minnesota next generation energy board
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Minnesota Next Generation Energy Board. June 28, 2007 Jeff Fox Vice President, Legal & Government Affairs. Company Profile. 20 years ethanol industry experience Over one billion gallons of production capacity World’s largest dry mill producer Over 1,100 team members - PowerPoint PPT PresentationTRANSCRIPT
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Minnesota Next GenerationEnergy Board
June 28, 2007
Jeff FoxVice President, Legal & Government Affairs
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• 20 years ethanol industry experience• Over one billion gallons of production capacity • World’s largest dry mill producer• Over 1,100 team members • 33 ethanol plant development projects• Unique business model (integrated) • Low cost producer• Leading developer of technology• Operate 20 plants• 7 plants under construction• 10,000 farmer investors
Company Profile
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America’s Challenge
• Reducing climate change
• Strengthen energy security
• Revitalizing rural economy
• Safeguarding water resources
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Climate Change
The production and use of 4.9 billion gallons of domestic ethanol reduced C02-equivalent greenhouse gas emissions by approximately 8 million tons in 2006. That would be the equivalent of removing 1.21 million cars from American roads.
Source: Argonne National Laboratory, GREET 1.7 Model
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The U.S. currently imports more than 13.5 million barrels of oil per day. At a cost of $60 per barrel, this equates to more than $295.5 billion per year, almost thirty percent of our annual trade deficit. No economy can sustain this level of wealth transfer.
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The 2006 U.S. Ethanol Industry…
Increased gross output by $41.1 billion through the combination of spending for annual operations, ethanol transportation, and capital spending for new biorefineries under construction.
Supported the creation of 160,231 jobs, including nearly 20,000 jobs in manufacturing.
Added $2.7 billion in new tax revenue for the federal government and $2.3 billion for state and local treasuries that can be used for new roads, school improvements and first responders. Source: RFA
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Ethanol Quick Fact
Ethanol produces 67% more energy than it takes to produce. That compares to a loss of 20% with gasoline
Source: RFA
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Our Challenge
Global Warming– The debate is over. It is the issue.
Dependency on Foreign Oil– “For too long our nation has been dependent on
foreign oil…it is in our vital interest to diversify America’s energy supply.”
President George W. Bush, 2007 State of the Union
35 Billion Gallons by 2017– The vision is clear
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Why Cellulosic Ethanol?
2006 ethanol production = 5 bn gallons
2005 total transportation fuel consumption = 140 bn gallons
To meet the federal government 2017 goal of 35 bn gallons of ethanol must be produced– Grain corn is projected to provide 15 bn gallons of ethanol
by crop year 2017.– Alternative biomass feedstock will be required to meet the
additional 20 bn gallons of ethanol.
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0 20 40 60 80 100 120
Jerusalem artichoke
Blue joint reed grass
Basin wild rye
Orchard grass
Tall fescue
Reed canary grass
Hybrid millet
Canada wild rye
Prairie sand reed
German millet
Big blue stem
Dahurian wild rye
Sorghum sudangrass
Switchgrass
Stover
Hemp
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Recipients
Poet of Sioux Falls, South Dakota, up to $80 million.
The plant is in Emmetsburg (Palo Alto County), Iowa, and after expansion, it will produce 125 million gallons of ethanol per year, of which roughly 25 percent will be cellulosic ethanol. For feedstock in the production of cellulosic ethanol, the plant expects to use 842 tons per day of corn fiber, cobs, and stalks.
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Recipients
Iogen Biorefinery Partners, LLC, of Arlington, Virginia, up to $80 million.– The proposed plant will be built in Shelley, Idaho, near
Idaho Falls, and will produce 18 million gallons of ethanol annually. The plant will use 700 tons per day of agricultural residues including wheat straw, barley straw, corn stover, switchgrass, and rice straw as feedstocks.
Range Fuels (formerly Kergy Inc.) of Broomfield, Colorado, up to $76 million. – The proposed plant will be constructed in Soperton
(Treutlen County), Georgia. The plant will produce about 40 million gallons of ethanol per year and 9 million gallons per year of methanol. As feedstock, the plant will use 1,200 tons per day of wood residues and wood based energy crops.
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Recipients Abengoa Bioenergy Biomass of Kansas, LLC of Chesterfield, Missouri, up to $76 million.– The proposed plant will be located in Kansas and use 700 tons
per day of corn stover, wheat straw, milo stubble, switchgrass, and other feedstocks to produce 11.4 million gallons of ethanol annually.
ALICO, Inc. of LaBelle, Florida, up to $33 million.– The proposed plant will be in LaBelle, Florida. The plant will
produce 13.9 million gallons of ethanol a year and 6,255 kilowatts of electric power, as well as 8.8 tons of hydrogen and 50 tons of ammonia per day. For feedstock, the plant will use 770 tons per day of yard, wood, and vegetative wastes and eventually energycane.
BlueFire Ethanol, Inc. of Irvine, California, up to $40 million.– The proposed plant will be in Southern California. The plant
will be sited on an existing landfill and produce about 19 million gallons of ethanol a year. As feedstock, the plant would use 700 tons per day of sorted green waste and wood waste from landfills.
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2006 World Ethanol Production
13.489 Billion Gallons
5.276
4.491
1.223
0.16
2.339
0 1 2 3 4 5 6
USA
Brazil
Europe
Africa
Other
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Ethanol Demand/Feedstock Supply
• E-10 15 bn gal 5 bn bu
– Matches NCGA 2016/2017 projections
• E-15-30 25-50 bn gal 300-600 mm ton
– Matches biomass feedstock availability projections
• E-85 125 bn gal 1250 mm ton
– Matches “Billion Ton Study”
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Sustainable Collection of Biomass
• “All biomass is local”• Issues management
– Erosion– Soil fertility
• Balancing act• “Changing Agriculture”
– No-till– Feedstock collection
• What about cobs?
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• Cobs
– 78% of material exiting the combine
– 18% of the above ground stover
– 16% more carbohydrate than stover alone
• 35.4% glucan
• 31.1% xylan
• Collection options
– Separate
– Grain/cob co-mingled
• Processing options
– On farm processing
– Off-site processing
Corn Cob Collection/Processing
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The “Cob Caddy”
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“CCM” Package
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Co-mingled Corn Grain and Cobs (CCM)
The corn & cob mixture is unloaded into common hopper bottom trailers & hauled to the farm, plant or separation area.
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Separation Options The Corn & Cob mix can be separated at the field, farm or plant.
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Storage Options CCM can either be separated in the field or hauled to a pile for
further processing.
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Dry Grind Ethanol Production
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How Ethanol will Be Made
Cob ProcessingPretreatment
SaccharificationFermentation
Alternative Energy
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Poet Biorefinery
Ethanol
Grain Corn
Corn Germ
Endosperm
CO2
Ferment
Distill
Centrifuge& Dry
Pre-treatHydrolysis &Fermentation
Distill
Steam to Process
Bran
Cellulosic Ethanol
Biomass Boiler Separator
Solid Fuel AnaerobicDigester
Liquids
Boiler
BiogasDDG Dryers
Electric Generator
DGHP
Corn Cob
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Project LIBERTY• The ability to operate cob collection and bio-refinery systems to:
– Validate the technology at commercial scale
– Validate the economics at commercial scale
– Enable replication at other existing dry mills or new grassroots facilities
• Project LIBERTY deliverables:
– 11 percent more ethanol from a bushel of corn
– 27 percent more ethanol from an acre of corn
– 83 percent less fossil fuel consumption
– 24 percent less water consumption
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The Real Cost of Food
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Thank you