APRIL 2022
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Connected Carbon Capture Visions Take Shape PAGE 26
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Contents
12
20
PHOTO: PHIBRO
PHOTO: SRS
26
PHOTO: STOCK
APRIL 2022 VOLUME 28 ISSUE 4
DEPARTMENTS 4
AD INDEX/EVENTS CALENDAR
6
EDITOR'S NOTE More Lining Up for Carbon Capture
FEATURES 12 PROCESS
Antimicrobials 101 How ethanol plants beat down bacteria By Katie Schroeder
By Tom Bryan
8
VIEW FROM THE HILL Ethanol: The Best Cure for Pain at the Pump
20
GLOBAL SCENE Team Ethanol on a Marathon By Leticia Phillips
10
BUSINESS BRIEFS
35
MARKETPLACE
Business of Good Health A rural enterprise born from ethanol offshoots
By Geoff Cooper
9
INNOVATION
By Susanne Retka Schill
26
PROJECTS
Ethanol’s New Ground Game Multiple carbon dioxide pipeline plans take shape By Katie Schroeder
SPOTLIGHT 32 SUMMIT CARBON SOLUTIONS
ON THE COVER The construction activity pictured on the cover is a natural gas pipeline project unrelated to the U.S. ethanol plant carbon capture and sequestration pipelines currently proposed. The image is intended to illustrate the scale and analogous rural path of the planned carbon dioxide pipelines being developed in partnership with dozens of U.S. ethanol plants and other ag enterprises. PHOTO: STOCK
Rising through Partnership By Summit Agricultural Group
Ethanol Producer Magazine: (USPS No. 023-974) April 2022, Vol. 28, Issue 4. Ethanol Producer Magazine is published monthly by BBI International. Principal Office: 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. Periodicals Postage Paid at Grand Forks, North Dakota and additional mailing offices. POSTMASTER: Send address changes to Ethanol Producer Magazine/Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, North Dakota 58203.
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Editor's Note
More Lining Up for Carbon Capture At press time in early March, a huge announcement related to our cover piece—“Ethanol’s New Ground Game,” on page 26—added some unexpected zip to our story on CO2 pipeline developments in ethanol country. Continental Resources, an oil exploration company known for its fracking prowess in North Dakota’s Bakken formation, made a $250 million commitment to Summit Carbon Solutions’ proposed pipeline intended to connect 31 ethanol plants across five states. As the story explains, the CO2 from these plants will be sent to central North Dakota for safe, permanent storage in deep geologic reservoirs— formations Continental knows well and can help assess. The fact that Summit has investors in both biofuels and oil speaks to the historic opportunity of carbon capture and sequestration. Several ethanol plants participating in Summit’s pipeline are also investing in it, not just hoping CCS lowers their fuel’s carbon intensity—and boosts its value—but betting big on the profitability of the venture. Meanwhile, two other CO2 pipeline developers, Navigator CO2 and Wolf Carbon Solutions—each partnered with multi-plant ethanol producers—are also making progress, building partnerships and, like Summit, seeking approvals from landowners along their paths. The latter challenge, while a little vexing, can be overcome. An industry colleague recently sent me a graphic that illustrates where future carbon intensity reductions from ethanol plants are most likely to come. The top categories are carbon capture and increased efficiency (of all kinds). So, while our page-12 story on antimicrobials may seem miles removed from the development of CO2 pipelines, both articles reflect on the industry’s net-zero emissions quest. “Antimicrobials 101” serves as an essential brush up on why and how antibiotics and natural hop extracts, coupled with good CIP and monitoring practices, are used to stifle and fight off bacteria. Ultimately, bacterial prevention is about achieving the best possible fermentation yield, which, of course, is paramount to efficiency. For Harvest Fuels, the company profiled in our page-20 story, it's not ethanol yield being pursued, but the food and feed products fermentation can render. “Business of Good Health” tells the story of a Walhalla, North Dakota, company that has made cattle feed supplements from ethanol coproducts—DDGS and CDS—but transitioned to products made by gently fermenting a mixture of wheat, flax, oats and barley to produce a direct-fed microbial for cattle and horses. Later, the company began making similar products for human consumption. The story is a departure from our usual coverage, but the company’s journey of diversification—and its connection to past and present ethanol plants—make it a good read. Enjoy.
