Innovation

Aloterra has established a unique model for locally sourced biomass. Miscanthus is noninvasive as it is planted from a rhizome rather than a seed. Once planted, it will grow back for 20 years, even in poor soil, and it is ideally suited for a Midwestern U.S. climate with its rainfall and freeze cycles. Aloterra farms the grass and then processes it in its two facilities just miles away from the farm, where it is turned into pulp or formed into paper packaging product that is sold nationally. The packaging facility runs 24 hours on two shifts with 25 workers year round, while the pulping facility employs 10.

Inspiration

With a background in transporting gas and diesel throughout the US, Griswold eventually entered the corn-based ethanol trade and recognized the need for alternative sourcing. “Corn is a high-value product for food and various other uses, so I think it's wise to look for alternatives to corn ethanol,” says Griswold. “I wanted to produce a non-food grade ethanol.” However, while exploring processing plant investments for Miscanthus-based ethanol, Griswold saw that the yields weren’t nearly as profitable in ethanol as they could be for bio-based fiber. There was also appeal in a business that would allow Griswold to return to his farming roots. “I grew up on a farm; I like everything about farming,” says Griswold. “I fell in love with this land, and I liked the idea of leaving this to my grandchildren.”

Overall impact

In addition to the economic benefits of this model on rural communities, the product provides an incredible impact as a sustainable material source, including:

• Ten million pieces per year of sustainable plates and food containers at prices competitive to China. The pieces are sold primarily in the US market.
• MxG Natural Absorbents, which are used for a range of applications, from soaking up fracking water, to providing water absorption on baseball diamonds as an alternative to silica, which is bad for the lungs.
• With its wood-like properties, Miscanthus can be formed into fuel pellets, providing a renewable source of BTUs. One acre of farmland produces 12 to 15 tons of Miscanthus (dry weight). And, just one ton of Miscanthus, a fraction of an acre, yields 12 to 15 million BTUs — compared to a ton of coal, which yields 25 million BTUS at a significantly higher, non-renewable environmental cost.
• Aloterra is just beginning to explore the potential of cellulose nanocrystals (CNCs) derived from Miscanthus. This renewable and biodegradable material has properties that add strength to polymers while remaining lightweight, with applications in paint, hard plastics, biomedical devices and more. CNCs from hardwood trees cost roughly $450 per pound, while those derived from Miscanthus have similar properties at an exponentially lower cost.

Business benefit

With an initial investment in Miscanthus, which needs to grow for two years before the first harvest — the long-term payoff of this high yield crop presents immense benefit to farmers. “The uptake of soybeans took decades,” says Griswold. “Today soy is in everything. If we can show the local farmer that there is a market and that this is profitable, we can build the rural economy in this country.”

Social and environmental benefit

Aloterra sees Miscanthus as an opportunity to bring life to the more than 50 million acres of idle farmland across the US, creating jobs to stimulate rural economies while harnessing carbon and providing a sustainable raw material with untapped potential. Aloterra views part of its role as providing a test case for the uptake of Miscanthus across the US. All of its acres are USDA approved and Aloterra’s farms are conducting testing to better understand and optimize growing conditions.

Interview

Jon Griswold, Chief Executive Officer