Adoption Subsidies and Environmental Impacts of Alternative Energy Crops, March 2007

We provide estimates of the costs associated with inducing substantial conversion of land from production of traditional crops to switchgrass. Higher traditional crop prices due to increased demand for corn from the ethanol industry has increased the relative advantage that row crops have over switchgrass. Results indicate that farmers will convert to switchgrass production only with significant conversion subsidies. To examine potential environmental consequences of conversion, we investigate three stylized landscape usage scenarios, one with an entire conversion of a watershed to switchgrass production, a second with the entire watershed planted to continuous corn under a 50% removal rate of the biomass, and a third scenario that places switchgrass on the most erodible land in the watershed and places continuous corn on the least erodible. For each of these illustrative scenarios, the watershed-scale Soil and Water Assessment Tool (SWAT) hydrological model (Arnold et al., 1998; Arnold and Forher, 2005) is used to evaluate the effect of these landscape uses on sediment and nutrient loadings in the Maquoketa Watershed in eastern Iowa.

The Growth and Direction of the Biodiesel Industry in the United States, 2007

The biodiesel industry in the United States has realized significant growth over the past decade through large increases in annual production and production capacity and a transition from smaller batch plants to larger-scale continuous producers. The larger, continuous-flow plants provide operating cost advantages over the smaller batch plants through their ability to capture co-products and reuse certain components in the production process. This paper uses a simple capital budgeting model developed by the authors along with production data supplied by industry sources to estimate production costs, return-on-investment levels, and break-even conditions for two common plant sizes (30 and 60 million gallon annual capacities) over a range of biodiesel and feedstock price levels. The analysis shows that the larger plant realizes returns to scale in both labor and capital costs, enabling the larger plant to pay up to $0.015 more per pound for the feedstock to achieve equivalent return levels as the smaller plant under the same conditions. The paper contributes to the growing literature on the biodiesel industry by using the most current conversion rates for the production technology and current price levels to estimate biodiesel production costs and potential plant performance, providing a useful follow-up to previous studies.

The hotel industry and its importance in the technical and economic development of a region : the Lake Geneva case (1852-1914)

The historiography dedicated to tourism has emphasised how some socio-economic evolutions such as urbanisation, mechanisation of transport or the advent of leisure time in society have supported pleasure trips and therefore the development of the hotel industry. On the contrary, the research has too often neglected or at least minimised the impact of the hotel sector on a region's development. This contribution seeks to fill this gap by analysing the Geneva Lake region, one of the most important birthplaces of the European tourism. In this space not much touched by the first industrial revolution, the hotel business has in fact played the role of an economic motor, stimulating investment and employment. This dynamism provoked a domino effect on several other sectors of the economy (industry, bulding sector, banking). To please their customers, the hoteliers have not only given impulses on housing modernisation, but also to the revitalisation of transport, energy and communication networks. The necessity to remain on the state-of-the-art of technical issues, with the concern of competitiveness, has called forth an acceleration of the technology transfer and stimulated the constitution of technical know-how.

Business Sphere, Vol. 19, no.1

Ethanol, the clean-burning, high octane fuel distilled from Iowa’s corn fields, has the potential to free the U.S. from its foreign oil dependence. Transforming corn into ethanol, however, takes energy, usually in the form of natural gas or coal. Ames-based Frontline BioEnergy is developing biomass-to-energy conversion methods that reduce an ethanol plant’s consumption of fossil fuels, making ethanol an even greener product. As Iowa’s ethanol industry continues to grow, developing energy from biomass could result in huge savings for the state’s production facilities.

Wind Energy Where Wind and Innovation Work, 2010

Centrally located in America’s upper Midwest, Iowa lies in the heart of a 12-state region that will have installed an average of 2,701 mfi per year through 2014. In 2009 alone, this region, which is within one day delivery from Iowa, installed turbines valued at $7.8 billion! Once you understand how this exploding growth in the market intersects with the supply chain established by over 250 Iowa companies that are already providing components and services to wind energy manufacturers, you have an outstanding picture of exactly why all major wind manufacturing components are made in Iowa.