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View from the Hill
Ethanol: The Best Cure for Pain at the Pump
Geoff Cooper
President and CEO Renewable Fuels Association 202.289.3835
gcooper@ethanolrfa.org
Resurgent global demand, sluggish output, supply chain woes and geopolitical tensions pushed crude oil prices to a seven-year high in 2021. Not surprisingly, retail gas prices also hit a seven-year high, and the average American household spent nearly $1,000 more for gasoline in 2021 than it did in 2020. Prices have continued to rise so far in 2022, with oil prices topping $110 per barrel in February and average retail gas prices hitting $3.50 a gallon. American consumers, who are currently facing the highest energy price inflation since 2008, are feeling more pain at the pump with each fill-up. All of this reminds us of an inconvenient reality: We cannot frack our way to low gas prices and energy security. Whether we like it or not, pump prices here in America continue to be shaped by the whims of OPEC and geopolitical events—like the current situation in Ukraine. Clearly, increased production of crude oil alone in the United States is not enough to insulate American consumers from price shocks and volatility at the pump. In February, President Biden said, “I’m going to work like the devil to bring gas prices down.” But so far, the administration’s efforts to put a lid on gas prices simply haven’t worked. They have called upon OPEC to increase the global supply of crude oil; they have called for investigations into potential anticonsumer behavior by oil companies; they have released oil from the strategic petroleum reserve; and, now, they are looking at suspending the federal gas tax, which pays for maintenance and improvements for our nation’s roads and bridges. Still, crude oil prices continue to rise, and high gas prices continue to bedevil the administration. On numerous occasions in recent months, RFA has reminded the White House that it is overlooking a key opportunity to immediately provide relief at the pump for American consumers. Allowing retailers to sell higher blends of low-cost ethanol—like E15—would instantly help moderate prices at the pump. The proof is in the pudding. Today, fuel blenders can buy a gallon of ethanol for about 50 cents less than a gallon of gasoline. At retail, E15 is typically priced 5 to 15 cents per gallon below E10, and we’ve seen that discount as large as 20 to 25 cents in some places in recent weeks. Simply replacing E10 with E15 would reduce our nation’s spending on gasoline by about $15 billion, saving the average American household $125 on its annual gasoline bill. Ethanol already has a proven track record when it comes to saving consumers money. In recent years, ethanol’s low cost, its octane value, and its ability to extend fuel supplies have decreased retail gas prices by an average of 22 cents per gallon, according to a study by a former Yale University economist and advisor to two past presidents. Make no mistake, the quickest way to lower gas prices would be to restore the ability of retailers to sell E15 year-round and allow them to do it through existing equipment. The Biden administration could make that happen with little more than the stroke of a pen, and RFA will continue to encourage them to pursue this commonsense strategy for reducing consumer fuel prices in the near term.
