Transcript Minnesota Next Generation Energy Board

Minnesota Next Generation
Energy Board
June 28, 2007
Jeff Fox
Vice President, Legal & Government Affairs
© Poet 2007
© Poet 2007
© Poet 2007
Company Profile
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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
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America’s Challenge
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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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Hemp
Stover
Switchgrass
Sorghum sudangrass
Dahurian wild rye
Big blue stem
German millet
Prairie sand reed
Canada wild rye
Hybrid millet
Reed canary grass
Tall fescue
Orchard grass
Basin wild rye
Blue joint reed grass
Jerusalem artichoke
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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
Other
2.339
Africa
0.16
Europe
1.223
4.491
Brazil
5.276
USA
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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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Corn Cob Collection/Processing
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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
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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 Processing
Pretreatment
Saccharification
Fermentation
Alternative Energy
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Poet Biorefinery
CO2
Ethanol
Endosperm
Ferment
Grain Corn
Centrifuge
& Dry
Distill
Corn Germ
DGHP
Bran
Cellulosic Ethanol
Pre-treat
Corn Cob
Steam to
Process
Biomass
Boiler
Solid Fuel
Distill
Hydrolysis &
Fermentation
Electric Generator
Boiler
Separator
Liquids
Anaerobic
Digester
Biogas
DDG Dryers
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Project LIBERTY
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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
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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
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