February 2009 Ethanol Producer Magazine

FEBRUARY 2009

INSIDE: FUNGUS PROMISES TO IMPROVE ETHANOL PLANT EFFICIENCY

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insideFEBRUARY 2009 . VOLUME 15 . ISSUE 2

features

50 TRANSPORTATION It’s Not Just a Pipe Dream As more companies move ethanol successfully via pipeline and others develop ethanol pipeline projects, the transportation mode is closer to becoming an option for the industry. By Erin Voegele

58 STORAGE Storage Strategies for Cellulosic Feedstocks Researchers working to determine the best, most effi cient ways to store cellulosic feedstocks have had great success with large, round bales. By Anna Austin

66 INNOVATION Fertile Fungus Using a food-grade fungus called Rhizopus microsporus, an Iowa State University team developed a process that improves the effi ciency of ethanol plants and produces new coproducts. By Susanne Retka Schill

74 INDUSTRY Delving Into the Intermediate Blends Report EPM takes a detailed look at the U.S. DOE’s initial report on midlevel ethanol blends and the effect on nonfl exible-fuel vehicles. By Ron Kotrba

82 ENVIRONMENT Incentivizing Biofuels Sustainability A group of scientists believe that the development of sustainable biofuel production systems starts in the fi eld with best-management farming practices. By Jessica Ebert

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insideFEBRUARY 2009 . VOLUME 15 . ISSUE 2

departments8 On the Web

9 Advertiser Index

12 The Way I See It By Mike Bryan EPM refl ects industry in many ways

16 Business & People

20 Commodities

22 View From the Hill By Bob Dinneen Ethanol and the Green Team

23 RFA Update

24 Industry News & BIObytes

34 Plant Construction List

44 Finance By Robyn Heinz Clear Communication Can Lift Employee Morale

90 Events Calendar

92 EPM Marketplace

Ethanol Producer Magazine: (USPS No. 023-974) February 2009, Vol. 15, Issue 2. Ethanol Producer Magazine is published monthly. Principal Offi ce: 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. Periodicals Postage Paid at Grand Forks, North Dakota and additional mailing offi ces. POSTMASTER: Send ad-dress changes to Ethanol Producer Magazine/Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, North Dakota 58203.

BPA Worldwide Membership Applied for October 2006


Senior Staff Writer Ron Kotrba looks at the U.S. DOE’s initial report on midlevel blends in his February EPM feature, “Delving Into the Intermediate Blends Report.” What impact will it have on nonfl exible-fuel vehicles?

Canadian Industry Marches OnThe annual Canadian Renewable Fuels Summit was held the week Canadian Prime Minister Stephen Harper suspended Parliament. Harper’s unexpected move didn’t damper the industry’s enthusiasm at the CRFS. Many feel support

will remain unwavering for the federal renewable fuels standard that takes effect soon.

To listen to this podcast and others, visit www.ethanolproducer.com/podcast.

To view this blog and others, visit www.ethanolproducer.com/takingstalk/archive.jsp.

TOP 10 WEB EXCLUSIVES

Corn Contracts, Raising Equity and a New AdministrationEthanolProducer.com’s most-read Web exclusive news stories for December

► For up-to-date Web exclusives, visit www.ethanolproducer.com

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VeraSun negotiates corn contractsAs part of its ongoing bankruptcy proceedings, VeraSun Energy Corp. receives a 120-day deadline to present the court with a reorganization plan for its corn contracts.

Ethanol opponent Pilgrim’s Pride fi les bankruptcyThe nation’s largest chicken producer Pilgrim’s Pride fi les for Chapter 11 bankruptcy in response to volatile feed prices, slumping demand and an unmanageable debt load.

Coskata secures equity fi nancingCellulosic ethanol developer Coskata Inc. announces it has secured a Series C round of equity fi nancing.

Grain suppliers uncertain about VeraSun contractsGrain suppliers with corn contracts linked to bankrupt ethanol producer VeraSun Energy Corp. seek certainty as to whether their contracts will be honored.

Glacial Lakes Corn Processors shores up fi nancesSouth Dakota-based Glacial Lakes Corn Processors announces it has collected $10 million from shareholders as part of a company recapitalization plan.

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Kinder Morgan begins ethanol pipeline serviceKinder Morgan Energy Partners LP becomes the fi rst transmarket gasoline pipepline company to commercially move ethanol shipments by way of pipeline.

RFA responds to reports of key Obama appointmentsThe Renewable Fuels Association says it is confi dent President-Elect Barack Obama’s Cabinet appointments will comprise a diverse energy portfolio that includes ethanol.

Jamerson: All is well at MascomaBruce Jamerson, Mascoma Corp.’s president and chief executive offi cer, says that despite recent layoffs, his company’s “fi nancial resources are fi ne.”

Falling gas prices open loophole in Missouri lawA price trigger in Missouri’s renewable fuels standard trips, allowing fuel retailers to avoid selling ethanol when gasoline becomes cheaper than the renewable fuel.

Legislators call on Congress to protect US ethanolState legislators voice support for the Americans for American Energy Act, which includes a trust fund allocating funding for biofuels, bioenergy and cellulosic biomass, among other items.

webON THE

PODCAST BLOG TAKINGSTALKDelving

into the

Intermediate

Blends ReportTwo of the seven authors of U.S. DOE’s recent initial report on the effect of midlevel blends on legacy vehicles and small engines discuss the results of the study and future work.

By Ron Kotrba

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Genencor International Inc.Greenway Consulting LLCGrowth EnergyHEMCO IndustriesIndeck Power Equipment Co.Interstates Cos.IntersystemsKennedy & Coe LLCLallemand Ethanol TechnologyLouis DreyfusMAC EquipmentMartrex Inc.McC Inc.Natural Resource Group Inc.Nexen Marketing USA Inc.North American Safety ValveNovozymesPoet LLCPrimafuelR&R Contracting Inc.Renewable Fuels AssociationResonant BioSciences LLCRobert-James Sales Inc.SafeRackSalco Products Inc.Siemens AGTDC DryersTrico TCWindVaperma Inc.VecoplanVogelbusch USA Inc.Wabash Power Equipment Co.


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EDITORIAL

Jessica Sobolik Managing [email protected]

Dave Nilles Contributions [email protected]

Rona Johnson Features [email protected]

Ron Kotrba Senior Staff [email protected]

Susanne Retka Schill Staff [email protected]

Kris Bevill Staff [email protected]

Erin Voegele Staff [email protected]

Anna Austin Staff [email protected]

Ryan C. Christiansen Staff [email protected]

Bryan Sims Staff Writer & Plant List [email protected]

Hope Deutscher Online [email protected]

Jan Tellmann Copy [email protected]

Megan Skauge E-Media [email protected]

ART

Jaci Satterlund Art [email protected]

Sam Melquist Graphic [email protected]

Elizabeth Slavens Graphic [email protected]

Jack Sitter Graphic [email protected]

PUBLISHING & SALES

Mike Bryan Publisher & [email protected]

Kathy Bryan Publisher & [email protected]

Joe Bryan Vice President of Media & [email protected]

Tom Bryan Vice President of [email protected]

Matthew Spoor Sales [email protected]

Howard Brockhouse Sales Manager, Media & [email protected]

Clay Moore Account [email protected]

Jeremy Hanson Account [email protected]

Chip Shereck Account [email protected]

Tim Charles Account [email protected]

Marty Steen Account [email protected]

Bob Brown Account [email protected]

Marla DeFoe Advertising [email protected]

Jessica Beaudry Subscriptions [email protected]

Jason Smith Subscriber Aquisition [email protected]

Christie Anderson Administrative Assistant, [email protected]

Nicole Zambo [email protected]

HOW TO REACH US

LETTERS TO THE EDITORWe welcome letters to the editor. Send your letter to:

Ethanol Producer Magazine Letters, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203 or e-mail to [email protected].

Letters should include the writer’s full name, address and telephone number, and may be edited for purposes of clarity and space.

SUBSCRIPTIONSEthanol Producer Magazine is now free of charge to everyone with the exception of

a shipping and handling charge of $49.95 for any country outside the United States, Canada and Mexico.To subscribe, visit www.EthanolProducer.com or you can send your mailing address and payment

(checks made out to BBI International) to: Ethanol Producer Magazine Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203.

You can also fax a subscription form to (701) 746-5367.

CUSTOMER SERVICE AND CHANGE OF ADDRESSFor service, please use our Web site at www.EthanolProducer.com. You can also call (866) 746-8385, or write to:

Ethanol Producer Magazine, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203.

BACK ISSUES AND REPRINTSSelect back issues are available for $3.95 each, plus shipping. To place an order, contact Subscriptions at (701) 746-8385 or [email protected]. Article

reprints are also available for a fee. For more information, contact Christie Anderson at (701) 746-8385 or [email protected].

ADVERTISINGFor advertising rates and our editorial calendar, visit www.EthanolProducer.com or call (866) 746-8385.COPYRIGHT © 2009 by BBI International



The Way I See It

EPM refl ects industry in many ways

It’s interesting to scan through Ethanol Pro-ducer Magazine and see the variety of com-panies that have grown up with this industry over the years. It’s also quite interesting to

see how advertisers have changed, especially over this past year.

Some companies that believe the corn-to-ethanol industry is mature have cut back or stopped adver-tising, while others have begun to focus on servicing the existing industry in an even more dynamic way. I don’t know the exact numbers, but I know that the existing ethanol industry spends tens of millions of dollars every year on pumps, motors, tanks, chemi-cals, enzymes, electronics, maintenance and more. Now that there are more than 180 operating plants, the aftermarket continues to grow.

EPM’s editorial content has changed, as well, with more focus on cellulose and a greater empha-sis on plant operations. The focus has evolved from how can we build more plants to how can we pro-duce more ethanol better, faster, cheaper and more profitably? I think the magazine accurately reflects this changing landscape.

When The Energy Independent newsletter was first published in 1995, we had no idea that it would evolve into a trade journal for the ethanol indus-try. These days, EPM is created each month with a great deal of pride. The journalists who gather the stories, the art department that creates the look and the editors who make sure that the integrity of the magazine is of the highest quality are all dedicated professionals.

In looking at other trade journals for different industries, EPM stands out as one of the best. The im-portance of a quality trade journal cannot be overstat-ed. In an industry that is small when compared with the more traditional energy sectors—oil, natural gas and electricity—a quality trade journal lends measur-able credibility. In addition, the educational aspect of the magazine is of critical importance to ethanol producers and service providers, as well as policy-makers and investors.

I would be remiss if I didn’t thank the advertis-ers that have been with us month in and month out for many years. We look forward to continued suc-cess together. In addition, ethanol producers have been awesome in providing insight to articles and suggestions on stories that help educate fellow col-leagues. The openness between ethanol plants in re-gard to technology and plant efficiencies is perhaps second-to-none in the energy business.

As we embark into 2009, we look forward to your continued success and pass along our sincere appre-ciation for helping make this magazine a smashing success.

That’s the way I see it!

Mike BryanPublisher & CEO

[email protected]


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16 ETHANOL PRODUCER MAGAZINE FEBRUARY 2009

BUSINESS&PEOPLE

Business&PeopleEthanol Industry Briefs

Business

Share YourIndustry Briefs

To be included in Business & People, send information (including photos or illustrations if available) to: Industry Briefs, Ethanol Producer Magazine, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. You may also fax information to (701) 746-5367, or e-mail it to [email protected]. Please include your name and tele-phone number in all correspondence.

BBI launches networking site

BBI International Inc. Chief Executive Offi cer Mike Bryan told EPM it wasn’t long ago when he and his wife Kathy personally knew every ethanol plant general manager in the industry, but as production and mar-kets grew, that bond became less common. Thus, BBI launched www.ePlantSpace.com in November to reconnect ethanol produc-ers with each other. “We believe [the site] has the power to rekindle the grassroots spirit of the ethanol industry,” Bryan said. Intended strictly for fun and not business, the Web site offers users the capability to post pictures, videos, blogs and more to help industry members keep in touch. EP

Iroquois Bio-Energy to install reactor tower

Iroquois Bio-Energy Co. LLC, a 40 MMgy corn-based ethanol plant in Rensse-laer, Ind., has ordered a PDX Ethanol Reac-tor Tower from U.K.-based Pursuit Dynam-ics PLC. According to Pursuit Dynamics, the tower will improve ethanol yields by 8 percent to 12 percent with no additional en-ergy requirements. The system was under construction in early December, and slated for delivery and installation in February with operation to begin in March. “We congratu-late [IBEC] on being the fi rst commercial user of our system,” said Pursuit Dynamics Chief Executive Offi cer John Heathcote. The company said it had also signed letters of intent to purchase this system from three additional unnamed plants. “We have set a target of installing a base of 610 million gallons per year in the U.S. ethanol industry by the end of September 2009,” Heathcote said. EP

InEnergy to provide due diligence services

The North Dakota-based Energy & Environmental Research Center Founda-tion launched InEnergy Inc. in November. The for-profi t consulting corporation was created to provide due diligence services for fi nancial investors analyzing the risks and opportunities of new energy technologies, and emerging energy industry trends. The corporation will draw upon the expertise of the EERC and a select group of others. InEnergy boasts a wide range of technical expertise, including alternative fuels, emis-sion control systems, and energy and water sustainability. EP

KL Energy improves wood-to-ethanol process

KL Energy Corp., formerly KL Pro-cess Design Group, announced in late November a 56 percent improvement in its glucose recovery rate per dry ton of wood while simultaneously reducing its enzyme loading rate by 22 percent. “We feel this is a landmark achievement for KL Energy, proving economically viable yield and enzyme consumption rate results in a commercial-scale plant environment,” said Randy Kramer, KL Energy president and chief executive offi cer. “If implemented properly, these new developments could allow ethanol producers to signifi cantly lower the cost of cellulosic ethanol while increasing overall production effi ciency.” EP

Novozymes expands production in China

Denmark-based Novozymes A/S has expanded its Suzhou Hongda Enzymes Co. enzyme fermentation facility in Taicang, China, approximately 30 miles north of Shanghai. The expansion, which triples the number of employees at the site, includes fa-cilities that will focus primarily on enzymes for the production of cellulosic ethanol. Novozymes also operates an enzyme pro-duction facility in Tianjin, China, 690 miles north of Taicang. China aims to double its ethanol production to 3 million tons by 2010, and Novozymes said it plans to have enzymes available for large-scale cellulosic ethanol production that same year. EP


BUSINESS&PEOPLE

Business

Sponsored by

SunEthanol changes name, receives funding

Hadley, Mass.-based cellulosic ethanol company SunEthanol, now called Qteros, raised $25 million in November from a con-sortium of investors in a Series B round of fi nancing. The funds are intended to further the advancement of the company’s novel Q Microbe, the inspiration for the company name change. The fi nancing was led by Ven-rock and previous investor Battery Ventures. Series A investors Long River Ventures and Camros Capital also participated in the Se-ries B round. New investors Soros Fund Management LLC and BP Amoco PLC con-tributed, as well. EP

GPRE forms algae venture Nebraska-based Green Plain Renew-

able Energy Inc. has partnered with Tennes-see-based fi ltration products manufacturer Clarcor Inc., Rhode Island-based photobio-reactor and fi ltration system developer Bio-ProcessH20 LLC, and Ireland-based NTR PLC to develop a pilot-scale algae produc-tion facility at GPRE’s 50 MMgy ethanol plant in Shenandoah, Iowa. GPRE said BioProcess Algae LLC will grow the algae, which will be used to produce biodiesel, ethanol and animal feed. The company will utilize an advanced photobioreactor based on technology licensed to the company by BioProcessH20. The size, scope and con-struction time line of the facility had not yet been determined. EP

Virent wins award,adds management

In early December, Virent Energy Sys-tems Inc. was named Technology Pioneer 2009 by the World Economic Forum for its BioForming technology. The company also announced that Lee Edwards would become its chief executive offi cer and president in January. He previously spent 25 years at BP Amoco PLC, most recently as president and chief executive offi cer of BP Solar Inter-national Inc. In November, Virent Energy named Jay Kouba as chairman of the board, of which he has been a member since 2007. He is the CEO of Tetravitae Biosciences Inc. and the chairman of Metabolix Inc. EP

Coskata advances projectsCoskata Inc. in Warrenville, Ill., is con-

tinuing discussion with United States Sugar Corp. in Clewiston, Fla., regarding develop-ment of a 100 MMgy cellulosic ethanol plant in Clewiston that would annually convert 1 million tons of sugarcane waste and bagasse into ethanol. Pending a grant from the Florida Energy Offi ce and loan guarantees from the USDA, the estimated $400 million plant could begin production in 2012. Negotiations had been on hold for several months until the sug-ar company signed a land sale and use agree-ment with the state of Florida in November.

