As Citrus Season Comes to Early End, Pongamia Offers Florida Growers Chance to Branch Out.

The early end to Florida’s citrus season this year marks an especially challenging time for the region’s growers. Florida’s agriculture industry still struggles in the wake of 2017’s Hurricane Irma– with $2.5 billion in losses, including more than $760 million from the citrus industry.

But even more problematic for the state is the combination of citrus greening and declining orange juice consumption. Just as citrus producers had to cope with the devastating microbial disease before the storm, they must confront it again season after season. Citrus greening is one of the most serious crop diseases in the world. Once a tree is infected, there is no cure and most die within a few years. In the meantime, between 2001–02 and 2016–17, the retail U.S. orange juice market has declined by 50 percent.

Due to all of these challenges, the U.S. Department of Agriculture’s most recent Florida citrus crop forecast is 50,000 boxes down from the April estimate and 9 million down from the 54 million boxes predicted at the start of the season. That’s a decline of more than 80 percent since the peak of citrus production during 1997-98.
To help support distressed growers, Congress passed a spending bill earlier this year that included more than $2.3 billion for agricultural assistance in Florida. Still, the relief package does not solve the crisis of greening or lack of consumer interest. A solution that does address both greening and lack of O.J. consumption is for growers to diversify their agricultural output, but each new crop comes with its own set of unique challenges.

Speaking of pongamia’s potential to fill this economic void, our Chief Agriculture Officer and veteran citrus grower Peter McClure recently told the Florida Fruit and Vegetable Association, “[w]e had 800,000 acres of citrus when greening came in. You can’t grow 800,000 acres of blueberries, peaches or pomegranates because the market isn’t big enough. With pongamia’s biological fit in Florida and the existing huge markets available for oil and protein, you can scale up and grow 100,000 to 200,000 acres or more without breaking the market.”
“Being in citrus where we have fought hard for 10 years […], said Peter, “we’re fighting a losing battle where we’re having to lay off people, I see a crop that will provide jobs for those same people.”

Read the full interview between Peter and Florida’s Fruit and Vegetable Association: http://www.southeastfarmpress.com/fruit/grower-champions-sturdy-replacement-crop-embattled-florida-citrus

Is This the Crop That Saves Florida Agriculture?

by Tom Schenk

If you’ve driven through central and southern Florida over the last several years, you may have wondered why much of the land that used to grow oranges and grapefruit in central and southern Florida now sits fallow and choked with weeds? Most people are aware of the fatal citrus greening disease that has caused one of the greatest agricultural disasters in US history. Almost every remaining grove in the Sunshine State is infected with this disease as researchers struggle to find a cure with little to show for results.

In 2017, the growers who were still in the game were spending between $1,500-$2,500 per acre in expenses to coax a profitable citrus crop out of their dying groves. These efforts were met with almost ideal growing conditions and by all accounts it appeared that their efforts would be rewarded with one of the best crops they’d seen in years.

Until the arrival of Hurricane Irma which went through Florida like a chainsaw leaving no grove untouched.

Damage reports indicate that half or more of the unripen fruit is now laying on the ground while what remains in the trees is bruised or will eventually drop off in the coming weeks.  And if that wasn’t bad enough, many groves were left standing in water far beyond the critical 72 hours which is almost always fatal for citrus trees.

Directly and indirectly, Florida’s citrus industry creates almost 45,000 jobs which translate to almost a $9 billion contribution into Florida’s economy. Today’s citrus industry has shrunk by well over half from its peak in the late ‘90’s leaving rural towns and communities distressed and struggling to survive as families and individuals move away to find work elsewhere.  There are only 7 remaining processing plants in the state and it is highly questionable how many will remain open and viable when ultimate crop losses may be as high as 80%-90%.  There’s a point where it does not make economic sense to salvage the remaining fruit in a grove or open a processing assembly line for the smallest harvest since the 1940’s. Like any commercial real estate, ag land is generally priced as a function of its income earning value plus any development potential. Citrus grove and that used to be valued at $10,000 – $15,000 or more per acre now sells for less than half to a third of that.

But why can’t some other crop fill this void?  It’s not for lack of trying.

South Florida’s hundreds of thousands of acres of sandy, shallow soils and rainy climate narrow the field of viable crops that can be profitably grown in those conditions.  Afternoon rains continually flush fertilizers and chemicals out of the soils, into the drainage canals, and ultimately Florida’s coastal estuaries and Everglades. In spite of these challenges, many growers and outside investors have ventured into some alternative specialty crops such as peaches, blueberries, tomatoes, and strawberries.  Establishment costs, however, are very high.  In the case of blueberries, it could exceed $15,000 per acre! To make matters worse, growers have found themselves struggling with a diminishing supply of farm labor. And finally, whenever prices spike higher from either early season prices or if there is a production shortfall, floods of cheaper imports arrive in a matter of days from Mexico and South America.

  • So what can work in Florida’s unique agricultural ecosystem?

There is one ray of hope that shows great promise of restoring ag land values and revitalizing business in South Florida’s rural towns.  In 2011, an enterprising group of entrepreneurs from a company called TerViva began approaching some of the state’s largest citrus growers to establish some trial sites with a tropical/subtropical tree crop called pongamia. Pongamia is an oilseed tree that is native to Australia and India.  Conceptually, the crop is like growing soybeans on trees, but at yields 8x-10x over the best Iowa farmland. Pongamia is not new to Florida.  At the turn of the last century, it was introduced as a landscaping ornamental and today a few of these trees can still be found along the turnpike, shopping centers, and in parks in south Florida.

Creating a viable agricultural industry from scratch is not an easy task, but it has been done.  Soybeans were unheard of until they were introduced in the early 1930’s and palm oil trees were developed from the rubber plantations in Southeast Asia after WWII.  Interestingly, products from pongamia are thriving industries in India where the oil is used for industrial applications like fuel, lubricants, paints, surfactants, biopesticidal horticultural sprays, and more.  The “cake” or “meal” that remains after the oil is extracted is coveted as a great fertilizer that releases its nitrogen slowly so a plant can utilize it better. In India it is used to suppress soil-borne pests like nematodes that are the arch enemy of many of our food crops.

So what is the path to prove the viability of a new crop in the US – especially in such a challenging geography as Florida? Below is a checklist of the gauntlet it had to run.

  • Will the tree grow here?