8 | ETHANOL PRODUCER MAGAZINE | APRIL 2022
Global Scene
Team Ethanol on a Marathon
Leticia Phillips
North American Representative Brazilian Sugarcane Industry Association, UNICA 202.506.5299
leticia@unica.com.br
I write this column days after attending the 2022 National Ethanol Conference in New Orleans, where industry leaders, environmentalists and policymakers came together to “zero in on new opportunities” and discuss ways to make a low-carbon future a reality. The Brazilian Sugarcane Industry Association (UNICA) was honored to be part of the conference and bring the perspective of Latin America and the Southern Hemisphere into a conversation that has worldwide implications. The world cannot transition away from fossil fuels without ethanol and other emerging biofuel technologies. At the same time, our industry needs to have a long-term strategic view when all signs point to a future dominated by electric vehicles, as this road will be long and challenging. That was the theme of UNICA’s president Evandro Gussi’s speech to the conference. Dr. Gussi invoked a timeless sports analogy reminding the audience that the transition to a low-carbon future will be a marathon, not a sprint. He reminded the attendees that although the sprint—increasing short-term revenue, boosting exports and competing for market share—is important, we will only succeed if we approach this race with a marathon mindset. Dr. Gussi’s speech came a day after Pablo Di Si, Volkswagen’s executive chairman for Latin America, said that customers want the connectivity of the electric vehicles (EVs), but he believes ethanol can play an important role—not only in the transition but in the future of electric powered vehicles. To that end, Volkswagen has partnered with the Brazilian State University of Campinas (UNICAMP) to research fuel-cell technologies that extract hydrogen from ethanol, and batteries made from sugarcane bagasse. Ethanol-powered vehicles already deliver significant greenhouse gas (GHG) reductions, and UNICAMP’s findings could be a game changer for Brazil and many other countries that could use this technology. Going back to our marathon analogy, this is where we will earn our paychecks. Over the long haul, the biofuel industry will live or die by its ability to maintain a sustainable business model that can withstand scrutiny from the environmental community. Deepening our ties with automakers like Volkswagen will also help broaden ethanol’s reach. Besides VW, other major companies are also involved in such technologies in Brazil, like Toyota, which has launched the first hybrid flex-fuel models in the world, and Nissan, which has developed some prototypes of SUVs with fuel-cell technologies currently being tested on Brazilian streets. Ethanol can be an ally to these manufacturers, either in combustion engines or in EVs. In this long road ahead of us, as countries continue to promote decarbonization policies, it is important for us to fight for a performance-based approach that focuses strictly on greenhouse emission reduction and increasing fuel efficiency without dictating the use of specific fuels and vehicles to achieve those reductions. A true “cradle to grave” emissions accounting would show the true potential of ethanol-powered vehicles. This is a story that must be told repeatedly to an admittedly skeptical audience, and the biofuels industry must not shirk from it. The private sector is critical to our marathon and expanded access to green financing and carbon markets will fortify the market’s involvement in reducing GHG. Brazil’s National Biofuels Policy, RenovaBio, created in 2017, has helped, and will continue to help expand the domestic sustainable biofuels market and hasten the replacement of fossil fuels in our transportation sector. Finally, the marathon will not be complete unless biofuels play a central role in the aviation fuel revolution. Cars and trucks account for most of the transportation sector’s GHG, but aviation represents a still-high 10 percent. The aviation industry has pledged a 50 percent reduction in CO2 by 2050 (compared to 2005 levels) and policymakers—as well as the flying public—will hold them accountable. To their credit, the major airlines, manufacturers and shippers like FedEx and UPS are advocating policies and testing new sustainable aviation fuels that will pay big climate dividends in the not-too-distant future. This is a remarkable opportunity and UNICA plans to do its part. ETHANOLPRODUCER.COM | 9
BUSINESS BRIEFS PEOPLE, PARTNERSHIPS & PROJECTS
Alto appoints new general counsel Alto Ingredients Inc. has added Auste Graham to its senior management team as general counsel and corporate secretary. Graham reports directly to CEO Mike Graham Kandris and succeeds Christopher Wright, who will remain with the company as senior vice president pending his retirement later this year. “Auste has served in legal leadership positions in global manufacturing enterprises in several industries, including specialty chemicals, components and industrial coatings,” Kandris said. “Her deep
experience in commercial affairs and her expertise in corporate securities, M&A and finance transactions made her an ideal candidate to join our company at this time.” Prior to joining Alto, Graham held an executive role at Essentra plc, a global manufacturer and supplier of components, packaging and filters headquartered in the U.K. Prior to that, she was senior legal counsel in the U.S. for AkzoNobel, a global paints, coatings and specialty chemicals company headquartered in the Netherlands. She holds a J.D. from Vanderbilt University Law School and a B.A. from Vassar College.