Meanwhile, Coskata secured a Series C round of equity fi nancing led by New York-based Blackstone Cleantech Venture Part-ners LP to help complete construction of its 40,000-gallon-per-year demonstration plant in Madison, Pa., which is expected to be op-erational in early 2009. EP

EPIC transitions to Growth Energy

In late November, the Ethanol Promo-tion and Information Council completed its transition into Growth Energy, a newly formed organization dedicated to promot-ing the promise of agriculture and econom-ic growth through clean energy. It will have offi ces in Omaha, Neb.; and Washington, D.C., according to Growth Energy spokes-woman Joanna Schroeder. EPIC, which consists of 33 producing ethanol plant members and approximately 100 associate members, reduced its staff from 14 to eight to prepare for the merger. The new entity’s board of directors includes Jeff Broin of Poet LLC, Dave Vander Griend of ICM Inc., Steve McNinch of Western Plains Energy LLC, Al Jentz of Amaizing Energy LLC, Bruce Rastetter of Hawkeye Renew-ables LLC and Wayne Hoovestol of Green Plains Renewable Energy Inc. EP

Mascoma moves forwardMassachusetts-based Mascoma Corp.

will meet all set targets for its cellulosic etha-nol projects despite recent staff downsiz-ing, according to Chief Executive Offi cer Bruce Jamerson. These include the start-up of its 30 MMgy demonstration plant in Rome, N.Y., which Jamerson said is nearly complete, and construction of a 40 MMgy commercial-scale facility in Kinross town-ship, Mich. Mascoma recently released fi ve to 10 people, including Vice President Colin South. However, Jamerson said Mascoma’s fi nancial resources are secure and the com-pany won’t need to raise money in 2009. “As far as science milestones in the lab go, we are ahead of schedule,” he added. EP

People

BUSINESS&PEOPLE

Aldous leads Range FuelsDavid Aldous

has taken the helm of Broomfi eld, Colo.-based Range Fuels Inc. after Chief Executive Offi cer Mitch Mandich stepped down in No-vember. Mandich will continue to serve Range Fuels as director of its board. Aldous joined Range Fuels after a 30-year career in the oil industry that included an executive role with Royal Dutch Shell PLC. EP

Orgas joins GPREEthanol producer Green Plains Re-

newable Energy Inc. has appointed Michael Orgas as executive vice president of com-mercial operations. Previously, he served as director of raw materials, strategic sourc-ing and risk management for Malt-O-Meal Co. in Northfi eld, Minn. He was also an investment banker for McCarthy and Co., and held management positions with Con-Agra Trade Group and General Mills Inc. At GPRE, he will manage the company’s commodity, logistics, supply chain and risk management operations. EP

www.ethanol-jobs.com www.ethanol-jobs.com www.ethanol-jobs.com www.ethanol-jobs.co

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Verenium taps interim CFOMassachusetts-based Verenium Corp.

appointed Vice President and Chief Ac-counting Offi cer Jeffrey Black as interim chief fi nancial offi cer, replacing John Mc-Carthy in November. Black has served as Verenium’s vice president and chief ac-counting offi cer since 2005. EP

Aldous


COMMODITIES REPORT

Natural Gas Report

Corn Report

By Casey Whelan, U.S. Energy Services Inc.

By Jason Sagebiel, FCStone

Dec. 31—Commodity—and energy—prices have generally dropped dramatically over the past six months. Inspecting the price patterns more closely, it is clear that oil prices have dropped signifi -cantly more than natural gas prices. The chart shows the relationship between oil and natural gas. A high number implies oil is more valuable relative to natural gas and a low number implies the opposite. The dra-matic change in the relationship from oil trading at nearly a 16 multiple to natural gas in July to less than seven in January is truly remarkable and deserves some attention.

The market sent a dramatic price signal that natural gas is relatively more valuable than oil in today’s marketplace. There are at least two plausible reasons why this appears to be happening: funda-mentals and trade speculation. First, natural gas fundamentals are bear-ish. Supply is up signifi cantly and demand continues to lag as economic growth disappears. However, oil fundamentals are even weaker. Actual demand for oil has dropped worldwide and expected high demand from developing nations has evaporated. Oil tankers are now fl oating in the ocean looking for a home.

Second, oil was likely exposed to more commodity speculation since it is a worldwide commodity. Due to the limited supply sources and market uses of natural gas, there was less international trading activity. Oil is produced, shipped and consumed worldwide. The oil

commodity bubble was able to grow and expand to a much greater extent than natural gas due to worldwide trade participation. As the commodity bubble burst, oil prices dropped to a much greater extent than natural gas as traders were forced to exit positions.

Bottom line: Due to strong supply and weak demand there is lim-ited opportunity for natural gas prices to increase materially from cur-rent levels. The caveat is that oil prices remain soft at or below $65 per barrel. EP

Casey Whelan, vice president of strategic initiatives, can be contacted at [email protected].

Dec. 22—The USDA made a revelation in its December supply/demand corn balance tables. A reduction in corn demand was pro-jected in both exports and ethanol demand. Corn for ethanol demand was slashed by 300 million bushels to 3.7 billion bushels. This equates to a 10.175 billion gallon ethanol market in the next corn marketing year. With ethanol production expected to be lower, a decrease in coproduct is assumed to be introduced into the livestock feed sector. Corn for feed demand was projected to increase by 50 million bush-els. Keep in mind that a corn marketing year is not a calendar year. Corn expected to be exported was reduced by 100 million bushels as competition from other grain exporters grows and an overall slow down in world economies takes its toll.

World corn ending stocks was increased from 110.12 million metric tons to 123.83 million metric tons. This was due to the increase in the U.S. and South Africa carry-out. Major world importers exhib-ited more reduction, hence the reduced U.S. corn export fi gure.

There are more questions in 2009. With the current economics the concerns of fewer corn acres and more soybean acres may be reality. What will corn/soybean economics be in January/February? One thing to note is agronomic practices may not be as aggressive, limiting yield potential. The graph depicts new crop soybeans versus new crop corn. With the current ratio (at press time), plantings would

encourage more soybeans acres in 2009. However, one must consider the economics of the two commodities when the February/March timeframe rolls around. The market could see extreme volatility dur-ing this time as corn tries to gain on soybeans to encourage plantings. The big caveat for corn in the future is the renewable fuels standard. EP

Bearish information continues to roll in

’09 projections see drop in ethanol demand

ETHANOL PRODUCER MAGAZINE JANUARY 2009 21

COMMODITIES REPORT

DDGS Report

Ethanol Report

By Sean Broderick, CHS Inc.

By Rick Kment, DTN Biofuels Analyst

Plethora of market issues impact DDGS

Financial pressure limits demand

Dec. 19—As Christmas ap-proached, DDGS prices were affected by a number of infl uences. On one hand, prices trended with corn fu-tures, creating movements of $10 to $15 in as short of a time span of 10 days. In the week after Thanksgiving, prices for UP rail delivered to Califor-nia traded as low as $141. Ten days lat-er, cars traded at $160. As of Dec. 19, they traded at $150 and were seemingly headed lower. Cooler weather played a part in this, as winter storms across the Midwest drove feed demand high-er, and late arriving cold temperatures in Texas, Oklahoma and New Mexico drove buyers—who seemingly waited as long as possible—into the market to fi ll pipelines before the holidays.

In the export markets, the de-mand for containers remains quite

strong, but at lower prices. Container shipments out of Chicago seem to be the most competitive, as a preponder-ance of containers seems to be get-ting emptied there, and shippers going overseas have cut rates drastically in order to get them headed back to the Pacifi c Rim. West Coast loadings have dropped signifi cantly as shippers skip loading them on the way back to the producers that provide the primary revenue. It will be interesting to see how these moves evolve as the U.S. economy struggles.

Going ahead, DDGS supply will be affected by the economics of ethanol production, but demand will be affected by the availability of feed ingredients internationally, particularly feed wheat. EP

Dec. 29—As 2008 draws to a close, the ethanol and energy indus-tries look completely different than anyone would have expected just months before. Ethanol futures prices have are once again trading at a pre-mium to gasoline markets as ethanol production companies have shown signs of fi nancial turmoil that may cause supplies to become tight.

In the fi rst few months of 2009, gasoline prices are expected to remain low compared to levels seen over the past several years, with the front month RBOB gasoline price trading at 84 cents per gallon. This plummet in price levels is largely due to the dismal economic news that seems to be surfacing almost daily. The lack of consumer demand as well as overall weak confi dence in the markets seems to have kept most commercial and noncommercial (speculative) buyers

out of the market for the meantime. Ethanol prices continue to be

pressured by the weak gasoline mar-kets, although the stronger corn prices through the month of December have helped to push ethanol prices higher in order to maintain at least slim mar-gins at ethanol plant levels. Ethanol prices are currently tied to the move-ment in corn prices much more than energy price movements as concerns of supply shortages seem to be build-ing through the country. Regulated demand for ethanol in order to meet the current Renewable Fuels Standard continues to keep ethanol prices elevat-ed compared to gasoline markets. But demand typically increased through the early spring and summer months as additional driving takes place. This could cause energy prices to rebound over the next several weeks. EP

Regional Ethanol Prices ($/gallon as of Dec. 29)

Regional Gasoline Prices ($/gallon as of Dec. 29)

DDGS Prices ($/ton)

Corn Futures Prices (March corn, $/bushel)

Natural Gas Prices ($/MMBtu)

U.S. Ethanol Production Output (barrels/day)

Cash Sorghum Prices ($/bushel)

REGION

West Coast

Midwest

East Coast

REGION

West Coast

Midwest

East Coast

LOCATIONMinnesota

California*

Chicago

Buffalo, N.Y.

Central Florida*Central Valley

DATEDec. 19, 2008

Nov. 19, 2008

Dec. 19, 2007

NYMEX

N. Ventura

Calif. Border

September 2008

August 2008

September 2007

Superior, Neb.Beatrice, Neb.Sublette, Kan.Salina, Kan.Triangle, TexasGulf, Texas

SPOT

1.73

1.375

1.758

SPOT

1.3650

0.9098

0.8858

DEC. 2008120

152

95

115

135

HIGH3.84

4.01 1/2

4.36 1/4

DEC. 20085.83

5.89

5.75

640,000

647,000*

441,000

DEC. 19, 20082.862.712.953.062.833.67

RACK

1.7065

1.5999

1.5518

RACK

1.3873

1.0197

1.0198

NOV. 2008125

165

105

120

145

LOW3.75 1/2

3.91 1/2

4.32 1/2

NOV. 20086.31

5.90

3.80

NOV.14, 20082.952.802.973.102.973.88

DEC. 2008145

205

155

157

188

CLOSE3.80 3/4

3.95 1/4

4.34 3/4

DEC. 20077.17

6.76

6.76

DEC. 20, 20074.184.133.904.324.004.97

SOURCE: DTN

SOURCE: DTN

SOURCE: CHS Inc.

SOURCE: FCStone

SOURCE: Sorghum Synergies

SOURCE: U.S. Energy Services Inc.

SOURCE: U.S. Energy Information Administration*all-time monthly high


VIEWFROMTHE HILL

Ethanol and the Green TeamPresident Barack Obama’s White House, Cabi-

net and agency selections bode well for a large-scale shift to signifi cantly advancing the development of energy innovation and green technologies. The nam-ing of Nobel Prize-winning physicist Steven Chu as Secretary of Energy; Lisa Jackson, former head of the New Jersey Department of Environmental Pro-tection as Administrator of the U.S. EPA; former Iowa Gov. Tom Vilsack for Secretary of the Department of Agriculture; and former Clinton EPA Administrator Carol Browner as White House Energy/Environment Czar point to a signifi cant change in the direction of this nation’s use of fossil fuels.

Obama has been clear in his support of greener fuels and innovative technologies that reduce Amer-ica’s dependence on foreign oil. Such forward think-ing recognizes the role biofuels, America’s original green fuel, can play in meeting the new adminis-tration’s energy, environment and national security goals.

As America’s most dynamic green industry, the ethanol industry has been hard at work reducing its carbon footprint, improving the effi ciency of its biore-fi nery operations, and investing in innovative tech-nologies to convert cellulose to ethanol. The Renew-able Fuels Standard, signed into law just over a year ago, will require the production of 10.5 billion gal-lons of ethanol in 2009. Although the downturn in the economy is affecting nearly every industry today, the ethanol industry is well-positioned to meet the RFS goal as well as contribute to expanding green jobs as part of the new president’s economic stimulus plan.

Some in the media have tried to label the team Obama has formed as an ethanol “dream team.” Such a moniker is premature. There will be times when our industry disagrees with the direction the in-coming Obama administration is heading. We will be

direct and honest with them in those circum-stances, as we had dur-ing the transition, and we expect to fi nd them open to discussion and dialogue as they have always been.

The bottom line is that Obama and his Cabinet are committed to tackling the challeng-ing issues of energy security, economic re-vival and environmental sustainability. By pairing people such as Chu, a leader on the cutting edge of biofuel technology, and Vilsack, a chief executive intimately familiar with the importance of a robust domestic biofuels industry, Obama is delivering on his campaign promise to ac-celerate the development of second- and third-gen-eration renewable fuel technologies. The combina-tion of scientists, legislators, administrators and state executives ensures that strong voices in support of today’s American ethanol producer sing in harmony with voices seeking to accelerate the development of new technologies. In the end, this country will need them both to tackle future energy, environmental and economic challenges.

As Obama settles into the Oval Offi ce and his new administration begins its push to stimulate the economy, generate green jobs and innovative green technologies, America’s biofuels industry will be there to make its contribution.

Dinneen

Bob DinneenPresident and CEO

Renewable Fuels Association


RFAUpdate

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US celebrates EISA anniversaryDec. 19 marked the one-year anniversary of the signing of the Energy Security and Independence Act,

which ushered in the Renewable Fuels Standard that requires the use of ethanol and other renewable fuels to reduce dependence on foreign oil.

Since the act was signed, the U.S. ethanol industry has expanded production from 6.9 billion gallons per year to more than 10 billion gallons per year and the fuel can be found in more than 70 percent of the gasoline sold in the country. “The RFS provides an important platform for the incoming Obama administra-tion,” RFA President Bob Dinneen said in late December. “President-elect Obama’s green jobs and green energy agenda are a perfect fi t with expanding America’s production of the only green fuel that is reducing foreign oil dependence and global warming emissions today.”

The production and use of 6.5 billion gallons of ethanol over the past year added more than $45 billion to the national gross domestic product and helped create more than 238,000 green jobs.

On Dec. 17, the U.S. Energy Information Administration said that imports of fuel, mostly in the form of oil, will account for just 40 percent of the nation’s consumption by 2025. Because oil imports are used largely for the production of liquid transportation fuels such as gasoline, the impact of ethanol and other renewable fuels is signifi cant. “The Renewable Fuels Standard is an ambitious target and one America’s ethanol industry is more than capable of meeting,” Dinneen said. “The investments being made and re-search being conducted at the private and public sector level will ensure this industry rises to meet this challenge.”

RFA responds to land use change modelingThe RFA submitted formal comments to the California Air Resources Board that raised concerns

about the methodology, models and data used to assess greenhouse gases resulting from potential indi-rect land use change (ILUC) induced by expanded biofuels production. In addition, the RFA also released comprehensive analysis of the debate surrounding ILUC and the role of biofuels in that debate.

CARB is attempting to model greenhouse gas emissions from ILUC as part of the development of a statewide Low Carbon Fuels Standard. The California process is likely to set the tone for discussions about carbon policy in other states and at the national level.

The RFA’s biggest concern over CARB’s modeling was the manner in which the Global Trade Analysis Project model was used to simulate ethanol production expansion. The GTAP model “shocks” the simu-lated market with a 13.25 billion gallon ethanol increase. The model must handle this adjustment instan-taneously. However, in the real world, market conditions change, new technologies are introduced and dynamic adjustments are made every year. “Accurately accounting for land use changes, both domestically and internationally, is critically important,” said RFA President Bob Dinneen. “While we applaud CARB’s efforts to develop a policy framework that signifi cantly reduces the carbon intensity of our transportation fuels, it is imperative that the policy is based on sound science and unassailable modeling.”

More information, including the RFA’s analysis, can be found at www.ethanolrfa.org.


BIObytesEthanol News Briefs

Kinder Morgan begins pipeline shipmentsOn Dec. 2, Kinder Morgan Energy Part-ners LP began commercially shipping denatured ethanol via its 16-inch Cen-tral Florida Pipeline between Tampa and Orlando, Fla. The company spent $10 million to modify the approximately 80-mile line for ethanol shipments, which involved chemically cleaning the pipeline, replacing incompatible equipment and expanding storage capacity at its Orlando terminal. The milestone represents a fi rst for the U.S. ethanol industry.

Low gas prices open loophole The falling price of gasoline has made it possible for some Missouri fuel retailers to bypass the state’s renewable fuel stan-dard and supply customers with regular gasoline rather than E10. The state’s re-newable fuel standard requires that E10 be sold when the price of the ethanol-blended fuel is equal to or less than the price of unblended gasoline. The price trigger takes effect at the terminal level, meaning the trigger is only applicable if the price of standard gasoline at the ter-minal is less expensive than E10.

EPA announces 2009 RFSThe U.S. EPA has announced that the 2009 renewable fuels standard (RFS) will be set at 10.21 percent, ensuring that at least 11.1 billion gallons of renewable fuels will be blended into transportation gasoline this year. The announcement was made during the interim period be-tween the EPA’s enactment of the RFS in the Energy Policy Act of 2005 and its proposed rulemaking for the RFS in the Energy Independence & Security Act of 2007 (RFS2), which may contain calcula-tions pertaining to indirect land use. Six U.S. senators recently submitted a letter to the EPA recommending that it move forward with a Notice of Proposed Rule-making for RFS2 without the inclusion of indirect land use considerations, citing

continued on page 26

INDUSTRYNEWS

EU adopts 10 percent mandateThe European Union has a new directive

that sets climate change reduction goals to be phased in over the next decade. The European Parliament approved the language Dec. 17 for Europe’s 20-20-20 plan that calls for a 20 per-cent cut in greenhouse gas (GHG) emissions from 1990 levels, a 20 percent increase in the use of renewable energy and a 20 percent cut in energy consumption through improved en-ergy effi ciency, all by 2020.

A mandatory 10 percent goal for trans-portation fuels such as biofuels, electricity and hydrogen is included in the renewable energy increase. That replaces a voluntary 5.75 per-cent target for the EU, which was implemented by individual member states through a variety of policies. New measures incorporated into the EU directive include minimum GHG re-duction targets for biofuels and sustainability criteria.

The GHG target for biofuels—to take ef-fect in 2011—was set at 35 percent less than GHGs from fossil fuels. For biofuels produc-ers in operation in January 2009, the require-ment will take effect April 1, 2013. In 2017, the requirement increases to a 50 percent re-duction, and for new producers after 2017, the target will be 60 percent. According to Emmi Jozsa, biofuels legislation expert at Swedish ethanol producer and marketer Sekab, many ethanol producers already meet the 35 percent goal, but any producers still using natural gas for process heat will have to adopt greener en-ergy sources in order to meet those require-ments.