This was the first order of business TerViva set out to prove to growers when they arrived in 2011.  The first grower who would listen to them was Ron Edwards CEO of Vero Beach – based Evans Properties. Edwards, former COO of Tropicana and co-founder of SoBe Beverages and Blue Buffalo Pet Foods, has a track record of spotting a good management team, a good business model, and an idea that had a good shot of succeeding.  Skepticism was high so Terviva offered to split the costs of the first trials.

The result was beyond expectations.  Growers such as Graves Brothers, US Sugar/Southern Gardens, DNE, Alico, Mosaic and others soon followed.  Around the state, the tree grew well in diverse sites with sandy soils, toxic soils, saline soils, and even Mosaic’s challenging clay reclamation soils. In 4 years the trees were 10’ to 16’ in height.

 

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Pongamia orchard in Florida – Photo by TerViva

The trials have shown that these trees survived hurricanes Mathew and Irma, 2 weeks in standing water, frosts, non-irrigated fields, poor soils, higher-salinity irrigation not suited for most other crops, sand, clay, pests, and heat. Indeed, pongamia can deal with Florida’s challenging climate and soils..

  • What are the costs to grow it?

Establishment costs are very similar to citrus.  Indeed, the first thing that growers noticed was that the tree could literally be dropped right into the existing citrus infrastructure. The trees cost about the same as citrus and the planting densities are equal to or slightly less than citrus. Some growers literally planted between the stumps of former orange trees. To date in Florida, no pesticides have been used.  This hardy tree has grown through a laundry list of tropical and subtropical pests that growers spend millions of dollars on to control.  The biggest annual expense is weed maintenance until that young tree can get some height and eventually shade out a lot of the undergrowth which can subsequently be managed with mowing. So annual maintenance costs tally to about $400-$500 per acre – about one third or one fourth of what citrus currently spend.  Some growers used a small amount of fertilizer, and many used none at all.  Pongamia is a legume so it enriches the soil by making its own nitrogen.

  • How is it harvested?

Almost all of the fruit and vegetable crops grown in Florida need manual farm labor and every year that has been more difficult and costly to come by. Conversely, a crew of 2 and a nut tree shaker like those used on pistachios or almonds can harvest a pongamia tree in 3-5 seconds.  Those cost benefits accrue directly to the bottom line.  For the past 2 years as some of the young trees have produced pods early, Terviva has put on grower demos to show how easy and fast the tree can be harvested.

  • Who’s going to process it?

The beauty of the pongamia industry is that everything about it is low-tech. The tree puts out a pod that is easily shelled with a nut sheller and crushed with conventional soybean crushing equipment.  It doesn’t require elaborate $100 million processing plants or exotic enzyme formulations to make it work. The bean inside that pod looks about the size and shape as a lima bean.  It consists of about 40% oil and the 60% balance is the remaining seedcake. In 2017, the forward-thinking Hardee County IDA and its head, Bill Lambert, unanimously voted to build the first pongamia crushing plant in Florida. Because of the elite varieties that Terviva is cultivating at various commercial greenhouses in the state, an acre of their trees is conservatively estimated to yield about 400 gallons of oil and almost 3 tons of seedcake!

  • Who’s going to buy the products?

This is where it gets interesting. There is a long buffet of diverse markets for this oilseed tree crop and therein lies one of its greatest advantages.  These profitable markets range at the low end from a feedstock for industrial oils, to feed, and all the way up to highly-valued biocontrol products for the organic agriculture.  Organic growers have long been familiar with the benefits of pongamia’s oil and meal products under the Indian name karanja.

Like soy, pongamia oil is a long-chain C18:1 compound that can readily be refined into biodiesel or bio-jet A fuel.  Those tests have been tested and validated by Shell, Valero, REG, and ARA Labs. Refiners view a pongamia crop in Florida as a new oilfield that faithfully produces oil every year. Fuel is the base-case end market and can produce fine investment returns.

Classified as a politically correct “non-food” feedstock it can be used to make biodegradable polymers such as fracking fluids, plastics, detergents, paints, and other industrial products.  Secondary compounds found in the oil have documented and long used in India as extraordinarily effective biopesticides as good as or more effective than more commonly known neem products that are widely used by organic farmers, gardeners, and in the fast growing cannabis industry.  Because of the lack of need for inorganic chemicals used in growing pongamia, these high-value end-products are in growing demand by organic feed and growing operations. Sales into these channels alone can double or triple the value of the cake and oil.

The seedcake or meal can be further refined to produce a (30%) high-protein animal feed, or simply be used as an environmentally-friendly, slow-release 4-1-1 fertilizer that plants can better utilize.  Because the backbone of the oil shares similar properties to various food oils, scientists have told Terviva that the secondary compounds could be stripped out to upgrade the oil to “food quality” which could be of great value in parts of the world where pongamia could be grown on a footprint not adaptable to traditional oilseed crops.

  • Bus 101

The arrival of the pongamia farming model into the staggering agricultural void created by the citrus greening disease could be a classic business school case study.  The trail has been blazed.  A deeper dive into this business model reveals some very unique attributes.  The trees high yields offer an extraordinary margin for error in any given crop year.  For many alternative oilseed row crops planted elsewhere in the US (often as a new rotational crop), the entire growing season can tolerate few hiccups or else the yields will have a difficult time justifying the risks of planting and new machinery investments.  Pongamia’s low annual maintenance costs also allow a lot of margin for adverse weather surprises.  Pongamia’s diverse downstream markets mitigate marketing risks.  Low-tech processing that can create products from fuel and feed to fertilizer and biocontrol horticultural sprays can allow plenty of flexibility to target up-cycling markets and reduce dependency on single consumer markets.  And depending on those markets, Terviva estimates that at maturity, the groves could generate a net income between $700- $1,500 per acre.

What would the ideal replacement crop look like if it showed up at growers’ doorstep? Probably something like pongamia.

What I Wish I’d Known Before Becoming a Pongamia Farmer

by Elisabeth Beagle, TerViva Propagation & Agronomy Associate

My friends won’t know what I’m talking about.

New pongamia farmers, have your elevator pitch ready – even most fellow farmers have never heard of the crop. Pongamia (pohn-gah-me-ah for most, pohn-gaym-ee-ah for Florida folks) is a semi-deciduous, nitrogen-fixing legume tree that can be grown in diverse tropical and subtropical marginal lands. Drought and salinity tolerant, it’s well-suited for land not arable for food crops. The trees grow to 15-20 meters, set flowers after 3-4 years, and take 9-11 months to form a mature pod after anthesis.