Cellulosic ethanol plant online in Italy Versalis, a chemical company owned by Eni, has reported that it is successfully producing ethanol from lignocellulosic biomass at its facility in Crescentino, Italy. The plant, which was acquired in 2018 and overhauled after major investments, is now operational and producing ethanol from non-grain raw materials. The ethanol, produced using Proesa technology, is ISCC-EU certified and will be used to formulate gasoline with a renewable component.
The plant is capable of processing 200,000 metric tons of unspecified biomass per year, with a maximum production capacity of approximately 25,000 metric tons of ethanol per year. The facility cogenerates electricity and steam from an onsite thermoelectric power plant, which is fed with biomass and the lignin coproduced from the ethanol production process. Since mid-2020, the facility has also been producing a branded hand and surface disinfectant, using ethanol as its active ingredient.
Fluid Quip Technologies expands patent portfolio
Fluid Quip Technologies, a subsidiary of Green Plains Inc., has acquired a family of patents from AB Agri which, along with other patents recently issued to FQT, will help the company develop, acquire and bring to market technologies which further enhance biofuels production. The acquired patents cover technologies designed for the efficient separation of protein from whole stillage from the
dry-grind ethanol production process. The entire patent family is extensive and encompasses multiple countries around the world. “Our deep intellectual property portfolio, along with the latest issued patents combined with the suite of AB Agri patents, adds incredible breadth to our existing technology portfolio,” said Neal Jakel, managing director at Fluid Quip. “We are focused on developing great solutions to offer to the industry that further diversify and solidify revenues and are open to working with partners around the world to bring them forward.”
OSU receives patent for new fermentation process
Oklahoma State University was recently issued a patent that could significantly increase biofuel and chemical yields while reducing carbon dioxide emissions. Hasan Atiyeh, professor of biosystems and agricultural engineering, created the new co-fermentation method that turns sugars into alcohols, organic acids and ketones. This novel process adds naturally occurring microorganisms into the
fermentation process of plant substances—such as corn, grass or wood—combining sugar- and gas-fermenting bacteria while capturing carbon dioxide, which is also fermented to create more biofuel. The technology could potentially increase product yields by more than 15 percent while lowering carbon dioxide emissions compared with conventional processes. Atiyeh said his research estimated that using 2,000 dry metric tons of biomass per day with this novel cofermentation process could increase a biorefinery’s net revenue by $33 million a year compared with traditional fermentation methods.
Process
ANTIMICRO
Antimicrobials play an important role in achieving consistent ethanol yield, warding off bacteria that negatively impact plant performance. Ethanol Producer Magazine speaks with Phibro Ethanol, BetaTec Hop Products and Lallemand to learn more. By Katie Schroeder
“An ethanol plant is never going to be sterile,” says Jenny Forbes, Phibro’s vice president of sales and service in North America, as she explains the essential role of antimicrobials. Forbes describes how the ambient process temperatures in certain areas of a biorefinery provide a great environment for the growth of bacteria, how sugars become a food source, and how the dark, warm piping and process equipment give bacteria places to build up, vie for sustenance and cause fouling. Bacteria ultimately compete with yeast for the same nutrients within an ethanol plant’s ecosystem, says Rachel Murdy, antibiotics 12 | ETHANOL PRODUCER MAGAZINE | APRIL 2022
category manager with Lallemand Biofuels & Distilled Spirits. “So any glucose that goes to bacterial growth is glucose that is no longer available to yeast, thereby reducing your yield,” she explains “Another negative impact of bacteria is that they produce organic acids that can inhibit yeast growth.” Mike Karavolos, lab manager at BetaTec Innovation Center in Malvern, United Kingdom, further explains the impact bacteria can have on ethanol plants, specifically on yeast health. He explains that the bacteria will also create a biofilm to protect it from antimicrobials, making it harder to get rid of and “very, very detrimental to any fermentation.” Bacterial infections can also reduce yeast viability, decreasing fermentation yields. As it multiplies, the bacteria produce lactic and ace-