Targets for GHG emission reductions include not only fossil fuels, but also biofuels blends, electricity and hydrogen. The revised fuel quality directive requires fuel suppliers to reduce GHG emissions caused by extrac-tion or cultivation, including land use changes; transport and distribution; processing; and the combustion of transport fuels. Cuts in GHG emissions can be achieved by using more al-ternative fuels, or by reducing gas fl aring and venting at oil wells or refi neries.

A separate European initiative focusing on sustainability criteria is expected to be com-plete by the end of 2009, giving the European Commission time to review the language for inclusion in the climate change directive. The

initiative says no member state can go beyond the sustainability and certifi cation require-ments set up in the directive, nor can the mem-ber state refuse a biofuel complying with the sustainability requirements. Jozsa explained that each member state will still have fl exibility in developing its own incentives and policies, which in the past have often favored its own producers.

The directive offers incentives for more sustainable biofuels by allowing second-gen-eration biofuels to be double-credited in the 10 percent target. These second-generation biofuels wouldn’t compete with food or feed production because they would be made from wastes, residues, and nonfood cellulosic and lignocellulosic biomass such as algae, wood residues or paper waste. The directive calls for the European Commission to develop a meth-odology to measure GHG emissions from in-direct land use by 2010.

The fuel quality segment of the directive calls for the low ethanol blend standard to be raised from the E5 to E10, which Jozsa said can be accomplished fairly quickly on a nation-al level, although the European Committee for Standardization (CEN) is expected to revise its standard for low blends up to 10 percent. In Sweden’s case, the country also has a standard for E85 blends.

The Brazilian Sugarcane Industry Asso-ciation (UNICA) called the EU’s new policy a positive signal for biofuels producers, say-ing Brazil’s sugarcane industry is confi dent the sustainability criteria can be met. “Strict national legislation and the industry’s own ini-tiatives already in place, plus land use planning instruments such as the agro-ecological zon-ing adopted in September 2008 in the most important sugarcane growing region in the world, the state of São Paulo, are realities in Brazil,” said Marcos Jank, president and chief executive offi cer of UNICA. “Add to this the federal government’s upcoming national map-ping of regions suitable for sugarcane, and you have a solid set of safeguards ensuring that the expansion of sugarcane does not endanger sensitive areas or compete for land with other agricultural activities.”

—Susanne Retka Schill


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Quarterly earnings indicateethanol producers’ resolve

Fluctuating corn and lower ethanol prices have caused some ethanol producers to restructure their fi nancial obligations in an effort to avoid an interruption in production, or asset liquidation. Ethanol companies that managed to preserve capital in order to sus-tain operations exhibited resiliency in their quarterly earnings released in late 2008.

Pekin, Ill.-based ethanol producer and marketer Aventine Renewable Energy Hold-ings Inc. posted a net income of $2.5 million during its third quarter of 2008, compared with a loss of $1.9 million in its second quar-ter. The company also generated $14.3 mil-lion in cash from its operations.

Maumee, Ohio-based The Andersons Inc. posted a net income of $12.8 million on revenues of $906 million in its third quarter 2008 earnings report versus $10.6 million on $554 million in revenue during the same reporting period in 2007. The company’s grain and ethanol group’s operating income took a hit, generating $9.4 million compared with $13.7 million during the same quarter in 2007.

Archer Daniels Midland Co.’s fi rst-quarter 2009 earnings more than doubled on the back of higher grain commodity prices. The Decatur, Ill.-based agri-giant posted net earnings of $1.05 billion for its quarter end-ing Sept. 30, 2008, an increase of approxi-mately 138 percent when compared with the $41 million it reported during the same quarter in 2007.

Cambridge, Mass.-based cellulosic etha-nol producer and specialty enzyme com-pany Verenium Corp. posted a net loss of $133,242 in its third quarter, up from a net loss of $20,493 posted during the same quarter of 2007.

High corn prices and suspended con-struction undercut Pacifi c Ethanol Inc.’s third quarter 2008 earnings. The Sacramen-to, Calif.-based ethanol producer posted a net loss of $54.9 million, compared with a $4.8 million loss it accrued during the same quarter in 2007.

MGP Ingredients Inc. posted a net loss of $17.2 million for its fi rst quarter of fi scal year 2009, which ended Sept. 30, compared with a net loss of $353,000 in its fi rst quarter 2008 fi scal year. The diversifi ed agricultural products company, which owns and oper-ates two ethanol plants in Kansas and Illi-nois, saw a 16 percent decline in ethanol sales compared with its fi rst quarter 2008 report.

VeraSun Energy Corp. posted a $476.1 million net loss for its third quarter of 2008. However, revenues increased 389 percent to $1.08 billion, compared with its third quarter of 2007.

In addition to these quarterly earnings statements, Glacial Lakes Corn Proces-sors, the parent company of Glacial Lakes Energy LLC, collected $10 million from its shareholders in late November. The move was part of the company’s recapitalization efforts to obtain working capital to sustain operations at its ethanol plants in South Da-kota.

The volatility in the corn and ethanol markets hasn’t been exclusive to U.S pro-ducers, either. German biofuels producer Vereinigte BioEnergie AG (Verbio) reported fi nancial losses in its ethanol division during the fi rst nine months of 2008. The company attributed high grain prices and decreased sales volumes to increased German taxes on biofuels. For this reason, its ethanol plants in Schwedt and Zorbig, Germany, were offl ine at times in 2008.

Meanwhile, two U.S. ethanol produc-ers discontinued operations in December due to volatile economic conditions. Altra Biofuels temporarily halted production at its 60 MMgy plant in Coshocton, Ohio, and in-defi nitely shut down its 88 MMgy facility in Cloverdale, Ind. Pine Lake Corn Processors LP also idled its 20 MMgy plant in Steam-boat Rock, Iowa.

—Bryan Sims


they are based on “incomplete science and inaccurate assumptions.”

NEDEK Ethanol receives fi ne NEDAK Ethanol LLC, a 44 MMgy etha-nol plant under construction near At-kinson, Neb., was fi ned $15,000 by the state of Nebraska for building an etha-nol storage and load-out facility near the city of O’Neill without fi rst receiving a construction permit from the Nebraska Department of Environmental Qual-ity. NEDAK Ethanol paid $5,000 of the $15,000 fi ne in November. The remain-ing $10,000, due within 12 months, may be waived if NEDAK Ethanol doesn’t violate any provisions within the Nebras-ka Environmental Protection Act during that time.

Studies explore switchgrass optionsSouth Dakota State University research-ers are studying how the timing and cut-length when haying potential sources of cellulosic biomass, such as switchgrass, might affect the nesting success of game birds. The 1,400-acre study ends in 2010. Meanwhile, the National Science Foun-


continued from page 24


INDUSTRYNEWS

Solar technology could offset natural gas use

Colorado-based Abengoa Solar Inc., a sub-sidiary of Spain-based Abengoa S.A., recently announced that its solar thermal technology is available to biofuels producers, offsetting the use of natural gas at production facilities.

Abengoa Solar’s technology uses a para-bolic mirror to focus the sun’s direct beam ra-diation onto a receiver tube, said Sales Manager Peter Thompson. “The receiver is a pipe that absorbs the sun’s energy, heating the transfer fl uid inside,” he said. “The heat transfer fl uid is pumped throughout the solar fi eld, gathering so-lar thermal heat energy. The heat energy is then circulated through a heat exchanger, providing either hot water for a boiler feedwater system or in some cases steam using a steam generator.” Depending on the temperature required, the heat transfer fl uid may consist of water, water and glycol, or specialized oil.

Thompson said the technology is best suit-ed for areas where clear, sunny days are com-mon, such as in the Southwest. “As most renew-able energy systems go, a supplemental source of energy is required when the sun is not avail-able,” he said. The system is typically partnered with a boiler system to offset the use of natural gas, he added.

Not only does the technology offset natu-ral gas costs, but it also reduces greenhouse gas

emissions, Thompson pointed out. Due to its design, the technology requires less equipment to produce the same amount of power when compared with fl at plate designs. According to Abengoa, solar thermal systems are eligible for a 30 percent federal investment tax credit and ac-celerated depreciation. In states with renewable energy portfolios, rates of return may be even more attractive.

“The use of solar energy, in contrast to nat-ural gas, provides a measure of energy price sta-bility,” Thompson said. “Environmentally, the use of solar energy at a biofuels plant will greatly increase its net energy gain and will answer a ma-jor criticism leveled against the industry.”

—Erin Voegele

Abengoa’s solar thermal technology can be used to offset the use of natural gas at ethanol plants.

PH

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INDUSTRYNEWS

US, Brazil partnership grows despite oppositionSince a memorandum of

understanding to advance coop-eration on biofuels was signed in March 2007 by Secretary of State Condoleezza Rice and Brazilian Foreign Minister Celso Amorim, a growing number of new part-nerships between the U.S. and Brazil have been signed recently. Meanwhile, opposing groups are pleading to keep the U.S. independent from import-ed energy.

U.S. Agriculture Secretary Ed Schafer led a U.S. delegation to an International Conference on biofuels in São Paulo, Bra-zil, in November. The delegation wants to maintain a strong relationship with Brazil for the development of renewable energy. “This will allow more fl exibility for farmers to get involved and reduce the dependency on one or two feedstock sources,” Schafer said.

Meanwhile, the U.S. DOE’s National Renewable Energy Laboratory is collabo-rating with Brazil on second-generation biofuels research. NREL signed a memo-randum of understanding to collaborate for two years with Petrobras, the largest energy company in Latin America. The memoran-dum formalizes a previous verbal agree-ment to work together on renewable energy projects.

In opposition, Americans for Ameri-can Energy and the Congress for Racial Equality said they would rather see the U.S. energy focus remain in the U.S. They are demanding action from Congress for more American energy production. “Our focus is on speaking in favor of American-produced energy of all types,” said Greg Schnacke, AAE president and chief executive offi cer. “Being reliant on our own energy helps our economy and puts people to work. It just makes sense.” The group hoped to intro-duce a new bill, the Americans for Ameri-can Energy Act, to Congress in January. The legislation would establish the Ameri-can Energy Trust Fund, which specifi cally allocates funding for biofuels and other en-ergy types.

In addition, the Indy Racing League is being criticized for its decision to partner with a Brazilian group for its 2009 season. APEX-Brasil, a Brazilian trade association, will be the offi cial ethanol supplier of the

IRL and the Indianapolis 500. In response, Renewable Fuels As-sociation President Bob Dinneen expressed his group’s concern in a letter to Terry Angstadt, IRL president of the commercial divi-sion. “The decision to bypass the more than 180 ethanol biorefi ner-ies across our country in favor of a

tanker ship from São Paulo … is an affront to America’s farmers who have worked to enhance economic opportunities for rural communities, and all Americans who have fought and are fi ghting for our energy in-dependence.”

Growth Energy, a former IRL fuel sponsor, also expressed its disappointment in the decision. “I understand that the In-dyCar Series is no different than any other business entity in tough economic times,” said Growth Energy Executive Director Toni Nuernberg. “The need to secure spon-sors is of utmost importance. However, a decision based solely on fi nancial issues misses the mark. The U.S. ethanol indus-try has transformed the energy landscape in this country, while providing jobs and pumping money back into the American economy. I sincerely hope the IRL will re-consider its decision.”

—Megan Skauge



dation awarded The Samuel Roberts No-ble Foundation in Ardmore, Okla., $1.2 million to improve varieties of switch-grass for disease resistance and drought tolerance, and to customize varietal lignin content for thermochemical and bio-chemical conversion processes.

Funding increasesS.D. blender pumpsForty-fi ve fueling stations in South Da-kota have received $5,000 grants to help pay for the installation of blender pumps since May, according to the Ethanol Pro-motion and Information Council and the South Dakota Corn Utilization Council. As of mid-November, 34 of the 45 sta-tions had already installed blender pumps, which offer varying ethanol blends for fl exible-fuel vehicles. The pumps are lo-cated in 27 cities across the state.

Poet plans 2009cob harvestPoet LLC has announced plans to con-duct its fi rst commercial corn cob har-vest in the fall of 2009. Poet is converting its 50 MMgy corn-based ethanol plant in Emmetsburg, Iowa, to an integrated corn-to-ethanol and cellulose-to-ethanol



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INDUSTRYNEWS

Automakers maintain FFV targets in bailout plans

In order to prevent bankruptcies, each of the Big Three automakers (General Mo-tors Corp., Chrysler LLC and Ford Motor Co.) submitted loan plans to Congress on Dec. 7, all maintaining their goals of making 50 percent of their new vehicles fl exible-fuel vehicles (FFVs) within the next three years.

In early December, GM and Chrysler told lawmakers they are only weeks away from run-ning out of funds. Ford said it would reach the same status a few months into 2009.

To avoid what seemed to be inevitable and the aftereffects of such a blow, the U.S. House of Representatives passed a $14 billion emergency loan plan for automakers in early December, but the request was rejected by Senate Republicans over the timing of wage concessions proposed by the United Auto Workers. The Bush Admin-istration quickly stepped in, announcing one week later a $17.4 billion emergency loan that is slated to come from the U.S. Treasury’s $700 billion fi nancial stabilization fund. The auto-makers received an immediate $13.4 billion, and the remaining $4 billion will be distributed in February. “In the midst of a fi nancial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action,” Bush said in a press conference Dec. 19.

Ford’s fi nancial plan stated that ethanol is

“an important long-term solution to our energy needs, especially as second-generation fuels be-come available.” The company also recommit-ted to doubling its production of FFVs by 2010, making 50 percent of its fl eet E85-capable by 2012. It added that it has produced demonstra-tion hybrid and plug-in hybrid vehicles capable of running on E85.

GM’s plan suggests full compliance with the Energy Independence & Security Act of 2007, which requires the U.S. to use 11.1 billion gallons of renewable fuels in 2009, increasing annually to 36 billion gallons in 2022. GM also indicated it would continue its goal of produc-ing 50 percent FFVs in 2012.

Chrysler has more than 1.7 million FFVs already on the road and indicated it’s on target to meet its 50 percent FFV commitment, as well.

A large number of organizations and com-panies encouraged a fi nancial support system for automakers, including the National Ethanol Vehicle Coalition. “U.S. automakers are leading the way in developing and marketing fl exible-fuel vehicles, but without immediate fi nancial assistance, those efforts may go by the wayside,” said NEVC Executive Director Phil Lampert.

—Anna Austin


INDUSTRYNEWS

CRFS addresses 2009 opportunities, challengesThe 2008 Canadian Renewable Fuels

Summit drew more than 400 industry lead-ers from across North America to discuss policy, marketing and the continuous need to look beyond the traditional conceptions of global fuel needs in an effort to grow beyond oil. The fi fth annual event took place in Gatineau, Quebec, in December.

Following the June passage of Bill C-33, which mandates 5 percent renew-able content in gasoline by 2010, the status of the renewable fuels industry, the food-versus-fuel issue and the recent instability of the Canadian government were at the forefront of the summit’s agenda. Fur-thermore, although new research and de-velopment in second-generation biofuels were of great interest to attendees, some speakers stressed that corn-based ethanol will continue to be the backbone of the industry. “Corn ethanol still has a good future,” said Paul Wheaton, president of Nova Scotia-based AtlanTec BioEnergy Corp. “Contrary to public opinion, it will continue to be a good bridge fuel for many years, and even decades, before something takes its place.”

Funding still remains available for both fi rst-generation and second-generation

technologies. “Many people thought that with all the bad press, there was no money available for fi rst-generation technolo-gies, but that is not the case,” said Vicky Sharpe, president and chief executive of-fi cer of Sustainable Development Tech-nology Canada. According to SDTC, $1.2 billion in public funding has been invested in next-generation technology in the areas of enzymatic hydrolysis, gasifi cation, algae and biobutanol. “More than $200 million in venture capital has been invested in 16 Canadian companies [so far],” she said.

Perhaps the greatest challenge facing the industry will be a new ethical debate, not unlike the food-versus-fuel confl ict.

“Next year, [the issue] will be indirect land use changes,” said Bob Dinneen, president of the U.S.-based Renewable Fuels As-sociation. The crux of this issue will be the many ways to measure indirect land use. “The modeling efforts undertaken to date are woefully inadequate,” said Don O’Connor, president of (S&T)² Consul-tants Inc., pointing out that idle land and biofuel coproducts are often not consid-ered. Proving that expanding agricultural land can occur without jeopardizing for-ests or other sensitive lands will be the next challenge for the industry.

Five awards were distributed at the summit’s Green Fuels Awards Reception and Gala. Esteban Chornet, founder of Enerkem, received an award for Outstand-ing Dedication to the Advancement of Renewable Fuels in Canada. General Mo-tors Corp. received the Achievement in Promoting the Use of Renewable Fuels in Canada award, and New Producer Awards were presented to IGPC Ethanol Inc. and Terra Grain Fuels Inc. for their efforts in developing the biofuels industry.

—Khalila Hammond

More than 400 people attended the 2008 Canadian Renewable Fuels Summit in Quebec in December.

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biorefi nery that will produce 125 MMgy of ethanol, 25 MMgy from corn cobs. Poet harvested close to 10,000 acres of cobs this past fall in demonstration har-vests in Texas, South Dakota and Iowa. Poet Chief Executive Offi cer Jeff Broin was dubbed “Mr. Ethanol” in a Forbes magazine profi le.

Iogen refuels racecar at Thunderhill eventFor the second consecutive year, Canada-based Iogen Corp. supplied Green Alter-native Motorsports’ Lemans Prototype racecar with cellulosic ethanol, meeting its fuel needs at the National Auto Sport Association’s 25 Hours of Thunderhill, the longest road race in the world. Iogen Executive Vice President Jeff Passmore said the company supplied a total of 300 gallons of cellulosic ethanol for the event. Out of 68 participants, the racecar fi nished fourth. EP


1-800-827-1662 • www.interstates.com

ELECTRICAL CONSTRUCTION • ELECTRICAL ENGINEERING • AUTOMATION • INSTRUMENTATION

INDUSTRYNEWS

NFU: Food prices cause for concernFood prices remain high even though it’s

been months since commodity prices tumbled, prompting the National Farmers Union to call on Congress to reexamine the issues behind the high cost of food.

