Tennessee surges to front in biofuel race

In 1908 Henry Ford constructed an ethanol fermentation plant in Atchison, Kan., designed to fuel the first generation of his newest car, the Model T. The investment represented Ford's belief that ethanol would be the primary fuel for the emerging American automobile industry.

Ford's prediction was wrong. By the close of World War II, the discovery of seemingly unlimited supplies of oil had greatly reduced the price of gasoline and diesel fuel, to the point that ethanol made from corn and other plants essentially disappeared from the American market.

Nearly a century after Ford's project, a combination of political, economic and environmental factors has rekindled America's interest in his original belief that biofuels can be a major component of the fuel needed to run the nation's transportation system. In a world market now under growing pressure from diminishing reserves and increasing demand, the cost of petroleum is reaching levels unimaginable only a decade ago. Across the continents of Africa and Southern Asia, prolonged political instability threatens fragile oil supply lines. At home, the annual consumption in combustion engines of more than 300 billion gallons of fuel made from petroleum is a major contributor to unprecedented levels of greenhouse gas in Earth's atmosphere.

Not surprisingly, the Department of Energy and a growing number of state governments are making sizable investments in new technologies designed to bring about a replacement of petroleum with carbon-neutral, renewable sources of transportation fuels. More surprising to many is the emergence of Tennessee, seemingly overnight, as a leader in the race to develop new and affordable ways to make biofuels. Along with California, Tennessee today would be on any short list of states where scientific breakthroughs and the subsequent growth of the biofuels industry are likely to take place.

At least three factors have contributed to Tennessee's sudden prominence. The first is the presence of switchgrass, capable of growing on some 1 million acres of marginal land in Tennessee not currently used for food crops. Unlike corn, switchgrass requires no fertilizer or irrigation and little labor other than harvesting. As the raw material used to make ethanol, switchgrass will not replace corn; indeed, under any scenario the volume of corn ethanol produced in Tennessee will probably double over the next two decades. Economists predict, however, that by 2030 biofuels will grow from only 3 percent of total motor fuels consumption today to as much as 30 percent. In Tennessee, a large portion of the exploding demand for biofuels will likely be filled by switchgrass ethanol.

A second reason for Tennessee's leadership in biofuels is the breakthrough research taking place at Oak Ridge National Laboratory. In June the laboratory won a vigorous competition among some two dozen teams to establish a $125 million Bioenergy Research Center in Oak Ridge. Leading a team that includes the University of Tennessee, the Oak Ridge scientists will be seeking ways to improve the method of converting switchgrass to ethanol. With some of the world's best talent focused on the challenge, the laboratory is hopeful a cost-efficient process will be available in three to five years.

The final and perhaps most important factor in Tennessee's biofuels leadership occurred during the recent legislative session, when Gov. Phil Bredesen and the General Assembly had the foresight to make a bold investment that will take advantage of the research in Oak Ridge. Most states have focused bioenergy investments on laboratory research or efforts to increase the yield of biomass crops. In Tennessee, the governor and a bipartisan legislative coalition recognized that before developing a statewide biofuels industry, we must know whether the switchgrass ethanol produced in ounces in the laboratory can be manufactured in the millions of gallons at a price competitive with gasoline.

To answer this question, the legislature approved funding for a demonstration refinery capable of producing 5 million gallons of ethanol per year. In addition, research funding was provided to the University of Tennessee to increase the yield per acre of switchgrass, and as incentives to farmers to begin growing enough switchgrass to feed the refinery.

No other state at present has the combination of investments in world-class research, crop incentives and a demonstration refinery that exists in Tennessee. If these investments yield the expected results, it is possible that Tennessee could see the construction of several 100 million-gallon ethanol plants in the coming decade. An increase in income to the state's farmers and rural communities, combined with a decrease in carbon emissions for the state's environment, could make the next two decades a truly transformational period for Tennessee.

Billy Stair is director of communications and external relations for the Oak Ridge National Laboratory.