Pongamia farmers harvest pods – up to 100 kg of pods per mature tree, per year. Each pod contains a seed. The oil content of the seed is approximately 35% of the dry seed weight and 55% of it is oleic acid, the ideal fatty acid for good-quality biodiesel production. Uses for pongamia oil are extensive – from adjuvant to lubricant, biodiesel to jet fuel. Beyond the oil, the seedcake (pulp left over after the oil is pressed from the seed) is a valuable source of protein; the pod shells separated during processing is a viable baseload feedstock for power plants.

DO mistake the forest for the trees.

Each variety of pongamia tree grows differently – the trick to successful pongamia crop production is to grow the best varieties, consistently. Ideal traits include regular and timely flowering, growth rate, pod set and weight, and seed oil content. Here’s the catch: if you crack open a pod and plant the seed, the tree that grows is unlikely to share the characteristics of the tree the pod came from. TerViva has compiled an exclusive library of high yielding, patentable pongamia genetics from around the world, and developed propagation techniques for scalable, consistent results. The core of TerViva’s IP platform is elite pongamia genetics that are iteratively advanced.

TerViva is not a coconut water company, Mom.

TerViva helps growers convert distressed agriculture land into productive acreage by growing pongamia. The US has lost 40 million acres of arable land in the past 40 years to disease and changing environmental conditions – while demand for food and fuel soars. In Florida, disease has caused 50% of citrus acreage to be lost in 10 years. Hurricane Irma made the picture worse. In Hawaii, 85% of sugarcane production has been abandoned due to cost of production and competition.

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Pongamia orchard on the North Shore of Oahu in July 2017

TerViva provides cultivar development and supply by selling growers elite trees best suited to their situation. TerViva has established commercial size acreage in Florida and Hawaii, geographies where the need for a new crop and the proper climate for pongamia intersect. Pongamia easily “drops in” to existing farm operations, utilizing the same field setups and infrastructure. The grower plants and maintains the trees at their expense; the pods are harvested using existing mechanical nut-harvesting equipment and transported to a centralized processor; then TerViva acts as the marketer for oil, protein seed cake and shells.

Pongamia farmers in Hawaii take an average of 9,740 steps per day in the field.

Hope your boots are made for walkin’, pongamia farmers. It turns out putting hands and eyes on each of the 121 trees per acre adds up to quite a distance. Trees are planted at 18 feet intervals along rows spaced 20 feet apart to accommodate the catchment frame of the harvester. Each field row consists of trees of the same cultivar, so that the entire row flowers, sets pods, and is ready for harvest at the same time.

The walking distance triples during planting. Pray for cloud cover.

Never say there is nothing beautiful in the world anymore. There is always something to make you wonder in the shape of a tree, the trembling of a leaf (Albert Schweitzer).

Sweaty, dusty pongamia farmers enjoy moments of respite while sitting beneath the shade of pongamia trees, reflecting hopefully on the gravitas of our work. Growing pongamia is for those farmers who are in it for the long game; growing pongamia is an investment for the future. Growing pongamia exhibits the belief that agriculture will continue to lead our population forward, towards renewable and environmentally sustainable energy sources. Had I known how rewarding growing pongamia would be, I would have started sooner! Wish someone had told me.

 

 

Toward a Low-Carbon Transportation Future: Part 2

By Tomas Endicott, Processing & Markets Manager

Last week I wrote about carbon intensity and how the GREET model, standardized by the U.S. Department of Energy, quantifies the amount of carbon dioxide (CO2) that is generated when producing different transportation fuels—both fossil fuels and renewable fuels.

Today, let’s talk about factors that contribute to producing low-carbon transportation fuels.

Lifecycle carbon tracks CO2 emissions from feedstock production to combustion.

Carbon dioxide (CO2) emissions are tracked on a lifecycle basis. That is, CO2 is generated at many points in a fuel production pathway: feedstock acquisition, processing, refining, transport. The more carbon efficient each step in a particular fuel production pathway, the lower the carbon intensity of the final fuel. For processing fossil fuels or biofuels, reducing carbon emissions may include using renewable sources of heat and electricity that generate less CO2, such as biogas, wind power and solar power. Acquiring feedstock to produce transportation fuels presents many different pathways, each unique in the lifecycle CO2 emissions it generates.

All feedstocks are not created (carbon) equal.

Fossil fuel feedstocks—crude oil or natural gas—are fairly carbon-consistent no matter what their origin. They all are extracted in enormous volumes from underground. Biofuel feedstocks are incredibly diverse. There are many more variables that contribute to carbon intensity throughout every step of any particular biofuel feedstock production process.

All plants are self-sufficient. Some more than others.

Most plants are photosynthetic. They create hydrocarbons in the form of carbohydrates (i.e starch, sugar, wood) and/or fats (oils) using carbon dioxide (CO2), nutrients, sunlight and water. The plants use these carbohydrates and fats for their own energy, and they “invest” them into their seeds for the next generation. These carbohydrates and fats also are the source of the energy we harvest and convert into biofuels.

All plants also need some amount of nitrogen to grow and thrive. Legumes, like soybeans, alfalfa seed and pongamia seed, are special in that they harness their own nitrogen—the backbone for proteins—through symbiosis with bacteria that live on their roots. These rhizobium bacteria fix elemental nitrogen from the atmosphere and supply it to the plant in a form the plant can use.

Less inputs equals lower carbon intensity.

Non-leguminous plants must derive nitrogen from compounds in the soil. In a natural environment, that source of nitrogen may be composted organic matter or nitrogen compounds deposited in the soil through earthworm activity. Because modern, improved agricultural crops produce such high yields, they require large quantities of commercial fertilizer. Commercial nitrogen fertilizer is synthesized from natural gas, and its production requires significant energy input. As a result, producing commercial nitrogen fertilizer generates carbon dioxide (CO2) emissions, and those emissions are attributed to the lifecycle carbon of the crops that use the nitrogen fertilizer.

Nitrogen is expensive, both in the energy consumed to manufacture and transport it and in the dollars farmers must expend to apply it to their fields. Because nitrogen fertilizers must be applied to non-leguminous crops like corn and canola, producing biofuels from these non-nitrogen-fixing crops is more carbon intensive than producing biofuels from legumes.

