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CorrespondingAuthor: KrishnaP.Paudel,AssociateProfessor,225AgAdministrationBuilding,AgEconandAg Business,LouisianaStateUniversityAgriculturalCenter,BatonRouge,LA70803,Baton Rouge,LA70803,Phone:(225)5787363,Fax:(225)5782716,Email: kpaudel@agcenter.lsu.edu SelectedPaperpreparedforpresentationattheAgricultural&AppliedEconomics Associations2010AAEA,CAES&WAEAJointAnnualMeeting,Denver,Colorado,July 2527,2010. Copyright2010by[KrishnaP.Paudel)].Allrightsreserved.Readersmaymakeverbatim copiesofthisdocumentfornoncommercialpurposesbyanymeans,providedthiscopyright noticeappearsonallsuchcopies.
U SEOF P OULTRY L ITTERAND O THER B IOMASSIN E LECTRICITYPRODUCTIONANDITS I MPLICATIONFOR E CONOMICDEVELOPMENT Abstract Poultrylitterisabyproductofpoultryproductionwhichhaspotentialtocausewater qualityproblemifitisnotappliedproperlyonlandasanutrientsource.Usingsurvey informationavailablefromLouisianabroilerproducers,wefoundthatbroilerlitterisnot costeffectivetotransportfartherthan24milesfromtheproductionfacilitiesgiventhe cropsgrownintheregionandotherprevailingcostparameters.Alternativetobroiler litteruseonlandascropnutrientsisitsuseaselectricityproductionthroughcombustion. Wefoundthatbiomasselectricityconversioniscostprohibitiveifthreesmallplant operationsareestablished.Itcanbeprofitableifonelargesizeplantof10.5MWis constructed,litterisavailablefree,transportationcostislowandconstructioncostof electricityplantfallsatthelowerrange.Regionalandstateleveleconomicimpacts (multiplier)ofusingbroilerlitterforelectricitywasfoundtobeintherangeof1.41.5and 1.421.55,respectivelyforthecapitalexpenditureand1.212.67and1.271.94respectively fortheoperationcost.Detailenvironmentalimpactassessmentmaybeneededtoassess thefullbenefitsofpoultrylitterelectricityproduction. Keywords:broiler,breakeventransportationdistance,poultryelectricityproduction feasibility,impactfactor JELClassifications:O13,Q42,Q53
U SEOF P OULTRY L ITTERAND O THER B IOMASSIN E LECTRICITYPRODUCTIONANDITS I MPLICATIONFOR E CONOMICDEVELOPMENT PoultryproductionisthemajoragriculturalindustryintheSoutheasternUnitedStates. ConsideracaseofLouisianawhichhasrelativelysmallnumberofpoultrybirdscompared tootherSoutheasternstatessuchasAlabama,Georgia,andArkansas.Herestillitisthe largestanimalindustrythatgeneratedapproximately$1.2billioncombinedinfarm revenue($603.4million)andvalueaddedproducts($579.3million),andemployed4,361 peoplein2008.Amongmanytypesofpoultryoperations,broilerproductiongeneratesthe lionshareofrevenueandemploymenttotheState.However,thishugeamountofrevenue alsotranslatesintotheproductionoflargeamountofbroilerlitter(manure)asa byproduct.Broilerlitterisbothvaluableresourceandunavoidablebyproductthatmustbe disposedoffbecauseofenvironmentalconcerns.Broilerlittercontains13essentialplant nutrientsbutfarmersapplybroilerlitterbasedmainlyonnitrogen,phosphorusandpotash content.Becausebroilerlitterhasprimarynutrientsthatplantsneed,ithasamarketvalue. However,whenbroilerlitterisoverappliedorappliedforalongtimewithout considerationofnutrientneedsofthecropgrowninthesoil,thenutrients,suchas phosphorus,havetendencytobuildupinsoil.Duringtherainyweather,phosphorus leachesoftoshallowgroundwaterorrunoffstonearbywaterbodiescausingan eutrophicationproblem. AftertheintroductionoftheAmericanRecoveryandReinvestmentActof2009, therehasbeenincreasedinterestinconvertingbiomassintobioenergy.Sofargreater emphasishasbeenpaidtoconvertingbiomassintoethanol,soybeanoil/palmoilinto biodieselandcorn/sugarcaneintoethanol.Campbelletal.(2009)foundthatusing
