1. Ethanol Fuel from the Fields Mike Plumer Natural Resources Management

2. Objectives Ethanol Basics Ethanol Process Ethanol By-Products Water Use Clean Air Facts Future Needs

3. What is Ethanol? Ethanol is alcohol that can be made from corn or other starch based materials such as: wheat, grain sorghum, potatoes, sugar cane, and wood. Ethanol is a renewable fuel.

4. E-10 is the most common Ethanol/gasoline blend It has up to 10% Ethanol and 90% gasoline E-85 is a fuel for Flex-fuel vehicles only It has up to 85% Ethanol and 15 % gasoline What are the Common Ethanol Blends? Flex-fuel vehicles (FFVs) run on gasoline or a blend of up to 85% ethanol (E85). With a few engine and fuel system modifications, they are identical to gasoline-only models.

5. Ethanol as an Oxygenate If you mix 10% Ethanol with 90% gasoline it will raise the octane 2-3 points 90% regular gasoline at 87 octane = 78.3 + 10% Ethanol at 113 octane = 11.3 89.6 This would be Premium Gasoline

6. Historic U.S. Fuel Ethanol Production Source: Renewable Fuel Association www.ethanolrfa.org 1980-2007 Millions of Gallons

7. Corn Utilized in Ethanol Production Source: Renewable Fuels Association www.ethanolrfa.org 1980 – 2007 Millions of Bushels

8. US Corn Production 13.07 Billion bushel IL Ag Statistics - NASS 1991 - 2007

9. US Corn Use by Segment Even with all of the uses for corn, the US is estimated to carry over 1.8 billion bushels of corn from the 2008 crop year into the 2009 crop year Feed/Residual - 47% Export - 19% Ethanol - 24% High Fructose Corn Syrup - 4% Other - 6%

10. Current U.S. Ethanol Industry Produces about 12 Billion Gallon / Year 158 Operating Production Plants 51 Under Construction (~2 billion gallon) 40% are farmer/investor owned Major Market Uses: –Fuel oxygenate – ethanol is 35% oxygen –Reformulated gasoline – environmentally friendly –Octane enhancer – at 10% blend it increases octane 2-3 points –Gasoline Extender – add 10% ethanol Source: http://www.ethanol.org/

11. Ethanol plants Plants under construction Source: Ethanol and the Local Economy Sarah A. Low and Andrew M. Isserman Where is Ethanol produced? Most ethanol is currently produced from corn

12. >28% (>2 std. dev above avg.) Land in Corn 7 % (average) to 28 % Land in Corn Ethanol Plants, August 2007 Source: Ethanol and the Local Economy Sarah A. Low and Andrew M. Isserman Ethanol Plants and Corn Production Most ethanol is currently produced from corn

13. Above average cattle on feed Over 100,000 cattle on feed Ethanol Plants, August 2007 Source: Ethanol and the Local Economy Sarah A. Low and Andrew M. Isserman Ethanol Plants and Cattle on Feed Most DDGS* is feed to beef or dairy cattle * Distiller’s Dried Grains with Solubles

14. Ethanol Plants *Distiller’s Dried Grains with Solubles Source: Ethanol and the Local Economy Sarah A. Low and Andrew M. Isserman Ethanol Plants, Railroads, and Rivers RailroadsRivers Most ethanol and DDGS* is transported by truck or rail

15. Less than 2.5% (average) 2.5% – 5.0% Greater than 5% (one standard deviation above average) Ethanol as a Percent of Fuel Use Source: Ethanol and the Local Economy Sarah A. Low and Andrew M. Isserman

16. Ethanol Plants - Illinois Existing Under construction Source: Renewable Fuel Association

17. What’s in a bushel 1 bushel = 56 pounds of Corn 32 pounds of starch or 33 pounds of sweetener or 2.80 gallons of ethanol and 18 pounds of DDGS* and 1.6 pounds of corn oil and 18 pounds of CO 2 Products produced are dependant on if an Ethanol plant is a wet or dry mill * Distiller’s Dried Grain with Solubles