2011 Energy Independence Plan

Iowa has experienced remarkable progress in the past four years as the state has pursued a vision of becoming the nation’s energy leader. One of the most profound changes over this time has been a richer understanding of the economic future that can be created in Iowa by adding “Made in Iowa” alternatives to our nation’s energy mix. Built around a strong commitment to transforming our economy through innovation, collaboration, and implementation in the energy industry, the role of the Office of Energy Independence (Office) is to bring together the essential prerequisites for maintaining the long-term health and economic growth of our state. What is clearer than ever before is Iowa cannot achieve success if any entity chooses to pursue these goals independently. Rather, success requires that we consistently work to achieve our goals through integrated initiatives that place a high priority on moving us forward simultaneously, and on multiple fronts. Success is what our citizens expect from a leading state in the energy industry whose actions carry such far-reaching implications for the economy and the environment.

Iowa Plan for Energy Independence, 2007

Iowa’s first annual Energy Independence Plan kicks off a new era of state leadership in energy transformation. Supported by Governor Chet Culver, Lieutenant Governor Patty Judge, and the General Assembly, the Office of Energy Independence was established in 2007 to coordinate state activities for energy independence. The commitment of the state to lead by example creates opportunities for state government to move boldly to achieve its goals, track its progress, measure the results, and report the findings. In moving to energy independence, the active engagement of every Iowan will be sought as the state works in partnership with others in achieving the goals. While leading ongoing efforts within the state, Iowa can also show the nation how to effectively address the critical, complex challenges of shifting to a secure energy future of affordable energy, cost-effective efficiency, reliance on sustainable energy, and enhanced natural resources and environment. In accordance with House File 918, “the plan shall provide cost effective options and strategies for reducing the state’s consumption of energy, dependence on foreign sources of energy, use of fossil fuels, and greenhouse gas emissions. The options and strategies developed in the plan shall provide for achieving energy independence from foreign sources of energy by the year 2025.” Energy independence is a term which means different things to different people. We use the term to mean that we are charting our own course in the emerging energy economy. Iowa can chart its own course by taking advantage of its resources: a well-educated population and an abundance of natural resources, including rich soil, abundant surface and underground water, and consistent wind patterns. Charting our own course also includes further developing our in-state industry, capturing renewable energy, and working toward improved energy efficiency. Charting our own course will allow Iowa to manage its economic destiny while protecting our environment, while creating new, “green collar” industries in every corner of Iowa. Today Iowa is in a remarkable position to capitalize on the current situation globally and at home. Energy drives the economy and has impacts on the environment, undeniable links that are integral for energy security and independence. With the resources available within the state, the combination of significant global changes in energy and research leading to new technologies that continue to drive down the costs of sustainable energy, Iowa can take bold strides toward the goal of energy independence by 2025. The Office of Energy Independence, with able assistance from hundreds of individuals, organizations, agencies, and advisors, presents its plan for Iowa’s Energy Independence.

Ag Decision Maker, October 2005, Energy Edition

A Business Newsletter for Agriculture

Three essays on major trends in a slow clockspeed industry : the case of industrial automation

