presentation overvie€¦ · presentation overview ... •fws is considered a leader and innovator...

Presentation Overview• Company Overview• Why Fractionate?• The FWS System • Process Flow • Equipmentq p• Mass Balance Chart• Summary of Fractions• Summary of Enhanced DDGSSummary of Enhanced DDGS• Performance Expectations• Economic Model• PricingPricing• Conclusions• Contact Us

Company Overview• FWS has over 50 years of experience & expertise inthe grain handling and processing industry in NorthAmericaAmerica

• We specialize in the design-build of inland terminals,feed mills, malt plants and water and waste-watert t t l ttreatment plants

• FWS is considered a leader and innovator in theindustrial design-build market place industrial design build market place

• Offices in Canada (Winnipeg & Calgary) and theUnited States (San Diego)

• Active international involvement

About FWS Technologies• FWS began working on its Corn Fractionation System

in December 2003

• Patent Application filed in February 2005

• Our system is currently in the Patent Pending StatusOur system is currently in the Patent Pending Status(File No. 60/649,970)

• A favorable patent opinion was received in May 2006 with thefinalization of the patent expected in the Fall of 2007 finalization of the patent expected in the Fall of 2007

• FWS Technologies is a newly created division within the FWSGroup of Companies and leads the commercialization of thep pFWS Corn Fractionation System

• Key Team Members Include: Glen Foster, Mel Harnett, Rick Chale and Scott MacKenzieChale and Scott MacKenzie

Why Fractionate?

Fractionation removes the non-fermentables from the ethanol production process, helping to:

• Increase Profits

• Maximizing ethanol plant throughput• Maximizing ethanol plant throughput• Creating new and high value co-products• Reducing energy consumption / lowering operating costs

• Lower ethanol plant emissions

The FWS System

The FWS Fractionation System produces three separatefractions:s

• Endosperm Fraction* (high in starch)• Germ Fraction (high in fat/oil)• Germ Fraction (high in fat/oil)• Bran Fraction (high in neutral-detergent fiber (NDF))

*O d f ti iti t i th ti l t i t*Our endosperm fraction composition contains the essential nutrientsto facilitate total fermentation

Ethanol ProductionWithout Fractionation

EthanolEthanol

DDGS

CO2

Ethanol ProductionS

Ethanol

With FWS Fractionation

Endo

Enhanced DDGS

FWS CO2FWSFractionation System

Bran Germ Oil Extraction

FWS Fractionation Plant

Process Flow

T i

Cleaned Corn Input

Tempering

Cracking & Sizing

Density Separation

Bran Processing

Germ Processing

Bran GermEndo

EquipmentThe FWS system uses minimal processing and conveyanceequipment, but includes for your peace of mind, redundancy onsome major components.some major components.

Types of equipment included are:• Cracker Rolls• Size Reduction & Separation Machinery• Density Separating Machines• Flakers

The fractionation system’s total connected load is1200 HP, operating is 850 HP.*

*assuming 20,000,000 mm/bu/yr of corn plant

Mass Balance ChartMass Balance ChartFWS Fractionation System

Wh l C Lb /B E d Lb /B G Lb /B B Lb /B1.30.71.20.90.3

34.0%8.5%

50.5%3.0%1.2%

30.0%15.0%28.0%20.5%6.5%

38.83.72.61.00.5

80.5%7.8%5.4%2.0%

1%

StarchCrude ProteinFiber (NDF)Fat/OilAsh

Whole Corn Lbs/Bu* Endosperm Lbs/Bu * Germ Lbs/Bu * Bran Lbs/Bu*

73.7 %8.4 %9.9 %3.5 %1.4 %

41.34.75.62.00.8

1.20.31.70.10.0

0.0 2.8%0.0%1.63.4%Other

% Run

56.0 48.2 4.4 3.4

86% 8% 6%

3.1 % 1.7 0.1

*- product “As Fed”

Note: Whole corn moisture: 14.5%

Summary of Fractions

C it E dD i ti C it G C it B Composite Endosperm

48.2 lbs(95% of all available starch).15%

7 5 8 0%

Description

Quantity lbs/bu*

.

Moisture*

P t i

Composite Germ

4.4 lbs

.

15%

14-16%

Composite Bran

3.4 lbs

.

