The emerging bio-economy has the potential to provide Ontario farmers with new and innovative ways to improve the profitability of their farms.
But there are currently large hurdles that are slowing down this process, from regulatory adjustments to policy challenges to technological speed bumps to mature markets that make it profitable to produce for the bioeconomy.
An example of one of these potential areas for innovation is the use of biomass for large-scale electricity generation. The province of Ontario has mandated that all coal-based electricity production in the province be stopped by 2014. For Ontario Power Generation, or OPG, this presents a huge challenge. The organization operates the Nanticoke, Atikokan, Thunder Bay and Lambton generating stations, all of which currently use coal to generate electricity. OPG is working with agriculture and forestry to develop an alternative source of power in the form of compressed pellets.
This new industry represents a tremendous opportunity for many farmers, but it is an extremely challenging one. First and foremost, there is the massive hurdle of price that needs to be resolved. From the perspective of OPG, the lower the price, the more likely it is that it will be able to export energy to the United States, which will increase the overall demand for biomass. On the other hand, farmers and pelletizing operations need the price to be high enough for them to get real value from the operation.
Another major hurdle is the need for a demonstration plant in Ontario that can serve to iron out the bugs and serve as the model for future projects.
Establishing a working model will improve the confidence of farmers and other investors considering biomass production.
Finally, and perhaps most importantly, there is the need to ensure that the public understands that this initiative is sustainable. The first step is completing the research that provides concrete evidence of the environmental benefits of using biomass. There is also the concern that using biomass will feed into the Food vs Fuel debate. Proponents need to be ahead of the media curve on this issue, explaining that many of the materials used for this process, such as corn stover, do not have to impact food production.
Agriculture has the potential to benefit immensely from the emerging bio-economy. The new and varied uses of the crops that farmers grow, including the use of materials that were once viewed as waste, could increase the margins of each acre grown, sustaining agriculture in Ontario for the long-term.
Nathan Stevens is the Research and Policy Advisor for the Christian Farmers Federation of Ontario.
© 2009 , Sun Media
