A renewable energy company says the expanded use of biodiesel and biomethane in the maritime industry could be a game changer for the ag industry.
Ben Kruger, Senior Vice President with Roeslein Renewables says the market could grow to 25 million metric tons by 2030. “It’s possible it could create demand that is as much as $5 to $10 billion of revenues for rural economies for fuel.”
Very soon, the International Maritime Organization will be voting to finalize its Net-Zero Framework, requiring large ocean-going vessels to cut greenhouse gas emissions (GHG) starting in 2027. Kruger says BioLNG, a fuel produced from manure, crop residue and food waste, and biodiesel have shown to decrease GHG emissions.
He says the opportunity could not come at a better time to help improve the financial situation for ag producers. “You could have a market that is as big or bigger than the current amount of soybeans that our country had been exporting to China. It’s enough to cover the gap that we have from China choosing to take its demand to Brazil.”
Kruger says, “On top of that, I think the demand could not only be as big as that gap, but it could create demand that is as much as 2 to 3 times the entire Iowa soybean crop for biodiesel.”
He says production could begin to ramp up in 2027. In a news release, the company says if the framework is finalized markets could generate $100 to $200 billion in new farm revenue by 2050.
EDITOR’S TAKE:
Wow, quite a prediction for the future of bio energy. Even if it was only half of the amounts discussed in the article, it would be a very good market for soybeans. As we have discussed in recent weeks and even in this issue of the AIR, with China holding our soy producers hostage, new market opportunities are precisely what our farmers need. Should China come back into the markets and start purchasing soybeans again, the expansion into the maritime industry would really be the whipped cream with a cherry on top for our farmers.
Why do we share news like this? To make you aware and informed about the realities of ag today and, just as important, the potential for future growth. While the future prospects may not sell more trucks in the near term, in the long run you will definitely see the impact of increased market opportunities for your farmers/ranchers. That’s why we always encourage you to maintain your efforts and keep a solid presence in the farm/ranch community in your area.