By-products provide additional value.

Oilseed crops, like soybeans, canola and pongamia, can provide oil as feedstock for renewable fuels. They also provide another by-product: high-protein meal, which has significant value as livestock feed and as organic fertilizer.

Pongamia seeds are removed from their shells before being processed. These shells are half the weight of the harvested pongamia pods, and they can provide significant biomass to supply renewable, low-carbon heat and power to the pongamia biofuel processing pathway.

Greater yield per acre equals lower carbon intensity.

Because carbon dioxide (CO2) emissions generated while producing crops are spread across the total yield of a particular crop, crops that produce higher yields per acre can be more carbon-efficient. Every trip across a field to till, seed, fertilize, spray or harvest increases CO2 emissions and increases the carbon intensity for a particular crop. Crops with higher yields spread their carbon dioxide (CO2) emissions over larger production.

Growing conditions also affect yield. Logically, crops grown in tropical and sub-tropical environments experience more sunshine and heat, and they have longer growing seasons, so they produce larger yields per acre.

Annual or perennial makes a difference.

Annual crops—those that must be planted every year—require some amount of tillage or application of broad spectrum herbicides (i.e Round-Up) to prepare the seedbed and to minimize weed competition with the cultivated crop. Tillage alone can increase carbon dioxide (CO2) emissions from agricultural fields simply by exposing organic matter in the soil to oxygen, thereby, allowing it to be decomposed aerobically, which generates CO2.
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Simply tilling the ground increases carbon dioxide (CO2) emissions from agricultural fields. Photo by Kai Oberhäuser on Unsplash

Perennial crops are established once and produce for many years. They do not require annual tillage. For large trees like pongamia, annual maintenance is low when the tree canopy prevents sunlight from penetrating to the ground, so nothing can grow there.

Although they require a few years to produce their first crop, yields for perennial crops tend to be much higher per acre than yields for annual crops. Whereas the average yield for soybeans in the U.S. is about 2,700 pounds per acre, perennial pongamia trees can produce more than 10,000 pounds of seeds per acre per year at eight years of age and beyond. The average lifespan of a pongamia tree is at least 25 to 30 years.

How many gallons of oils per acre?

For the purpose of biodiesel or bio-jet fuel production, seeds of different crops have different concentrations of oil—their percentage of oil by weight. Whereas soybeans contain only 16%-18% oil by weight, canola seeds contains more than 40% oil by weight and pongamia seeds contain 30% to 40% oil by weight. Considering the combination of per acre yields and the oil concentration in the seeds of a particular crop determines the amount of biodiesel or bio-jet fuel that can be produced by a given cultivated area. Here is a chart demonstrating the amount of oil per acre produced by different oilseed crops.

More yield per acre equals greater carbon efficiency.

Whereas soybeans produce only 55 to 60 gallons of oil per acre annually and canola produces about 120 gallons of oil per acre annually, mature pongamia trees can produce more than 450 gallons of oil per acre every year.

The CO2 generated to harvest an acre of soybeans or to harvest an acre of pongamia seeds are similar. Mature pongamia trees, however, yield almost four times more seed per acre than soybeans, and they yield about eight times the oil for every acre harvested. Now that’s efficiency!

Maximizing transportation efficiency minimizes CO2 emissions.

To achieve maximum carbon efficiency, transportation fuels need to be produced and moved in large volumes. It is most carbon-efficient to move fuels by pipeline, although pipelines are expensive to build and they have other environmental considerations. Moving a million gallons of fuel on a single ocean-going barge is ten times more efficient than hauling the same volume of fuel the same distance in hundreds of tanker truck loads. The efficiency of moving fuel in 25,000-gallon rail cars lies somewhere between the efficiency achieved by barges and the efficiency attributed to tanker trucks. Renewable fuels, like fossil-based fuels, must be produced on a large scale to achieve transportation efficiency.

Going further on a gallon of fuel reduces CO2 emissions too.

The most efficient gallon of fuel is the one that you never use. Producing low-carbon fuels at scale is only half the battle. Reducing consumption of all transportation fuels is the best carbon-reduction strategy for the transportation sector. Electric cars, hybrids and clean diesel technology are all available today, and all are improving with each new model year. In 2012, President Obama established new Corporate Average Fuel Economy (CAFE) standards which will raise the average fuel efficiency for all new cars and trucks in the U.S. to 54.5 miles per gallon by 2025. Impressive! Currently, the CAFE standard is 35.5 miles per gallon.

Carbon-efficient, sustainable biofuel feedstock, high-protein livestock feed and organic fertilizer from the perennial pongamia tree.

The pongamia tree can provide a unique and substantial contribution to the United States’ sustainable, low-carbon biofuel future. It is a nitrogen-fixing, subtropical tree that is native to India, Indonesia and Australia, and it grows well in Florida and in Hawaii. It is both drought resistant and accustomed to Monsoonal rains (TerViva’s pongamia orchards in Florida held their own against the wind, rain and flooding from Hurricane Irma last week). Pongamia can grow on sandy soils, and it is resistant to moderate salinity. It is a perennial tree that is highly productive for both non-edible oil as a feedstock for biofuels and for protein-rich meal for livestock feed and fertilizer.

Imagine our low-carbon transportation future!

TerViva is rolling out pongamia orchards on abandoned citrus land in Florida and on land that formerly grew sugarcane in Hawaii. Imagine a future where 100,000 acres of pongamia trees produce 50 million gallons of biofuel and 340,000 tons of high-protein meal each year. Imagine biomass heat and power produced from a half-million tons of pongamia shells harvested annually. Imagine bio-char from gasified pongamia shells sequestering carbon in the soil for thousands of years—steadily reversing the CO2 increase in the earth’s atmosphere.

Imagine millions of acres of pongamia orchards spread across the sub-tropical areas of Asia, Africa, Mexico and South America providing billions of gallons of biofuel every year. Imagine fuel efficient vehicles that go twice as far on a gallon of fuel so that we consume half the transportation fuel that we do today. With biofuels, electric vehicles and other technologies in the mix, renewable fuels could make up 50% of the total transportation fuel consumption in the U.S. within twenty years.

This is not a pipedream. It is absolutely possible. It is a matter of aspiration, effort and will.

Let’s do it!

