Cost of Corn as Percent of Total Retail Hide and Offal ValueRetail, Hide, and Offal Value

Source: J. Lawrence, Iowa State University

Corn Prices versusConsumer Price Index

2506

Consumer Price Index

2005

ce In

dex

shel

)

Corn should be priced at $9.25/bu!

100

150

3

4

sum

er P

ric

($ p

er B

us

50

100

2

3

U.S

. Con

s

Cor

n (

01

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

U

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2

Corn Consumer Price Index

4Message 4Biotechnology will increase cropBiotechnology will increase crop

yields and enable easier processing.

Technology Advances Corn Yields

Is 300 bu/AIs 300 bu/A possible –twice today’stwice today s corn yield?

Opportunities for Biotechnology pp gyto Improve Biodiesel

• Design soybeans to produce ready-made biodiesel and biolubricants withmade biodiesel and biolubricants with enhanced performance

• Issues:– cost of conversioncost of conversion– oxidative stability

ld l– cold tolerance

Enhance Biodiesel FeedstockTriacylglycerol Expensive

chemistryByproduct

M lO

O

OO O CH 3

+ GlycerolMonoacyl

ester

O

O

O

O

O

Jojoba genes Bacterial genesO

Monoacyl esters

OH

O

OH

O

O

R

yBranched chain fatty acids

O

O

Branched chain mono-estersO

O

Ready-made fuel, cold tolerant, oxidatively stable

LJ15

Slide 30

LJ15 Larry Johnson, 4/2/2010

Message 5gCorn grain alone cannot meet the US

mandate cell losic ethanol ill be neededmandate – cellulosic ethanol will be needed.

How Can We Meet US Motor Fuel Demand?Motor Fuel Demand?

36 billion gal goal by 202236 billion gal goal by 2022

No single solution, answer requires multiple approaches!

Fuel Ethanol and Other Fermentation

• Large underutilized

Products from Cellulosic BiomassLarge underutilized resource.

• Enzyme conversion toEnzyme conversion to fermentable sugars is difficult.

• One plant in Canada producing fuel ethanol.DOE f d d 27 il t• DOE funded 27 pilot, demonstration and commercial scale plantscommercial scale plants

How Much BiomassCould Be Produced?

• Total potential in Fuel woodTotal potential in U.S. is in excess of 1.3 billion tons

U.S. Biomass Potential (million tons)

132

Fuel wood

Milling residues

U b d id(about 21 EJ)• Could supply

47132

43

58

7996 Urban wood residues

Logging residues

21% of U.S. energy demand, or

55343

Forest thinning

Crop residues

or• 66% of U.S.

transportation

389Dedicated crops

Grains for biofuels

transportation fuel

Ag processing residues &manure

Poet announced it ill b ildwill build a

lignocellulose-to-th l l t iethanol plant in

Emmitsburg, IA

Gen 1

Gen 2Gen 2

Gen 3

Message 6D t t dd d t t d ’ th l dDo not get wedded to today’s ethanol and biodiesel – there may be better biofuels.

Automobile Range for Gasoline & Ethanol Blends (17-gal fuel tank)

E 85

E-10075,400

BTU/Gal

16.2 mpg 275

29717 5 mpg

Not used for cars in the U.S.

E-10

E-8581,600

BTU/Gal

297

410

17.5 mpg

24.1 mpg

Gasoline

112,500BTU/Gal

116,60042525.0 mpg

0 100 200 300 400 500

Miles

BTU/Gal

Low energy value and hygroscopic making transportation challenging

Biofuel Pathways from Biomass

Adapted from Virent Energy Systems (2010)

Message 7It i t j t b t th lIt is not just about ethanol,

its about biorefineries.

A Vision for Biorefineries Biorefinery: Cluster of biobased industriesBiorefinery: Cluster of biobased industries producing chemicals, fuels, power, products and materialsand materials.

Shifts productionShifts productionbetween productsdepending ondepending on market prices to

i i fitSource: NREL

maximize profits.