The motivation for this research initiated from the abrupt rise and fall of minicomputers which were initially used both for industrial automation and business applications due to their significantly lower cost than their predecessors, the mainframes. Later industrial automation developed its own vertically integrated hardware and software to address the application needs of uninterrupted operations, real-time control and resilience to harsh environmental conditions. This has led to the creation of an independent industry, namely industrial automation used in PLC, DCS, SCADA and robot control systems. This industry employs today over 200'000 people in a profitable slow clockspeed context in contrast to the two mainstream computing industries of information technology (IT) focused on business applications and telecommunications focused on communications networks and hand-held devices. Already in 1990s it was foreseen that IT and communication would merge into one Information and communication industry (ICT). The fundamental question of the thesis is: Could industrial automation leverage a common technology platform with the newly formed ICT industry? Computer systems dominated by complex instruction set computers (CISC) were challenged during 1990s with higher performance reduced instruction set computers (RISC). RISC started to evolve parallel to the constant advancement of Moore's law. These developments created the high performance and low energy consumption System-on-Chip architecture (SoC). Unlike to the CISC processors RISC processor architecture is a separate industry from the RISC chip manufacturing industry. It also has several hardware independent software platforms consisting of integrated operating system, development environment, user interface and application market which enables customers to have more choices due to hardware independent real time capable software applications. An architecture disruption merged and the smartphone and tablet market were formed with new rules and new key players in the ICT industry. Today there are more RISC computer systems running Linux (or other Unix variants) than any other computer system. The astonishing rise of SoC based technologies and related software platforms in smartphones created in unit terms the largest installed base ever seen in the history of computers and is now being further extended by tablets. An underlying additional element of this transition is the increasing role of open source technologies both in software and hardware. This has driven the microprocessor based personal computer industry with few dominating closed operating system platforms into a steep decline. A significant factor in this process has been the separation of processor architecture and processor chip production and operating systems and application development platforms merger into integrated software platforms with proprietary application markets. Furthermore the pay-by-click marketing has changed the way applications development is compensated: Three essays on major trends in a slow clockspeed industry: The case of industrial automation 2014 freeware, ad based or licensed - all at a lower price and used by a wider customer base than ever before. Moreover, the concept of software maintenance contract is very remote in the app world. However, as a slow clockspeed industry, industrial automation has remained intact during the disruptions based on SoC and related software platforms in the ICT industries. Industrial automation incumbents continue to supply systems based on vertically integrated systems consisting of proprietary software and proprietary mainly microprocessor based hardware. They enjoy admirable profitability levels on a very narrow customer base due to strong technology-enabled customer lock-in and customers' high risk leverage as their production is dependent on fault-free operation of the industrial automation systems. When will this balance of power be disrupted? The thesis suggests how industrial automation could join the mainstream ICT industry and create an information, communication and automation (ICAT) industry. Lately the Internet of Things (loT) and weightless networks, a new standard leveraging frequency channels earlier occupied by TV broadcasting, have gradually started to change the rigid world of Machine to Machine (M2M) interaction. It is foreseeable that enough momentum will be created that the industrial automation market will in due course face an architecture disruption empowered by these new trends. This thesis examines the current state of industrial automation subject to the competition between the incumbents firstly through a research on cost competitiveness efforts in captive outsourcing of engineering, research and development and secondly researching process re- engineering in the case of complex system global software support. Thirdly we investigate the industry actors', namely customers, incumbents and newcomers, views on the future direction of industrial automation and conclude with our assessments of the possible routes industrial automation could advance taking into account the looming rise of the Internet of Things (loT) and weightless networks. Industrial automation is an industry dominated by a handful of global players each of them focusing on maintaining their own proprietary solutions. The rise of de facto standards like IBM PC, Unix and Linux and SoC leveraged by IBM, Compaq, Dell, HP, ARM, Apple, Google, Samsung and others have created new markets of personal computers, smartphone and tablets and will eventually also impact industrial automation through game changing commoditization and related control point and business model changes. This trend will inevitably continue, but the transition to a commoditized industrial automation will not happen in the near future.

Iowa's Renewable Energy and Infrastructure Impacts, TR-593, 2010

The federal government is aggressively promoting biofuels as an answer to global climate change and dependence on imported sources of energy. Iowa has quickly become a leader in the bioeconomy and wind energy production, but meeting the United States Department of Energy’s goal having 20% of U.S. transportation fuels come from biologically based sources by 2030 will require a dramatic increase in ethanol and biodiesel production and distribution. At the same time, much of Iowa’s rural transportation infrastructure is near or beyond its original design life. As Iowa’s rural roadway structures, pavements, and unpaved roadways become structurally deficient or functionally obsolete, public sector maintenance and rehabilitation costs rapidly increase. More importantly, costs to move all farm products will rapidly increase if infrastructure components are allowed to fail; longer hauls, slower turnaround times, and smaller loads result. When these results occur on a large scale, Iowa will start to lose its economic competitive edge in the rapidly developing bioeconomy. The primary objective of this study was to document the current physical and fiscal impacts of Iowa’s existing biofuels and wind power industries. A four-county cluster in north-central Iowa and a two-county cluster in southeast Iowa were identified through a local agency survey as having a large number of diverse facilities and were selected for the traffic and physical impact analysis. The research team investigated the large truck traffic patterns on Iowa’s secondary and local roads from 2002 to 2008 and associated those with the pavement condition and county maintenance expenditures. The impacts were quantified to the extent possible and visualized using geographic information system (GIS) tools. In addition, a traffic and fiscal assessment tool was developed to understand the impact of the development of the biofuels on Iowa’s secondary road system. Recommended changes in public policies relating to the local government and to the administration of those policies included standardizing the reporting and format of all county expenditures, conducting regular pavement evaluations on a county’s system, cooperating and communicating with cities (adjacent to a plant site), considering utilization of tax increment financing (TIF) districts as a short-term tool to produce revenues, and considering alternative ways to tax the industry.

