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Industry experts predict economic impact of Oklahoma biofuels growth

OKLAHOMA CITY, Okla. – The biofuels industry has taken root in Oklahoma and as it begins to grow, researchers, capital investors, farmers and ranchers grapple with the decisions that will ensure this emerging industry’s success.

Oklahoma has the opportunity to develop and invest in ways to produce biofuels that do not affect food, feed or fiber, said Ray Huhnke, agricultural engineer with Oklahoma State University’s Division of Agricultural Sciences and Natural Resources.

“Evaluating the best types of biomass to grow, the best conversion processes to use and the best places to locate conversion facilities in our state will create an industry that is successful and sustainable, without the negative impacts of using a already dedicated food source to produce biofuels,” Huhnke said.

Other states, such as Nebraska, have a robust biofuels industry that is dependent upon corn to produce starch-based ethanol. This approach has resulted in higher grain prices for ranchers and rising food prices for consumers nationwide.

Oklahoma is positioned to not only produce starch-based ethanol and seed oil based-biodiesel but to use cellulosic biomass to create ethanol. Cellulosic biomass is plant material from grasses and forage, crops and crop residue, forestry waste and other sources that can be converted into cellulosic ethanol.

Calculations from OSU indicate that a biorefinery producing 50-million gallons per year will create more than 270 jobs including 30 plant personnel, 50 truck drivers and 190 agricultural workers. Biomass from approximately 45,000 acres would be needed by a biorefinery for the ethanol conversion process. Conservatively, the economic impact for Oklahoma per biorefinery could be $40 million each year.

During the last 15 months, various organizations have announced plans to build four biorefineries in Oklahoma communities including Shattuck, Guymon, Enid and Blackwell.

The federal government has also recognized the need for alternatives to foreign oil and mandated the annual production of 35 billion gallons of biofuels by 2017. In 2006, the United States only produced about 5 billion gallons of biofuels, mostly from ethanol.

“We are witnessing the creation of a new industry,” said Joe Bouton, senior vice president, director of the Forage Improvement Division and scientist for The Samuel Roberts Noble Foundation. “This industry can provide the world what it’s been waiting for – a renewable, economically viable and environmentally friendly source of fuel. Oklahoma is well positioned to take a leadership role in this new industry”

OSU, the University of Oklahoma and the Noble Foundation are actively engaged in research that will position Oklahoma as a leader in production of cellulosic ethanol.

The Oklahoma Biofuels Conference, Oct. 16-17, in Oklahoma City will offer those in the agriculture, biotechnology and the energy industries the opportunity to discover more about the biofuels future from national, regional and local presenters.

Conference attendees will be updated on developments related to the new Oklahoma Bioenergy Center research initiative, development of feedstock varieties, advances in biorefinery technology, new federal funding for energy crops, the debate over fuel versus food, water usage, carbon control policies and more.

Registration is $45. For more information, a complete list of speakers or registration, visit www.GrowOK.com or call 1-800-203-5494.

The Oklahoma Biofuels Conference is presented by the Office of the Secretary of Energy, State of Oklahoma, in collaboration with the Oklahoma Department of Agriculture and the Office of the Secretary of Environment, State of Oklahoma.

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