Congress fi rst heard arguments on this mat-ter in the spring of 2008 when higher commodity prices were being blamed for a spike in retail food prices, which some members of the media and special interest groups said was ethanol’s fault. “It’s clear that contrary to claims of food proces-sors, retailers and others quick to criticize agricul-ture commodities, commodity prices have very little impact on the American consumers’ cost of food,” said NFU president Tom Buis. “It’s equal-ly clear that processors and retailers are pocketing the economic benefi t of declining farm com-modity prices and reduced energy costs without passing those savings on to the consumer.”

A month after the NFU asked Congress to revisit the issue, NFU Director of Com-munications Liz Friedlander updated EPM on the status of its request. “The small business committee responded,” she said. “It’s on their agenda for the next Congress, and we’re opti-mistic they’ll take it up. We see this as a vehicle to set the record straight on the true causes of food price increases.”

According to the Bureau of Labor Statistics, food prices increased 0.2 percent in November and 6 percent over the past year. Meanwhile, en-ergy prices dropped 17 percent in November,

and transportation costs fell 10 percent. “It’s time Big Food stops acting like the Grinch and lowers its prices,” said Greg Breukelman, spokesman for Growth Energy.

Meanwhile, a poll of 1,000 Americans, com-missioned by the Food Before Fuel campaign and conducted by survey-based market research company Ipsos, concluded Nov. 18 that a major-ity of respondents—56 percent—wanted Con-gress to change its ethanol subsidy and mandate policies. However, Ipsos’ Web site indicated the majority of respondents were “provided with in-formation about USDA data showing corn etha-nol production is the cause of 10 percent of food price infl ation.” Food Before Fuel didn’t respond to requests from EPM to discuss the survey. “Ethanol has been on the government payroll for 30 years,” said Joel Brandenberger, president of the National Turkey Federation, a member of Food Before Fuel. “After three decades of gov-ernment policies subsidizing and supporting the ethanol industry, we fi nd ourselves at the end of 2008 with more questions than ever before about the wisdom of this course.”

In mid-December, Growth Energy said corn prices had fallen by more than 50 percent since the Grocery Manufacturers Association began its Food Before Fuel campaign against ethanol in July. Gas prices fell nearly 50 percent during that time.

—Susanne Retka Schill


INDUSTRYNEWS

Various factors may add to DDGS valueEthanol producers might be losing mil-

lions of dollars in revenue by inadvertently discounting the true value of their distillers dried grains with solubles (DDGS), accord-ing to Jacinto Fabiosa, a researcher at Iowa State University.

Fabiosa said he feels the lost revenue is a result of DDGS not being tested and sold based on nutritional content. He re-viewed nutritional variations in DDGS from 40 ethanol plants, and found no correlation between price and nutrition. He said DDGS should be analyzed and sold based on fat, protein, amino acid and mineral content.

Livestock and poultry producers can learn more about how to best use DDGS for feed with help from the Midwest Agri-business Trade Research and Information Center at Iowa State University, which has published an electronic book titled “Using Distillers Grains in the U.S. and International Livestock and Poultry Industries.” The pub-lication details how to best utilize and opti-mize DDGS to suit the needs of beef cattle, dairy cattle, swine and poultry. It also iden-tifi es export opportunities for DDGS and describes some of the logistic hurdles that need to be resolved, as well as new technolo-gies that are being used to improve DDGS as a feed ingredient.

Australia is now among international entities considering DDGS for feed. The U.S. Grains Council said the fi rst imported sample of U.S. DDGS cleared customs in Australia and will be used in feeding trials by feed supplier CopRice. Hawkeye Gold LLC in Ames, Iowa, supplied the DDGS to

CopRice. The DeLong Co. Inc. in Clinton, Wis., donated transloading services for the shipment, while the USGC covered freight costs.

Pelletizing distillers grains may also add new value to the ethanol coproduct. Ag Fuel & Feed LLC, a joint venture of Ag Pellet Energy LLC in Carmel, Ind., and Landers Machine Co. in Ft. Worth, Texas, have de-veloped a new process to pelletize distillers dried grains (DDG) for feed or fuel with-out the use of additives or binders. Land-ers designed a die that mills a 100 percent DDG pellet by increasing the density of 15 percent moisture DDG to 40.6 pounds per cubic foot, which increases truck and railcar load rate potentials, and increases fl owability and shelf life. Similarly, a pellet mill manu-factured by New Delhi-based Hi-Tech Agro Projects Private Ltd. was demonstrated Dec. 9 at the Agricultural Utilization Research In-stitute in Waseca, Minn. AURI is using the PL500 fl at-die pellet mill to test how energy crops in the U.S. can be made into pellets for combustion and other applications. AURI pelletized DDGS and DDGS mixed with wheat middlings, a byproduct of fl our or semolina production.

—Ryan C. Christiansen

Kyle Cruit, director of sales and marketing for Hi-Tech Agro Projects Private Ltd., examines DDGS pellets produced by the company’s PL500 fl at-die pellet mill.

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The solution behind the solution.

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New Project Project Complete Project Expansion Expansion Complete

ith winter weather bearing down on construction crews, four ethanol plants completed their respective projects on schedule in December.

GreenField Ethanol began grinding corn and pro-ducing ethanol at its 200 MMly (53 MMgy) ethanol fa-

cility near Johnstown, Ontario, on Dec. 8. Two days later, the plant reached its full production capacity.

NEDAK Ethanol LLC completed construction of its 44 MMgy plant in Atkinson, Neb., in late December. Shortly thereafter, the com-pany initiated the commissioning phase, which was to be followed by corn grinding, according to General Manager Jerome Fagerland.

Southwest Iowa Renewable Energy LLC completed construc-tion of its 110 MMgy facility in Council Bluffs, Iowa, in late December, as well. Commissioning was underway to be followed by start-up, according to Plant Manager Dan Wych. The facility will use steam, as opposed to natural gas, to power its boilers and dryers.

Tharaldson Ethanol LLC confi rmed that construction of its 120 MMgy plant in Casselton, N.D., was complete with corn grinding slated for Dec. 29. Plant Manager Russ Newman said the plant be-gan receiving corn in November and would run at 70 percent ca-pacity once operational. “We expect the plant to be open between

Christmas and the New Year’s holiday,” Newman said. “After that, we plan to hold a grand opening sometime in June when the weather is nicer.”

Two plants were added to this month’s list. Nexsun Ethanol LLC is constructing a 48 MMgy plant in Ulysses, Kan., while North-west Bio-Energy Ltd. was conducting commissioning work at its 25 MMly (6 MMgy) facility in Unity, Saskatchewan. Start-up is slated for March.

Three plants suspended construction recently: E Caruso LLC, a 20 MMgy facility in Goodland, Kan.; Route 66 Ethanol LLC, a 10 MMgy plant in Tucumcari, N.M.; and Midwest Energy Producers LLC (formerly Holt County Ethanol LLC), a 110 MMgy facility in O’Neill, Neb. According to Steve Reed, co-owner of and investor in Route 66 Ethanol, the company was looking to dismiss its general contractors and hire a new contractor to fi nish the remaining work. He estimated the project would resume in January. Contractors hadn’t yet arrived at Midwest Energy Producers, but the company recieved permits in December that would allow it to proceed with construction, according to Kurt Bravo, vice president of project development.

—Bryan Sims

Start-ups occur despite wintery conditions

To provide updates to this list, contact Bryan Sims at (701) 738-4950 or [email protected].

W

Ethanol Plant Construction

Location General contractor Process technologyCapacityFeedstockEthanol marketerDistillers grains marketerCarbon dioxide marketerBroke groundTarget start-up date

Madison, Ill.Abener Energía SAVogelbusch USA Inc.88 MMgycornAbengoa Bioenergy TradingAbengoa Bioenergy TradingundeclaredMarch 2008fourth quarter 2009

Abengoa Bioenergy of Indiana Abengoa Bioenergy of Illinois

Synopsis of progressTank erection is approximately 90 percent complete. Distillation col-umns are set. Work on grain silos is ongoing. Steel erection has be-gun, and rail work is approximately 50 percent complete.

Synopsis of progressTank erection is approximately 90 percent complete. Distillation col-umns are set. Work on grain silos is underway, and rail work has begun.

Representing 2.12 Billion Gallons Annually


Posey County, Ind.Abener Energía SAVogelbusch USA Inc.88 MMgycornAbengoa Bioenergy TradingAbengoa Bioenergy TradingundeclaredMarch 2008fourth quarter 2009



Cedar Rapids, Iowaundeclaredundeclared275 MMgycornArcher Daniels Midland Co.undeclaredundeclaredJune 2007fi rst quarter 2010

Appomattox Bio Energy

Archer Daniels Midland Co.

Synopsis of progressConstruction continues. No further information was available at press time.

Synopsis of progressN/A


Mt. Vernon, Ind.Kiewit Energy Co.Delta-T Corp.113 MMgycornAventine Renewable Energy Inc.Aventine/Consolidated Grain and BargeundeclaredSeptember 2007fourth quarter 2009

Aventine Renewable Energy-Mt. Vernon LLC



Hopewell, Va.Agra Industries Inc.Katzen International Inc. 65 MMgybarleyOsage Inc.N/AN/AOctober 2008second quarter 2010



Columbus, Neb.undeclared undeclared275 MMgycornArcher Daniels Midland Co.undeclaredundeclaredJuly 2007third quarter 2009

Archer Daniels Midland Co.



Location General contractor Process technologyCapacityFeedstockEthanol marketerDistillers grains marketerCarbon dioxide marketerBroke groundStart-up date

Johnstown, OntarioSNC-Lavalin GroupICM Inc. 200 MMly (53 MMgy)cornGreenField EthanolCommercial AlcoholsundeclaredOctober 2006December 2008

GreenField Ethanol

Synopsis of progressThis plant started operation in December. Congratulations Green-Field Ethanol!


Goodland, Kan.JMC Engineering LLC/Agri-SystemsJMC Engineering LLC/Agri-Systems20 MMgycornundeclaredundeclaredN/AJune 2006fi rst quarter 2009

E Caruso LLC

Synopsis of progressConstruction of this project is on hold. No further information was available at press time.

Project Complete


Raeford, N.C.Biofuels Design/Clean Burn Fuels LLCKatzen International Inc.60 MMgycornundeclaredHarris Crane Inc.Airgas Inc.May 2008July 2009

Clean Burn Fuels LLC

Synopsis of progressWork continues on fermentation tanks and the distillation area. Grain storage is being installed. Chiller, cooling tower and distillers grains building are complete. Work on ethanol storage tank work is under-way.

Location Design/builder Process technologyCapacityFeedstockEthanol marketerDistillers grains marketerCarbon dioxide marketerBroke groundTarget start-up date

Clearfi eld, Pa.Fagen Inc. ICM Inc. 110 MMgycornBionol Clearfi eld LLCLand O’LakesN/AFebruary 2008January 2010

Bionol Clearfi eld LLC

Synopsis of progressWork on grain silos, fermentation tanks and tank farm continues.


THE ROAD TO SUCCESS IS FILLED WITH TWISTS AND TURNS. FORTUNATELY, WE ALREADY KNOW THE WAY.

The biofuels industry’s accounting, tax and various consulting

needs can be nearly as complicated as the refi ning process itself.

Which is why Kennedy and Coe’s knowledge and experience

in the industry can help you identify and capitalize on many

opportunities that can signifi cantly impact your organization’s

cash fl ow. Our expertise can help you navigate even the most

confusing paths, so you can make the most of your operation’s

potential.

Call Jesse McCurry at 800-303-3241 or visit us at www.kcoe.com.

Not your average accountants.SM

The “e” mark and the “stylized e” are registered service marks of the Ethanol Promotion and Information Council. Used with permission.

KAC.10442_EPM_Wnd_7.5x3.375_4C 1 7/24/08 11:10:53 AM


Havelock, OntarioProfab International Ltd.Delta-T Corp.80 MMly (21 MMgy)cornundeclaredThompson’s Ltd.undeclaredOctober 2007February 2009

Kawartha Ethanol Inc.



Lawler, IowaFagen Inc. ICM Inc. 100 MMgycornGreen Plains Renewable Energy Inc.CHS Inc.N/AMay 2007March 2009

Homeland Energy Solutions LLC



Lamberton, Minn.Fagen Inc. ICM Inc. 55 MMgycornRenewable Products Marketing GroupCHS Inc.N/ANovember 2007May 2009

Highwater Ethanol LLC

Synopsis of progressNatural gas lines are set. Electrical substation is nearly complete. All rail work is complete. Work on administration building and energy center is ongoing.


Lacassine, La.Casey Industrial IncLouisiana Green Fuels LLC/Praj Industries Ltd.

25 MMgysugarcane/sweet sorghumundeclaredN/AundeclaredApril 2008fourth quarter 2009

Louisiana Green Fuels LLC

Synopsis of progressThe colocated sugarcane syrup mill is operational. Construction of the ethanol plant continues. No further information was available at press time.



Atkinson, Neb.Delta-T Corp.Delta-T Corp.44 MMgycornEco-Energy Inc.Frahm and DeitloffN/AJune 2006December 2008

NEDAK Ethanol LLC

Synopsis of progressConstruction was complete in December, followed by corn grinding and commissioning. Congratulations NEDAK Ethanol LLC!


Ulysses, Kan.ICM Inc.ICM Inc.48 MMgycornundeclaredundeclaredundeclaredSeptember 2007fi rst quarter 2009

Nexsun Ethanol LLC

Synopsis of progressInitial site work is approximately 98 percent complete. Concrete work has begun.


Unity, SaskatchewanNorthwest Terminal Ltd.Katzen International Inc.25 MMly (6.6 MMgy)wheatundeclaredundeclaredundeclaredSeptember 2007March 2009

Northwest Bio-Energy Ltd.

Synopsis of progressAll equipment, tanks and piping are installed. Electrical and instru-mentation work is ongoing. The biomass-fi red boiler is complete. Commissioning has begun.

Project Complete


O’Neill, Neb.Midwest Developers LLCPraj Schneider110 MMgycornAventine Renewable Energy Inc.undeclaredN/AMay 20072009

Midwest Energy Producers LLC (formerly Holt County Ethanol LLC)

Synopsis of progressThe general contractor and process technology provider have been changed, and replacements are not yet on-site. The company will resume construction in April.



Gibson City, Ill.Fagen Inc. ICM Inc. 100 MMgycornEco-Energy Inc.Ag Motion Inc.N/AOctober 2007March 2009

One Earth Energy LLC

Synopsis of progressWork on water treatment system continues. Most building compo-nents are installed. Interior mechanical and electrical work is ongo-ing. Cooling tower erection is underway. Rail work is complete. Some concrete work remains.


Longview, Wash.Makad Construction Corp.Lurgi Inc.55 MMgycornU.S. Ethanol LLCLansing Trade GroupundeclaredNovember 2006second quarter 2009

Northwest Renewable LLC



Merill, IowaDelta-T Corp.Delta-T Corp.50 MMgycornC&N Cos.Plymouth Energy LLCundeclaredMay 20072009

Plymouth Energy LLC



Hereford, TexasPanda Ethanol Inc.Thermo-Kinetics/Lurgi Inc.105 MMgycornAventine Renewable Energy Inc.Panda Ethanol Inc.undeclaredSeptember 2006fi rst quarter 2009

Panda Hereford Ethanol LP




Casselton, N.D.Wanzek Construction Inc./Valley Engineering

Vogelbusch USA Inc. 120 MMgycornGreen Plains Renewable Energy Inc.Verde Bioproducts Inc.N/AMay 2007December 2008

Tharaldson Ethanol LLC

Synopsis of progressConstruction was complete in late December, followed by commis-sioning. Corn grinding was slated for Dec. 29. Congratulations Thar-aldson Ethanol LLC!

Location Design/builder Process technologyCapacityFeedstockEthanol marketerDistillers grains marketerCarbon dioxide marketerBroke groundStart-up date

Council Bluffs, IowaICM Inc.ICM Inc. 110 MMgycornLansing Ethanol Group BungeN/ANovember 2006December 2008

Southwest Iowa Renewable Energy LLC

Synopsis of progressThe commissioning phase was underway, followed by start-up in late December. Congratulations Southwest Iowa Renewable Energy LLC!


Tucumcari, N.M.APS/United Stainless Process Technology

United Stainless Process Technology

10 MMgycorn/miloundeclaredundeclaredN/AOctober 2007fi rst quarter 2009

Route 66 Ethanol LLC

Synopsis of progressConstruction was on hold in December but slated to resume in early January.

Project Complete

Project Complete


Soperton, Ga.undeclaredundeclared10 MMgywoody biomassundeclaredN/AN/ANovember 2007fi rst quarter 2010

Range Fuels Inc.



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Biomass Magazine is a trade journal serving companies that use and/or produce power, fuels and chemical feedstocks derived from biomass. Collectively, these biomass utilization industries are positioned to replace nearly every product made from fossil fuels with those derived from plant or waste material. The publication covers a wide array of issues on the leading edge of biomass utilization technologies, from biorefining, dedicated energy crops and cellulosic ethanol to decentralized power, anaerobic digestion and gasification. It’s all here.

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For additional informationplease contact us at (701) 746-8385 or at [email protected]


:FINAN

CE

Clear Communication Can Lift Employee Morale By Robyn Heinz

hen economic times call for dif-fi cult measures, the ethanol in-dustry may not be

exempt. Media coverage of plant closures and bankruptcies has only heightened how managers must deal with employee morale, or in some cases, a lack of it.

