What is the bioeconomy, and why should Nebraskans care about it?
The bioeconomy utilizes Nebraska’s abundant natural resources – including crops, livestock and waste products – to create industry and energy that adds value to the economy and our state.
The bioeconomy is a big opportunity for Nebraska, helping us power our homes, fuel our vehicles and provide materials we use daily. It can create jobs, support our farmers, ranchers and businesses, and make our state more sustainable.
In this joint blog with Nebraska Department of Economic Development (DED) Director K.C. Belitz, we’ll examine how Nebraska is leading the way in responsibly using natural resources to grow our economy with respect to our environment and improve others’ lives, now and for future generations.
- How does public power in Nebraska support the growth of the state’s bioeconomy?
K.C.: The availability of dependable and affordable energy is helping to power the state’s growing bioeconomy. It’s a major selling point as we recruit bio-based businesses to the state and work with home-grown companies to expand their operations in Nebraska.
We are the only state served entirely by public power, and this model has served us well. Nebraska’s commercial energy end-users benefit from having electricity costs that are 55% lower than the national average [eia.gov]. While this affordability is a significant competitive advantage, Nebraska also ranks #2 nationally for power grid reliability, according to U.S. News & World Report.
Our power providers do far more than keep the lights on. They’re on the frontlines of economic development, helping Nebraska’s communities recruit great people and high-paying career opportunities.
Tom: NPPD has a diverse mix of generation that allows us to keep rates cost-competitive and electricity reliable. These are enormous advantages for ag-related businesses wanting to expand or take root in the state.
We're also big believers in creating the world we want to see, and that starts with an inquisitive mind and a focus on innovation. Partnering with the University of Nebraska-Lincoln's Nebraska Center for Energy Sciences Research (NCESR) for the last 20 years has given us access to solutions that can improve how we power lives. We use findings to pilot real-world projects that allow us to best serve our ever-growing customer base, which is largely agricultural and industrial. For example, engineering studies are being conducted for carbon capture demonstrations at our coal-fired Gerald Gentleman Station that may provide tangible methods to reduce our carbon footprint while maintaining the value of this low-cost, reliable power plants.
- What role do innovation and technology play in driving Nebraska’s bioeconomy forward?
K.C.: Agriculture is the engine of Nebraska’s economy, but tech is the fuel that makes it go. As one notable example, think of the center pivot – an invention that transformed the Great Plains into some of the most productive ag land on the planet.
Our farmers, ranchers and universities constantly generate ideas for how to better grow crops, raise livestock and steward our land better. Nebraskans are on the leading edge of the research and development of fermentation technologies used in bioprocessing.
DED administers a suite of business innovation programs for Nebraska-based startups and small businesses. These programs have sparked the growth of numerous Nebraska ag tech and bioscience companies—generating $11.52 in follow-on investment and $15.90 in revenue for every state dollar invested. The agency’s business innovation programs assist with product development (Prototype), university research or university tech transfer (Academic R&D), leveraging federal Small Business Innovation Research/Small Business Technology Transfer programs (SBIR/STTR match), and access to capital via equity investment (Seed Investment).
Our state’s agricultural innovations enable Nebraskans to produce more crops using less water, fuel and fertilizer. Our low-carbon intensity, high-yield agricultural production helps companies look to sustainably source feedstocks. Additionally, advances in biotech are helping manufacturers transform corn and soybeans into bio-based products right here in Nebraska so we can capture the full value of these commodities.
Tom: Nebraska is known for its miles of corn and beans, and ag is king here. Advances in precision agriculture, biotechnology and biofuels are transforming how we grow and power our state, and public power is investing in modern energy solutions to support this growth, particularly through the NCESR. Examples include smart farming to optimize irrigation efficiency, water productivity and thermal management. Another is food engineering, which can extract high-value health and wellness compounds from food waste that can simultaneously produce biodiesel. Or, what about using biochar to help power a coal-fueled plant?
Our partnership with the NCESR recently proved the greenhouse gas-reducing benefits of ethanol and brings millions of dollars back to Nebraska in benefits! Scientific advances are allowing the use of ethanol and its co-products to create green products like sustainable aviation fuel and renewable diesel. NCESR work has also shown the value of feeding wet distiller’s grains to beef cattle in Nebraska, with an estimated $100 million return in value to the state.
Together with the DED and other statewide entities, we’re building a resilient, sustainable future where agriculture, technology and energy drive prosperity for all.
- How can the partnership between NPPD and the DED foster a more sustainable bioeconomy for Nebraskans?
