Market Snapshot: On Farm Natural Resources and Renewable Energy

Renewable energy is a popular topic these days with new users and application areas maturing in all sectors. As agriculture begins to incorporate renewable energy into everyday operations, innovative technologies and initiatives can help promote energy efficiency and conservation. The use of renewable energy in agriculture holds the promise of reducing operation costs, increasing energy efficiency, and increasing profits while utilizing natural resources. Given the availability of resources in this sector – wind, solar, geothermal energy, and other feedstocks – the potential to create scalable solutions that serve multiple and individual farms is increasing.

According to the United States Department of Agriculture (USDA), the number of U.S. farms fell sharply until the early 1970s after peaking at 6.8 million farms in 1935. However, while the number of U.S. farms has continued to decline since the 1970s, the rate of decline has slowed. In the most recent USDA survey there were 2.02 million U.S. farms in 2019 utilizing 897 million acres of land. The average farm size was 444 acres, which is slightly greater than the 440 acres recorded in the early 1970s. In 2019, family farms, commonly defined as a farm where the majority of the business is owned by the operator and individuals related to the operator, accounted for nearly 98 percent of U.S. farms, and small family farms accounted for 90 percent of all U.S. farms. By contrast, large-scale family farms, make up about 3% of farms but 44 percent of the value of production.

So, what does the number of farms mean for energy use? The EPA reports that agriculture accounts for 10% of all greenhouse gas emissions in the U.S., and that doesn’t include land and water usage. This sector both uses and produces energy, which makes energy an expense as well as a source of potential income. On-farm renewable energy generation is seen as offering the opportunity to diversify farm business and offset emissions from other farm activities while reducing energy costs. To realize these goals, farmers are tapping into the wide range of options for renewable energy generation. According to the 2017 Census of Agriculture, the number of farms with renewable energy producing systems increased from 57,299 in 2012 to 133,176 in 2017.

While not every option will be suitable for every farm, the following list provides a brief overview of some of these sources.

  • Bioenergy: Biomass energy can be made up of sugars and oils from plants and used to make fuel for vehicles (Biofuel or Biodiesel). Additionally, the burning of biomass for heat or electricity is simply called Biopower. Both of these offer the potential for generation and use in the agricultural sector and beyond.
  • Geothermal: Geothermal energy can be expensive to set-up, but reports indicate that the long-term benefit makes this cost worthwhile to farmers. In this case, farm buildings could use geothermal heat pumps to exchange air temperature and ground temperature year round, keeping buildings cool in summer and warm in winter.
  • Solar: Agricultural applications of solar energy can take many forms, some of which have been used for years. For example, the sun’s energy can be used for passive heating of greenhouses or as solar thermal heating for hot water systems. With photovoltaics (PV) solar energy can be used to produce electricity. Farm-produced solar energy can be sold as a commodity or used to power the farm itself.
  • Wind: With wind energy, turbines produce electricity from wind, and can provide a large portion of the average power needed by a farm. However the turbines must be located in high wind areas and typically require at least one acre of land to produce enough energy.
  • Hydropower: Hydropower is also dependent upon the farm’s location – for this form of renewable energy the force of fast moving, falling, or flowing water is used to produce or capture energy. In agriculture, on-farm hydropower generation can be used to power the farm directly, or it can be connected to the electrical grid to offset electricity consumption.

The USDA offers a variety of links and resources for this topic and provides information on work being done in this area by other agencies as well as by individual states. A listing of agriculture conferences scheduled for 2021 is available here.

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Fusion Energy Overview

Fusion is a potential energy source and occurs when one or more lighter elements combine to form a heavier element, releasing energy in the process. [1] Devices designed to harness this energy are known as fusion reactors. [2]   A future fusion plant could use the heat produced by the fusion reaction to produce steam to drive turbines or generators that produce electricity. [3] For almost a century, scientists around the globe have been looking to recreate and harness the power of fusion energy. [4]  

Tokamak
Source: ITER

There are two commonly pursued technologies to create and control plasma. Magnetic confinement uses strong magnets to contain plasma. A widely used configuration known as a tokamak[5] uses powerful magnets to confine the plasma within a toroidal reaction vessel, with the magnetic fields keeping the plasma away from the walls of the vessel to prevent damage and unintended cooling of the plasma.[6]  

Examples of U.S. companies developing magnetic confinement systems are Commonwealth Fusion Systems, TAE Technologies, Tokamak Energy, Helion Energy, and Thea Energy. Inertial confinement uses high-power lasers or electrical discharges to compress a small capsule of fusion fuel to extreme temperatures and pressures for a short time. This approach is used, for example, in the National Ignition Facility at the U.S. Department of Energy (DOE) Lawrence Livermore National Laboratory. [7] Examples of U.S. companies developing inertial confinement systems are Xcimer Energy, Focused Energy, ZAP Energy, and Shine Technologies. In addition to these methods, several companies such as General Fusion,  are pursuing various other pathways to try to create and control fusion reactions, including a hybrid of both magnetic and inertial confinement approaches. [8]

Various fusion fuels are used to power these pursued pathways. According to the U.S. Department of Energy, once developed, first-generation fusion plants may likely use a combination of abundant deuterium and lithium as fuel. [9] Deuterium, lithium and tritium Deuterium-tritium is a highly studied fusion fuel and a likely basis for the first fusion power plants.[10] Lithium is a critical resource for fusion because of its material properties. Lithium is used to breed tritium, the key fuel for fusion. [11] The rare lithium-6 form of the metal, which makes up only 7.5 per cent of all naturally occurring lithium, is the most efficient for sustaining the fusion process. [12] Li-6 is banned in the U.S. because of the harmful mercury waste it generates. [13] So most fusion power concepts rely on “enriched” lithium, where the Li-6 content has been boosted. [14]

Several companies are investing in efforts aimed at commercializing fusion energy. [15] Many of these companies are startups that have raised over $100 million in the past few years. [16]  The global fusion energy market size is projected to reach $611.8 billion by 2034, expanding at a CAGR of 5.56% from 2025 to 2034. [17] 

Current State - Projections of the time to putting Fusion Energy on the Grid

As of October 2025, fusion reactors remain pre-commercial, with no system yet producing net energy. Fusion energy stakeholders provide varying timelines as to when fusion energy will become technically feasible as an energy source for the electrical grid and when it will become commercially viable.  Projections range from 10 years to several decades in the future. [18]   Some companies are claiming that they will achieve commercial fusion energy in the next few years[19] while other stakeholders and experts said fusion energy will take more than 20 years. The Fusion Industry Association reported that many commercial companies predict fusion industry will be commercially viable in the 2030’s time frame. [19] 

Source: The Global Fusion Industry in 2025—Fusion Industry Association

Other stakeholders and experts believe fusion energy might put electricity on the grid in 10 to 20 years, however, significant resources are required to do so.[20] The Figure below illustrates commercialization risks that fusion energy will face on the road to commercial deployment. According to the U.S. Department of Energy, the aspirational timeline as shown is strongly dependent on the level of both public and private investments. [21]

Commercialization risks for fusion

Source. U.S. Department of Energy, Fusion Energy Strategy 2024

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