tic acid which is toxic for the yeast. “The yeast must constantly work to adapt and overcome contamination stress and continue the fermentation,” Karavolos explains. “But eventually—if the infection is left uncontrolled—it will lead to stuck fermentations, and the plant will suffer negative impacts.” Fortunately, there are a variety of antimicrobial products available to help regulate bacteria. Prevalence and Prevention Karavolos outlines common problem spots within an ethanol plant where bacteria often start growing. “Bacteria are constantly sensing their environment trying to survive,” he says, listing several problem areas: crevices where bacteria can attach and be protected from antimicrobials; the heat exchanger, due
OBIALS 101
to the increase in food source and lack of antimicrobials; dead legs where there isn’t any liquid movement and bacteria can multiply, continuing to infect future batches; and finally, bottom-of-the-pile corn which has an increased bacterial load due to higher humidity and a variety of other issues. “We have high temperatures in most plants on the front end that help mitigate bacterial growth, but it’s never sterile,” Forbes says. “There’s always some bacteria population present, and you’ll find that if you don’t clean adequately (properly or frequently enough), the bacteria just thrives, multiplies and causes problems downstream.” Karavolos also affirms the importance of clean-in-place procedures, which can help lower the initial amount of bacteria present. “Preven-
tion is better than a cure,” he says, explaining that consistent cleaning procedures will help slow the multiplication of bacteria. Murdy says that monitoring high performance liquid chromatography (HPLC) profiles early in fermentation can help plants monitor for infections and yeast health. Any early increase in organic acids, such as acetic acid or lactic acid, can help you [determine] when to add more antimicrobials if corrective measures are needed. “The HPLC will give them a profile of, not only baseline organic acid concentrations, but also of the breakdown of the starch and the production of ethanol. So, it’s a really good way of checking for yeast health,” Murdy says. Forbes outlines several ways that bacteria can negatively impact the profit margin of
an ethanol plant. The two main negative impacts are “loss of starch” due to the bacteria consuming it, and yeast damage from the acid produced by the bacteria. “Ultimately, you want every molecule of starch or sugar converted to ethanol, because that’s where your profit is,” she says. “Bacteria will consume that starch, and then it’s not going to ethanol. The bacteria will also make off-products—lactic and acetic acid are the two most predominant.” Forbes explains that the presence of lactic and acetic acid, which are toxic to yeast, cause problems with fermentation. “There are a lot of new yeast products in the market that are genetically modified to do amazing things, but a lot of these products tend to be more sensitive to organic acid,” she says. “Infection risk and associated impact becomes more severe than it ETHANOLPRODUCER.COM | 13
ETHANOLPRODUCER.COM | 13
Process
INFECTION INTEL: By creating bacterial dilutions from mash samples gathered by ethanol producers, Phibro is able to identify problem organisms and help its customers with informed antibiotic dosing recommendations. PHOTO: PHIBRO
would have [been] ten years ago with conventional yeast.” Antimicrobials: Antibiotics Forbes explains that Phibro recommends using a maintenance dose of antibiotic in every fermentation batch added as early in the process as possible. As soon as mash enters a vessel (propagator or fermenter), antibiotic should be present. If there is increased risk of bacterial contamination, it is suggested to increase the antibiotic dose. Murdy emphasizes that antibiotic dosing is not a “one-size-fits-all” situation. “A single antibiotic system may only target certain bacteria, while allowing other bacteria to proliferate in fermentation. So we often recommend combinatory antibiotic systems and antibiotic rotations that will be dependent on the natural flora that’s in those plants. Sometimes a single antibiotic mode of action can be quite effective, but other times you need to hit them with more than one type of antibiotic to target different populations in the process and prevent antibiotic resistance. This is the mechanism behind our new Bio-
Sustain combinatory antibiotic platform.” Phibro offers two main antibiotic products: virginiamycin and penicillin, with the respective trademarked product names of Lactrol and PhibroPen. Forbes explains that both products accomplish the same thing but work slightly differently. Virginiamycin—an antibiotic only manufactured by Phibro— binds to the bacterial ribosome, keeping the bacteria from producing protein, rendering the bacteria static and unable to complete any cellular processes. Penicillin binds to the bacterial cell wall and causes the cell to rupture. According to Forbes, the two antibiotics complement each other well when used together. Phibro helps its customers determine an effective maintenance dose amount and product actives by having them gather samples post liquefication. The company asks plants to sample the mash before and during propagation and fermentation so they can evaluate the facility’s contamination risk. “We ask plants to systematically walk process lines and pull mash from every sample port they have until the start of fermentation. Ideally,