K.C.: DED and NPPD work closely together on various economic development activities. Our teams promote the many advantages Nebraska has to offer bio-based businesses. We partner on industrial site evaluations to ensure communities are well-prepared to host prospective bio-producers. We assist existing Nebraska bio-processors in completing the infrastructure upgrades they need to grow. We’re also working to increase Nebraska’s power-generating capacity by conducting a feasibility study to identify potential sites for advanced nuclear power generation in Nebraska.
Tom: Our partnership is key to accelerating Nebraska’s sustainable bioeconomy. Together, we combine reliable, affordable energy with strategic economic initiatives that attract innovation and investment. Public power ensures the infrastructure needed for growing bio-based industries. Meanwhile, the DED drives development programs, incentives and business support. By aligning energy reliability with economic opportunity, we’re creating a thriving future for the bioeconomy.
- What are the benefits of bioenergy and bio-based products for Nebraska’s future?
K.C.: We’re on the cusp of a revolution in how products are manufactured in America, and Nebraska is poised to lead the way. Businesses are developing technologies to make virtually anything you can imagine out of corn and other ag commodities. Products like shoes, cosmetics, nylon, and fuels are increasingly being made with crops we grow in Nebraska instead of petrochemicals. We’re not talking about small, boutique companies doing this—global firms like L'Oréal and Tommy Hilfiger are investing in bioproduction.
As the Cornhusker State, we’re in a prime position to benefit from the emerging bioeconomy. Our state reliably ranks as one of the country’s top corn-producing states. Nebraska is home to biorefineries capable of breaking down corn into the component materials that biomanufacturers use as inputs. Altogether, we have 24 ethanol plants across the state; we believe each of them has the potential to take part in the emerging bioeconomy boom.
Along with our state’s biorefining capacity, Nebraska boasts world-class facilities for ag research and development and ag tech entrepreneurship. The emerging bioeconomy holds endless opportunities for Nebraska. However, we’ll have to work to turn this opportunity into tangible growth for our communities.
Tom: Bioenergy and bio-based products are definitely creating exciting new opportunities for Nebraska. By turning crops, farm waste and other natural materials into clean energy, fuels and everyday products, we’re supporting farmers, strengthening rural economies, and identifying ways to use our abundant natural resources responsibly. In turn, this creates higher-paying jobs, new career paths in science, technology, and skilled trades, and a place for any business in-state. As we build a stronger bioeconomy, we establish a future where our communities stay vibrant, our economy remains competitive and our families have more opportunities to live and work at home.
- How do state policies and incentives help Nebraska position itself as a leader in the bioeconomy?
K.C.: Governor Pillen – as the first governor in a century to earn a living from agriculture – is an energetic and effective champion of Nebraska’s bioeconomy. In 2024, the state launched the Bioeconomy Initiative at his request. Through this initiative, we’ve already been awarded $507 million of federal grants to further the vision of making Nebraska the epicenter of the nation’s bioeconomy. And there is more to come. The Pillen Administration has established strong ties within the current federal administration. This has helped open a pipeline to federal funding, with 8 to 10 projects in process for U.S. Dept. of Energy loans or grants that would total in the billions.
The days of seeking to grow Nebraska by selling cheap land, labor and power are over. In today’s world, companies are increasingly focused on bio-based production to meet customer demand. Given this focus, Nebraska is a premium place to do business. We have plentiful natural resources, abundant agricultural feedstocks, reliable power, a central location, and a world-class workforce. These advantages allow us to be more selective in business recruitment.
At the state level, we’re strategically targeting our business recruitment, homing in on projects that create higher-wage jobs and industries (like the bioeconomy) where Nebraska has distinct competitive advantages. Through these efforts, DED seeks to increase the sustainability and diversity of renewable industries, jobs and production in Nebraska.
The state of Nebraska has also made strides in recent years to improve its tax competitiveness by lowering tax rates on job creators.
Additionally, we’re making people recruitment and workforce development top priorities to increase the availability of talent in bio-related fields. We’ve seen encouraging results. Nebraska now ranks #2 nationally in labor force participation, and our manufacturing industry employment reached its highest point in 20-plus years during 2024.
Tom: Nebraska is taking necessary steps to encourage growth in the bioeconomy, and public power will continue to play a key role in this effort. State policies and incentives, such as tax credits for biofuel production, research funding for new technologies and incentives for other carbon-free energy projects – create a favorable environment for investment and innovation. NPPD ensures these growing industries have access to affordable, reliable energy, making it easier for bio-based businesses to scale. At the same time, government regulations that support sustainability and environmental responsibility help attract research and development. People are seeing what Nebraska offers and why it’s the Good Life! NPPD and the DED are doing all we can to build upon that interest to boost create incredible opportunities that benefit the state and all who live here.