Mass and energy balance of the carbonization of babassu nutshell as affected by temperature

The objective of this work was to evaluate the carbonization yield of babassu nutshell as affected by final temperature, as well as the energy losses involved in the process. Three layers constituting the babassu nut, that is, the epicarp, mesocarp and endocarp, were used together. The material was carbonized, considering the following final temperatures: 450, 550, 650, 750, and 850ºC. The following were evaluated: energy and charcoal yields, pyroligneous liquid, non-condensable gases, and fixed carbon. The use of babassu nutshell can be highly feasible for charcoal production. The yield of charcoal from babassu nutshell carbonization was higher than that reported in the literature for Eucalyptus wood carbonization, considering the final temperature of 450ºC. Charcoal and energy yields decreased more sharply at lower temperatures, with a tendency to stabilize at higher temperatures. The energy yields obtained can be considered satisfactory, with losses between 45 and 52% (based on higher heating value) and between 43 and 49% (based on lower heating value) at temperatures ranging from 450 to 850ºC, respectively. Yields in fixed carbon and pyroligneous liquid are not affected by the final carbonization temperature.

Distributed Energy Production in the North-West Region of Russia

The energy system of Russia is the world's fourth largest measured by installed power. The largest are that of the the United States of America, China and Japan. After 1990, the electricity consumption decreased as a result of the Russian industry crisis. The vivid economic growth during the latest few years explains the new increase in the demand for energy resources within the State. In 2005 the consumption of electricity achieved the maximum level of 1990 and continues to growth. In the 1980's, the renewal of power facilities was already very slow and practically stopped in the 1990's. At present, the energy system can be very much characterized as outdated, inefficient and uneconomic because of the old equipment, non-effective structure and large losses in the transmission lines. The aim of Russia's energy reform, which was started in 2001, is to achieve a market based energy policy by 2011. This would thus remove the significantly state-controlled monopoly in Russia's energy policy. The reform will stimulateto decrease losses, improve the energy system and employ energy-saving technologies. The Russian energy system today is still based on the use of fossil fuels, and it almost totally ignores the efficient use of renewable sources such as wind, solar, small hydro and biomass, despite of their significant resources in Russia. The main target of this project is to consider opportunities to apply renewable energy production in the North-West Federal Region of Russia to partly solve the above mentioned problems in the energy system.

Tilausten ajotavan tehostaminen Absorbex® –linjalla

Laminating Papers Oy:n PK1 Absorbex® -linjan hyötysuhde on alhainen muun muassa koska lajinvaihtoja joudutaan tekemään laminaattiteollisuuden tilausten luonteen vuoksi useita kertoja päivässä. Sen sijaan PK1:n toimituskyky ja asiakastyytyväisyys ovat hyvällä tasolla. Diplomityön tavoitteena oli selvittää mikä on Absorbex® –tuotepaletilla paras mahdollinen PK1:n lajien ajojärjestys ja tilausten syklityksen pituus toimituskykyä merkittävästi vaarantamatta. Pohjatietoina kirjallisuusosassa on esitetty laminaattiteollisuus ja sen asettamat odotukset PK1:lle raaka-ainetoimittajana. Kirjallisuusosassa on myös selvitetty kuinka nykyinen tilausten käsittely ja syklitys rakentuu PK1:llä. Kokonaiskustannusanalyysi antoi epärealistisen suuria eräkokoja lasketuille tilauksille eikä lajinvaihtojärjestystä pystytty toteuttamaan kauppamatkustajan ongelmanratkaisua käyttäen, joten kirjallisuusosassa on näitä aiheita käsitelty lyhyesti. Asiakastyytyväisyyttä on myöskin lyhyesti kuvattu PK1:n näkökulmasta. Kokeellisessa osassa mallinnettiin PK1:n nykyistä ajojärjestystä lajinvaihtosuureisiin ja -viiveisiin perustuvilla mittauksilla. Huokoisuus ja jauhinten asettaminen todettiin eniten aikaa kuluttaviksi lajinvaihtosuureiksi. Tasaiseen jauhinten säätötoimintaan perustuen kehitettiin uusi malli tilausten ajojärjestykselle. Syklin pituus sidottiin pesuväliin perustuen kokemuksiin, joiden mukaan tiettyjen lajien jälkeen oli paperikone pestävä. Yhtä lajia ajetaan pesuvälin aikana vain kerran ja täten uudella mallilla saatiin eliminoitua pois kuusi lajinvaihtoa jokaisesta syklistä. Malli lisää teoriassa kustannuskilpailukykyä vaarantamatta merkittävästi toimituskykyä ja sitä kautta asiakastyytyväisyyttä. Uutta mallia ehdotetaan testattavaksi ja sille on suunniteltu projektiorganisaatio ja toteutusaikataulu.