biomasstoproduceelectricityis80percentmoreefficientthantransformingthebiomass intobiofuel.Inaddition,theyreportedthattheelectricityoptionwouldbetwiceas effectiveatreducinggreenhousegasemissions.Thissameviewisputforthbyauthors suchasHowarthetal.(2009). Recently,therehasbeenincreasedinterestinproducingelectricityfromsurplus broilerlitter(Kelleheretal.2002;Jensenetal.2010).Itisanattractivealternativeasland applicationofbroilerlittermaynotbealwaysfeasiblebecauseofaneedtohaulmanureto longdistancefrombroileroperationsandalackoffunctioningbroilerlitterdespiteitshigh nutrientcontent.Conversionofpoultrylittertoelectricityhasbeeninexistenceinthe UnitedKingdomoperatedbyFibrowattsince1990s.IntheU.S.,asimilartypeofoperation isinexistenceinMinnesotaandotherstatesareactivelypursuingbuildingonetosolve manuredisposalproblems.Giventheincreasedinterestofconvertingelectricity productionfrombroilerlitter,weassessedthefeasibilityofmanureaselectricitysource. Weorganizedthispaperasfollow.First,weassessedtheeconomicpotentialof litteraslandapplicationtomeetcropnutrientneeds.Wethenassessedthecostreturn assessmentofbroilerlitterasenergysource.Wealsoshowedeconomicimpactsof buildingbroilerbasedelectricityplantsinLouisiana.Weconcludethepaperwithmajor findingsandcaveats. BroilerlitterasCropNutrientSource Onealternativetoalleviatebroilerlitterdisposalproblemistoapplybroilerlitteraway fromproductionsitestocropproductionareas.Littertransportationfrombroiler
productionfacilitiestocropproductionareahasbeenstudiedbyseveralauthors(Paudelet al.2004;PaudelandMcIntosh,2005,Paudeletal.20032004).Theyhavereportedthatit isprofitabletotransportbroilerlitterbutthedistancetowhichitcanbetransferred dependsgreatlyonthecostoftransportationcost,manurecost,loadingcost,andspreading cost. Louisianascommercialbroilerproductionoccursmainlyinthe11northandcentral parishes(Figure1a).Theseparishes,numberofbroilerfarms,amountofmeatproduced, potentialhayandrowcropsareaswherelittercanbeappliedandclassificationofeach parishassurplusanddeficitparishesareprovidedinTable1.Thefirststeptoassessthe broilerlitterusepotentialforcropnutrientsisthroughtheidentificationofsurplusand deficitparishes.Surplusparishesarethosewherelitterproductionismorethanitcanbe utilizedincropproductionasnutrients.Deficitparishesarethosewherelittercanbe transportedfromthesurplusparishesandappliedincropproduction.Theoretically speaking,transportationofmanuretakesplacefromsurplustodeficitparishesaslongasit iseconomicaltodoso.Thisstudyfirstidentifiesthesurplusanddeficitparishesandthen calculatesthebreakevendistancetowhichbroilerlittercanbetransferredfromthe productionfacilitiestocropproductionareas.
Louisianabroilerproducers,someofthesecostsarepresentedinTable2.