you would see no measurable contamination in hot liquefact through the start of the mash cooling system and then be able to identify the 'hotspots,' or the direct location of bacterial residence. You would be able to verify that the process is contaminant free to a certain place in the process line, and then pinpoint the spot where the contamination is located,” Forbes says. This allows them to tailor the recommended maintenance dose to the bacterial infection risk and dose antibiotic products in an informed manner. There is an upper limit for antimicrobial dosing in order to comply with generally recognized as safe (GRAS) guidelines. “There is a maximum dose that’s been established, but we rarely see customers add products at the upper dosing levels, Forbes says, explaining the testing methods used to help producers understand their normal bacterial load and the best antibiotic dosing to manage it. “We like to be stewards of responsible product use.” Murdy outlines the risks of using more
antibiotic than necessary in an ethanol plant, including the possibility of creating antibiotic resistance. “The presence of resistant bacteria would have a negative impact to your process because you would actually need either more antibiotics for antibacterial control, or you might require a different antibiotic to now target those resistant bacteria.” She explains. “That’s why we recommend having a combination of antibiotics with differing modes of action or rotating antibiotics to prevent [the establishment of a] resistant population, and to always follow the products recommended dosage rate.” Antimicrobials: Hop Extracts Natural hop extracts work differently from antibiotics by having a multitargeted effect on the bacteria. Karavolos explains that while antibiotics may target a specific part of the bacteria, such as the ribosomes or DNA, hop extracts “will act on the total membrane potential and will inhibit the vast array of proteins that are involved in many processes in that regular bacteria physiology and behavior,”
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Process
NATURAL DEFENSE: BetaTec’s natural hop extracts have a multitargeted effect on ethanol plant bacteria, inhibiting an array of proteins that regulate bacteria physiology and behavior. The company has also utilized other naturally derived substances to create new and improved hop products with added functionalities. PHOTO: BETATEC
Karavolos says. “For example, it could be pH homeostasis, it could be membrane transport, cell division and even environmental sensing.” The extracted hop acids can penetrate the bacterial cell wall and throw the pH of the bacterial cytoplasm out of balance by acidifying it. “The membrane potential is lost and that leads to the inability to function properly, and the inability to uptake nutrients, which eventually leads to starvation and death,” he explains. BetaTec offers several different antimicrobial hop extracts to the ethanol industry. FermaHop Pro is very active against lactic acid bacteria in a broad pH range from about 4.5 to 6. The company also offers IsoStab, LactoStab and VitaHop Silver Liquid. Plants using hops typically introduce them into the propagator or fermenter depending on many factors, Karavolos says. Dosing hops earlier when the microbial load is lower gives producers the ability to monitor and adjust fermentation if needed later, he explains. BetaTec creates custom product trials for each plant using hops, optimizing dosage as much as possible. The company also provides application development, consulting services and technical support for its global customers. “We also evaluate other naturally derived substances in combination with hops to create new and 16 | ETHANOL PRODUCER MAGAZINE | APRIL 2022
improved hop products with added functionalities,” Karavolos says. There are several issues ethanol producers must closely consider when utilizing antimicrobials, Karavolos explains. Foremost, he says, they should be keenly aware of how and where their coproducts are used. “It is important to consider what is added in fermentation ... [to ensure] compliance with food and safety regulations.” Another potential issue is heavier use of antimicrobials, which has become slightly more prevalent since the introduction of genetically modified yeasts, according to Karavolos. He also finds that overlooking yeast health is a common mistake. “The yeast is the heart of fermentation, you have to take care of it, and you have to be more cautious on how the yeast perceives the antimicrobials itself,” he says. The more bacterial stress that the yeast can handle, the better the fermentation; leading to improved ethanol yields overall. Innovations Innovation is important for any industry to keep moving forward, and the antimicrobial industry is no different. To go along with the ethanol industry’s focus on automation, Phibro developed an automatic dosing system, trade-
