Philip W. Madson President Cincinnati, Ohio U S A
EXPLORING THE PROSPECTS EXPLORING forfor ETHANOL GENERATION 1.5 ETHANOL
DEFINING GENERATION 1.5 n Gen 1: sugar, starch (conventional) – Commercial technology (financeable) n Gen 2: Lignocellulose – Technology not commercial
DEFINING GENERATION 1.5 n Gen 1: sugar, starch (conventional) – Commercial technology (financeable) n Gen 1.5: sugar, starch (new sources) – Existing technology / integrations n Gen 2: Lignocellulose – Technology not commercial
OVERVIEW
MORE THAN 6,000 ETHANOL PLANTS WORLDWIDE SOURCE: DR. JOHN MURTAGH
RANGE OF TECHNOLOGIES EMPLOYED
Bioagra
TODAY IN USA “SQUARE BOX IN A CORNFIELD” IN A CORNFIELD” TODAY IN USA “SQUARE BOX IN A CORNFIELD” IN A CORNFIELD”
Natural gas
THE “SQUARE BOX” RISK THE “SQUARE BOX” RISK - COMMODITY CYCLES
WORLD COMMODITY PRICES ??
GENERATION 1.5
n SMALL GRAINS AS FEEDSTOCK n AGRICULTURAL INTEGRATION n FUTURE FEEDSTOCKS n TECHNOLOGY ASSESSMENT n HOW CAN EVERYBODY WIN? AGENDAAGENDA
DO MULTPLE FEEDSTOCKS WORK FOR ETHANOL?
MULTIPLE FEEDSTOCKS WHEATWHEAT BARLEYBARLEY CORNCORN MILOMILO TRITICALETRITICALE WHEATWHEAT BARLEYBARLEY CORNCORN MILOMILO TRITICALETRITICALE
Abengoa Bioenergy Netherlands
n n MAX. HOURLY WIND PRESSURE BIOETANOL GALICIA
CASTILLA y LEON
Agrana
TARKIM
POUNDMAKER
NORTH WEST TERMINAL UNITY, SASKATCHEWAN
HUSKYENERGYHUSKYENERGY Minnedosa, Manitoba Lloydminster, Saskatchewan
WHEAT, BARLEY, AND OTHER GRAINS YIELD PROPORTIONAL TO STARCH CONTENT
EXAMPLE 20 MM GPY PLANT EXAMPLE FEEDSTOCK Ton/Yr WHEAT BARLEY 210,000 (+8%) CORN (base) DDGS Ton/Yr 70,000 (+26%) 234,000 (+21%) 98,000 (+77%) 194,000 55,500
EXAMPLE 20 MM GPY PLANT EXAMPLE FEEDSTOCK Ton/Yr WHEAT BARLEY 210,000 (+8%) CORN (base) DDGS Ton/Yr 70,000 (+26%) 234,000 (+21%) 98,000 (+77%) 194,000 55,500 Know your livestock!
INTEGRATED AGRICULTURE FOOD, FEED, FUEL
Internal Animal Feeds Electricity and boiler Renewable "Green" Grid Electricity Ethanol (Fuel Grade) W D G (Wet Distillers Grain) Anaerobic Digester Waste Beef Facility Beef Milk Nitrogen BioFertilizers as N-P-K DDG Export (Dried Distillers Grain) Dairy Facility Ethanol Plant Water Waste Waste and solubles Steam and Electricity
E3E3E3E3
REEVE AGRI-ENERGY
POUNDMAKER
Animal Feed Coproducts The Forgotten Value
Animal Feed Coproducts Value Value of Corn
Consequences of Industry Practice re: Animal Feed Coproducts If agriculture system is viewed as a whole, the livestock industry captures the differential. Therefore, the value-added money remains in the ag community.If agriculture system is viewed as a whole, the livestock industry captures the differential. Therefore, the value-added money remains in the ag community. If export, the differential value-added potential is lost to USA agriculture.If export, the differential value-added potential is lost to USA agriculture.
Why do we worry about the blend wall and ignore the feed wall?
LIVESTOCK THE PARTNER TO GRAIN ETHANOL
SO… IS THERE MORE THAN JUST SQUARE BOXES IN CORNFIELDS? SO… IS THERE MORE THAN JUST SQUARE BOXES IN CORNFIELDS?
SO… IS THERE MORE THAN JUST SQUARE BOXES IN CORNFIELDS? YES! SO… IS THERE MORE THAN JUST SQUARE BOXES IN CORNFIELDS? YES!
LET “MOTHER NATURE” HELPLET HELP
“Wheat” “Energy Wheat” “Wild Wheat” “High Protein” “High Starch”
ENERGY WHEAT AND BARLEY Biomass Fuel
ALTERNATIVEFEEDSTOCKSALTERNATIVEFEEDSTOCKS
SunSpuds TM SUGAR – Not Grain, Not Cellulose TUBER – Proprietary Hybrid of Sunflower and Jerusalem Artichoke PERENNIAL – High Resistance, Low Input Agricultural Crop FARMING & STORAGE – Modified Potato Practice
Plant growth to 10 ft.
SunSpuds Tubers
Ethanol Feedstocks Comparison Ethanol Feedstocks Comparison Basis: 30MM GPY
SunSpuds TM Above-ground biomass for boiler fuel (or cellulose conversion)
TECHNOLOGYASSESSMENTTECHNOLOGYASSESSMENT
Is Corn the Bridge to Cellulose Ethanol? Is Corn the Bridge to Cellulose Ethanol?
Commodity Cycles Investment Mania Bankruptcies Premature Announcements Funky Science Commodity Cycles Investment Mania Bankruptcies Premature Announcements Funky Science Is Corn the Bridge to Cellulose Ethanol? Is Corn the Bridge to Cellulose Ethanol?
Is Corn the Bridge to Cellulose Ethanol? Or Has the Bridge Been Blown? Is Corn the Bridge to Cellulose Ethanol? Or Has the Bridge Been Blown?
Do we need a new paradigm? Do we need a new paradigm? Purpose-grown small grains Biomass-fueled boilers Livestock integration Generation 1.5
Is Corn Really the Bridge to Small Grains Feedstocks? Is Corn Really the Bridge to Small Grains Feedstocks?
We must always remember… We must always remember…
“ ALCOHOLISM ” IS A DISEASE “ VALUE - ADDED PROCESSING ” IS A BUSINESS “ ALCOHOLISM ” IS A DISEASE “ VALUE - ADDED PROCESSING ” IS A BUSINESS