ThemajorrowcropsgrowninthesebroilerproducingparishesinLouisianawhere
littercanbeappliedarecorn,cotton,sorghumandwheat.Recommendedamountsof N:P2O5:K2OperacreforthesecropsbasedonLouisianaCooperativeExtensionServiceare 180:60:60pounds(drylandcorn),210:60:60pounds(irrigatedcorn),90:15:18pounds (dryorirrigatedcotton),120:35:35pounds(sorghum)and80:45:45pounds(wheat). Additionally,broilerlitterscanbeappliedonBermudagrasshay,thenutrient recommendedforwhichis69:48:48lbsofN:P2O5:K2Operacre.Thenutrientamountin broilerlittervariesbasedonbeddingmaterial,weathercondition,andfeedprovidedtothe broilerbirds.Theaveragemacronutrient(N:P2O5:K2O)contentofbroilerlitteris62:60:40 poundsperton.Basedontheprevailingfertilizerpriceinthemarket(N$0.53perpound, P2O5$0.88perpoundandK2O$0.77perpound),onetonoflittercouldbeworth$115.66. GiventheNPKrecommendation,breakevendistancesforeachcropandhayarecalculated andshowninTable3.Weappliedbroilerlitterfollowingaphosphorusconsistentrule whichmeansbroilerlitterisappliedbasedonthephosphorusneedsofplants.We calculatedthebreakevendistancea)basedonthecostfigure($3.88pertonpermile) fromoursurveyofthebroilerproducersinLouisiana,andb)$0.48pertonpermile transportationcostwithothercostsasobtainedfromthesurvey.Weusedthelattervalue asreflectiveofLouisianastatemileagereimbursementrate.Wehaveseenmuchlower transportationcost($0.10pertonpermile)usedinthebroilerlittertransportation literature.
Thebreakevendistancefordrycorn,irrigatedcorn,cotton,sorghum,andwheatare
26,26,22,25,26,and26miles,respectivelybasedon$3.88pertonpermilecost.If
prevailingtransportationcostfigure(0.48pertonpermile)isused,thebreakeven distanceswillbe211,211,177,203,208,and209milesforirrigatedcorn,drycotton, sorghum,wheatandhay,respectively.Ifweweretobaseourdecisiononthesebreakeven distances,broilerlittercannotbehauledveryfarfromtheparishborder.Asshownin Figure1,yellowareasarewherelittercanbeappliedincropproduction.Thesecrop productionareasaremuchfartherthanthe22milesbreakevendistancefromthebroiler productionfacilities.Giventhefactthatwehaveonlythreedeficitparishes(Natchitoches, Vernon,andWinn)outof11broilerproducingparishes,excesslitterproductionandits safedisposalproblemwillcontinuetopersistwithoutsomeformofsupportprovidedto farmerstotransportbroilerlitter.However,ifthetransportationcostisrelativelycheap (say$0.48pertonpermile),littercanbesafelytransportedfromsurplusbroilerlitter productionparishestodeficitparisheswithcropproductionsuchasmanynorthand centralparishesinLouisiana(Figures1band1c).Thisshouldsolvetheexcesslitter disposalprobleminthestate. Broilerlitterasanelectricitysource Driedanimalmanurehasbeenusedasheatsourceforalongtimeinhumancivilization. Thissameconceptcanbeusedinmoderndaystogenerateelectricityusingthecombustion process.Perpoundofbroilerlitterhasheatingvalueintherangeof34006300BTU.To generateonekilowatthour(KWH)electricity,weneed15000BTU.Weusedanaverage valueof4600BTUperpoundofbroilerlitterwhichresultsintheproductionof613KWH ofelectricitypertonofbroilerlitter.Withanaverageelectricitypriceof$0.067/KWH,the
Threeparishesoutof11parishesinLouisianawouldbeabletocontributelitterfor
electricityproduction.Otherparisheseitherwouldcontributelitterfornutrientswithinor intheirsurroundingparishes.ThesethreeparishesClaiborne,UnionandLincoln producedaround150,000tonsofsurpluslitterin2008.Thisamountissufficientto generate10.5MWofelectricitywithannualdirectvalueof$6.1million.Theashvalueof broilerlitterobtainedafterelectricityproductionis$360,000.Therefore,thedirectvalue ofelectricityproductionfrombroilerlitterinthesethreeparishesis$6.76million. Weassumedtwoscenariosconstructionofonebigplantofsize10.5MWand constructionofthreesmallplantsofsize3.5MW.Wecalculatedtheweightedcenterpoint amongClaiborne,UnionandLincolnparishesbyusingcentralfeaturetooloftheArcGIS software.Theideallocationofonebigplant(10.5MW)isshowninFigure2.Weassumed highandlowconstructionandoperationcostsscenarios.Weassumed($10500/KWforthe capitalcost,$1800/KWforthevariablecost)underthehighcostscenarioand($2800/KW forthecapitalcostand$180/KWforthevariablecost)underthelowcostscenario. Underthehighcostscenario,withbroilerlittercostparametersusedfromthe survey(showninTable2),itcanbeexpectedthatinvestmentinbroilerlitterbased electricityplantwillbenegative.Ifweconsideralowcostscenario,theinvestmentcan generate16.5%annualreturnbutthereturnbecomesnegativeiflittercosthastobepaid
