10-acre greenhouse vegetable farm growing specialty tomatoes

85% of sales to U.S. markets Utilizing biomass (wood) as a fuel for

heating Second generation Expansion plans of 12 acres summer of

2009

The Ontario greenhouse industry uses $200 - 250M dollars worth of energy per year

Greenhouse industry uses energy for heating year round

Average operation is around 7 acres Greenhouse heating energy

consumption 8000 - 11000 Gj/acre/year

Current fuel heating prices (burner tip): Natural gas: $11.00/Gj (85%=$12.65) #6 residual oil $12.25/Gj (80%=14.75) Coal - U.S. Bituminous- $4.95/Gj (72%=

%6.45) Wood waste biomass - $3.50/Gj

(70%=$4.55)

Impact of B.C. Carbon Tax: July 2012 tax plus current rates Nat Gas - $1.49/Gj = $14.14/Gj #6 Residual oil- 9.33 cents/l = $18.30/Gj US Bituminous - $73.16/tonne = $9.45/Gj Biomass - $4.55 exempt/possible carbon

offsets to be gained. 2012 carbon rates pegged in B.C. are $30/tonne - with this though we will see biomass prices tripling

Sustainable – Clean burning (without contaminants), consistent, abundant, multi-year contracts( 5 to 15 yrs), environmentally-friendly

Carbon neutral - Proposed B.C. carbon tax

Fixed prices – allows grower to invest in new technologies, fixes costs, etc.

Simple, easy to use

Looked at various grown feedstocks: willow, poplar, switchgrass, paulmounia, miscanthus

Acquired various genotypes of miscanthus spring of 2007: have genotypes that can be grown in most if not all cultivated agricultural lands in Canada

Planted trial plots in 2007 Planting more trial plots in 2008 with the U of

G and Mendel Biotechnology, and 50 - 100 acres for our own commercial use

2009 plant full acreage needed to be self-sufficient on the current and planned greenhouse acreage by 2011

Photo courtesy Andrew Leakey 2006

Damian Allen of Mendel Biotechnology

Seven-year old crop at the 53rd parallel in Poland - Climate like Kingston, Ontario

Sustainable!!! Yield data from various sources are without any inputs. Non- invasive, drought-tolerant, high yielding, perennial (over three decades), good winter stand for leaching, no current pests or disease, uses conventional equipment

High biomass quality: winter harvests below 15% moisture, many genotypes developed for various climates and biomass harvest times

Small improvements in agronomic techniques will increase yields dramatically

Miscanthus needs 35 acres of land to heat 1 acre of greenhouses (based on Pyramid’s consumption) - may see increased yields

Switchgrass needs 140+ acres of land to heat 1 acre of greenhouses – inputs needed, lodging issues/biomass quality

Polar/willow needs 82 acres of land to heat 1 acre of greenhouse - harvested above 40% moisture, need specialized equipment, land is destroyed, pests and disease

Miscanthus yields in Illinois range between 10 tonne dm to 17 tonne dm

Projected yields in Southwestern Ontario 10-12 ton dm

18.50Gj/dry tonne at 11 tonne = 204 Gj/acre Establishment costs approximately $750 per

acre Harvest costs of around $200 per acre Excluding land costs and amortizing

establishment over 10 years brings a price of around 1.50 per Gj plus carbon offsets

Clean Consistent Cheap Long-term solution Agronomically sustainable Environmentally friendly Win-win for supplier and end-user

Economics of various feedstock crops work in today’s market

Advancements in agronomic technique and genetics will double yields in a short period of time

Ready-made market: the greenhouse industry is a small example

$200-250M dollars flow out of Ontario for just one industry: this is a rural initiative that must be utilized