marked PhibroMat. “We provide automated dosing systems for antibiotics; if plants want to operate fully automated, we now can offer them a way to do that,” Forbes says. BetaTec has actively worked on developing new applications for existing products while creating “new breakthrough products and technologies,” according to Karavolos. He says BetaTec is studying the impacts of its hop extract products on yeast health. “Yeast that is healthier can overcome more stress over longer periods of time, which is a benefit for the fermentation,” he explains. The experiment was conducted using 6,000 yeast variants divided up into different categories such as ethanol production, metabolic processes and more. According to the study conducted in partnership with the University of Manchester, Institute of Biotechnology, the hop-based antimicrobials provide a 21 percent benefit across all categories compared to non-hop antimicrobials. Author: Katie Schroeder Katie.schroeder@bbiinternational.com 701-738-8385
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Innovation
BUSINESS
OF GOOD HEALTH
Thirty years ago, Bob Thornberg stepped away from ethanol in pursuit of fermentation’s feed and food derivatives. A thriving ag enterprise would result. By Susanne Retka Schill
Bob Thornberg turns the ethanol business case on its head. When fermenting grains to make
ProBiotein, he’s not using corn and he’s not interested in making ethanol. Acetic and lactic acid bacteria aren’t contaminants. And low and slow is the norm. Thornberg is known in the ethanol industry for making SweetPro lick tubs, combining DDGS and condensed distillers solids (CDS) with minerals, vitamins and SweetPro’s “special sauce”—ProBiotein. A decade ago, Thornberg added food-grade production of ProBiotein. And this winter, the final stages in repurposing part of a long-shuttered ethanol plant will boost feed grade ProBiotein production and facilitate new feed lines aimed at non-ruminants. Gross sales tally around $14 million annually, supporting 36 employees in the company’s North Dakota and Kansas locations. Thornberg’s slow and steady trajectory has shown that flipping the model works—decisions made after experiencing the struggles and failures of the early ethanol industry. In the mid-1980s, Thornberg managed the 10 MMgy ethanol plant in Walhalla, 20 | ETHANOL PRODUCER MAGAZINE | APRIL 2022
North Dakota. Built by a group of local investors, Dawn Enterprises set out to use surplus barley grown in the region. However, the plant struggled to reach capacity, primarily due to a bottleneck at the centrifuges. It also struggled to move its barley distillers that were even less understood than corn distillers. Thornberg arrived shortly after the plant’s startup and led the switch from barley. “We ended up going to corn to maximize ethanol production,” he says. “With the higher fat, better lubricity of corn, the plant ran much better. And there was better awareness of the distillers.” Though running far better, commodity price swings—oil prices plunging from $35 to $9 a barrel just as corn prices rose— hurt the struggling young company. “Revenue going down and cost going up is like a scissors that cuts you off at the knees,” Thornberg says. “I saw the inevitability of it periodically cycling through like that, and I didn’t want to be on that roller coaster.” He figured the feed side would be a safer bet, with feed prices following corn. And, while he enthusiastically supported ethanol’s energy independence message in those early days, as he does today, he worried that the
attacks on ethanol would succeed and the government mandates would disappear. “I wanted to be able to live without them.” Thornberg also saw an opportunity. Much of the Walhalla DDGS were being shipped to Europe. And although U.S. dairies and feedlots were discovering their usefulness, there were very few such customers in northeastern North Dakota. Thornberg wanted to find a way to feed DDGS to cattle on pasture. The new owner of the plant, CHS, wasn’t interested, but didn’t object to Thornberg pursuing the idea. He left the ethanol plant and worked with researchers at North Dakota State University to develop lick tubs for pastured cattle, using DDGS and CDS for a protein boost and as a carrier for minerals and vitamins to supplement grass-fed cattle. In 1991, Thornberg launched Harvest Fuels Inc.
