Dry Mill Ethanol Plants – Today’s Technology and Tomorrow’s Future

Current Energy Efficiency 34,000 Btu of energy per denatured gallon of ethanol –With all distiller’s dried 0.75 Kwh of electricity per denatured gallon of ethanol Continually improving efficiency of equipment energy use, waste heat recapture and recycling

Technology Advancements with Inputs Increased Yield –Corn genetics modified to produce highly fermentable- starch varieties for industrial uses –Production and yield increases thru pest, disease and climatic resistance Improved Enzymes –Continually utilizing higher percentages of a corn kernel’s starch content

Optimization of Plant Functions Dry-mill product lines expanding –Germ removal – lower fat/higher protein –Fiber removal – higher protein/less DDGS tonnage –DDGS characteristics can be optimized for certain species

Today’s DDGS Consumers

Optimization of Plant Functions Corn oil extraction –Can be extracted front end for food-grade corn oil –Can be extracted on the back end for biodiesel production –Increases protein in distiller’s grains, but reduces their energy value Pursuit of high value co-products (usually in low volumes and often difficult/expensive to extract) –Nutriceuticals –Proteins

Distiller’s Grains–Dryer Technology Design affects efficiency, quality of product Lower Temperature dryers improve quality of the product + efficiency of the plant

Cost Reduction Advancements Enzymatic Milling –Lower temperature technology reduces need for heating, reducing energy costs –Requires special enzymes Biomass as lower cost energy source –Existing coal burners originally designed to burn biomass –Corn stover, corn fiber possible fuel sources for plants –Logistics, handling and compliance requirements

Technology Drivers What will determine how fuel ethanol production technology evolves? –Reliability of the technology! –Location of ethanol production Access to feedstocks – grains and others Proximity and supply of alternative energy sources (biomass, manure, etc.) –Federal and state programs to promote energy crops – both technology and agronomic structures

Technology Drivers PADD 1 ’04 Actual million gal. Projected New – 1.2 billion gal. (MTBE) PADD 2 ’04 Actual billion gallons Potential New – 2.0 billion gallons PADD 3 ’04 Actual million gallons Projected New – 500 million gallons – (MTBE) PADD 4 ’04 Actual - 37 million gallons Projected New – 100 million gallons PADD 5 ’04 Actual billion Gallons Projected New – 600 million Gallons – (10% Blend) –Location of ethanol use Alternative energy technologies Alternative feedstock conversion technologies when financially viable

Fuel Ethanol Production’s - The Era of “Applied Research” Water use, quality –Reduce, reuse, recycle Energy availability –Natural gas cost and supply driving rapid innovation Enzyme strength –Stronger enzymes=lower temperature –Cellulosic ethanol technology Feedstock Genetics –Grain and Energy Crops Logistical Improvements tied to Production Practices

Thanks for your attention! Questions? Greg Krissek