18. What is DDGS? Distiller’s Dried Grains with Solubles DDGS is a co-product of the distillery industries. Most (~98%) of the DDGS in North America comes from plants that produce ethanol for oxygenated fuels. The remaining 1 to 2% of DDGS is produced by the alcohol beverage industry. Are the dried residue remaining after the starch fraction of corn is fermented with selected yeasts and enzymes to produce ethanol and carbon dioxide. After complete fermentation, the alcohol is removed by distillation and the remaining fermentation residues are dried. University of Minnesota http://www.ddgs.umn.edu/overview.htm

19. What is DDGS? Distiller’s Dried Grains with Solubles Is predominantly feed to ruminant animals such as beef and dairy cows, but it is also being used more frequently in diets for swine, poultry, and aquaculture. Further research is looking at the possibilities for companion animals and human consumption. University of Minnesota DDGS replaces much of the corn that was feed to livestock, so the amount of corn that is used to make ethanol is not totally removed from the food supply. The US exports DDGS for animal feed. http://www.ddgs.umn.edu/overview.htm

20. 2008/2009 US DDG Production Source: Pro Exporter 08/09 DDG production forecasted at 22,173,000 MT 07/08 Production was 18.3 million MT MT - Metric Ton = 2200 pounds

21. DDGS production and consumption Source: CHS Inc. – Major Marketing of Distiller’s Grain / Renewable Fuel Association

22. Dry Grind Ethanol

23. Whole corn Fermentation Distillation Ethanol Centrifugation Whole Stillage Thin Stillage Evaporator Distillers Dried Grains Distillers Solubles Distillers Dried Grains with Solubles Grind Cook Liquefy Saccharify CO 2 Enzyme

24. Ethanol Dry Grind

25. Corn Wet Milling Process Corn First Grind Water Fiber Washing Second Grind Germ Steep Tanks Starch & Protein Primary Starch Separation Starch Washing Oil Extraction Germ Meal Steepwater Corn Gluten Meal Starch Corn Oil Corn Gluten Feed

27. Source: IL Corn Growers Assoc.

28. Production & Demand 2017 2008 – 2017 Crop Year Thousands Metric Ton Source: Pro Exporter/IL Corn Growers Assoc.

31. Gallons/waterHow MuchItem 31 gallonEthanol 9.31 canFruit or Vegetables 241 poundof Plastic 1,5001 barrelCrude oil 1,85142 gallonBarrel of Crude Oil 28,1001 tonSugar Beets to Processed Sugar 39,0901 carto Manufacture 62,6001 tonSteel Water Use In comparison: from USGS/USEPA

32. Cellulosic ethanol Derived from plant fiber Fibers must be broken down to get sugar Issue is hemicellulose and lignin –Use enzymes or themochemical Requires much energy and chemicals Requires significant facility safeguards

33. Cellulosic ethanol High volume of material/gallon ethanol High transportation costs-limited area Disposal of waste products is an issue Storage of cellulose –Average plant would need, cellulose stacked 5 feet high and cover a football field each day

34. Cellulosic Ethanol Current technology is: –1 ton of cellulose = 27 gallons of ethanol –Theoretical maximum is 1 ton= 95 gallons Corn ethanol current technology is: –1 bushel (56#) = 2.85 gallons –Theoretical maximum is 1 bushel=3.3 gallons Major cost differences currently: –Corn ethanol is $1.55/ gallon –Miscanthus ethanol is $4.20/ gallon

35. The American Lung Association of Metropolitan Chicago credits ethanol-blended fuel with reducing smog-forming emissions by 25% since 1990. Ethanol blends are likely to reduce carbon monoxide emissions in vehicles by between 10% - 30%, depending upon the combustion technology. (U.S. EPA) The use of 10% ethanol blends reduces greenhouse gas emissions by 12-19% compared to conventional gasoline. (Argonne National Lab) In 2004, ethanol use in the U.S. reduced CO 2 -equivalent greenhouse gas emissions by approximately 7 million tons, equal to removing the emissions of more than 1 million cars from the road. (Argonne National Lab) Ethanol Clean Air Facts http://www.ethanol.org/