(SeeTable4).Weassumed24milesasabreakevendistance(identifiedfromitsuseas cropnutrients)althoughfromthecenterpointidentifiedheretotheparishborderthe distanceisasfaras43miles.Muchofthelittercostrelatestotransportationcostsounless transportationcostissubstantiallyreducedbylocatingtheplantnearsupplysourcesor identifyingacheaperalternativetotransportinglitter,productionofelectricityfromlitter willnotbeprofitable. EconomicImpact EconomicimpactsunderdifferentscenariosareestimatedusingIMPLAN,aninputoutput analysismodelproducedbyMinnesotaIMPLANGroup,Inc.Economicimpactsare estimatedataregionallevel.Giventhefactthatimpactisnotlimitedtothe11parish regiononly,wealsoestimatedstatelevelimpactstocapturespillovereffects.
IMPLANprovidestheestimatesofimpactsforoutput(localreceipts),employment (averagenumberofindividualsemployedinayearlocally),laborincome(benefitpaidby theemployerandandindividualproprietorincome)andvalueadded.IMPLANgivesthe valueassociatedwithdirectimpactsoftheproject,indirectimpactsresultingfrom expenditurebytheprojectonlocalgoodsandservices,inducedimpactresultingfromthe spendingbyprojectemployeesorotheremployeessupportedbytheproject. Sincepowergenerationfrompoultrylitterisrelativelynewtechnology,IMPLAN doesnothavedataonthissector.Therefore,weestimatedtheeconomicimpactsusing closestsector(i.e.constructionofnewnonresidentialmanufacturingstructures)basedon initialconstructionactivitiesandsubsequentoperationandmanagement.Forthehighcost scenario,itisestimatedthattheproposed10.5MWplantcostabout$113millionbasedon
$10,500perkilowattinitialinstallationcost.Atotalof1015peopleareexpectedtobe employedwith$44.7milliondollarlaborincomeduringayearofconstructionperiod. (Theseimpactsvaluesareestimatedon2010dollarsbasedoncostestimatedin2008). Additional482jobsareexpectedtobesupportedfromindirectandinducedimpactwith $17.6millionlaborincome.Intermsofvalueadded,thisplantisexpectedtogenerate$58.4 milliondirectvalueaddedduringitsconstructionphasewith1.48multiplierindex. Theoperationexpenditureisestimatedtobe$18.9millionin2008dollar.Weused aperunitoperationcostvaluebasedonFloraandRiahiNezhad(2006).Everyyearthis plantisexpectedtoemploy86peoplewith$4.1millioninlaborwage.Additional42jobs areexpectedtobesupportedfromthisoperationwith$1.5millionlaborincome.State levelanalysisalsoshowssimilarresultsalbeitresultsalittlehighermultipliereffects. Regionalandstateleveleconomicimpactofusingbroilerlitterforelectricitywasfoundto beintherangeof1.41.5and1.421.55,respectivelyforthecapitalexpenditureand1.21 2.67and1.271.94respectivelyfortheoperationcost.Regionalandstatelevelimpactsare showninTables5and6. Conclusions BroilerproductionhasbeenexpandingdramaticallyintheSoutheasternU.S.Thishas createdtheneedtoproperlydisposeoffbroilerlitter.Themostcommonmethodandthe onethattheUSDepartmentofAgricultureandUSEnvironmentalProtectionAgencyhave approvedislandapplicationoflitterasnutrientsource.Limitedagriculturallandsuitable forlitterapplicationwithintheparishandtransportationcostassociatedwithlittertoa longdistancenecessitatepolicymakerstolookatalternativevenue.InfactinLouisiana,
advantagethatmostoftheharmfulnutrientsandhormoneswillnotbedisposedoffin water.Basedontheamountsofexcesslitteravailableintheregion,weadvancedacaseof buildingthreesmallplants(each3.5MW)receivingbroilerlitterfromwithintheparish, andonebigregionalplant(10.5MW)receivinglitterfromsurroundingparishes.We identifiedthelocationwheretheseplantsshouldbeconstructed.Basedonthehighand lowcostscenariosandtheconsiderationthatplantpaysforlitteruseornot,theimpact factorofbuildinganelectricityplantwouldbeintherangeofrangeof1.41.5and1.42 1.55,respectivelyforthecapitalexpenditureand1.212.67and1.271.94respectivelyfor theoperationcost.Therateofreturnobtainedfroma10.5MWsizeplantwillbe16% underthelowcostscenario(construction+operation)butwouldbenegativeiflittercost isfactoredinbasedontheprevailingcostfigures.Therateofreturnwillbenegativeunder thehighconstructioncostandhighoperationcostscenario. Severalfactorswilldeterminethesuccessoflittertoelectricitygenerationplant.