From Inside the Pipeline: Energy & Ag in Hawaii

By Marie O’Grady, Elemental Excelerator Communications Coordinator

Exhaust poured from the truck as it came to a grinding halt at the base of a conveyor belt, delivering Hawaiian Commercial & Sugar Company’s last cane harvest, symbolizing the end of an era in Hawaii. As happened in Puerto Rico and Trinidad & Tobago, growing sugar in Hawaii was no longer profitable.

In early 2016, Alexander & Baldwin (A&B), the fourth largest land owner in Hawaii, announced the close of Hawaiian Commercial & Sugar Company (HC&S), the state’s last large-scale sugar plantation. Over the years, HC&S had faced controversies around water, pesticides, and field burning, and in 2015, the company incurred a $30 million operating loss.

Alexander & Baldwin announced in early 2016 that all 36,000 acres of former HC&S land would be transitioned to diversified agriculture, such as energy crops, agroforestry, livestock, diversified food crops, and orchard crops. Last month, A&B announced a new partnership with TerViva to cultivate pongamia on 250 acres of former plantation land.

EEx TerViva - orchard - 1

We believe pongamia can help diversify agriculture production on Maui while also potentially addressing our community’s need for renewable fuels. Our former sugar lands provide a great opportunity to grow more energy crops locally as they are ideally suited for large scale cultivation and mechanical harvesting.” – A&B President & CEO, Chris Benjamin

TerViva was the first ag company to join Elemental Excelerator’s portfolio in 2014. As part of their demonstration project, they are growing more than 200 acres of pongamia trees on Oahu and Maui. The oil extracted from pongamia seeds is well suited for industrial applications such as biopesticides, lubricants, chemicals, and fuels – and the residual seed cake shows promise as a feed supplement for beef cattle. Compared to soy, pongamia requires only 25 percent of the chemical and water inputs. One acre of pongamia produces 10 times more oil and 3 times more protein rich seed cake than one acre of soybeans.

EEx TerViva 3

This project is not only transformational for TerViva (it’s their first orchard in the region), but it’s also transformational for Hawaii.

  • Local farmers and agribusinesses are a critical source of economic stability for rural economies, through jobs and direct and indirect spending. TerViva is steadily growing its Hawaii-based team, and the company supports two local nurseries and a handful of contractors.
  • Pongamia is able to grow on marginal agricultural land that is not suitable for other crops. This is ideal for a place like Hawaii where the soil, which once provided resources for thousands of acres of sugarcane and pineapple, has been largely stripped of key nutrients.
  • Biofuel and biomass play a role in Hawaii’s transformation to clean energy, providing firm, dispatchable power. Hawaiian Electric’s December 2016 Power Supply Improvement Plan outlines how the utility plans to utilize biofuels in power plants to replace oil as a fuel source.

There is a growing trend in the number of new agtech companies mature enough for a demonstration project, as evidenced in Elemental Excelerator’s pipeline of applicants:

  • Since 2014, EEx had added four other agriculture startups to the portfolio of 53 startups. These companies are working to increase local beef production, increase crop yields, and help small farmers use data to reduce water usage.
  • Over the last few years, EEx has also seen a dramatic increase in applications from ag startups. This year, 10 percent of the companies who took the first step to apply were agriculture-related. That’s twice as many as last year!

After Monsanto acquired the Climate Corporation in 2013, ag tech gained significant attention. In 2014 alone, investments in ag tech grew 170%. Most innovation was focused in the areas of biotechnology and seed genetics. Today, subsectors include bioenergy, sustainable protein, decision support tech, soil & crop tech, advanced imaging & data analytics, and many others. Investment and innovation are no longer limited to players in the agriculture sector. Moreover, as concern grows over droughts, weather fluctuations, the cost of farm labor, and competition with international markets, key players such as farmers, agro-businesses, and landowners are searching for ways to grow smarter.

 

Elemental Excelerator

Elemental Excelerator helps startups change the world, one community at a time. Each year, they find 12-15 companies that best fit their mission and fund each company up to $1 million to improve systems that impact peoples lives: energy, water, agriculture, and transportation. To date, Elemental Excelerator (EEx) has awarded over $20 million to more than 50 companies. What makes EEx unique? They co-fund, co-design, and co-develop projects and strategies that improve infrastructure and sustainably enhance communities. The program is funded by a diverse coalition of utility partners, corporate partners, the U.S. Navy, the U.S. Department of Energy, state government, and philanthropic organizations, and is structured as a non-profit created in collaboration with Emerson Collective.

 

Related articles:

2015 State Ag Land Use Baseline Data, Hawaii Department of Agriculture

AgTech Is The New Queen Of Green, TechCrunch

Cultivating Ag Tech: 5 Trends Shaping The Future of Agriculture, CB Insights

Hawaii’s Last Sugar Plantation Finishes Its Final Harvest, NBC

Fixing Nitrogen, Waste

By William Kusch

irina-sorokina-253176footprint grass

Figure 1: What is your nitrogen footprint?

You may be familiar with the concept of carbon footprint, but when was the last time you measured your nitrogen footprint? If you are like me, up until very recently, the answer to that question would be: “huh?”.

I got to thinking about the topic when I read an article[1] that National Public Radio (NPR) published, profiling research on life cycle analysis (LCA) of producing a loaf of bread. The article concluded that 66% of greenhouse gas emissions were not from transportation, or baking, but from growing the wheat itself.  Further, “of the environmental impacts … 40% is attributable just to the use of ammonium nitrate fertilizers alone.”

Intrigued, I read on, re-read my colleague’s excellent blog post on animal and livestock nutrition, then clicked my way to a related article[2], also on NPR that dove deeper than greenhouse gas emissions. This story looked specifically at the nitrogen pollution linked to agriculture, with an emphasis on meat production. This piece outlined some agricultural sources and forms of this significant pollutant:

  • Gaseous emissions of nitrogen oxides (NOx) from livestock
  • Release of N2O, and NOx from soil microbes
  • Runoff from excess fertilizer applied to farm fields.

Well, you may say, so what? Isn’t most of the air we breathe nitrogen anyway?  While it is true that a large majority of the atmosphere is nitrogen, it comes in the form of inert N2. N2 is far different from N2O and NOx , two recognized pollutants. Here are a couple of the potential implications from the release and accumulation of N2O and/or NOx:

  • WK gulf mexico

    Figure 2: Image depicting marine dead zone in Gulf of Mexico

    Marine dead zones, such as the famous one in the Gulf of Mexico, where most ocean life has died due to lack of oxygen[3]

  • If concentration is elevated in drinking water, can lead to potentially fatal blue baby syndrome, other negative health impacts[4]
  • Emissions of NOx can lead to the hazardous type of ozone that remains near ground level. This type of ozone can trigger health problems, especially for children and the elderly[5].

