Contracts; Economic data; Energy; Energy economics; Energy policy; England; ethanol production; EU directives; European Union; Exact sciences and technology; Farmers; Farms; Feed; feedstocks; Food; Fuel; General, economic and professional studies; Hordeum vulgare; Legislation; Markets; Natural energy; nutrient retention; plant establishment; Prices; Production; Renewable energy sources; Second generation biofuels; soil; straw; Studies; Surveys; Triticum aestivum; Western Europe; Wheat
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2013.03.003

The EU renewable energy directive stipulates a requirement for 10% of transport fuels to be derived from renewable sources by 2020. Second generation biofuels offer potential to contribute towards this target with cereal straw representing a potentially large feedstock source. From an on-farm survey of 240 arable farmers, timeliness of crop establishment and benefits of nutrient retention from straw incorporation were cited as reasons for straw incorporation. However, two-thirds (one-third) of farmers would supply wheat (barley) straw for bioenergy. The most popular contract length and continuous length of straw supply was either 1 or 3 years. Contracts stipulating a fixed area of straw supply for a fixed price were the most frequently cited preferences, with £50t−1 the most frequently cited minimum contract price that farmers would find acceptable. Arable farmers in England would be willing to sell 2.52Mt of cereal straw for bioenergy purposes nationally and 1.65Mt in the main cereal growing areas of Eastern England. Cereal straw would be diverted from current markets or on-farm uses and from straw currently incorporated into soil. Policy interventions may be required to incentivise farmers to engage in this market, but food and fuel policies must increasingly be integrated to meet societal goals. •English arable farmer survey to determine potential supply for straw based biofuel.•Two-thirds of farmers would supply wheat straw for bioenergy.•Farmers willing to sell 1.65Mt of cereal straw from the main cereal producing regions.•Farmer preference for a fixed area of straw supply for a contracted fixed price.•£50t−1 the most frequently cited minimum contract price farmers find acceptable.