Eddyville, IA & Blair, NE –Eddyville, IA & Blair, NE First-generation Biorefineries

• Cargill starch sweeteners• Cargill – starch, sweeteners,ethanol, lactic acid, PLA,it i idcitric acid

• Heartland Lysine – lysine • Aginomoto – MSG

How a Biorefinery Will Operate

FractionationFractionationFiberStarch Oil Protein

ConversionThermochemical Biological ChemicalThermochemical Biological Chemical

Energy Motor Fuels Chemicals Biobased Products Biomaterials

Message 8gBiofuels provide feedstock for value-added industrial chemicals and biobased productsindustrial chemicals and biobased products.

Anything you can make from petroleumAnything you can make from petroleum, you can make from crops – just a matter

of economics!of economics!

Where is the value?

More valueMore value is created from the 3%from the 3% used for industrialindustrial chemicals than thethan the 71% used for fuelfor fuel.

Potential Fermentation Products from Cornstarch

Alcohols Ethanol, butanol, isopropanol

from Cornstarch, , p p

Organic acidsAcetic, citric, lactic, gluconic, malic, succinic fumaric propionic butyricOrganic acids succinic, fumaric, propionic, butyric, ketogluconic, itaconic, kojic

Ketones Acetone, glucosone

2 3 butanediol 1 3 butanediolPolyols 2,3 butanediol, 1,3 butanediol, glycerol, mannitol, arabinitol

Biopolymers Xanthan, pullulan, alginate

Fermentation Products Become Pl tf Ch i l

CH3CH2OHPlatform Chemicals

CH2 = CH2 CH3CHO CH3CO2H

Ethyl benzeneEthyl bromideEthyl chloride

Acetic acidAcetic anhydrideAldo products

AcetamideAcetanildeAcetyl chloride

Ethyl etherEthlyene chlorohydrinEthlyene diamineEthlyene glylcolEth l i i

Butyl acetateButylaldehydeChloralEthyleneimineP idi

Acetic anhydrideDimethyl acetamideCellulose acetatesEsters

EthyleneimineEthylene oxideDiethyl ketoneDiethylene glycolGl l th t

Pyridines

Glycol ethers, estersMEA, DEA, TEAVinyl acetatePolymers, copolyers

Source: NREL

Message 9Integrate livestock production with biorefineries

to enhance food and fuel supplies.pp

Integrate Animal Agriculture into Biorefineries and Retain a RobustBiorefineries and Retain a Robust

Livestock IndustryI it bl th t b t f• Inevitable that some best uses for co-products will be feed.

• Biorefineries will need a healthy livestock industry.

• Marketing wet DDGS savesDDGS savesprocessingenergy but onlygy ypractical withinshort distances.

Learning How to Substitute DDGSf C i Li t k R tifor Corn in Livestock Rations

One-third of grain mass is DDGS, so ethanol production actually uses 22% of crop. Not 33%.

Source: FAPRI2000 2004 2008

M 10Message 10The bioeconomy must be done in a sustainableThe bioeconomy must be done in a sustainable

way – not replace unsustainable petroleum production with another unsustainable system.

T d ’ CToday’s CornProduction is Unsustainable1

Perennial Cover CropsPerennial Cover CropsD l i l

Biomass Crop RotationsBiomass Crop RotationsD l l d

New Crop DevelopmentNew Crop DevelopmentD l hi hl d tiDevelop perennial cover

crops that are temporally and spatially compatible

with row crops

Develop long and short-term corn-biomass crop rotations and strips

that stabilize soil

Develop highly productive alternative bioenergy crops

1 Professor Kendall Lamkey, Chair, Department of Agronomy, Iowa State University

ISU BioCentury Research Farm – First Integrated Biomass Production and Processing FacilityBiomass Production and Processing Facility

First research biorefinery

The BioeconomyWill science make it a good revolution?

YES but there is plenty work to be done!YES, but there is plenty work to be done!

One-use carbon Reusable carbonOne use carbon Reusable carbon