Given that agriculture is one of the biggest contributors to nitrogen pollution, and also that no one is going to stop eating in order to stop polluting, what can people do to reduce their nitrogen footprint? Fortunately there are some simple, and effective options to pare the amount of nitrogen pollution associated with our daily activities:

  • Average Americans “eat about 1.4 lbs of protein per week, 2/3 of which come from meat and dairy. …you could cut your nitrogen footprint by more than 40% just by reducing your total protein intake to 0.8 lbs, the amount recommended by the USDA and the National Academy of Sciences”.
  • Get creative with your spending power: think about ways you could change one meal a week from animal protein to one that is centered around plant protein such as that from chickpeas, or assorted beans.
  • Throw away less of your food: an estimate from Natural Resources Defense Council[6] indicates that America wastes ~40% of our food by throwing it in the garbage prematurely, or unnecessarily.
  • Encourage your legislators to support agricultural land conservation efforts, especially in areas where plants filter fertilizer runoff before it enters the local watershed.
  • Consider a more fuel efficient, or electric vehicle when choosing your next set of wheels: while agriculture is the largest source of N2O, transportation also accounts for a large share of NOx[7].
WK orchard

Figure 3: Nitrogen-fixing pongamia trees in TerViva’s Hawaii orchard

At TerViva, we’re doing our part to mitigate this global nitrogen problem as well. We are growing orchards of pongamia: oilseed-producing trees that are legumes and harness the power of symbiotic bacteria to capture nitrogen from the atmosphere. This ability to provide nitrogen for itself allows pongamia to be cultivated using significantly fewer costly inputs relative to most conventional crops, like nitrogen fertilizers. After we harvest the seeds, we crush the crop in an oilseed press, yielding oil and seed cake. The oil serves as an excellent feedstock for biofuel. The seed cake is high in protein and we have discovered how to convert the pongamia protein into animal feed. In addition to feeding livestock, pongamia seed cake can also be used as a fertilizer[8]; we know this because people have been using pongamia cake as fertilizer in Southern and Southeast Asia for many hundreds of years. The reason this anecdote is relevant here, is that modern scientific techniques have recently been brought to bear, analyzing and quantifying the value of pongamia seed cake as fertilizer. In fact, in addition to demonstrating the value of pongamia products as fertilizer, recently published research shows that if pongamia seed cake is used as a fertilizer, there are compounds in the fertilizer that prevent nitrogen pollution from happening in the first place when farmers apply fertilizer to their fields [9].

Through this idea of considering our Nitrogen Footprint, we at TerViva are exploring ways that we can provide renewable, plant-based energy and protein to society, while at the same time preventing and mitigating some of the issues that arise from the modern lifestyles that afford us comfort and convenience.

References:

[1] http://www.npr.org/sections/thesalt/2017/02/27/517531611/whats-the-environmental-footprint-of-a-loaf-of-bread-now-we-know

[2] http://www.npr.org/sections/thesalt/2016/02/25/467962593/why-your-hamburger-might-be-leading-to-nitrogen-pollution

[3] http://www.noaanews.noaa.gov/stories2015/080415-gulf-of-mexico-dead-zone-above-average.html

[4] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1638204/

[5] https://www.epa.gov/ozone-pollution

[6] https://www.nrdc.org/sites/default/files/wasted-food-IP.pdf

[7] http://www.pnas.org/content/100/4/1505.full.pdf

[8] http://oar.icrisat.org/424/1/IndJourFer5_2_25-26_29-32_2009.pdf

[9] http://nopr.niscair.res.in/bitstream/123456789/5647/1/NPR%207(1)%2058-67.pdf

Wild relatives may not be so crazy after all

by Madison Brown

Recently, I came across an article pertaining to a study done on the use of ‘Crop Wild Relatives.’ This study analyzed the wild relatives of crops widely used across the globe to analyze qualities such as drought-tolerance and heat resistance, amongst other more desirable traits plant breeders seek out as our climactic patterns continue to become less and less predictable.

Climatologists and weather forecasters are already calling for another El Nino event to begin this fall. El Nino typically brings weather extremes such as abnormally rainy, warm winters and dry summers. In the world of food production, this means crops struggle to survive respective seasons. For consumers, this can lead to shortages of their favorite fruits and vegetables and in the worst-case grains and other staple crops. In turn, this leads to shortages of livestock feed. These threats result in plant breeders and researchers to investigate ‘wild’ relatives to these crops that in their current form may have lost the ability to adapt.

Staple crops such as rice, barley, chickpea and sunflowers were all analyzed throughout said study. The crops analyzed in this study are major sources of carbohydrates, plant-based protein (legumes) as well as oils and are cultivated consistently throughout the world. By providing information pertaining to commonly cultivated crops, their ‘cousins’ so to speak can be analyzed to provide further understanding of said crops genetics and how the variability can provide both good and bad references of its behavior and survival in the future, or potential improvements to current cultivars. It seems the overall goal here is to increase biodiversity. However, this study left-out major oil crops such as soybeans and corn, which are responsible for ethanol, bio-diesel and other petroleum alternatives that continue to increase in utilization every year.

This article and the information it presented is compelling because our team has been applying these same principles in a process to domesticate Pongamia Pinnata, a native to India and Australia and a wild, tropical relative to legumes we consume and utilize in industrial processes every day. Native to the tropics, Pongamia is naturally drought and tolerant to most temperature and weather extremes. Considering current predictions of our climate and weather patterns for the future, Pongamia seems to fit the bill as a “Wild Relative” for future oilseed crop production.

pods 1

However, Pongamia is vastly different in that it is a tree crop, thus providing other major environmental benefits to our planet. One benefit is carbon sequestration as all trees consume significantly larger amounts of CO2 to complete photosynthesis. In addition, Pongamia is a legume – meaning it “fixes” its own nitrogen through a symbiotic process involving tiny organisms living in the soil. These organisms are called Rhizobia and they participate in a symbiotic relationship with their host by feeding on photosynthates (carbohydrates and sugars provided by photosynthesis), whilst providing nitrogen to their host. Nitrogen also happens to be the most limiting nutrient to plant growth.  With these characteristics, Pongamia can provide us with a clean, forward-thinking alternative to soybeans and other oilseed crops.

