Tag Archives: press-releases

Biomass Power Offers Billions In Potential

08/30/2013 By Editors of Electric Light & Power/ POWERGRID International Biomass energy power plants have the potential to bring multiple gigawatts online with every installation. Biopower can also optimize existing industrial processes, such as combined heat and power (CHP) installations, reducing coal emissions through co-firing and provide on-site generation for factories and refineries. While biopower currently remains largely a subsidy-dependent enterprise, technological breakthroughs and the expansion of international trade in biomass feedstock are expected to lead to growth in the sector. According to a recent report from Navigant Research, worldwide revenue from biomass power generation will reach $11.5 billion annually by 2020. “Offering dispatchable, baseload support to the grid with high load reliability, biopower will continue to play a cornerstone role in meeting renewable energy targets,” says Mackinnon Lawrence, principal research analyst with Navigant Research. “Logistical challenges associated with the collection, aggregation, transportation, and handling of biomass, however, will continue to limit the commercial potential of biomass power generation.” The expansion of the biopower market will largely be determined by government mandates. Official targets for the integration of renewable energy from biomass in national electricity and thermal production portfolios are set by government policies. These policies can be either aspirational or mandated, but if they remain in place through 2020, they could help the biomass market expand. If incentives and subsidies continue to be implemented on an ad hoc basis, growth in this sector is likely to remain constrained. Continue reading

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Can Crop Prices Keep Pace With The Cost Of Ag Land?

By John Fitzgerald | 08/27/13 REUTERS/Adrees Latif High corn and soybean prices have farmers plowing their cash back into land, which is driving land prices up. There’s an interesting quote in Julie Buntjer’s story in the Worthington Daily Globe about some Nobles County farm land that sold for a county-record $13,000 per acre. The land is good farm land and there were a lot of bidders, said Steve Prins of Prins-Sliver Auction Services. A Sibley, Iowa, buyer got the 156.8-acre parcel for a total of $2,038,400, which went to the heirs of Ella Mae Sall. Prins said high corn and soybean prices have farmers plowing their cash back into land, which is driving land prices up. Prins says he has a long list of people willing to pay almost any price for land. Ag prices have “been good for the past few years and that’s the reason they can afford to pay these prices,” Prins said. Here’s the interesting quote: “W e hope that the farming industry continues to be good.” Yup, that’s the key because when the prices aren’t so good … Per Peterson at the Marshall Independent picks up on some state Department of Natural Resources statistics about last year’s pheasant and duck harvests. The number of pheasant and duck hunters increased 8 percent, he reported — in 2012, an estimated 84,000 people hunted pheasants, and 90,400 hunted ducks. “Although ruffed grouse are on the downward side of their 10-year population cycle, the number of grouse hunters increased 6 percent in 2012 to 97,200, the DNR said. Statewide estimates show that hunters harvested 264,000 pheasants, 835,000 ducks and 355,000 ruffed grouse,” Peterson wrote. Here’s the first paragraph in a story in the Fargo Forum : “A Moorhead man was sentenced to almost a year in jail after pleading guilty to child endangerment and drunken driving charges after police say he drove his daughters at speeds up to 100 mph, drinking beers he had them open for him .” When a deputy stopped Thomas Eugene Iverson, 48, his 12-year-old twin daughters said their father had been driving between 90 and 100 mph, that Iverson had been having them open his beers for him, and one of the girls told the deputy she’d pretended to throw up to try to get her father to slow down. Meanwhile, down in Worthington, eighth-graders are all being kitted out with iPads. So reports the Globe’s Ryan  McGaughey . Seventh-graders will get them today. Fifth-and sixth-graders get them next week, third- and fourth-graders a day or two after that. While students and teachers take to the devices intuitively, simply inventorying each iPad and getting them up on a network that will filter web pages was a monumental task , said the district’s technology director, Amy Ernst. No detail in the story about how much the iPads cost, where the money came from or why the district felt the need to outfit students as young as 8 with iPads. No doubt they felt it was one of those “21st century” things to do. The Willmar city utility company is warning of a phone scam where customers are told their electricity will be cut off unless they wire money to the scammer, reports David Little of the West Central Tribune . The utility does not use money wiring or disconnect power without going through the proper process. Call Willmar Municipal Utilities at 320-235-4422 to verify any call made about disconnection. OK, here we go down the rabbit hole in a story by Tom Olsen of the Duluth News Tribune : Marcus Michael Linky, 22, is a felon – convicted of third-degree burglary in 2011 – which means he can’t own a gun. Police were called to a house near his residence on a report of a fight. They didn’t find a fight, but they did see a long-haired man step outside an apartment building holding a rifle. Police drew their weapons and ordered the man to drop the rifle, which the man did and then ran back into the building. Police found the rifle and, with the help of another resident, identified the rifle as belonging to Linky. Officers got permission to enter Linky’s apartment and found him in bed with a bad haircut and remnants of hair on his chest and back. They also found clothing similar to the clothes worn by the long-haired man who was seen throwing the rifle. Later, Linky said he cut his hair about a week earlier but had not showered since, which is why he had hair on his shoulders and chest. He admitted to handling the firearm but said he knew he could not purchase it because he is prohibited from handling or possessing firearms, according to the complaint. Linky’s next court appearance is scheduled for Sept. 18. Continue reading