Today’s economy is challeng-ing but managers can fi nd solace in knowing how to effectively com-municate with various levels of staff about potential changes. If your plant is facing potential layoffs or fi nancial change, there are steps you can take to help stave off low employee morale.

No matter the size of the plant, upper management is ultimately re-sponsible for guiding an organiza-tion during tough times. Production employees will look to these leaders for specifi c language and direction when times are tough. Every em-ployee may feel fi nancial stress at the workplace but especially those watching their retirement account or dealing with the post-holiday stress of paying credit card bills.

When employees feel fi nancial pressure outside their workplace in addition to their job, it creates a feeling of less control on their own

personal well being. People won-dering if they’ll even have a job to-morrow will not be as productive at work as those who’ve been told as much information as possible about job security and about the compa-ny’s management plan during an economic crisis.

While leadership can’t tell every employee full details of the plant’s fi nancial situation, keep in mind that in the absence of real information, employees will create their own. Once this happens, the information is subject to each per-son’s interpretation. Effective com-munication from the top down can help mitigate gossip and ease the fear of the unknown. Being open and honest with employees shows you understand their concerns and are trying to give them as much in-formation as possible.

One way to ensure employ-ees are in the company loop is to specifi cally ask for their feedback. For example, consider staff ideas on ways to operate more effi ciently, reduce waste, cut non-operating costs or reduce overtime. Empow-ering employees gives them an op-portunity to truly offer input on what may happen with their job. In gen-eral, people fear the unknown and morale could be low because of

what employ-ees perceive they don’t know or can’t control.

In addi-tion to open communica-tion, employ-ees may be able to take advantage of company benefi ts including an Employee As-sistance Program, credit counseling service, personal fi nancial planning and budgeting program or prepaid legal services. These benefi ts can provide employees with someone to talk to in confi dence about their fi nancial situation, stress and un-certainties.

Whether low oil and gas prices continue to affect ethanol blending contracts or the impacts of high-priced corn linger, the ethanol in-dustry has hurdles to jump.

Robyn Heinz heads Kennedy & Coe LLC’s human resources con-sulting services. Reach her at (316) 685-0222.

WHeinz

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The 2009 Canadian Renewable Energy Workshop2009 Canadian Renewable Energy Workshop is the first stop on the path to optimizing your strengths and realizing your renewable energy ambitions. Attendees will enjoy world-class presentations at the only conference in Canada that combines emerging biofuels and biomass power in one.

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Join us March 10-12, 2009 at the Regina Inn to…• Discover energy opportunities to supplement natural gas and electrical bills;

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To engage in a business opportunity with the CREW please contact Lionel Grant at [email protected]

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2nd Annual | March 10 – 12, 2009 | Regina Inn Hotel and Conference Centre | Regina, Saskatchewan

Knowledge, Technology & Connections

TRANSPORTATION

Pipe DreamKinder Morgan proved that it’s possible to overcome the challenges of moving ethanol via pipeline when the company shipped its fi rst commercial batch in November. Bolstered by industry support, consumer interest and favorable legislation, other pipeline companies are also tackling ethanol pipeline projects.

By Erin Voegele


It’s Not Just a


TRANSPORTATION

In late 2008, Kinder Morgan Energy Partners LP became the fi rst U.S. company to ship a commercial batch of ethanol through its Central Florida

Pipeline, an 85-mile stretch between Tampa and Orlando, Fla.

Kinder Morgan’s success is the result of extensive preparation and a sizable invest-ment. The company spent about $10 million to modify the pipeline, which was previously dedicated to gasoline service, so it could han-dle ethanol. The money was used to clean the pipe, replace ethanol-incompatible equip-ment and expand capacity at Kinder Mor-gan’s Orlando terminal so it could handle the shipments. Commercial ethanol shipments are scheduled to continue through that pipe-line once a week.

Several other companies are also work-ing on ethanol pipeline projects. Magellan Midstream Partners LP and Buckeye Part-ners LP have partnered to study the feasibil-ity of constructing a dedicated ethanol pipe-line, which would span 17,000 miles from northwestern Iowa to New York Harbor.

In addition to the project with Magel-

lan, Buckeye has notifi ed the U.S. Depart-ment of Transportation of its plans to run a test batch of ethanol through an existing Detroit, Mich.-area pipeline. Eric Gustafson, Buckeye’s chief operations offi cer, says the test batch will travel approximately 20 miles through the pipeline and should be complete within a few months.

In an effort to overcome the problems associated with traditional steel piping, ALL Fuels & Energy Co. has plans to construct a new resin-based multiproduct pipeline. Ac-cording to President and Chief Executive Offi cer Dean Sukowatey, his company is in the process of funding a pipe manufacturing facility in Des Moines, Iowa. The company plans to construct a pipeline in two phases. Phase one would consist of a pipeline sys-tem throughout the Midwest. Phase two would seek to expand the pipeline to the East Coast.

Overcoming ObstaclesAlthough Kinder Morgan has success-

fully moved ethanol through the Central Florida Pipeline, many obstacles remain. The

primary challenges involved in moving etha-nol through a pipeline can be divided into two main categories; challenges resulting from the corrosive nature of ethanol, and challenges resulting because of how ethanol reacts with other products and substances within the pipeline.

Jim Lelio, Kinder Morgan’s director of business development, says the obvious chal-lenge is that ethanol reacts so much dif-ferently than the re-fi ned petroleum prod-ucts that are typically moved through pipelines. The industry must fi nd ways to overcome ethanol’s affects on the pipe, the valves and the systems them-selves. “If you can do that, you’ve got a good chance of moving the product,” he says.

More specifi cally, the corrosive nature of ethanol leads to concerns over stress cor-rosion cracking (SCC). SCC can be defi ned as the slow growth of cracks along the pipe-line, which are caused by mechanical stress

Lelio

TRANSPORTATION

and exposure to a cor-rosive environment.

While Kinder Morgan’s success in transporting ethanol long distances through a pipeline is a new achievement, there is actually an extensive

history involving the movement of ethanol short distances through pipes. Piping infra-structure can be found within ethanol plants, and it’s used to connect tanks to various in-frastructure elements, such as blending racks and barge docks. “Over the years, there have been about 10 to 20 instances of stress cor-rosion cracking in existing facilities handling ethanol,” says Eric Gustafson, Buckeye’s chief operating offi cer. These instances have been relatively minor because they occurred in completely contained environments. “The stress corrosion cracking, which occurs on the interior of the pipe, is different from what we are accustomed to with other prod-ucts,” says Bruce Heine, Magellan’s director of government and media affairs. “That

cracking could lead to a release of product.”

Heine says pipe-line companies are highly motivated to prevent all releases, which is why it’s impor-tant to develop ways to prevent this type of

corrosion. Although product release is ex-ceedingly uncommon, Gustafson says his company has a zero-tolerance policy. “Even though there have only been a handful of these stress corrosion cracking incidents … we need to understand what is causing them and make sure we have mitigated the risk,” he says. Other compatibility and corrosion issues can arise because of the way ethanol reacts when nonmetal materials and plastics are present in existing pipelines.

Ethanol’s solvent qualities pose addition-al challenges. Over years of use, small quanti-ties of residue, or dirt, can build up in exist-ing pipeline systems. Although this dirt is not soluble in petroleum products, it is soluble in ethanol, which can lead to discoloration.

In addition, pipelines can hold a small amount of water. In the petroleum produc-tion process water and hydrocarbons are of-ten mixed, Gustafson says. At certain tem-peratures water stays soluble in the product in very small amounts. “As the temperature of the product cools, which it typically does when it goes in the ground, some water drops out and becomes what we call free wa-ter,” he says. Because the amount of water tends to be small, it’s not a huge issue when transporting pure denatured ethanol. It does, however, make transporting pre-mixed etha-nol and gasoline blends more diffi cult. “If a blend of gasoline and ethanol encounters water, the water will actually cause the etha-nol to come out of the blend,” Gustafson says. The result is a water ethanol mix, and gasoline that no longer meets specifi cations.

Dedicated Pipeline A Solution Gustafson and Heine say a dedicated

pipeline should help overcome many of the issues that arise when shipping ethanol via pipeline. Although the project is still in the feasibility study stage, the two companies

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TRANSPORTATION


continue to dedicate resources and effort to the project.

When constructing a new pipeline, special construction and welding tech-niques can be applied. “You can also choose materials that will be compatible with ethanol,” Gustafson says. Further-more, the pipeline would be dedicated solely to ethanol shipments, thus elimi-nating the problems stemming from in-compatibility with other products. “This doesn’t mean that you can’t safely handle ethanol in some of the existing pipes—because I think we can—but it’s easier when a system is specifi cally designed to [move ethanol],” Gustafson says.

ALL Fuels & Energy is taking yet an-other approach to overcoming challenges associated with the use of steel pipes by utilizing resin-based pipes. “[The resin-based pipes] work for all products, includ-ing ethanol, because they are very cor-rosion resistant,” says Voldemars Pelds, president and chief executive offi cer of Leo Pelds Engineering Co. “It doesn’t get eaten away by the ethanol.” In addition, the pipe can be sealed from end to end, which prevents moisture from entering, Pelds says.

According to Sukowatey, the polymer used to make the pipe will weld, or bond, with fi berglass. “[This bond] is called a chemical weld because you can bond what’s called a fi berglass reinforced pipe,” Pelds says. “We then enhance it with a wrap of resin pipe.” Although commodity prices can change, Pelds estimates the cost of the pipe will be comparable with the price of traditional steel piping.

Another benefi t of ALL Fuels & En-ergy’s proposed pipeline is its long lifespan when compared with steel. “Right now we can’t even put a fi nite level of life on the pipe,” Sukowatey says. “It’s like putting a plastic jug in a landfi ll. It’s probably going to be there 100 years from now.

The pipeline projects in development by Magellan and Buckeye, and by ALL Fu-els & Energy are all designed to overcome logistical challenges faced by the industry. “If you look at the routing of the pro-posed pipeline system for Magellan and Buckeye, there are no pipes in place today that transport other products out of the upper Midwest to the Eastern Seaboard,”

TRANSPORTATION

Heine says. “The fl ow of gasoline and diesel fuel doesn’t naturally go in that direction, but the fl ow of ethanol would.”

Kinder Morgan will continue supplying ethanol service through existing pipelines, monitoring the Central Florida Pipe-line and looking for opportunities to add ethanol service in other areas, Lelio says. He expects the company will begin to identify the next pipeline system toward the end of the fi rst quarter of 2009.

Making the Dream Come TrueKinder Morgan’s efforts to move ethanol via pipeline are the

result of customer interest, Lelio says. “Every part of [the Central Florida Pipeline project] was driven by the needs of our custom-ers,” he says. “We’re not just out there doing a science project. We’re there because our customers want us to do this.”

The fi rst commercial batch of ethanol Kinder Morgan shipped through the Central Florida Pipeline sold out immedi-ately, and Lelio expects this level of interest from customers will continue. Although he’s not sure what exactly drove consumer interest, he says the project has received a “groundswell of sup-port.”

To continue their pipeline project Magellan and Buckeye are looking to the U.S. DOE’s loan guarantee program, which was designed to encourage the commercial use of new or signifi cantly improved technologies, Heine says. “We’ll be looking to make some modifi cations to that existing program to recognize the differences associated with a large-scale renewable fuel pipeline project,” he says. This would include extending some pre-existing timelines.

While the DOE loan guarantee program would improve the feasibility of ethanol pipeline projects, an important piece of leg-islation passed in 2008 made it possible for pipeline companies to continue ethanol projects. Language in the Emergency Economic Stabilization Act of 2008 revamps the tax code that had blocked publicly traded partnerships (PTPs), such as Kinder Morgan, Ma-gellan and Buckeye, from claiming income generated from the storage and transportation of biofuels as qualifying income.

TRANSPORTATION


Kinder Morgan shipped the fi rst commercial batch of ethanol through its Central Florida Pipeline.

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Under the old tax code, PTPs had to earn 90 percent of their income from the handling of depletable natural resources. If that condition was not met, the PTP would be treated as a corporation for tax purposes. The revised code allows PTPs to earn qualifying income from handling any liquid fuel approved by the U.S. EPA. “There is no way [our project] could move forward without that legislation,” Gustafson says.

The U.S. DOT, which is in charge of safety regulations for hazardous liq-uid pipelines, is also getting involved with ethanol pipeline projects. In fact, Kinder Morgan worked closely with the DOT during the Central Florida Pipe-line project, Lelio says. “[The DOT] was very interested in ensuring that the cor-rect preliminary precautions were taken,” he says. These precautions included the education and training of fi refi ghters and other emergency response personnel so they would be prepared to deal with any ethanol-related emergency situations. “We were very thorough, and the DOT was very interested and involved in the entire process,” Lelio says.

“Pipelines are the safest, most reliable and most cost-effective method to trans-port large volumes of liquid energy from where it’s produced to where it’s con-sumed,” Heine says. Pipelines have fewer accidents than rail or truck transporta-tion, the cost is lower and it’s dependable. “Pipelines don’t typically have problems with snow, ice or rain,” Gustafson says. “They tend to be more predictable about getting products where they need to be on time, and in good shape.”

Support from ethanol producers is also important to keep ethanol pipeline projects moving. “The people we have talked to are very enthusiastic,” Gustafson says. “We just need to keep that enthusi-asm growing.”

“We think a project [like ours] would benefi t the entire ethanol industry,” Heine says. “We’ll certainly be looking for trade association support as we move forward on legislative initiatives as well.” EP

Erin Voegele is an Ethanol Producer Maga-zine staff writer. Reach her at [email protected] or (701) 373-8040.

TRANSPORTATION


Magellan and Buckeye’s proposed pipeline would extend from Iowa to New York Harbor.SOURCE: MAGELLAN MIDSTREAM PARTNERS LP

STORAGE


Storage Strategies for Cellulosic Feedstocks


STORAGE

EPM explores storage options for corn stover and switchgrass, both of which have the potential to serve as the next big feedstocks for cellulosic ethanol production.

By Anna Austin

Corn stover, which consists of the leaves and stocks of corn plants usually left in the fi eld after har-vest, makes up about half of the

yield of a corn crop. Corn stover, if it can be effi ciently harvested, stored and transported, has multiple uses including as feed for animals, fertilizer, a biomass source for steam genera-tion or electricity, and as a feedstock for the production of biofuels.

Corn stover has been seriously consid-ered as a potential feedstock for the produc-tion of cellulosic ethanol for several years, and has been the subject of much research and experimentation. Innovation is needed, however, in corn stover collection, transpor-tation and storage methods to turn the idea into reality.

Eric Woodford knows corn stover. He and his wife, Mary, run Woodford Custom Inc., a family farm business in Redwood Falls, Minn., where their primary focus is baling and selling corn stalks.

Currently, the most widely accepted stor-age method is to turn the corn stover into large, round bales, according to Woodford. “The infrastructure to do this type of harvest is already in place on many farms across the Midwest,” he says. Round bales generally re-quire less expertise than square baling, shed water easier, and are typically less expensive (about $15 per dry ton for round bales, com-pared with $20 per dry ton for square).

The initial investment would be the pur-chase of a round baler at a cost of approxi-mately $23,000, whereas a square baler would cost about $87,000.

Woodford has found that corn stover storage practices vary among the different re-gions of the U.S., mainly due to climate and end-user needs. “My experience is in the Mid-west, where the climatic challenges are rain, snow, ice and humidity,” he tells EPM.

The corn stover bales can be wrapped to protect them from inclement weather. Wood-ford has found that wrapping the bales with net/mesh is more effective than just wrap-ping the bales with twine. “Net wrap provides a certain amount of protection from the ele-ments,” Woodford says. “When water hits the net, it beads up and runs off the edge of the bale.” Although it’s more expensive than other methods, mesh wrap sheds water better and prevents a great deal of loss while the bales are being moved, which may offset the higher cost.

According to Tom Schechinger, chair-man of the board of managers at BioMass Agri Products in Harlan, Iowa, plastic from the twine or mesh wrap is also considered a serious contaminate. “De-twining is often a laborious task,” he says. “Installing equipment that will de-twine or de-wrap adds cost and is not fail proof.”

Storage LogisticsIn a study conducted by the Department

of Biological Systems Engineering at the Uni-versity of Wisconsin and released in 2007, round and square stover bales, both dry and wet were stored indoors and outdoors, some wrapped in a plastic fi lm tube, sisal twine, plastic twine and net wrap.

“Corn stover bales are usually made at a range of 7 percent to 18.5 percent moisture,”

Woodford recommends lining bales side-by-side when storing outdoors.

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STORAGE

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Woodford says. “Bales that are wetter than this will heat, which will reduce the value of the feedstock and may cause a fi re.”

Consistent with Woodford’s recom-mendation of using net wrap, the researchers found that bales in the net wrap and plastic twine had a much less dry-matter loss than the ones wrapped in sisal twine.

Bales wrapped in the tubes were removed after approximately 8 months of storage, and the researchers found there were no statisti-cal differences in fermentation between bale types, but higher moisture bales produced sig-nifi cantly greater levels of fermentation prod-ucts than low-moisture bales.

The study’s overall fi ndings were that storing wet corn stover by ensiling resulted in less loss and more uniform product moisture, compared with dry stover bales stored out-doors. Ensiling may also prevent or reduce the risk of fi re.

Woodford recommends that the bales stored outside on the ground be lined up end to end, rather than side to side. “The area should have a good slope so rain water will run off and there should be no depressions where water can pond,” he says.

In Midwest locations where harsh weath-er conditions can occur, Woodford suggests stover bales be placed where they can be ac-cessed by roads, yet will not block roads with drifting snow. “If bales need to be stacked high in large piles I would recommend some

sort of roof or tarp to cover the top of the stack, because when you stack bales, rain and snow has to soak in as it can’t run off as eas-ily,” he says. “Extreme care must be taken to make sure that all bales placed in the stack are dry and will not heat.”

Woodford prefers to have multiple satel-lite storage locations as opposed to one cen-tral location. “Multiple satellite locations help break up truck traffi c and reduce potential loss in the event of a fi re,” he says.