regulationsbecometougher,broilerproducerswouldhavetofindanalternativeplacefor litterdisposal.Litterbasedelectricityprovidesthatdisposalavenuetofarmers.Broiler farmerscanformacooperativetooperatesuchanelectricplantifsufficientloanis providedtothemtooperatetheplant.Alternatively,integratorscantaketheresponsibility ofbroilerlitterdisposalandhenceutilizetheexcesslitterinelectricityproduction. Recently,therehasbeenincreaseddiscontentamongfarmersandregulatorsaboutthelack ofintegratorswillingnesstotosolveexcessivebroilerlitterproductionanddisposal problem.Bytakinganactiveroleonconvertinglittertoelectricity,theycanearngoodwill fromcommunity,broilerfarmersaswellasincreasetheirreturnsfromintegratedbroiler operations. Therehasbeenairqualityconcernsrelatedtoelectricityproductionfrombroiler
Reference
andInteractionswithChangingLandUse:ProceedingsoftheScientificCommitteeon ProblemsoftheEnvironment,R.W.HowarthS.Bringezu,Eds.CornellUniv.Press,Ithaca, NY,2009,pp.1536. Kelleher,B.P.,J.J.Leahy,A.M.Henihan,T.F.O'Dwyer,D.Sutton,M.J.Leahy.Advancesin poultrylitterdisposaltechnologyareview.BioresourceTechnology,83(2002):2736. KimberlyL.Jensen,RolandK.Roberts,ErnieBazen,R.JameyMenard,andBurtonC. English.FarmerWillingnesstoSupplyPoultryLitterforEnergyConversionandtoInvestin anEnergyConversionCooperative.JournalofAgriculturalandAppliedEconomics 42(2010):105119. Paudel,K.P.M.Adhikari,N.R.Martin,Jr.EvaluationofBroilerLitterTransportationin NorthernAlabama,USA.JournalofEnvironmentalManagement73(2004):1523. Paudel,K.P,M.Adhikari,A.Limaye,N.R.Martin,Jr.PhosphorusBasedManagementof BroilerLitterasAgriculturalFertilizer.JournalofEnvironmentalSystems29(2002 2003):311339. Paudel,K.P.andC.McIntosh.BroilerIndustryandBroilerLitterRelatedProblemsinthe SoutheasternUS.WasteManagement25(2005):10831088.
Claiborne Webster Bienville Union Lincoln Ouachita Jac Jackson
Vernon
Figure 1a. Louisiana broiler production parishes and potential area where litter can be applied as a nutrient source (Black dots indicate broiler production facilities and yellow area indicates potential area where litter can be applied)
Figure1b:Breakevendistancesshowingupto211milesradiusfromthebroilerpointsthatcover otherneighboringstates
Figure1c.Breakevendistancesthatcover22milesradiuswhichgoesbeyondthebroilerproducing Parishes
Figure2.Locationswhereone10.5MWplantshouldbeconstructed(Reddotontheupperfigure andgreendotonthelowerfigure)andthree3.5MWplants(reddots)shouldbeconstructed.