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Fitch Flags Deteriorating US Ag Sector Prosperity

Fitch Ratings added its voice to those cautioning of deteriorating prosperity for US crop farmers, but underlined that a repeat of the 1980s, when the sector crumbled under the weight of its debts, did not look on the cards. The credit ratings agency forecast “modest income declines” for US crop farmers, flagging the potential for “continued pressure on corn prices” from improved growing conditions which have provoked forecasts of a record harvest. And the downturn in takings – after a spell of growth which has driven overall US farm sector net cash income from $75.6bn in 2009 to $134.7bn last year, on US Department of Agriculture estimates – could prove prolonged. “Some long range forecasts see the potential for corn prices to remain below $5 per bushel for several years,” Fitch said. “This type of sustained price weakness, coupled with a fall in farmland values, would put nominal pressure on Corn Belt incomes and asset quality.” ‘Pull-back in land values’ This could feed into sector credit conditions too, Fitch noted, flagging the potential for a fall in farmland values to cut borrowing collateral. “Over time, a pull-back in crop prices and land values from record levels could cut farmers’ incomes and net worth modestly across the US Corn Belt,” the ratings agency said. Indeed, already “signs of modest weakening in farm credit fundamentals appeared this summer. “Most recent surveys of farmland prices by the Chicago and Kansas City Fed indicate that the rapid land price gains of recent years are moderating or stopping altogether this year.” Two reasons for comfort However, unlike in the 1980s, when heavy borrowings coupled with soaring interest rates provoked a sector crisis, and a collapse in land prices, the sector this time appears better prepared for any downturn. “Generally prudent underwriting practices by lenders in the Farm Credit System,” the backbone of US agricultural lending, “have mitigated risks of a sharp rise in credit losses, even if crop prices remain depressed. Agricultural lenders, including AgriBank, which Fitch said has the most exposure to farmland within the Farm Credit System, “have utilised conservative per-acre debt caps and land price forecasts”. Furthermore, farmers appear to have taken out a “relatively small” level of debt compared with farmland values, “strengthening farmers’ balance sheets”. The conservative lending policy, and comparatively small debt load, “should prove to be adequate mitigants to asset quality concerns over the near-to-mid term”, Fitch said. Industry debate The comments come amid a debate on prospects for agricultural income, thanks to lower crop prices, and the impact on farmland prices and the broader US rural economy. Agricultural machinery maker Deere & Co earlier this month provoked a lively debate among Wall Street analysts by forecasting a relatively small drop this year in farmers’ net cash receipts – a key indicator of farm equipment demand. Fitch highlighted that, while arable farmers’ incomes may be falling, “declining grain prices are a positive for cattle and pork producers that have seen heightened margin pressure over the last few years as feed prices have risen. “Therefore, cash flow fundamentals for livestock loans are likely to improve this year.” Continue reading

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