Overall, it is both refreshing and exciting to learn other scientists and organizations are performing similar research to ours, on the same path to increasing sustainability and biodiversity on this beautiful planet we call home.

Keep Edible Oils for People, and Non-edible Oils for Industry

By Tom Schenk

In 2012, actor Matt Damon starred in a movie “Promised Land”.  The story was about a rural community whose water was being contaminated from chemicals used in the injection fluids from a petroleum company’s nearby oil and natural gas fracking operation.  While the movie was a box office flop for Damon, it did raise the public’s awareness about the toxic cocktail of chemicals (benzene, toluene, xylene, and ethylbenzene, and methanol, to name a few) that are combined with the large quantities of water (up to 7 million gallons) and sand that are injected deep underground at high pressures to fracture and open up rock formations so oil and gas can flow to a well. These chemicals help to reduce corrosion of the well, lubricate the extraction process, and prevent clogs and bacterial growth.

fracking

Many studies have claimed that these chemicals were used in such small quantities that they posed little risk to aquifers and other groundwater sources. Nevertheless, the movie, numerous articles, and academic studies raised the public’s awareness about some of the potential dangers created by this new drilling technology.  And no doubt it also raised alarms in the oil and gas companies’ legal and risk management departments that contaminating the water supply of one or more cities would wipe the company off the map.

Guar gum has been used in the food industry for many decades.  It has also been one of the favorite products drillers used to hold that sand in suspension and deliver it to its destination.  The greatest source for guar gum historically has been India.  The boom in fracking has created monumental price spikes and shortages for drillers in obtaining this product and has created havoc on their P&L’s.

In recent years, ExxonMobil, Halliburton, and a myriad of other oil-related companies have been developing suitable alternatives – often from plant-based oils – for developing greener, more environmentally-friendly lubricants for their drilling activities.  They would also like to see a more dependable domestic supply for the ingredients in their fracking recipes for biodegradable polymers.

However, in the fast developing world of biodegradable polymers, drilling fluids are almost a rounding error by comparison to all the other wonderful consumer and industrial products that technology that is developing from plant-based oils such as marine oils, auto and aviation lubricants (often with superior wear and heat properties), surfactants, detergents, shopping bags, food containers and countless other products where petroleum-based products and plastics have historically dominated. This technology is in a profound growth phase as almost anything we currently know as plastic can be reproduced in a more sustainable manner with plant-based oils rather than petroleum. And it sells because the consumer wants it.

Soy is the most dominant feedstock for many of these renewable products, as well as corn, canola, flax, palm, cottonseed, peanut, and others that are cultivated in large quantities worldwide.  Couple the growth in biofuels with the growth in this new technology for industrial applications, and all it will take is one or two bad years of crop production for there to be be a collision between food security for people and feedstock supply for factories and refineries.

Only the most arable lands – which are in diminishing supply – should logically be devoted exclusively to food.  Champions of these earth-friendly fuels and industrial products made from renewable feedstocks are missing the full picture.  They should be calling for the development of high-yielding non-edible oilseed crops that can thrive on the marginal land!

This is Terviva’s mission.  One of the most promising crops in this space is the wild tree called pongamia that our company is commercializing. These oilseed trees can produce up to 10x the amount of oil per acre that the best soybean land in Iowa can produce. Carbon is sequestered, and vast fallow acreage in Florida and Hawaii is on its way to becoming annually renewable – and profitable -“oilfields”.  Hardy, high-yielding crops on marginal lands are the optimum way to achieve peak biodiversity. Leave the good lands to make food for people.

Grazing the Steaks

The imagery of cattle on 747, flying 2500 miles across the Pacific ocean took me by surprise –and wasn’t an idea I ever thought I would have to entertain until I began exploring the market potential for pongamia seed cake as a cattle protein supplement in Hawaii.

content cattle

Very content cattle (replacement heifers) on a intensive rotational grazing system at Ponoholo Ranch on the Big Island, with sweeping views of the coastline and Pacific Ocean

Through this pursuit, I discovered that approximately 75 percent of the cattle raised in Hawaii are shipped, by either plane or boat (via “cowtainers” or “floating feedyards”), for finishing and processing on the mainland. This practice began taking place after a large-scale processing plant closed down in 1990, causing the only large capacity feedlot to follow suit.  In another article, I explain that this practice not only decreases Hawaii’s market share of the industry from 30 percent to less than 10 percent, but also bears down on the islands’ food security and self-sufficiency — a looming issue for Hawaii. Nonetheless, it turns out, shipping cattle live to the mainland for finishing and processing is more economical for ranchers than purchasing feed to finish them here. A big issue is that the cost of feed (protein) is nearly double the price paid by ranchers on the mainland. Thus, with limited local feed options, in addition to veterinary care, branding, processing, and grading services, finishing and marketing the product on the mainland becomes more profitable.

cow calf operations

Cattle production chart depicts each phase of production and relative nutrients. Cow-Calf phase in yellow is what primarily takes place in Hawaii.

The scenario described is exactly why local feed solutions are currently in vogue in Hawaii.  In fact, a variety of industry stakeholders are interested in locally produced livestock feed, especially those derived from biofuel co-products, in effort to bolster Hawaii’s food-security and self-sufficiency, as well as the economic pay-off. With this considered, Pongamia is not only high-performing biofuel but also a potential solution to a eminent food security issue here in Hawaii.