Although corn stover looks to be a prom-ising feedstock for cellulosic ethanol, Wood-ford thinks it should be considered as a step-ping stone to more sustainable crops, such as native grasses and dedicated energy crops.

Switch to SwitchgrassSwitchgrass is another potential cellulosic

ethanol feedstock that has garnered a lot of attention. University of Tennessee researchers are well on their way to discovering the most economical and benefi cial methods of storing switchgrass.

Switchgrass is a warm-season peren-nial commonly found in prairies, pastures and along roadsides. It is considered a high-yield-ing, versatile, adaptable plant, which is able to thrive in many different weather conditions, and requires lower fertilizer and herbicide amounts compared with typical crops.

Several companies, including Missouri-based CleanTech Biofuels Inc., have expressed

interest in the crop. The research team at UT co-led by agricultural economics professor Burton English, agricultural economist James Larson and soil scientist Don Tyler began ex-perimenting with switchgrass in January 2008 through the Tennessee Biofuels Initiative. “Logistics is a big issue in regard to biomass,” English says. “We realize that one can trans-port more rectangular bales in a truck than round bales, but storage is another matter.”

The group established 720 acres of switchgrass in eastern Tennessee to perform a storage study, comparing round or rectan-gular bales stored on three different surfaces, covered and uncovered.

Five-by-4-feet round bales, and 4-by-8-feet rectangular switchgrass bales were stored on well-drained ground, gravel and pallets. Some bales on each of those surfaces were

Corn stover consists of the leaves and stocks of the corn left over in the fi eld after harvest.

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covered with a plastic tarp, wrapped in plas-tic or left uncovered.

Every 100 days starting in January 2008, the group conducted bale destruc-tion tests to see what was happening inside of them, Burton explains. “We do this by cutting them open with a chain saw, select-ing four different weathered surfaces to take samples from and sending the samples to the National Renewable Energy Labora-tory in Golden, Colo., for testing,” he says. The researchers have collected samples from January, May and September, and are now preparing to collect the December samples. “We are doing this every 100 days for 500 days, even though a season is 365 days,” Burton says. “We believe there will have to be some extra storage time, just in case not enough switchgrass is produced in every given year. At this time, we think the material will be stored at farms, so this study will look at the cost of each specifi c method.”

Cost and FindingsAccording to English, the least ex-

pensive switchgrass storage method is as round bales, without a tarp and on pallets. “It costs about $4 per ton that way,” he says. “If it doesn’t have a tarp it’s going to weather about 6 inches, but we don’t know if that’s bad or good for conversion pro-cesses, because we don’t have conversion process data yet.”

The samples the group has sent to the NREL will be chemically analyzed to an-swer that question. Among several things that were measured, English says the bale’s ethanol content will be signifi cant.

A round bale covered with a tarp and stored on a gravel pad will cost about $12 a ton, English says, noting that a round bale typically weighs 1,300 pounds; a square bale weighs about 1,700 pounds. “If you don’t cover that square bale and leave it open to rain, it can increase in weight by up to 3,100 pounds,” English says, adding that the square bales soak up water rather quickly, which may damage their quality. All bales that were left uncovered were waterlogged when the fi rst samples were taken in May.

Taking cost and overall effectiveness into consideration, the UT researchers found that tarp-covered bales stored on pallets resulted in less degradation com-

STORAGE

pared with those stored on a gravel pad. “A gravel pad is more expensive, and it doesn’t add quality,” he says.

In the experiment, round, tarp-covered bales showed little signs of weathering, and decreased in weight by about 37 pounds per bale. Weathering on covered rectangular bales varied and sig-nifi cant decomposition was observable along the bottom edge and exposed sides of most bales. The average decrease in weight was about 1,313 pounds per bale.

A 25-by-100-feet tarp costs $500 and will cover about 144 rectangular bales, or 120 round bales, according to English. Pallets cost about $6.50 each, and only one bale can be placed on a pallet. Gravel pads cost approximately 60 cents per square foot.

English says UT should begin receiving experiment results from the NREL at any time and that the study should be com-pleted by next summer.

Feedstock FutureDetermining the cost and effectiveness of feedstock storage

is important to the commercial development of cellulosic ethanol production, which is why so many companies and universities are working to put the pieces of this puzzle together. For example, in August 2008, Illinois-based Archer Daniels Midland Co., Deere & Co., and Missouri-based Monsanto Co. announced a collaboration to identify environmentally and economically sustainable methods to harvest, transport and store corn stover. Other universities, such as Iowa State University and the University of Kentucky have de-veloped programs to study biomass-to-ethanol crops, with an em-phasis on switchgrass.

It is clear researchers are beginning to develop a solid stor-age infrastructure for the use of these crops as a source of clean, renewable fuel. EP

Anna Austin is an Ethanol Producer Magazine staff writer. Reach her at [email protected] or (701) 738-4968.

STORAGE

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English stands in front of a fi eld of switchgrass planted by University of Tennessee researchers.

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INNOVATION

FungusFertile

Iowa State University researchers use fungi to treat thin stillage and create some interesting new coproducts.

By Susanne Retka Schill


Hans Van Leeuwen has long worked with fungi to purify food processing wastewater, starting in South Africa, then

in Australia, and in recent years in his posi-tion as a professor of environmental and biological engineering at Iowa State Univer-sity in Ames. When he fi rst considered using fungi to clean up the water used in the corn wet-milling process, he learned that although the fungi grow well, the process would be somewhat marginal in terms of increasing the profi tability of a corn wet mill. When his team at ISU turned to the dry-mill ethanol process, they found a different story. Not only do the fungi grow prolifi cally, promising some interesting new coproducts, but the en-ergy and water savings could be signifi cant. The researchers dubbed the new process MycoMax and formed MycoInnovations Inc. to facilitate commercialization. There is one patent pending for the process and an-other one in development. Van Leeuwen is currently seeking funding to test the process on a pilot scale, which he estimates will cost $1 million for equipment and tests.

Their research has already garnered some attention for the ISU team, which in-cludes van Leeuwen, doctoral candidate Mary

Rasmussen, Samir Khanal, now with the Department of Molecular Biosciences and Bioengineering at the University of Hawaii, and Anthony Pometto, currently with the Department of Food Sciences at Clemson University in South Carolina. The team won the grand prize for university research from

the American Academy of Environmental Engineers, a project innovation award from the International Water Association and they won a 2008 R&D 100 Award from R&D Magazine.

What the researchers have learned shows great promise for improving the ef-

The team at Iowa State University who worked on developing the MycoMax process includes, left, Pometto, Rasmussen, van Leeuwen and Khanal.

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INNOVATION

Iowa State University Researchers have discovered a food-safe fugus that cleans up thin stillage in ethanol plants. PHOTO: JORDAN MILLER, ISU CENTER FOR CROPS UTILIZATION RESEARCH

fi ciency of an ethanol plant. In the dry-mill process, after ethanol is separated from the fermented mash by distillation, centrifuges are used to remove most of the solids, which

become the distillers grain coproduct and is sold as animal feed. The remaining liquid, called thin stillage, is partially recycled for use in the corn fermentation process. Only

about 50 percent of the watery thin stillage can be recycled to prevent a build up of total dissolved solids, glycerol, lactic acid and ace-tic acid—fermentation byproducts that can limit the process when levels are too high, van Leeuwen says. The water from the re-maining thin stillage, which contains about 6 percent solids, is evaporated in the conven-tional dry-mill ethanol plant creating a syrup with about 30 percent solids. It is blended with the previously removed solids and be-comes the “solubles” in distillers dried grains with solubles (DDGS).

Process SavingsThe MycoMax process replaces the

syrup formation with a system that grows the food-grade fungus Rhizopus microsporus in the nutrient-rich thin stillage while removing acetic acid, lactic acid and glycerol. The fun-gus removes those substances and allows for the ability to recycle nearly all of the water in the fermentation process, van Leeuwen says. In laboratory experiments, the fungi reduced chemical oxygen demand (COD)

INNOVATION

The food-grade fungus Rhizopus microsporus grows prolifi cally in thin stillage, cleaning up the water, and allowing the recycling of enzymes while reducing energy costs.

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by 80 percent, glycerol and organic acids by 100 percent and suspended solids decreased to nearly nondetectable levels in three to fi ve days. Rasmussen believes the reaction time can be reduced to two days or less by using a larger volume of fungi-containing water to inoculate the process.

The fungi thrive in thin stillage. “We were surprised by how prolifi cally it grew,” Rasmussen says. “It grew so much on the reactors in the lab setting we moved it to a larger scale fermentor right away.” Although the fungi got hung up on the sides of the small glass vessels used for the fi rst fer-mentation trials, that didn’t occur with the larger volumes and stainless steel walls of the 50-liter fermentor, she says. Providing for adequate aeration was another issue that had to be addressed in the experiments. The COD for thin stillage at 100 grams per liter is between 10 to 100 times the levels found in most wastewater treatment situations. Fungi growth would be limited by high levels of organic material, which create the high COD without adequate aeration. To boost the oxy-

gen levels, van Leeuwen designed an air life reactor to replace the stirring and inadequate aerators that are usually used.

The process not only increases water ef-fi ciency by cleaning up the water, it also of-

fers savings in enzyme costs. Currently, some enzymes are recycled through the portion of thin stillage that’s reintroduced to the yeast fermentation process. Researchers anticipate the recovery of more enzymes as more water

INNOVATION

Fungal inoculum

Airlift fermentor

Blowers

Dry-grindethanol plant

DryerHigh-quality animal feed Fungal biomass

Thin stillage Screen

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WaterRecycled water

Centrifuge/Belt filter

Fungal biomass

CO2

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The MycoMax process would add a step in a dry-grind ethanol plant to grow fungi in thin stillage. It should allow all of the water to be recycled into the fermentation process while creating a new feed coproduct.SOURCE: HANS VAN LEEUWEN

is recycled, also Rhizopus microsporus are known to produce glucoamylase. Testing proved that the enzymes survived the process, but the en-zyme effect needs to be analyzed and quan-tifi ed in future research, van Leeuwen says, which could also involve related fungi known to produce alpha amylase.

New CoproductsFeeding trials on the dried fungal bio-

mass left after the fungi have cleaned the wa-ter are also on the list of future research. The fungal biomass could be a high-value feed

supplement containing 40 percent protein, between 2 percent and 4 percent lysine, about 1 percent methionine and 3 percent chitosan. The high protein lysine and methionine lev-els should make the fungal biomass a better feed supplement in distillers dried grains than the solubles it displaces, particularly in swine, poultry and fi sh diets. The chitosan and chi-tin content add a new dimension to the feed coproduct. “These substances have proven health benefi ts in animals, averting the use of antibiotics and improving the rate of gain,” van Leeuwen says. Those benefi ts, however,

were established with chitosan and chitin derived from other sources so research will be required to confi rm the same ef-fects with the substances derived from the MycoMax process, he adds. Chitin can also be used as a source for the popular neutraceutical, glucosamine, he says.

One advantage that could speed up the coproducts use in animal feed is that the fungus already has the “generally re-garded as safe” designation from the U.S. Food and Drug Administration. The GRAS designation will simplify the pro-cess of getting the new feed supplement approved, and also opens the way for new coproducts. “You can freely eat this, although it’s not used much because it’s not produced in any quantity,” van Leeu-wen says. The primary food use is in an Asian specialty food called tempe. A re-lated fungus is widely sold in Europe as Quorn, a meat substitute. “My big dream for the future would be to turn this into protein for human consumption,” he says, improving people’s diets in protein-short regions. “First we aim to get it established for animal feed.”

Energy Savings PotentialPerhaps the biggest benefi t of the

MycoMax process will be in its energy savings. A typical dry-grind ethanol plant evaporates water to condense 2.5 gallons of thin stillage produced per gallon of ethanol from 7 percent solids into syrup

INNOVATION


The fungal biomass is dough-like in consistency before it is dried. At about 40 percent protein, it would be a high-value feed supplement and may offer new coproducts for the food market.

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ethanol plant would total an estimated $11.9 million for equipment including tanks, air blowers, separation equipment, piping and pumps.

When the savings and income are bal-anced against the capital and operating costs, the investment could be paid back in less than a year. Yet, in spite of such prom-ise, van Leeuwen says diffi cult times in the ethanol industry have made it challenging to raise money to build a pilot facility. The pro-cess has to be proved at a larger scale to fi nd

any unknown inhibiting factors, solve any handling and separation issues, and produce enough fungal biomass for feed trials. EP

Susanne Retka Schill is an Ethanol Pro-ducer Magazine staff writer. Reach her at [email protected] or (701) 738-4922.

that contains 32 percent solids. Using the energy requirement of a common evaporator, concentrating the syrup re-quires 9,563 British thermal units (Btus). Another 4,340 Btus are used to dry the syrup portion to 90 percent solids after it is blended into the distillers grains. Esti-mating the cost of natural gas at $13.2 per million Btu, the researchers expect a total energy savings of about 18 cents per gal-lon of ethanol produced.

The actual savings would vary among dry-grind ethanol plants. Some plants re-cover a portion of the heat used in the evaporators to provide heat for the dis-tillation process. Researchers point out, however, that the distillation process re-quires substantially less heat than thin stillage evaporation. Other ethanol plants put the thin stillage and other condensates through a methanator to produce meth-ane gas for process heat.

The energy savings realized from eliminating evaporation are not likely to be offset by the fungal cultivation pro-cess itself, which is a low energy user. Van Leeuwen says the fungi grow at 98 degrees Fahrenheit. Because the thin stillage leaves the distillation chamber at higher tempera-tures, the heat from that liquid could be used to maintain the temperature of the fungi growth chamber. When scaled up, the process might require heating in win-ter and cooling in summer, much like the fermentation process.

The economic analysis for the Myco-Max process includes a cost savings from lower water requirements and estimates a 25 percent savings in enzyme costs. It also includes an estimated value for the fungal feed coproduct at $260 per ton. If all the numbers prove out when scaled up, that could total 20 cents per gallon of ethanol from the water savings and additional in-come.

On the expense side, the biggest op-erational cost for a 100 MMgy ethanol plant is about $3 million per year for the electricity to run the blowers that aerate the growing fungus. The operation of mi-crowave dryers, maintenance, personnel and other expenses bring the estimated operational costs to $6.9 million per year. The capital investment for a 100 MMgy

INNOVATION


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INDUSTRY

Delving into the Intermediate Blends Report

Two of the seven authors of U.S. DOE’s recent initial report on the effect of midlevel blends on legacy vehicles and small engines discuss the results of the study and future work.

By Ron Kotrba

A 2003 Buick LeSabre is being tested at Colorado State Department of Public Health and Environment (National Renewable Energy Laboratory subcontractor).PHOTO: NATIONAL RENEWABLE ENERGY LABORATORY



INDUSTRY

In October, the U.S. DOE released its initial report on midlevel etha-nol blends and the effect on legacy, or conventional nonfl exible-fuel ve-

hicles, and small engines. It’s the fi rst part of a comprehensive investigation into how E15 and E20 will affect emissions, performance and mechanical durability. The report is titled “Effects of Intermediate Ethanol Blends on Legacy Vehicles and Small Non-road Engines, Report 1,” and its authors say the study and report were pilot work for what’s to come.

The DOE program under which this body of work is being conducted is co-led by the DOE’s Offi ce of Energy Effi ciency and Renewable Energy (EERE) Biomass Program, and the EERE Vehicle Technolo-gies Program. Technical support is provided by Oak Ridge National Laboratory and the National Renewable Energy Laboratory. The program was initiated by the DOE in the summer of 2007.

This whole effort on behalf of the fed-eral government is to provide information that may be useful in forming the legal means to build-out the blend wall. The volume of

renewable fuels required under the renewable fuels standard in the Energy Independence & Security Act, commonly referred to as RFS2, is 36 billion gallons by 2022, much of which is expected to be corn-based and second-generation ethanol. Saturating the national E10 market would require approximately 14 billion gallons, and while the effort to expand the number of E85 vehicles and pumping sta-tions is commendable, few are convinced that E85 will become more than a niche market. Thus, to accommodate the volumes of etha-nol required under RFS2, the U.S. EPA must be satisfi ed with the results from comprehen-sive testing to determine if any environmen-tal, mechanical or operability issues arise from running legacy vehicles on E15 or E20.

E20 is a new fuel for legacy vehicles. “Under the Clean Air Act, a new fuel like E20 is illegal for use in conventional vehicles, basi-cally guilty until proven innocent,” says Brian West, deputy center director and research and development staff member with ORNL and co-author of this initial intermediate ethanol blends report. Like going to trial court where the U.S. EPA is judge and jury, a convincing

case must be made—one that satisfi es EPA enough to declare the fuel benign with respect to any negative effects on tailpipe emissions, catalyst durability and engine operability and performance.

By and large, the study and subsequent results yielded no great surprises in fuel econ-omy, emissions and catalyst temperatures, ac-cording to Keith Knoll, senior NREL engi-neer and co-author of this report. “We were looking for data and nothing from this jumped out as a big surprise,” he says. Knoll adds that this initial study helped identify certain areas of interest for further investigation—such as how different automaker engine calibrations react to higher blends of ethanol, and in di-rect relation to that, what long-term impacts higher exhaust temperatures have on catalytic converters and emissions.

Vehicle Results: Points of Concern, Future Study

The vehicle fl eet tested in this pilot study consisted of 16 vehicles but testing was com-pleted on 13 of the 16 vehicles. Selection of

INDUSTRY

the makes and models within that fl eet was not random, but rather based on a represen-tative sample of late-model vehicles (2000 to 2007) on U.S. roadways in 2007.

Fuel economy decreased relative to the amount of ethanol in the fuel mix. With E20, the average drop in fuel effi ciency was 7.7 per-cent. “Limited evaluations of fuel with as much as 30 percent ethanol were conducted, and the reduction in miles per gallon continued as a linear trend with increasing ethanol content,” the report states. A drop in fuel economy was fully expected because ethanol has two-thirds the energy density of gasoline on a volumetric basis thanks to its oxygen content.

