Florida Treasure Coast Farm-to-Fly Aviation Biofuel Project Starts Feasibility Study

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January 19, 2016

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by Robert E. Kozak* (Advanced Biofuels USA) On January 7^th, the Florida Treasure Coast Education, Research and Development Authority (TCERDA) held a Kickoff Meeting in Ft. Pierce for their Farm-to-Fly Aviation Biofuel feasibility study. This study is funded by a grant from the USDA Farm-to-Fly rural development program.

Richard Machek, USDA Rural Development Director for Florida, presents Kim Johnson, Chair of the St. Lucie County Board of Commissioners, with a “big” check for the study.

The study grew out of efforts by the USDA and the University of Florida to find potential agricultural options for citrus growers being adversely affected by Citrus Greening which currently does not have a cure and results in unusable fruit. This bacterial disease, also known as Huanglongbing (HLB), has been spreading throughout Florida since the Asian strain, Candidatus Liberibacter asiaticus of the bacteria was found in 2005 (USDA data).

With the spread of this disease, as well as continuing development pressure, Florida currently is producing the lowest quantity of citrus since 1948. Brian Borman, of the University of Florida, said in his presentation that this reduction was seventy-five percent of peak production.

Potential Florida Bio-Jetfuel Production

Abandoned Citrus Packing Facility in the Treasure Coast Region

The goal of this feasibility study, as stated by the TCERDA Chairman Mike Adams, was to present decision makers with a plan that would benefit Florida’s citrus growers as well as the users of commercial and military jetfuel. The two primary crops being considered were energy beets and “Bioenergy” sweet potatoes. Both crops are currently being grown in test plots by the University of Florida at the Ft. Pierce TCERDA facility.

Dr. Borman, said that up to 500,000 acres of land currently containing citrus trees could be available for biofuel crops. Because of the warm, moist Florida climate he also said that two plantings of bioenergy crops per year were possible.

Using a three-year crop rotation system and a conservative yield of 1,500 gallons/acre/year, approximately 280 million gallons of bio-jetfuel could be produced annually. This would be about fifty percent of the annual US jetfuel market.

Citrus Growers Perspective

Non-producing citrus groves in the Treasure Coast area

In presentations made at the meeting and in afternoon breakout sessions, the following were the primary concerns expressed by the citrus growers attending the meeting.

Growers’ risk had to be minimized,
Replacement crops had to have labor costs substantially below that of citrus,
Crop insurance had to be available,
Profits from low sale price sugars ($.07/lb was cited as possible sale price) had to equal high-value citrus profit levels,
End-users (commercial airlines) had to provide long-term contracts, and
Grower owned Co-ops that included processing were necessary to provide growers with largest piece of fuel (instead of sugar) selling price possible.

Challenges of Meeting Grower Objectives by Producing Bio-Jetfuels in Florida

Addressing the economic objectives of the Florida citrus growers will be a major challenge for the feasibility study team. Besides current low petroleum costs, several other challenges were identified at the meeting.

No Long Term Commercial Airline Fuel Purchase Agreements are Available: As explained by Rich Altman of the Commercial Aviation Alternative Fuels Initiative (CAAFI), an airline and aircraft industry group, current “off-take agreements” by airlines are by and large annual or shorter. This came as a surprise to some meeting participants who had previously heard that airlines had wanted longer agreements.

No Jetfuel Refinery (Petroleum or Biofuel) Exists in Florida: Currently no jetfuel refinery exists in Florida. This means that sugars or jetfuel precursors produced in Florida would have to be shipped out of state for processing. One such location is Houston which was suggested by the Amyris/Total Petroleum representative at the meeting. This situation means Florida income derived from the sale price of the bio-jetfuel could be severely limited.

No Funding from Jetfuel Processors Available for Biofuel Infrastructure: Reflecting the depressed state of the biofuel industry caused by oil prices below $30/barrel, jetfuel processors present at the Kickoff meeting made clear they were not able to raise the funds needed to build the infrastructure needed to support state-wide biofuel production.

Limited Economic Incentives Available: Climate change related economic incentives are being considered to meet the Paris Climate Change Agreement (COP21). These include at least three carbon tax bills before the US Congress (S. 1548, HR. 309, and HR.3104). Use of these economic tools could provide short and medium term economic incentives for Florida growers and processors.

At the Kickoff meeting, however, Rich Altman of CAAFI, speaking for the feasibility study team, made it abundantly clear that nothing besides the current RFS (Renewable Fuel Standard) would be considered or even evaluated in the feasibility study. He reiterated that other incentives presented, including reductions in landing fees for biofuel use would not be considered either.

Lack of State Political Leadership on Biofuels and Climate Change Reduction: Every study published on the short-term effects of Climate Change point out the immediate vulnerability of Florida metropolitan areas to sea-level rise. Almost every media article on sea-level rise, however, also contains paragraphs on how the current Florida Governor Rick Scott fights against efforts to control Climate Change.

For example:

The state of Florida is the region most susceptible to the effects of global warming in this country, according to scientists. Sea-level rise alone threatens 30 percent of the state’s beaches over the next 85 years.

But you would not know that by talking to officials at the Florida Department of Environmental Protection, the state agency on the front lines of studying and planning for these changes.

DEP officials have been ordered not to use the term “climate change” or “global warming” in any official communications, emails, or reports, according to former DEP employees, consultants, volunteers and records obtained by the Florida Center for Investigative Reporting.

Tristram Korten, Florida Center for Investigative Reporting, Miami Herald

http://www.miamiherald.com/news/state/florida/article12983720.html#storylink=cpy

The effects of Governor Scott's position were visible at the Kickoff Meeting. Rich Altman’s carbon tax remarks seemed to reflect the Scott Administration position. The absence of the feasibility team speakers mentioning Greenhouse Gas (GHG) reductions or Climate Change reduction as a reason to pursue bio jetfuel production also seemed to reflect this position.

Outlook for the Treasure Coast Bio-Jetfuel Feasibility Study

It is clear that a comprehensive state-wide program could make Florida a dominant player in the bio-jetfuel industry and could contribute significantly to the reduction of climate change producing greenhouse gases. But, to overcome the technical and political challenges currently present in the state will require innovation and leadership.

The first stage of this process will require a feasibility study that clearly and without ideological or political shading evaluates ALL the technical as well as economic alternatives.

It is hoped that the US Department of Agriculture will assist the feasibility team by providing them with the agro-economic tools and biofuel production knowledge that USDA has assembled while helping to develop the most cost-effective and productive agriculture system on the planet.