36. Research shows a 35-46% reduction in greenhouse gas emissions and a 50-60% reduction in fossil energy use due to the use of ethanol as a motor fuel. (Argonne National Lab) Ethanol contains 35% oxygen, making it burn more cleanly and completely than gasoline. E85 has the highest oxygen content of any fuel available, making it burn even more cleanly and even more completely than any other fuel. E85 contains 80% fewer gum-forming compounds than gasoline. Ethanol is highly biodegradable, making it safer for the environment. Ethanol Clean Air Facts cont. http://www.ethanol.org/

37. Blending Ethanol Most states allow 10% ethanol in gasoline Blends up to 85% can be used in Flex Fuel vehicles Research shows new cars can use up to 30% blends (USDOE, ACE 2006) New regulations may allow blender pumps California uses 5.7% to meet clean air standards

38. Ethanol Blends In Europe, Saab has the engine technology to burn blends or pure ethanol with excellent mileage (often exceeding gasoline) In US, hopefully, some one will bring the technology here

39. Blending US allows a $.051/gallon tax incentive for blending 10% ethanol, which goes to whom ever does the blending This was done to encourage stations to put in tanks/ infrastructure Today oil companies take the credit or some ethanol plants are now blending

40. Ethanol Fuel Single molecule, burns to produce CO 2 and water Gasoline is complex hydrocarbon that produces many pollutants Ethanol is 113 octane and is used to enhance gasoline to 87 to 90 octane 10% ethanol is safe in all engines, –Pre-1980 engines may cause seal/gasket problems

41. Ethanol Economics Renewable fuel based on price of corn or cellulose feed stock Ethanol plants are located near supply of feed stock Local plants equal local jobs For every gallon of petroleum used in ethanol production 13 gallons of ethanol are produced (Cassman, Nebraska Center for Energy Sciences)

42. Ethanol Economics Current ethanol availability has reduced the cost of gasoline by $.20-.35 Price of ethanol is: Corn price + processing costs – co- products Oct. 29 price: $ 1.955 / gallon Next May is $1.81

43. Table 1. Example of Relationship Between Oil and Gasoline Prices. Crude Oil Price Wholesale Unleaded Gasoline Price $/barrel $/gallon 40 1.38 50 1.73 60 2.07 70 2.42 80 2.76 Source: CARD Briefing Paper 06-BP49, November 2006.

44. Ethanol and Environment Greenhouse Gas Emissions (GHG) are reduced by 48-59% compared to gasoline –Rapid adoption of new technology in ethanol production is increasing efficiency –Increasing use of farmer conservation practices could increase efficiency to 87% Liska, Cassman: Journal of Industrial Ecology, 1-21-09

45. Steffen Mueller* Corn ethanol - Global Warming Intensity(GWI)- - 40% better than gasoline Corn ethanol with carbon sequestration (13% no- till/strip till) 46% better than gasoline Corn ethanol plant did not promote conversion of non-agri. land to corn Further Reductions in GWI from: Corn ethanol with carbon sequestration incentives (100% no till or alternatively 50% no-till / 50% winter cover crop) 81% better than gasoline Advanced processes and co-products have the potential for further reductions *with University of Illinois at Chicago

46. Texas A&M: Don’t Blame Corn Higher corn prices have had very little effect on consumer food prices The underlying force driving economic change is higher energy prices

47. Energy’s Bigger Impact A $1 per gallon increase in the price of gas has triple the impact on food prices as does a $1 per bushel increase in the price of corn

48. What Is Driving Food Prices? US Dept of Labor Data Unadjusted percentage change from March 2007 to March 2008 Food 4.5% Food at home (cereals, meats, fruits, etc.) 4.7% Transportation 8.2% Fuel oil 40.2% Motor fuel 26.4%

49. USDA: Don’t Blame Corn Higher corn prices increase feed and costs for farmers and food manufacturers, but pass through to retail prices at a rate less than 10 percent of the corn price change.

50. For more information: University of Illinois Extension site: http://web.extension.uiuc.edu/state/ Click on Energy button Fact sheets available CABER site: www.bioenergy.uiuc.edu www.ethanol.org

51. Created by: Mike Plumer, Natural Resource Educator Carbondale Center