Table 1: Crop area, crop-nutrient demand and the nutrient supply from broiler production
Total meat production (lbs) harvestd crop areas (acres) No of broiler birds (number of firms) 5,494,141 (8) Litter produced (tons/year)
N (tons)
P2O5 (tons)
K2O (tons)
24,174,220 679
6,285.3 61.1 172.5 233.6 194.8 20.4 48 140.4 188.6 20.4 48 140.4 125.7 Surplus
Hay 5,000 Total crop nutrient requirements Nutrients equivalent supplied by parish's broiler production Claiborne Parish Broilers (Total) 125,101,000 Hay 25,000 Total crop nutrient requirement Nutrients equivalent supplied by parish's broiler production Jackson Parish Broilers (Total) 92,702,725 Hay 10,500 Total crop nutrient requirement Nutrients equivalent supplied by parish's broiler production Lincoln Parish Broilers 201,450,000 Total crop nutrient requirement Nutrients equivalent supplied by parish's broiler production Natchitoches Parish Broilers (Total) Corn Wheat Cotton Sorghum Hay 97,100,000 17,010 8,900 2,750 2,150 20,500 28,432,045 (43) 28,432
Surplus
24,102.7 362.3 362.3 747.2 252 252 723.1 252 252 482.1 Surplus
45,784,091 (51)
52,377 0
1623.7
0
1571.3
0
1047.5
Surplus
22,068,182 (43)
25,246.0
1530.9 356 123.75 129 707.25 2846.9 782.6 510.3 200.3 20.6 37.6 492 1260.8 757.4 510.3 200.3 24.8 37.6 492 1264.925 504.9
Total crop nutrient requirement Nutrients equivalent supplied by parish's broiler production Ouachita Parish Broilers (Total) 23,939,000
5,440,682
Deficit
6,224.1
Surplus
(9)
Corn 2,532 Sorghum 137 Cotton 8,540 Total crop nutrient requirement Nutrients equivalent supplied by parish's broiler production Sabine Parish Broilers 165175000 Hay 2200 Total crop nutrient requirement Nutrients equivalent supplied by parish's broiler production Union Parish Broilers (Total) 272,975,931 Total crop nutrient requirement Nutrients equivalent supplied by parish's broiler production Vernon Parish Broilers (Total) 1,450,000 Hay 3,000 Total crop nutrient requirement Nutrients equivalent supplied by parish's broiler production Webster Parish Broilers (Total) 9,480,000 Corn 265
37539773 (71)
1,121 245
620.4 192.9
448 71
142.4 186.7
448 71
155.2 124.5
42945.5
75.9 75.9 1331.3 52.8 52.8 1288.4 52.8 52.8 858.9
Surplus
62,039,984 (105)
70,973.7
0
2200.2 329,545.5 (13)
0
2129.2
0
1419.5
Surplus
377
103.5 103.5 11.7 72 72 11.3 72 72
Deficit
7.5
2,154,545
2,464.8
23.9 23.9 8.0 8.0 8.0 8.0
Surplus
Nutrients equivalent supplied by parish's broiler production (tons) 76.4 73.9 49.3 Winn Parish Broilers (Total) 1,924 7,400,000 1,681,818 Hay 3,000 103.5 72 72 Total crop nutrient requirement 103.5 72 72 Nutrient equivalent supplied by parish's broiler production (tons) 59.6 57.7 38.5 Note: Number of broilers is estimated using an average of 4.4 lb weight per bird. Amount of litter is calculated based on 0.52 lbs of litter per ton of meat production. Parish classification is based on the phosphorus consistent rule. Values in this table are generated based on information obtained from Louisiana Agriculture Summary 2008 and Louisiana crop enterprise budget 2009.
