Minnesota wood energy scale-up project 1994 establishment cost data

The Minnesota Wood Energy Scale-up Project began in late 1993 with the first trees planted in the spring of 1994. The purpose of the project is to track and monitor economic costs of planting, maintaining and monitoring larger scale commercial plantings. For 15 years, smaller scale research plantings of hybrid poplar have been used to screen for promising, high-yielding poplar clones. In this project 1000 acres of hybrid poplar trees were planted on Conservation Reserve Program (CRP) land near Alexandria, Minnesota in 1994. The fourteen landowners involved re-contracted with the CRP for five-year extensions of their existing 10-year contracts. These extended contracts will expire in 2001, when the plantings are 7 years old. The end use for the trees planted in the Minnesota Wood Energy Scale-up Project is undetermined. They will belong to the owner of the land on which they are planted. There are no current contracts in place for the wood these trees are projected to supply. The structure of the wood industry in the Minnesota has changed drastically over the past 5 years. Stumpage values for fiber have risen to more than $20 per cord in some areas raising the possibility that these trees could be used for fiber rather than energy. Several legislative mandates have forced the State of Minnesota to pursue renewable energy including biomass energy. These mandates, a potential need for an additional 1700 MW of power by 2008 by Northern States Power, and agricultural policies will all affect development of energy markets for wood produced much like agricultural crops. There has been a tremendous amount of local and international interest in the project. Contractual negotiations between area landowners, the CRP, a local Resource Conservation and Development District, the Minnesota Department of Natural Resources and others are currently underway for additional planting of 1000 acres in spring 1995