Profit at Risk as a Risk Management Tool in Deregulated Energy Markets

Euroopan energiamarkkinat ovat olleet viimeisen kymmenen vuoden aikana suurten muutosten alla. Markkinoiden kehitys on ollut huomattavaa myös Iso-Britanniassa, jossa sähkö- ja kaasumarkkinat ovat olleet avoinna kilpailulle jo muutamia vuosia. Ennen markkinoiden avautumista energiyhtiöt pystyivät siirtämään kaikki riskit suoraan asiakkaan kannettaviksi. Markkinoiden avautumisen myötä lisääntynyt kilpailu on kuitenkin pakottanut energiayhtiöitä ajanmukaistamaan näkemyksiään riskeistä. Riskitekijät, joista ei aiemmin tarvinnut välittää, on nyt pystyttävä tunnistamaan ja hallitsemaan. Tämä työ keskittyy hinta- ja volyymiriskien hallintaan. Rahoitusmarkkinoilla pitkään käytettyjä riskienhallintatyökaluja on otettu käyttöön myös energiamarkkinoilla. Energiamarkkinoiden piirteet poikkeavat kuitenkin rahoitusmarkkinoista, eikä näitä työkaluja voida ottaa käyttöön muutoksitta. Silti, jopa muutosten jälkeen rahoitusmarkkinoiden riskienhallitavälineet aliarvioivat energiamarkkinoiden hinta- ja volyymiriskejä. Tässä yhteydessä työssä esitetään Profit at Risk, PaR. PaR on skenaariopohjainen riskienhallinnan työkalu, joka on kehitetty erityisesti energiamarkkinoille ja täten huomioi niiden erikoispiirteet. Työn rungon muodostavat energiamarkkinoiden käyttäytyminen, hinta- ja volyymiriskitekijät sekä pohdinta miten hinta- ja volyymiriskeiltä voidaan suojautua ja miten niitä voidaan hallita. PaR-metodologiaa verrataan perinteisiin riskienhallintamenetelmiin ja työn tavoitteena on tuoda esiin ne tekijät, joiden ansiosta PaR on sopivampi työkalu energiamarkkinoiden riskienhallintaan kuin perinteiset menetelmät. Käytännön esimerkkinä työssä toimii Fortum Energy plus’n PaR –malli. Koska PaR on kehitetty erityisesti energiamarkkinoille, se huomioi täysin markkinoiden aiheuttamat hinta- ja volyymiriskit. Käytännön esimerkki kuitenkin osoittaa, että PaR menetelmästä ei ole riskienhallinnallista hyötyä ellei työkalun käyttäjällä ole täydellistä tietämystä niin energiamarkkinoista kuin markkinoiden muutoksiin vaikuttavien tekijöiden käyttäytymisestä.

Recovery Risk and Labor Costs in Public-Private Partnerships : Contractual Choice in the US Water industry

We use an ordered logistic model to empirically examine the factors that explain varying degrees of private involvement in the U.S. water sector through public-private partnerships. Our estimates suggest that a variety of factors help explain greater private participation in this sector. We find that the risk to private participants regarding cost recovery is an important driver of private participation. The relative cost of labor is also a key factor in determining the degree of private involvement in the contract choice. When public wages are high relative to private wages, private participation is viewed as a source of cost savings. We thus find two main drivers of greater private involvement: one encouraging private participation by reducing risk, and another encouraging government to seek out private participation in lowering costs.