Sorghum Energy (Management Company)

The Sorghum Energy Management Company

The goal of the Sorghum Energy Management Company is to provide biomass electricity to the national grid for a realistic price (six pence per kilowatt). Conventionally, biomass electricity if far too expensive to appeal to power distribution companies

Integrating the Growing, Milling and Power Generation

[Diagram of Sorghum Energy Management Scheme]

The unique aspect of Sorghum Energy is that it combines all aspects of the sorghum process, rather than handling each item individually. To this end the company obtains the seed and pays farmers to grow it. The stalks are then chopped and used as fuel for an electricity generator. The grain is milled and either sold wholesale or directly to consumers.

The great advantage of this approach is that the costs of growing and refining the sorghum are met by exploiting all avenues of the crop. If the sorghum was grown and used for simply generating electricity, then the cost per kilowatt would be prohibitive. The profit made from the sale of the grain products is used to subsidise the electricity generation, making for an attractive price for clean, renewable energy.

Product and Finance Flow

[Diagram of Product and Finance Movement]

The product movement shown on the diagram demonstrates the raw product being harvested, milled, then sold or used to provide power.

The finance movement shows the profit from product and electricity sales returning to the management company.

The overall structure is the key to making the business model work, and providing relatively cheap biomass electricity.

Farm Sites Required

Sorghum Energy is planning to grow Sorghum in several sites around the United Kingdom in 2003. The aim is to analyse the yield produced and use this as a basis for a much larger trial in 2004.
The sites have not yet been selected, and interested parties should contact sites@sorghum-energy.com. The initial test sites need to be around an acre and would be used for several varieties of Sorghum.