Most vehicles run under what’s called “closed-loop” operation, where oxygen sen-sors in the exhaust system send information to the vehicle’s computer where it reads the data and adjusts fueling accordingly to get to a stoichiometric fuel/air ratio. However, when vehicles are cold or under high load such as wide-open throttle, they often operate in “open-loop” or power-enrichment mode, of-ten a rich condition where there’s more fuel in the fuel/air mixture. “As you add ethanol

to the fuel, the engine computer has to add fuel to enrich the mixture to compensate for the oxygen that’s in the fuel,” West explains. “It goes hand-in-hand with the fuel economy penalty we saw, so with E20 we expected to

add 7 [percent] to 8 percent extra fuel mass to compensate for the oxygen that’s in the etha-nol to maintain stoichiometric combustion under closed-loop conditions—all the cars did that well.”

Pictured is the exhaust manifold and fi rst catalyst from the Camry test vehicle. Exhaust systems were removed for installation of thermocouples and wide-range oxygen sensors before testing.

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At wide-open throttle, seven of the 13 vehicles tested were found to maintain a con-sistent although not stoichiometric fuel/air equivalence ratio on E20. A true stoichiomet-ric condition is when 100 percent of both the fuel and air are consumed in combustion, leav-ing no excess oxygen or unburned fuel in the exhaust stream. All vehicles used adaptive fuel trim during closed-loop operation to maintain stoichiometry. Seven of the vehicles tested in this study applied this adapted fuel trim to open-loop, power-enrichment operation. The other six vehicles ran leaner during power en-richment on E20 than on E0 gasoline leading to higher exhaust temperatures, which may impact long-term catalyst durability and thus emissions over the vehicles’ full life.

Some vehicles are designed to learn the fuel trim necessary for stoichiometry during closed-loop operation and apply that knowl-edge to open-loop operation. Other vehicles do not do this. West says one of the prevail-ing opinions as to why some vehicles do apply

learned fuel to open-loop operation and some do not is that it takes a lot of engineering man hours to calibrate the controls to accomplish this. “So if automakers don’t need to do this, it could potentially be a waste of effort,” West says. “If the car is designed for E10 or E0, perhaps they don’t need it—if they can meet full useful life emissions standards without do-ing it, then why bother. Some have done it by choice. The ones that don’t apply learned fuel at wide-open throttle run hotter, which makes perfect sense. It’s combustion chemistry.”

Knoll says the automakers use this power enrichment mode, where under high-load con-ditions the vehicle by design runs richer, in order to protect engine components and the catalyst from higher temperatures that result from high-power conditions. “They enrich the mixture and they are allowed by EPA to do that up to 6 percent beyond lean best torque,” Knoll says. “If the [original engine manufac-turers] go beyond that, they need to have spe-cial discussions with EPA as to why they went

further—in order to protect the engine components and emissions control devices. The question is: Do they apply learned fuel in that power enrichment mode?” Findings of this pilot study determined that about half the cars tested do apply it and the other half do not.

The vehicles that did not apply learned fuel with E20 at wide-open throttle ran leaner and hotter, and catalyst temperatures increased up to 35 degrees Celsius higher than when run on straight E0 gas. “That’s probably one of the automakers biggest concerns,” West says. Knoll tells EPM one of the big questions remaining is what are the long-term effects on the catalysts? “A small increase in catalyst temperature has a big impact on reactivity,” he says.

The next step is an 80-vehicle study to investigate long-term catalyst durability and whether a higher cat temperature has any effect on long-term emissions. “The reason that’s a concern is that the manufacturers could be fi ned if their cars are outside their emissions limits at full life, or they could have very expensive warranty repairs—or both,” West says.

The report indicates that regulated tailpipe emissions (nitrogen oxide, hydro-carbons and carbon monoxide) remained largely unaffected by the ethanol content in the fuel. However, increases were observed in formaldehyde and acetaldehyde emis-sions. Formaldehyde emissions are regu-lated by EPA but acetaldehyde emissions are not.

Impact on Small EnginesUnlike some on-road vehicles with so-

phisticated closed-loop operation capabil-ity, small engines generally aren’t equipped to adjust fuel/air ratio and apply long-term fuel trim. Thus, when small engines like those found on chain saws or weed eaters are run on intermediate ethanol blends, they tend to run leaner and therefore hotter. “These open-loop engines are commonly air-cooled, and they customarily operate fuel-rich to achieve cooler combustion temperatures for longevity purposes,” the report states. “With a fi xed fueling calibra-tion, as ethanol content in the fuel increas-

INDUSTRY


wherein it takes time to dissipate those effects from greater ethanol concentration in the fuel mix.”

It is also important to note this pilot study on intermediate blends used splash-blended fuels as opposed to match-blended fuels. West says “match-blended” means the fuels are carefully blended to try to match vapor pres-sure and octane levels with like fuels, where hydrocarbon content and fuel speciation are closely monitored. In essence, though, splash-blended fuels were used initially because it was quicker to obtain the fuels, and researchers wanted to get started testing. “Future projects will use match-blended fuels when warranted,” West says, while the 80-vehicle long-term cata-lyst durability program now underway is using splash-blends for expediency and cost. “Com-paring fuel A to fuel B at zero test miles or 50,000 test miles, having splash-blends should not affect the results.”

The emissions testing protocol was the LA92 or “unifi ed cycle,” which is an inventory

emissions cycle test used in California and in EPA’s EPAct study. “Auto engineers say the LA92 is more representative of how people drive compared with the [Federal Test Proce-dure],” Knoll says. “And the wide-open throttle protocol was from an earlier program and we modifi ed it slightly with input from CRC.”

West and Knoll stress not to read too much into the preliminary results from this pilot study. “Although the results to date are encouraging, this was a small sample, and part of a much larger program,” Knoll says. EPM will continue to follow the efforts of this im-portant research. “We’ll know a lot more in a year,” West says. “Will we know enough? I don’t know. That will be up to the EPA to de-cide.” EP

Ron Kotrba is an Ethanol Producer Magazine senior writer. He can be reached at [email protected] or (701) 738-4942.

es, combustion becomes leaner, leading to higher combustion temperatures and higher component temperatures, as well as changes in emissions and sometimes idle speed.”

Twenty-eight small nonroad engines were tested for this report. “There was certainly concern that the higher ethanol blends might shorten the lives of those small engines,” West says. “But it’s fair to say these were accelerated aging tests. We put full life hours, for example 125-hours, 300-hours or 500-hours life, on the engines in a short period of time. Running an en-gine to its full-life hours over a few months during ‘aging’ is not the same as letting it sit in your shed for fi ve years, so there’s more work to be done here before small engine makers would accept higher blends of etha-nol.”

The effect on small engine emissions was fairly expected. Nitrogen oxide (NOx) emissions increased as a direct result of the increased combustion temperatures from running leaner with higher concentrations of oxygen-rich ethanol. Hydrocarbons and carbon monoxide emissions in general went down. In most cases, regulated hydrocarbon plus NOx emissions decreased slightly, but West says, “Hydrocarbons plus NOx didn’t change much because of the counteract-ing relationship between hydrocarbons and NOx.”

Additional InformationThe Coordinating Research Council, a

consortium of automakers, auto engineers and petroleum interests, has also conducted several studies on legacy vehicles with E15 and E20. CRC Report No. 652 concluded that, from the testing of six legacy vehicles, it found no signifi cant effect on fuel type or vapor pressure on drivability. Knoll says as DOE’s effort to better characterize inter-mediate ethanol blends in legacy vehicles continues, he hopes to involve the CRC and its plethora of related studies to de-fi nitively pinpoint evaporative and perme-ation emissions with legacy vehicles. “Per-meation emissions are long-term effects, it takes a while for ethanol concentrations in fuel to affect permeation emissions,” Knoll says. “It’s what’s called the hangover effect

INDUSTRY


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ENVIRONMENT

SUSTAINABILITYScientists weigh in on sustainable biofuels production including how to best manage cropping systems and establish an incentive program that awards environmentally responsible biofuels development.

By Jessica Ebert


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A conference conceived by Dale Brockway of the USDA Forest Ser-vice and shepherded by

the conference co-chairs William Parton, an ecologist at Colorado State University, and Richard Pouyat with the USDA Forest Service, took more than a year to plan. Parton and Pouyat are members of the Ecologi-cal Society of America, which orga-nized the event and brought more than 300 people to the Ronald Rea-gan Building and International Trade Center in Washington, D.C. For one day, speakers representing various government agencies, ethanol pro-ducers and academic researchers, presented their views on the envi-ronmental benefits—and costs—of biofuels production.

“From the beginning we want-ed to promote a thoughtful dis-cussion about the environmental implications of biofuels,” explains Clifford Duke, the director of sci-ence programs for the ESA. “But when we started planning the con-ference we weren’t sure if the is-sue would remain salient over the roughly year and a half we thought it would take to do the planning for the conference.” Then, about two weeks before the conference, which was held on March 10, two papers were published in the journal Science that raised concerns about the car-bon debt that could potentially be linked to biofuels production.

The ESA’s Ecological Dimen-sions of Biofuels conference pro-vided a timely forum for discussing

The Ecological Society of Ameri-ca, with more than 10,000 members, is the largest society of professional ecologists in the world. The organiza-tion was founded in 1915 to improve communication among ecologists, improve the communication of eco-logical science to the public, and to enhance the communication between the ecological community and envi-ronmental decision makers including policymakers. It was this latter mis-sion that prompted the ESA to orga-nize the Ecological Dimensions of Biofuels conference. The goal of the conference was to address the follow-ing six questions about the state of the science surrounding biofuels sustain-ability:

What is known about oppor-tunities for sustainable production of biofuels, including crop selection, farming practices, feedstock transpor-tation and refi nery location?

What management strategies would best sustain important ecologi-cal services while increasing biofuel production?

What are the implications of biofuel production for water quality and landscape dynamics relative to

other land uses such as food and fi ber production or wildlife conservation?

What are the key knowledge gaps that need to be addressed so that policymakers, environmental managers and producers are able to support environmentally sustainable biofuel production?

What are the potential affects of biofuel production on landscapes that are both managed and relatively un-managed, including intensively farmed areas, rangelands, natural grasslands and forests?

What emerging technologies may reduce or mitigate adverse im-pacts of biofuel production?

Conference attendees heard pre-sentations on topics ranging from the environmental impact of biofuel crop-ping systems; developing sustainable biorefi neries; biofuels and water qual-ity; the biogeochemistry of bioenergy landscapes; interactions between biofuel choices and land use; and biofuels and biodiversity. The confer-ence program, downloadable speaker presentations and poster presenta-tions can be found at www.esa.org/biofuels/.

Ecological Dimensions of Biofuels


This, however, is not the way it needs to be, these scientists write. In the bulk of their paper, these experts in soil and water quality and agricultural systems and economics explain that these im-pacts can be reversed or at the very least lessened. They explain how the adoption of best management practices and the development of sustainable incentive programs can soften the environmental impacts of grain-based ethanol produc-tion and strengthen the potential posi-tive attributes of cellulosic biofuels.

“Sustainable biofuel production systems could play a highly positive role in mitigating climate change, enhancing environmental quality and strengthen-ing the global economy, but it will take sound, science-based policy and addi-tional research effort to make this so,” the researchers write. “Decision mak-ers at all levels need to understand that applying best available practices to bio-fuel crop production will have positive impacts both on the sustainability of our working lands and on providing a

the sustainability of biofuels produc-tion systems and the means by which biofuels industries, particularly the emerging cellulosic ethanol industry, can grow and prosper while promot-ing environmental stewardship. The one-day event was followed by a two-day workshop where 50 scientists, including ecologists, soil scientists, economists, water quality experts, botanists and microbiologists, were invited to discuss the issues that emerged from the conference. These workshop discussions culminated in a policy paper that was recently pub-lished in the journal Science.

In that paper, 23 of the work-shop participants explained how the explosion of grain-based biofuels production systems and convention-al management practices has caused environmental harm, including in-creased soil erosion, loss of biodi-versity, and the leaching of fertilizer nutrients such as nitrogen and phos-phorus from soil to ground and sur-face waters. These effects stem from policies that promote action before the consideration of consequences. The authors point out that the 2007 mandate for 36 billion gallons of re-newable fuels by 2022 and the sub-sidies for both refiners and growers as stipulated in the 2008 Farm Bill will encourage the same acceleration and adoption of production systems before the environmental impacts of these systems are properly vetted.

For example, “To get maximal yield, farmers may apply maximum amounts of fertilizer, which can ex-acerbate a nutrient-loss problem,” says Andrew Sharpley, a water qual-ity researcher at the University of Arkansas and a contributor to the Science paper. “The crop may not be grown on lands that are most suited to it. These policies may encourage a shift away from rotating crops to a monoculture,” he says, and there is a potential for increased use of water. “All of this could impact the qual-ity and quantity of water in the long run.”

ENVIRONMENT

long-term place for biofuels in our re-newable energy portfolio, and that the policies necessary to ensure this out-come are not currently in place.”

Incentives for Best Management

So what practices should be used and what policies are needed to ensure environmental sustainability in the face of accelerated biofuels production? At the farm level, the authors outline best-management practices that build healthy soils, promote water quality and increase biodiversity. The use of no-till farming, advanced fertilizer technologies and cov-er crops, for example, can slow erosion and capture nutrients thereby preventing runoff into nearby waterways or ground water. Creating patchworks of land char-acterized by mixtures of crops, grasses, shrubs and areas of unmanaged habitat can increase the presence of pollinators, benefi cial insects and wildlife, Sharpley explains.

In addition, the improvement of crops through genetic manipulation or classical selection can increase the stress tolerance of these plants or reduce the need for pesticides. The biggest benefi ts, however, may come from the develop-ment of cellulosic feedstocks. Many of these will be perennial crops that, once established, require little if any chemi-cal inputs or tillage. These feedstocks are also better suited to being raised among a mixture of species.

Although the environmental benefi ts of these best-management strategies are known, the adoption process is slow at best. “If we’re going to expand agricul-ture for biofuels and use more agricultural lands, we need to do that in the right way and use the best-management practices we have,” Parton says. “We need to fi nd policies to do that.” Therefore, at the gov-ernment level, a program that rewards environmentally conscious growers and producers should be established, the au-thors write. An incentive program like this would award subsidies when certain per-formance standards were met. These stan-dards would likely be regionally based and could include the use of best-management practices and measures of greenhouse gas emissions, water quality and soil erosion. This kind of incentive program could be modeled after the organic food certifi ca-tion program where canners or processors have to make sure that their suppliers have met certain standards and the products are truly organic.

“It means that you don’t have police-men out there,” explains Otto Doering, an agricultural economist at Purdue Universi-ty. “It means that the processing plant that buys the materials has to make sure the grower of the cellulosic material is doing the right thing. You don’t have big govern-ment regulation. It’s built into the market system.”

Sharpley, a water quality expert at the University of Arkansas, says that the policy forum published in the journal Science will initiate a discourse about sustainable solutions to biofuels development.

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Environmental Systems

Switchgrass (Panicum virgatum), a prairie grass native to North America, has been used in the United States for conservation plantings and cattle feed. Its biofuel potential stems from its wide adaptability and high yields, the relatively low level of inputs required for biofuel production and conversion, and its ability to sequester carbon in soils for extended periods.

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be published in the society’s peer-reviewed journal Ecological Applications. The ESA is also working with the Energy Founda-tion, a partnership of major donors that provides grants to institutions working to advance energy effi ciency and renewable energy, to publish fi ve reports on biofuels sustainability, which will be written for the public and will be produced as part of the ESA’s “Issues in Ecology” series, accord-ing to Duke.

In addition, Parton is working through the ESA to organize an international con-

ference on biofuels sustainability. “The Science paper refl ects what the science community is concerned about and that we need to do something ahead of time,” Parton explains. “It’s an interesting and global science question. We know what we should be doing. We’re just not doing it.” EP

Jessica Ebert is a freelance writer for Ethanol Producer Magazine. Reach her at [email protected].

The U.S. EPA has the perfect op-portunity to make something like this happen. Under the 2007 Energy In-dependence & Security Act, the EPA must certify that any ethanol produc-tion, beyond the 15 billion gallons that’s already being produced or that will be produced at plants under construction, meets certain greenhouse gas emission requirements. “What we’re saying is that we shouldn’t just think of green-house gas standards, we should put it in a broader framework for good environ-mental stewardship,” Doering says.

The fi rst step toward such a frame-work was taken with the publication of the Science paper, which its authors in-tended to be a springboard for greater dialogue. The ESA is planning to follow this up with the publication of several science-based manuscripts from the conference speakers. These papers will

ENVIRONMENT


A Tradition of Industry Education

For 28 years, The Alcohol School has beeneducating fuel ethanol and distilled beverageproducers in the science of alcohol production.The weeklong programme in Toulouse, France,is designed for lab, plant, and managementpersonnel and is organized around a series of lectures and laboratory demonstrations presented by a faculty of academic, industryand Ethanol Technology Institute experts.

The programme will cover the process ofethanol and beverage alcohol production frommilling and mash preparation through fermen-tation and distillation. Enzyme usage, yeastbiology, bacterial contamination and controlwill also be discussed along with other issuescurrently affecting both industries.

Registration is limited, with preference given to fuel ethanol and distilled beverageproducers.

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EVENTSCALENDAR

National Ethanol Conference Feb. 23-25, 2009

San Antonio Convention CenterSan Antonio

In addition to Renewable Fuels Association President Bob Dinneen’s State of the Industry Address, panel discussions at this 14th annual event will focus on midlevel ethanol blends and cellulosic ethanol commercialization, and include the annual Washington Insiders’ Roundtable. Other topics will include life-cycle greenhouse gas emissions, infrastructure, retailing and an in-ternational outlook, among many others.

