The CenUSA Bioenergy project is focused on creating a bioenergy industry based on pyrolysis of perennial grass biomass to create liquid fuels. The increased production of perennial grasses on land that is unsuitable or marginal for row crop production would help minimize soil erosion and nutrient runoff, thereby promoting a more sustainable agricultural system, complementing the Nutrient Reduction Strategy, and helping to protect our nation’s water supply. Incorporation of perennial grass hay into beef feedlot rations could create additional marketing options and incentives for farmers to produce greater amounts of perennial grasses. The beef feedlot producer also stands to gain additional roughage sources that will become increasingly important as the cellulosic ethanol industry begins to compete with the livestock industry for cornstalk residue and other forms of fiber and roughage.