MontanaMontana Microbial ProductsMicrobial Products

• A Research and Development Company commercializing microbial products and technology

• Products– Enzymes for fuel alcohol production– Integrated cellulose and starch process– Barley protein concentrate for fish feed– Bacteria to control plant diseases

Fuel Alcohol Industry

• Developed to address high prices and help with energy independence

• Renewable Fuel Standard to create mandate and market for biofuels

• Current US industry based on corn

• Need for development of fuels from sources other than corn.

• DOE focus on cellulose (cellulosic ethanol)

Cellulosic Ethanol

Renewable Fuel Standards Schedule

Cellulosic Ethanol Sources

Cellulosic Ethanol Production

Thermochemical • CHP – generate heat and power for sale on grid, syn gas becomes by-

product or co-product• High up-front capital costs – access to grid

Biochemical (Enzyme Based• Focus on low-lignin agricultural waste feedstocks cornstover, wheat straw,

sugarcane bigasse• Lower up-front capital costs

DOE Biofuels PolicyDOE Biofuels Policy

• High Impact Feedstocks: 100 million High Impact Feedstocks: 100 million tonnestonnes

• Large Scale BiorefineriesLarge Scale Biorefineries

• No starchNo starch

• 25 years and no commercial plants25 years and no commercial plants

Cellulosic Ethanol Economics

•Low density – expensive to haul–$65/ton FOB Plant = $0.76/gal etoh

•Very absorbent – dilute slurries, high capital costs

–$4.50/gal plant capacity = Debt repayment $0.53/gal

•Expensive processing – enzyme and energy cost–Enzymes =$0.36 to $0.50 gal etoh produced–Distillation 3-4X conventional corn plant

Regional Approaches

• Fit Project to Local Resources– Use all available resources within reasonable

distance, i.e. starch and cellulose sources

• Reduce Costs– Reduce energy costs, i.e. Process changes, lignin– Feedstock collected as a result of some other activity,

i.e. wood waste, food processing, etc

• Create valuable co-products– Barley protein, chemicals, energy products

Straw to Ethanol Straw to Ethanol Montana ResourcesMontana Resources

• Montana: Barley Straw Fairfield Bench: 7Montana: Barley Straw Fairfield Bench: 7—10 million gallons —10 million gallons

• Integrate with feed barley, off spec malt Integrate with feed barley, off spec malt barley, livestock feeding: 15—20 million barley, livestock feeding: 15—20 million gallonsgallons

Add Value Add Value Food Food andand Fuel Fuel

Barley Protein ConcentrateBarley Protein Concentrate

Aquaculture FeedsAquaculture Feeds

Creating ValueCreating Value One ton of barley will produce 560 lbs One ton of barley will produce 560 lbs

of BPC and 83 gal of Ethanolof BPC and 83 gal of Ethanol BPC will sell for $700-$800/ton BPC will sell for $700-$800/ton

(fishmeal sells for approximately (fishmeal sells for approximately $900/ton)$900/ton)

EtOH will sell at prevailing market EtOH will sell at prevailing market pricesprices

One ton of barley worth $278, One ton of barley worth $278, Conventional ethanol ($153 and DDG $125Conventional ethanol ($153 and DDG $125

AquacultureAquaculture Aquaculture is the fastest growing sector of Aquaculture is the fastest growing sector of

agricultureagriculture Fishmeal is the main diet constituent of farmed Fishmeal is the main diet constituent of farmed

trout, salmon, shrimp and other hatchery fishtrout, salmon, shrimp and other hatchery fish It takes approximately 4.5 units of wild fish per It takes approximately 4.5 units of wild fish per

unit of fishmeal unit of fishmeal 4,963,000 m. tons fishmeal consumed annually4,963,000 m. tons fishmeal consumed annually

46% aquaculture, 26% poultry, 24% pigs46% aquaculture, 26% poultry, 24% pigs Major research effort to develop plant based Major research effort to develop plant based

protein sources to replace fishmealprotein sources to replace fishmeal

Conclusion

• Biofuels from local biomass is feasible –but

• Requires flexibility (think outside the box)• Use all available resources• Is capital intensive

Thank YouThank You

Contact: Cliff Bradley, Bob KearnsContact: Cliff Bradley, Bob Kearns

MMP, 109 S. Parkmont, ButteMMP, 109 S. Parkmont, Butte

406 494 3390 406 494 3390

cbradley@montana.com cbradley@montana.com

kearns@3rivers.netkearns@3rivers.net