Groups to Study Sustainable
Biomass Resources in Western Wisconsin

West Salem, Wis. – The Energy Center of Wisconsin has started a project with the Farmers Cooperative Supply and Shipping Association (Farmers Cooperative) and their partners, Xcel Energy, Cooperative Network and Wisconsin Office of Energy Independence, to study the availability of sustainable harvested woody biomass in the region surrounding West Salem, Wis. The project will evaluate the business potential of aggregating and processing waste wood into a biomass fuel and determine the market value of woody biomass. Xcel Energy and the Office of Energy Independence will each provide a $25,000 grant to fund the project.

“Wisconsin is rich with potential to achieve energy independence and add new growth to our economy, and this grant furthers Gov. Jim Doyle’s plan to reduce our reliance on fossil fuels,” said David Jenkins, director, Commercialization and Market Development, Wisconsin Office of Energy Independence. “In his Clean Energy Wisconsin plan, the governor calls for growing biomass production in the state from 70,000 acres per year in 2015 to 600,000 per year by 2025. This grant will help farm supply cooperatives work with their member-owners to start producing new bioenergy crops to replace fossil fuels.”

The biomass aggregation study includes two tasks to be conducted concurrently: 

• Examine woody biomass resources and availability within approximately 50 miles of West Salem., including 10 counties – Fillmore, Houston and Winona, Minn.; Buffalo, Crawford, Jackson, La Crosse, Monroe and Trempealeau, Wis.; and Allamakee, Iowa.
• Work with the Farmers Cooperative and Cooperative Network in consultation with Xcel Energy to better understand possible synergies, benefits and costs of having agricultural cooperatives provide aggregation services.
  

“Developing a biomass business venture could have significant economic impacts for the communities from which the biomass is procured and processed,” said Monte Wick, general manager, Farmers Cooperative. “Our short-term goal is to determine if the cooperative can source, aggregate and supply a minimum of 26,000 green tons per year of woody biomass for fuel at Xcel Energy’s French Island Power Plant.”

“Agricultural cooperatives have been aggregating, processing, and marketing farm commodities for well over 100 years in Wisconsin,” said Bill Oemichen, president and CEO of Cooperative Network. “Aggregating and processing biomass for energy production is a logical next step and a cooperatively owned operation assures that the financial benefits stay in the local communities.”

Xcel Energy has a long history of using biomass to generate electricity and its French Island Power Plant in La Crosse burns a combination of waste wood and refuse-derived fuel. The company has also proposed a project at its Bay Front Power Plant in Ashland, Wis., to double the amount of biomass it currently uses at that facility. The availability of a reliable, secure and stable biomass fuel supply is a critical element to move this and other potential projects forward, according to David Donovan, manager, Regulatory Policy, Xcel Energy.

“With the increasing demand for woody biomass for electric generation, Wisconsin’s agricultural cooperatives may play a key role in the creation of a reliable, long-term biomass aggregation system,” Donovan said. “Successful grower cooperatives could provide additional revenue sources for cooperative members and area communities, as well as promote sustainable forestry practices.” 

Completion of the study is expected by November.

About Energy Center of Wisconsin
The Energy Center of Wisconsin is an independent nonprofit that explores ideas and solutions to energy challenges. Based in Madison, the Energy Center conducts objective research to better understand how consumers use energy and to identify barriers that may prevent more efficient use. Initiatives include design services and continuing education for architects, engineers and builders and field research to improve the performance of new and existing buildings.

About Farmers Cooperative Supply and Shipping Association
Farmers Cooperative Supply and Shipping Association is a locally owned business that aggregates farmers’ grains for marketing, manufactures animal feed and supplies seed, fertilizer, crop protectants and fuels. The cooperative is a part owner of a transportation company and an energy risk management firm, and has a fleet of more than 70 vehicles. Founded in 1918, the producer-owned cooperative had gross sales in excess of $41 million last year. Its membership includes approximately 4,200 individuals, including 450 active farmers.

About Cooperative Network
The largest statewide association of its kind, Cooperative Network is committed to building cooperative businesses in Wisconsin and Minnesota. Cooperative Network serves more than 600 member-cooperatives, owned by more than 6.3 million Wisconsin and Minnesota residents, by providing government relations, education, marketing and technical services for a wide variety of cooperatives including farm supply, health, dairy marketing, consumer, financial, livestock marketing, telecommunications, electric, housing, insurance and worker-owned cooperatives.

About Xcel Energy
Xcel Energy serves 250,000 electric and 100,000 natural gas customers throughout 223 communities in Wisconsin and Michigan’s Upper Peninsula. The company’s Wisconsin headquarters are located in Eau Claire and it is the state’s No. 1 renewable energy provider. For more information, visit xcelenergy.com.