14.5%

8-9% 7.5-8.0%2.00%1%

80-81%(10-11% > Whole Corn)

ProteinFat/OilAsh. Starch

14-16%18-22% **6.5%

30%

8-9%3.0%1.2%

34%

5-5.8%

3,80093.3%

.NDFME (kcal.kg)TDNCalciumPh h

.28%

4,460106%

.47-54%

3,680

89.95%

Phosphorus

* All values are dry matter basis with the exception of Moisture and Quantity.** Dependant on test method used

Summary of Enhanced DDGS

Description

Quantity lbs/bu*

Moisture*

Protein * *

Enhanced DDGS

12.5-13 lbs

10%

35-37%

Fat/Oil

Ash

Starch

NDF

6.5%

3.8%

3-5%

21%NDF

ME (kcal.kg)

TDN

Calcium

21%

3,800

88%

0.06%

Phosphorus 0.6%

* All values are dry matter basis with the exception of Moisture and Quantity.** 9 - 12% increase over standard DDGS product 9 12% increase over standard DDGS product

Performance Expectations

Expected Result

Contains greater than 93.5% of available starch

Contains greater than .80 lbs of fat/oil per bushel of whole

Fraction

Endosperm

Germ g p

Contains greater than 1.3 lbs of NDF bushel corn processedBran

Economic ModelKey Data Variables used in Economic Model spreadsheet

2.8

5%

10%

Current Conversion Rate

Starch Loss

Ethanol Throughput Increase

$ 2.00

$ 85.00

$

g p

Ethanol Price/gal

Current DDGS Selling Price/ton

Eth l DDGS S lli P i /t $ 100.00

$ 90.00

$ 45.00

Ethanol DDGS Selling Price/ton

Germ Product/ton

Bran Product/ton

$ 2.50

$ 0.61

Corn Price/bushel

Natural Gas/gal

Economic Model

Conversion Rate AssumptionCurrent Process With Fractionation

Economic Modeling Utilizing FWS Technologies Corn Fractionation System:50 MMGY Dry Mill Ethanol Plant

2.8 2.66

RevenuesEthanol

Units Unit Amt Unit Price/Cost Totals Totals

Conversion Rate AssumptionAnnual Ethanol CapacityBushels of Corn Required

gal $ 100 000 000 $ 110 000 000

50,000,00017,857,143

55,000,00020,676,692

10% incr.

EthanolDried Distiller GrainsEnhanced DDGSBranGerm

Total Revenues

galtontontonton

155,357 $129,229 $35,150 $45,489 $

85.00100.0045.0090.00

$ 100,000,000$ 13,205,357

$ 113,205,357

$ 110,000,000

$ 12,922,932$ 1,581,767$ 4,093,985

$ 128,598,684

$ 44,642,857$ 25,500,000$ 70,142,857

$ 43,062,500

CostsCornOperating

Total CostsEBIDTAIncrease EBIDTA

bugal

$$

2.500.61 / 0.53

$ 51,691,729$ 24,750,000$ 76,441,729

$ 52,156,955$ 9 094 455

$ 43,062,500

$ 43 062 500

Increase EBIDTA

EBIDTA (from above)DepreciationInterest ExpenseIncome Tax Expense

N t I

$ 9,094,455$ 52,156,955

$ 52 156 955$ 43,062,500Net Income $ 52,156,955

$ 9,904,455Increased Net Income Utilizing FWS Fractionation System

Pricing• FWS The FWS corn fractionation system is among the most cost

effective systems on the market today.

• Base pricing for a 20 mm/bu/yr fractionation plant starts at $9,000,000USD.* (sized for a 50mm/gal/yr ethanol plant)

• Price includes required cleaning equipment to provide clean, free off i t i l f th f ti ti foreign material, corn for the fractionation process.

• Additional pricing for transportation equipment to deliver product to andfrom fractionation facility and storage facilities for co-products, isavailable upon request available upon request.

* base pricing is for budgetary use only and is subject to change based on layout, actual location, marketconditions and does not include piling and any/all additional site preparation costs.

Conclusions

• On-line application• Produces 3 fractions

• Minimal starch loss• High energy DDGS

Simple Effective

• Conventional operation• Low horsepower• Dry system

g gy• High Oil Germ Fraction• High NDF Bran Fraction• Removes non-fermentables• Reduces chemical requirements• Reduces VOC’s/Improves air quality• Promotes full & efficient fermentationProfitable

• Increased ethanol throughput• Increased ethanol revenues• Low capital cost/quicker payback• New value added co product revenues• New value added co-product revenues• Higher protein DDGS

Contact UsFWS Technologies475 Dovercourt Drive475 Dovercourt DriveWinnipeg, MB Canada R3Y 1G4Phone : 866.722.2275Fax : 866 711 2275Fax : 866.711.2275email us @ info@fwstl.comwww.fwstl.com