Knowing all this, the seemingly manifest subject-matter of cattle supplementation in Hawaii quickly became a quandary through the market research process. First, Hawaii’s cattle inventory (including calves) is 135,000 head. With only one 950 head capacity feedlot in Maui, most of the weaned calves that are finished in Hawaii (a little over 8,000 head) are almost entirely forage-finished. These cattle are locally marketed as “grass-fed,” which doesn’t necessarily mean that can’t be given supplements but it is indeed a murky market to evaluate. However, most of Hawaii’s beef cattle industry consist of cow-calf operations, which takes place over a year before the finishing (feedlot) phase, as illustrated in the chart below. This is key as supplementation is the most critical during the cow-calf phase, given the mother cow’s high nutritional needs during pregnancy and lactation. With approximately 80,000 mother cows requiring 2-3 lbs of protein a day, this particular market could range from about 2,500 tons of pongamia potential, if only half of the mother cows received the supplement for 365 days, up to 8,000 tons of pongamia potential if all 80,000 mother cows receive the supplement for 365 days.

hawaii climateFor an even more critical look, a majority (about 80 percent) of the cow-calf operations are on the Big Island, where you’ll find one of the most productive (and jaw dropping picturesque) grazing lands in the U.S. Moreover, what you might find surprising, is that the Big Island is home to three of the top 25 largest cow-calf operations namely, Parker (#9) , Ponoholo (#21), and Kahua Ranch (#23). These three ranches (all neighbors – pictured below) make up a quarter of Hawaii’s protein supplement market. Parker ranch alone has approximately 10,000 mother cows over 130,000 acres, in 4-5 climate zones that can be observed from a pu’u (mound) from just up the ranch headquarters. These microclimates, along with the mountainous topography and multifarious winds are certainly factors these ranches take into consideration when choosing to supplement. Parker Ranch, for instance, finds it important to look at the season and time of year, as the nutrients in the forage is dependent on this.parker ranch Ponoholo, on the other hand, over 11,000 acres and three climate zones, prides itself on being a low-cost ranch, that is able to practice intensive rotational grazing which maximizes nutritional opportunities for the cattle, thereby reducing damage to the land through erosion and overgrazing. Given this, Ponoholo would likely forgo protein supplementation even in the event of drought, where they find it best to simply reduce their herd size. Right next to Ponoholo, Kahua Ranch would, however, consider using a protein supplement especially during drought to maintain cow-herd numbers. This illustrates the complexity and case-by-case nature of the cattle protein supplement market Hawaii. Nonetheless, even the ranches that rarely supplement their cattle, are still behind the idea using of pongamia seed cake as a protein supplement — especially in a drought situation, which one rancher explained could be the difference between life or death for a cattle herd.

Nitasha Baker

RISE/EEx- TerViva Business Development Fellow

Don’t Give Up on Biofuels Yet, HECO. Introducing the 10-10 Plan.

Last week, TerViva attended the Asia Pacific Clean Energy Summit in Honolulu, where we presented our vision for Hawaii. We call it the “10-10 Plan”: to use pongamia to produce 10% of Hawaii’s current petroleum needs annually, using 10% of Hawaii’s available farmland.

In response to the Hawaii PUC’s call to action (http://1.usa.gov/1x2PFWc), Hawaiian Electric (“HECO”) recently presented its strategic goals for Hawaii’s energy future (http://1.usa.gov/YXk1ei). It prominently features the use of liquefied natural gas and increases the amount of solar energy production. It does not put much emphasis on biofuels. Hawaii currently generates most of its expensive electricity from oil-fired power plants, and it has been long-hoped that biofuels could replace the use of petroleum. While not explicitly stating so, HECO now seems to view biofuels as only a small part of Hawaii’s future energy mix.

TerViva hopes to change that with pongamia. The 10-10 Plan is ambitious. Hawaii currently uses approximately 42 million barrels of petroleum per year. 10% of that is 4.2 million barrels, or 178 million gallons. At our current projected yield for pongamia of 400 gallons per acre per year, that means we’ll need almost 4.5 million acres of land. But Hawaii’s total land mass is only 4.1 million acres, and total available farmland is only 1.2 million acres. 10% of that farmland, or 121,000 acres, means that pongamia will have to produce 1470 gallons per acre per year for the 10-10 plan to work (121,000 acres X 1,470 gallons per acre = 178 million gallons). That’s a big increase from 400 gallons per acre, and it’s quite bold to suggest that we will plant 10% of Hawaii’s farmland with pongamia.

So how will we make the 10-10 Plan a reality? There are 2 necessary developments:

Example pyrolysis process, courtesy of www.btgworld.com

Example pyrolysis process, courtesy of www.btgworld.com

 

First, we’ll have to find a way to take all those seed pod shells produced from pongamia and turn them into oil. Like other nuts such as almonds or peanuts, pongamia seeds grow inside of woody shells. Right now, the shells are a waste stream – it’s really the oilseeds that we care about for their vegetable oil and protein seed cake (for cattle feed).

But there is technology that converts woody biomass it into oil (e.g., pyrolysis).

We’ve done some modeling using assumptions provided to us by UOP, and we estimate that we’ll be able to double the oil yield per acre per year if we can convert the shells into oil.   These conversion technologies are not quite yet ready for primetime, but we hope that in the near future, they will be.

Second, we’ll need to move pongamia toward intercropping and/or agroforestry. There’s no way that 10% of Hawaii’s farmland should be dedicated exclusively to any one crop. We should decrease the spacing of pongamia trees per acre to accommodate row crops or cattle grazing on that same land.

By decreasing the tree density per acre, pongamia can be "intercropped" with row crops or cattle

By decreasing the tree density per acre, pongamia can be “intercropped” with row crops or cattle

To allow for intercropping or cows, we estimate that we’ll have to reduce the number of trees per acre by 40%. This means that each tree will have to be even more productive. Assuming a 40% reduction in tree density per acre, as well as the ability to convert the pongamia shells into oil, we’ll have to produce 140 kgs of seed pods per year per tree to make 1,470 gallons of oil per acre per year (1,470 gallons per acre X 120,000 acres [10% of Hawaii’s farmland] = 4.2 million barrels of oil [10% of Hawaii’s current annual petroleum usage]).

140 kgs of seed pods per tree annually is more than double what we are currently forecasting (60 kgs).  Hence why the 10-10 Plan is ambitious. But it’s not undoable. Here’s a picture of a mature 25’X25’ pongamia tree in Australia. This is about the size of a tree that we’d expect at maturity in our Hawaii fields. This tree produces about 200 kgs of seed pods annually.

A pongamia tree full of seed pods (estimated 200 kgs)

A pongamia tree full of seed pods (estimated 200 kgs)

 

Not all of our trees, every year, will produce this prolifically, but we believe that over time, with proper agronomy and tree selection and breeding, pongamia is capable of producing 140 kgs of seed pods per tree per year.

We understand why HECO hasn’t put much faith into biofuels. They’ve gone down the road with a few other promising biofuels projects, only to see them flounder. We didn’t come up with the 10-10 Plan as some PR stunt. We did it to show that biofuels should still be in the conversation, and we’ll let our trees do the talking for us.