Deficit
Table 2. Loading, spreading, transportation and broiler litter purchase cost in Louisiana
Variables Litter loading cost per ton Litter spreading cost per acre Litter transportation cost per ton per mile Cost ($) of litter per ton
Min 0 0 0 0
Max 25 60 50 80
Table 3. Breakeven distance calculation Crops Chemical fertilizer cost ($/acre) Litter used (tons/acre) Cost of litter use (litter purchase cost + loading cost + spreading cost) Cost savings from using broiler litter plus remaining needed chemical fertilizer ($/acre) Breakeven distance (miles)
193.20
14.16
101.5
Table4.Calculationofcostandreturnof10.5MWcapacitybroilerlitterbasedelectricityplantunderhighandlowcostscenarios Variables CostperKW Plantsize3500KW Plantsize10500KW Costoflitter(@$6pertonfor 150Ktons) Costofloading Costoftransportation Totallitterrelatedcost HighCostScenario Annualoperation Constructioncost cost $10,500 $36750000 $110250000 $1,800 $6300000 $18900000 LowCostScenario Annual Constructioncost operationcost $2,800 $9800000 $29400000 $180 $630000 $1890000
negative negative
16.5% negative
Table 5. Regional impact of building one big and three small broiler litter based electricity plants in Louisiana
One Big Plant (10.5 MW) High Cost Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Impact factor Low Cost Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Impact factor $110,250,000 Employment 1015 190 292 1497 1.47 $28,350,000 Employment 261 49 75 385 1.47 Labor Income $44,672,460 $8,779,066 $8,918,682 $62,370,206 1.40 Value Added $58,394,343 $12,680,819 $15,888,779 $86,963,940 1.49 Output $113,017,808 $26,785,918 $29,658,447 $169,462,171 1.50 Three Small Plants (each 3.5 MW) Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Impact factor (Effect representative of each parish - Union, Lincoln and Claiborne) Employment 338 63 97 499 1.47 Labor Income $14,890,820 $2,926,354 $2,972,894 $20,790,068 1.40 Value Added $19,464,780 $4,226,941 $5,296,261 $28,987,980 1.49 Output $37,672,608 $8,928,641 $9,886,148 $56,487,396 1.50
Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Impact factor
Operation Impact High Cost Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Impact factor $18,900,000 Employment 44.3 15.6 26.3 85.9 1.94 Labor Income $4,122,885 $729,115 $803,531 $5,655,531 1.37 Value Added $14,544,270 $1,191,363 $1,431,361 $17,166,994 1.18 Output $19,604,731 $2,554,263 $2,671,931 $24,830,923 1.27 High Cost Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Impact factor Employment 15 5 9 29 1.94 Labor Income $1,374,295 $243,038 $267,844 $1,885,177 1.37 Value Added $4,848,090 $397,121 $477,120 $5,722,331 1.18 Output $6,534,910 $851,421 $890,644 $8,276,974 1.27
Table 6. State level impact of building one big and three small broiler litter based electricity plants in Louisiana
One big plant (10.5 MW) High Cost Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Impact Factor High Cost Employment 918 186 296 1,400 1.53 $110,250,000 Labor Income $47,534,676 $9,876,811 $10,325,159 $67,736,648 1.42 Value Added $62,175,070 $14,234,990 $18,210,720 $94,620,780 1.52 Output $113,017,816 $28,457,220 $33,489,350 $174,964,384 1.55 Three small plants High cost Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Impact Factor 36,750,000 Employment 306 62 99 467 1.53 Each Labor Income $15,844,892 $3,292,271 $3,441,719 $22,578,882 1.42 Value Added $20,725,020 $4,744,998 $6,070,239 $31,540,260 1.52 Output $37,672,608 $9,485,744 $11,163,115 $58,321,468 1.55
Low Cost Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Impact Factor
Low Cost Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Impact Factor
Operation Impact High Cost Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Impact factor 18,900,000 Employment 26.1 17.2 26.3 69.6 2.67 Labor Income $4,167,775 $888,877 $915,470 $5,972,122 1.43 Value Added $14,543,070 $1,402,105 $1,614,641 $17,559,820 1.21 Output $19,603,116 $2,867,480 $2,969,308 $25,439,904 1.30 High cost Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Impact Factor Employment 8.7 5.7 8.8 23.2 2.67 Labor Income $1,389,259 $296,292 $305,157 $1,990,707 1.43 Value Added $4,847,691 $467,368 $538,214 $5,853,273 1.21 Output $6,534,372 $955,827 $989,769 $8,479,968 1.30