(202) 289-3835www.ethanolrfa.org

Renewable Energy Technology Conference

& ExhibitionFeb. 25-27, 2009

Las Vegas Convention CenterLas Vegas

This event will include a business conference, trade show and several side events. The busi-ness conference will address the status and out-look of renewable energy. One breakout session in particular will focus on biomass and biofuels. It will address sustainability, feedstocks, fi nancing, ethanol production technology, a global market outlook, engines and fueling stations, and next-generation facilities.

(805) 290-1338www.retech2009.com

Canadian Renewable Energy WorkshopMarch 10-12, 2009

Regina Inn Hotel and Conference CenterRegina, Saskatchewan

This second conference facilitates the continued development of Canada’s renewable energy in-dustry. Confi rmed speakers include Gord Quaiat-tini, president of the Canadian Renewable Fuels Association; Jeff Passmore, executive vice presi-dent of Iogen Corp.; and Stu Porter, manager of business development for BBI Biofuels Canada, among many others. A complete agenda will be available as the event approaches.

(888) 501-0224www.crew2009.com

The Future of BiofuelsApril 4-8, 2009

Snowbird ResortSnowbird, Utah

The goal of this meeting will be to share a broad perspective defi ning the critical needs for biofuels and to highlight cutting-edge research and devel-opment efforts that are defi ning the next genera-tion of biofuel product and process advances. This event will bring together a broad spectrum of core experts to better enable and advance bio-fuel research efforts globally.

(800) 253-0685www.keystonesymposia.org

Alternative Fuels & Vehicles National Conference + Expo

April 19-22, 2009Walt Disney World Swan and Dolphin Resort

Orlando, Fla.

This 14th annual event will represent all fuels, vehicles and technologies that provide an alter-native to petroleum, including ethanol. Precon-ference sessions will address biofuels blends, government funding and incentives, and how to convert vehicles to run on alternative fuels. Breakout sessions will focus on local and state policies, and U.S. EPA regulations. There will also be a ride-and-drive event, industry tours, and niche market workshops focusing on govern-ment fl eets, school buses, airports, transit and goods movement.

(702) 254-4180www.afv2009.com

Advanced Biofuels Development Summit

April 20-21, 2009Marriott at Metro Center

Washington, D.C.

This event will bring together leaders of scientifi c innovations in advanced biofuels development. Topics will include business models and strate-gies, emerging feedstocks and process tech-nologies, public policy, fi nancing, alliances and public-private partnerships, and international bio-fuels development. An agenda will be available as the event approaches.

(781) 972-1346www.biofuels-summit.com


91

World Biofuels MarketsMarch 16-18, 2009

Brussels Expo CentreBrussels, Belgium

This is one of the largest biofuels events in Eu-rope and a key meeting place for industry experts looking to share best practices and attract new clients. Agenda topics will include conventional and cellulosic ethanol; international ethanol mar-kets such as Asia, Brazil and Africa; infrastruc-ture; and use.

+44 20 7099 0600www.worldbiofuelsmarkets.com

African BiofuelsMarch 30-April 2, 2009

Vodaworld Event CenterJohannesburg, South Africa

This fourth annual conference will focus on vari-ous biofuels, including ethanol, and the move-ment toward second-generation biofuels. Through speakers, panel and open fl oor discussions, mini workshops, and case studies, the agenda offers information about ethanol production, effi ciency, risk management, technology, funding and eco-nomics, and legislation. The status of the ethanol industry in Africa and around the world will also be discussed via international case studies fo-cusing on Sweden, Brazil, China and India.

(011) 771-7000www.africanbiofuels.co.za

The Alcohol School 2009March 30-April 3, 2009

Toulouse, France

This week-long course will educate fuel-ethanol and distilled beverage producers in the science of alcohol production. The program will cover the ethanol production process from milling and mash preparation through fermentation and distillation. Enzyme usage, yeast biology, and bacterial contamination and control will also be discussed, along with other issues currently af-fecting both industries. Registration is limited, with preference given to fuel-ethanol and distilled beverage producers.

(800) 583-6484 www.ethanoltech.com

Biomass Conference & ExpoApril 28-30, 2009 Oregon Convention Center

Portland, Ore.

This event, sponsored by BBI International Inc., will address the latest technologies and business considerations for bioenergy projects, including biofuels. Breakout session topics will include cel-lulosic ethanol; feedstocks such as ag residues, wood waste and municipal solid waste; project fi nance; and permitting and project implementa-tion. Attendees will also be able to tour the Cor-nelius Summit Foods ethanol plant.

(701) 746-8385www.biomassconference.com

International Fuel Ethanol Workshop & ExpoJune 15-18, 2009

Denver Convention CenterDenver

This will mark the 25th anniversary of the world’s largest ethanol conference, which was recently recognized by Trade Show Week magazine as one of the fastest-growing events in the United States for the second consecutive year. The event will address conventional ethanol, next-generation ethanol and biomass. More details will be available as the event approaches.

(701) 746-8385www.2009few.com

Ethanol Conference & Trade Show

Aug. 11-13, 2009Milwaukee

The American Coalition for Ethanol’s 22nd annual conference will highlight public policy, technology and education in regard to the ethanol industry, among many other topics. A more detailed agen-da will be available as the event approaches.

(605) 334-3381www.ethanol.org

91ETHANOL PRODUCER MAGAZINE FEBRUARY 2009


EPM MARKETPLACE

Ag Products & ServicesGrain Origination Services

Agnetic, LLC317-696-2824 blog.agnetic.com

Hybrid Corn

Pioneer Hi-Bred International, Inc.800-247-6803 www.pioneer.com

Associations/OrganizationsTrade

API Credit Exchange202-682-8192 www.api.org/ace

ChemicalsPhibroChem 800-223-0434m www.lactrol.com

Anti-Microbial

Ferm Solutions859-402-8707 www.ferm-solutions.com

Lallemand Ethanol Technology800-583-6484 www.ethanoltech.com

PhibroChem 800-223-0434 www.lactrol.com

Water Treatment

Fremont Industries Inc.952-445-4121 www.fremontind.com

Yeast

Ferm Solutions859-402-8707 www.ferm-solutions.com

Fermentis-Division of SI Lesaffre800-558-7279 www.fermentis.com

Lallemand Ethanol Technology800-583-6484 www.ethanoltech.com

CleaningDryer Systems

Hydro-Klean, Inc.515-283-0500 www.hydro-klean.com

Seneca Waste Solutions800-369-5500 www.senecaco.com

Ductwork


Emergency Spill Response



Evaporators


Fans


Filter Media


Heat Exchanger



Hydro-Blasting


Plate─Frame


Railcar Spill Response


Railcars


Inland Waters313-841-5800 www.inlandwaters.com

Scrubbers


Smoke Stack


Tank Cleaning Services


Professional Environmental Cleaning Services402-212-0949 www.professionalECS.com

Stabilized Liquid Yeast,Thermosacc,® Superstart™

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With all contact information placed in

one convenient location, Ethanol Pro-

ducer Magazine not only contains top

editorial content but also a useful di-

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a fi rst-time advertiser wanting to raise

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ConstructionBuildings─Modular

Fabrication

Macomber Welding & Fabricating, Inc.616-698-0819 www.macomberwelding.com

W. Soule & Company1-877-976-8531 www.wsoule.com

Insulation

Miller Insulation Co, Inc.701-258-4323 www.millerinsulation.com

Mechanical

Mid-States Mechanical Services, Inc.800-950-0279 www.mid-statesmechanical.com

Plant Construction

CYC Construction402-333-1652 www.cycconstruction.com

Railroad Tracks

R & R Contracting, Inc.800-872-5975 www.rrcontracting.net

Railworks913-888-4091 www.railworks.com

Tanks

Caldwell Tanks502-964-3361 www.caldwelltanks.com

ConsultingEnvironmental

Air Resource Specialists,Inc.970-484-7941 www.air-resource.com

Inland Waters313-841-5800 www.inlandwaters.com

Natural Resource Group, LLC.612-347-6789 www.nrg-llc.com

Pinnacle Engineering Inc.507-280-5966 www.pineng.com


Reach your customers

Your Solution. Advertise Today.

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JIC JOULÉ Industrial Contractors

OVER 40 YEARS OF PROVIDING QUALITY COST EFFECTIVE SOLUTIONS TO THE INDUSTRIAL INDUSTRY.

We provide:• Experienced Supervision• Multi-craft Staff• Logistical SupportFor:• Plant Outages• Plant Construction and Expansion• Relocations• Capital Projects• On and off site pipe FabricationTo:• Ethanol and Alternative Fuel Plants• Pharmaceutical Manufacturers• Food Plants• Building Material Facilities

Toll Free: (800) [email protected]

JIC


EPM MARKETPLACE

Management Services

Greenway Consulting,LLC320-589-3085 www.greenwayconsulting.net

Personnel Recruiting

SearchPath of Chicago815-261-4403 www.searchpath.com/chicago

Plant Optimization

Granatus Consulting, Inc.218-773-0005 www.granatusinc.com

EducationIowa BioDevelopment641-969-4167 www.iabiodevelopment.com

Iowa Biofuels Training International641-969-4167 www.biofuelstraining.org

Iowa Lakes Community College800-242-5108 www.iowalakes.edu

EmploymentRecruiting

SearchPath of Chicago815-261-4403 www.searchpath.com/chicago

The Richmond Group USA - BioEnergy Search Division804-285-2071 www.trgbioenergy.com

EngineeringProcess Design

Vogelbusch USA, Inc.713-461-7374 www.vogelbusch.com

Equipment & ServicesAgitation Equipment

ProQuip, Inc.330-468-1850 www.proquipinc.com

Analytical Instruments

Perten Instruments, Inc.801-936-8165 www.perten.com

Blowers & Fans

FlaktWoods716-845-0900 www.fl aktwoods.com

Boiler Systems

Rentech Boiler Systems, Inc.325-794-5701 www.rentechboilers.com

Boilers─Reboilers

Wabash Power Equipment CO.847-541-5600 www.wabashpower.com

Centrifuge Repair

Centrifuges

Cooper Equipment281-494-7400 www.coopequip.com

Combustion Equipment

Eclipse.Inc.815-637-7213 www.eclipsenet.com

Computer Software

dbc SMARTsoftware, Inc.770-427-7633 www.dbcsmartsoftware.com

Control Systems

FeedForward, Inc.770-426-4422 www.feedforward.com

SoftPLC Corporation512-264-8390 www.softplc.com

Control Systems-Distributed

Cooling Towers

Delta Cooling Towers, Inc.800-BUY-DELTA www.deltacooling.com

Dryers─Fluid Bed

Littleford Day, Inc.859-525-7600 www.littleford.com

Dryers─Ring

Barr-Rosin,Inc630-659-3980 www.barr-rosin.com

Dryers─Rotary Drum

Barr-Rosin,Inc.630-659-3980 www.barr-rosin.com

Ronning Engineering Company, Inc.913-239-8118 www.ronningengineering.com

Emission Monitoring Systems

MonitorTech Corp.866-682-6771 www.monitortechgrp.com

Continuous Emissions Monitoring SystemsEasiest installation, operation and maintenance

Meet or exceeds EPA requirementsNOx, O2, CO, SO2 and others

Turnkey systems for under $100,000.00P.O. Box 9271, Columbus, Oh 43209

866-682-6771 [email protected]


EPM MARKETPLACE

Fermentation Monitoring

ETS Laboratories707-963-4806 www.etslabs.com

Filtration Equipment

Fluid Engineering814-453-5014 www.fl uideng.com

Fractionation─Corn

Buhler Inc.763-847-9900 www.buhlergroup.com/us

Cereal Process Technologies217-779-2595 www.cerealprocess.com

FWS Technologies204-487-2500 www.fwsgroup.com

Heat Exchangers

Custom Metalcraft Inc.417-862-0707 www.custom-metalcraft.com

Munters - Des Champs Products540-291-1111 www.deschamps.com

Instrumentation

Endress+Hauser 317-535-2174 www.us.endress.com


Process Sensors Corp.508-473-9901 www.processsensors.com

WIKA Instrument Corporation888-945-2872, x5127 www.wika.com

Insulator

Industrial Construction & Engineering636-970-1650 www.ic-e.cc

Laboratory─Equipment


Laboratory─Outsourcing

SGS North America Inc. 281-479-7170 www.sgs.com/alternativefuels

Laboratory─Testing Services

Midwest Laboratories, Inc.402-829-9877 www.midwestlabs.com

Romer Labs, Inc.636-583-8600 www.romerlabs.com

Trilogy Analytical Laboratory636-239-1521 www.trilogylab.com

Loading Equipment

Hemco Industries, Inc.877-347-7106 www.hemcocpm.com

SafeRack866-761-7225 www.saferack.com

Maintenance Services

Joule’ Industrial [email protected] www.jouleinc.com

Maintenance Software

Mapcon Technologies, Inc.800-922-4336 www.mapcon.com

Mills─Hammer

CPM/Roskamp Champion800-366-2563 www.cpmroskamp.com

Mixers

KINEMATICA, INC.631-750-6653 www.kinematica-inc.com

Moisture Analyzers


Sartorius Mechatronies-Omnimark800-835-3211 www.sartorius-omnimark.com

Molecular Sieves

Vaperma, Inc.418-839-6989 www.vaperma.com

Zeochem, LLC502-634-7600 www.zeochem.com

Motors

Trico TCWind, Incorporated320-693-6200 www.tricotcwind.com

Paint & Protective Coatings

Mongan / Bockman 260-748-7655 www.monganbockman.com

Pipe

Robert-James Sales, Inc.800-666-0088 www.rjsales.com

Pipe-Fittings


Pipe─Flanges


Pressure & Temperature

WIKA Instrument Corporation888-945-2872, x5127 www.wika.com

Pumps

ITT Industries Goulds Pumps315-568-2811 www.gouldspumps.com

Watson-Marlow Bredel Pumps800-282-8823 www.watson-marlow.com

QA Test Products


Resource Recovery

Eco-Tec, Inc.905-427-0077 www.eco-tec.com

Seals

Aesseal Inc.865-531-0192 www.aesseal.com

Utex Industries, Inc.432-333-4151/800-873-0946 www.utexind.com

Separation Equipment


Storage─DDGS

Laidig Systems, Inc.574-256-0204 www.laidig.com

Structural Fabrication

Cherokee Steel Fabricators, Inc.903-759-3844 www.cherokeesteelfabricators.com

Tanks

CMC Letco Industries417-831-1528 www.cmc-letco.com

Federal Equipment Company800-652-2466 www.fedequip.com

Reach your customers


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Paragon Trailer Sales800-471-8769 www.paragontrailer.com

Thermal Energy

American Waste Removal505-417-9933 www.americanwasteremoval.com

Used Equipment

Equipment & Services-Valves

North American Safety Valve800-800-8882 www.nasvi.com

Wastewater Treatment Services

Biothane Corporation856-541-3500x501 www.biothane.com


Water Treatment

Aquatech International Corporation724-746-5300 www.aquatech.com


Ethanol ProductionExisting Producers

Louis Dreyfus Commodities402-844-2680 LDCommodities.com

POET LLC605-965-2200 www.poetenergy.com

FinanceAccounting

Christianson & Associates PLLP320-235-5937 www.christiansoncpa.com

Kennedy and Coe, LLC800-303-3241 www.kcoe.com

Mergers & Acquisitions

Kent Group, Inc.715-358-7528 www.kentgroupinc.com

Risk Management

First Capitol Risk Management800-884-8290 www.fi rstcapitolrm.com

R.J. O’Brien800-621-0757 www.rjobrien.com

Legal ServicesAttorneys

Faegre & Benson, LLP612-766-6930 www.faegre.com

Stoel Rives LLP612-373-8800 www.stoel.com/biofuels

MarketingFuel Ethanol

Atlas Renewable Energy, LLC800-884-8290 www.atlasenergyllc.com

TransportationRail Ties

Thompson Industries, Inc.317-859-8725 www.thompsonindustries.net

Railcar Moving

Shuttlewagon, Inc.816-767-0300 www.shuttlewagon.com

UtilitiesUtility

Integrys Energy Services608-235-2547 www.integrysenergy.com

EPM MARKETPLACE

With all contact information placed

in one convenient location, Ethanol

Producer Magazine not only con-

tains top editorial content but also

a useful directory in each publica-

tion. Whether a fi rst-time adver-

tiser wanting to raise awareness

of your business or a frequent dis-

play advertiser looking for added

exposure, EPM Marketplace is the

perfect solution.

Your Ad HERE


EPM MARKETPLACE


EPM MARKETPLACE

Biomass Magazine is a trade journal serving companies that use and/or produce power, fuels and chemical feedstocks derived from biomass. Collectively, these biomass utilization industries are positioned to replace nearly every product made from fossil fuels with those derived from plant or waste material. The publication covers a wide array of issues on the leading edge of biomass utilization technologies, from biorefining, dedicated energy crops and cellulosic ethanol to decentralized power, anaerobic digestion and gasification. It’s all here.

www.BiomassMagazine.com

For additional informationplease contact us at (701) 746-8385 or at [email protected]

www.rjsales.com

Buffalo, NY 800-666-0088Cleveland, OH 800-777-0820Cincinnati, OH 800-777-2260Chicago, IL 800-777-2008Cranbury, NJ 800-777-1858

Indianapolis, IN 800-777-0510Minneapolis, MN 800-777-1355Raleigh, NC 866-493-8834Tavernier, FL 305-852-1694

Robert-James Sales is your #1 source for stainless PIPE, FITTINGSand FLANGES up to 36" in Sch 5,10 and 40. We also carry 2205 duplex through 24".

Free Product CDContact the Robert-James Sales location nearest you and ask for a free copy of ourcomprehensive, up-to-date CD. It outlinesour stainless product line including referencecharts, graphs and tables to help you calculate what your processing plant needs.

poet.com

Documents

February 2009 Ethanol Producer Magazine