Report sees potential for rural Ark in renewable energy

LITTLE ROCK — A new report suggests renewable energy could transform rural Arkansas.

Conversion to renewable energy — geothermal, biomass and, yes, even wind power — would create thousands of jobs and be an economic boost to struggling communities in rural areas of the state, according to the report by the Natural Resources Defense Council, released in support of clean energy legislation before Congress.

However, critics of the measure say it would hurt rural areas in particular by increasing fuel costs and would cost jobs in the state's oil industry and at Southern Arkansas refineries.

Speaking to reporters last week, Martin Cohen, author of the report titled "A Clean Energy Economy for Arkansas," said geothermal and biomass resources are key assets for rural Arkansas, adding that the state also has surprising potential for wind power.

"Arkansas' renewable energy potential is clearly above average. It's rare to see all these opportunities in one state, to such a degree," Cohen said, adding there is "tremendous opportunity for farmers and rural communities" since renewable energy would create jobs and be generated close to home.

He commented during a conference call Thursday on the report, which suggests that incentives in the clean energy bill that passed the House earlier this year and is being considered in the Senate could accelerate job and economic growth.

Christopher Charleton of Greenway Renewable Energy, a subsidiary of the local John Deere dealership in Weiner, said farmers are eager to adopt technology that would cut expenses or create income.

Though many people question the feasibility of wind power in Arkansas, the state has a number of ideal sites for production, Charleton said. While major wind farms take years to deploy, small, localized production systems can be installed in a short time to serve hospitals, schools, cities and farmers, he said. Smaller units could supply needs of households.

A bonus is that excess power generated locally could be sold to the power grid, he said.

Farmers are among those who could benefit from energy-efficient lighting, says Chris Callahan, chief executive of NextGen Illumination lighting company in Fayetteville.

A typical poultry house has 90 incandescent bulbs, and replacing those with light-emitting diode bulbs would slash lighting bills, he said.

Cohen said clean energy could create multiple revenue streams for farmers, including land leases for wind turbines, energy crops, net sale of excess energy to utility companies and sale of renewable-energy credits, carbon-offset credits, organic fertilizer and animal processed fiber (manure).

At least 40 Arkansas counties have commercially viable wind resources, and 20 or more counties could be considered to have "excellent" wind sites, he said.

Developing 1,000 megawatts of Arkansas wind power from eight to 10 wind farms would create an estimated $830 million in economic benefits over 20 years, 3,496 construction and indirect jobs and 504 permanent operations jobs, the report said.

Also, biomass could be added to coal at existing power plants, Cohen said.
"Farms across much of Arkansas are close enough to an existing coal-fired plant to cost-effectively supply biomass feedstock for co-firing with coal," he said.

Ethanol could be produced from organic waste materials, crop residue, and non-food plants. Algae in unused catfish farms could be processed into biodiesel, he said.

"An average rice farm could see potential gross revenue of $38,000 annually from harvesting biomass residue," he said.

But a report recently commissioned by the National Association of Manufacturers says changing federal energy policy to meet requirements outlined in the clean energy bill before Congress could result in 17,000 to 23,000 jobs lost in Arkansas.

"By 2030, as emission reduction targets tighten and other … provisions phase out, Arkansas jobs decline by 17,100 under the low cost case and by 23,280 under the high cost case," according to the NAM study.

It says the primary cause of job losses would be lower industrial output due to higher energy prices, the high cost of complying with required emissions cuts and greater competition from overseas manufacturers with lower energy costs.

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Arkansas News Bureau business columnist Roby Brock of Talk Business contributed to this report