BUILT TO LAST: Harvest Fuels/SweetPro founder Bob Thornberg stands next to a refurbished ring dryer used to dry ProBiotein in Walhalla, North Dakota. Mothballed for nearly two decades, the dryer required surprisingly little work to be put back in service. PHOTO: SUE RETKA SCHILL
to manufacture SweetPro lick tubs. That same year, Archer Daniels Midland bought the Walhalla plant and continued to supply DDGS and CDS for his project. Focus on Feed “We almost had to create a new industry of a molasses-free lick tub,” he says. “We had to develop all the equipment—we stomped the first barrels for the research work with our feet,” he recalls with a laugh. When sales began to grow, the Walhalla SweetPro plant, built in a former potato warehouse, was limited at 50 tons a day capacity. In 1996, Horton, Kansas, was chosen as the site for expansion, putting production closer to a bigger cattle market. Thornberg credits the inventiveness of Lyle Edelman, whose son Ryan is now vice president of SweetPro operations in Kansas, for improving the process and equip-
ment. “The first tubs we pressed and cured for two days,” Thornberg recalls. “That’s time intensive. And then we had to send guys in to scrape out the mixers. Now it’s all automated and we can fill a tub every 25 seconds. Kansas can do 200 tons a day.” Today, SweetPro is distributed across the U.S., with much of Walhalla’s production bound for Canadian dealers. The technology is licensed to Arizona Grain, owners of ethanol producer Pinal Energy in Maricopa, Arizona. For several years, product also has been exported to Australia where MSM Milling has licensed the technology and has a plant under construction. Developing DFM The story of ProBiotein’s development mirrors SweetPro lick tubs’—a response to ethanol’s vulnerability in the early days. “The ethanol industry would periodically
get shaky,” Thornberg recalls. “Once we began hitting our stride on the feed side, we worried what would happen if we couldn’t get distillers grains and solubles. Our initial look was what can we do to ferment and process our own raw material to make non molasses lick tubs.” Based in northeastern North Dakota and Kansas, that meant looking at small grains. In 1998, Thornberg landed a Phase 1 Small Business Innovation Research grant to demonstrate the upgrading of wheat midds, a low-value byproduct of flour milling, from 18% protein to a 47% protein concentrate, in part through fermentation and the incorporation of yeast. A Phase 2 grant followed in 2000 to build a prototype plant in Walhalla. As that work was being completed, the ethanol industry began to flourish, eliminating the concern about DDGS sourcing. ETHANOLPRODUCER.COM | 21
REPURPOSED: SweetPro feeds is now making ProBiotein in the portion of a former ADM ethanol plant once used for gluten production in northeastern North Dakota. The core of the old ethanol facility was dismantled and its grain handling and storage was acquired by local businesses. PHOTO: SUE RETKA SCHILL
Thornberg shifted the focus to producing a direct-fed microbial (DFM) feed. “DFM in the feed industry is more valuable,” he explains. “Distillers is a byproduct; dried at high temperatures; cooked at high temperatures; part of a heavy-duty process. It’s a great feed, don’t get me wrong. But we’re going at it from another perspective, where [DFM] is the primary product.”
22 | ETHANOL PRODUCER MAGAZINE | APRIL 2022
ProBiotein is made through a fermentation process aimed at optimizing yeast production with cook and saccharification parameters kept as slow and gentle as possible to preserve enzymes and nutrients. The substrate mixture of wheat, flax, oats and barley broadens the amino acid profile of the fermented grains. Using malted barley adds enzymes, and flax adds omega 3 oils.
Contributions from acetic and lactic acid bacteria are welcomed as added nutrients. Once fermentation ends, the beer is mixed with dry minerals and other ingredients to complete the feed supplement. There’s no beer well, no distillation, no centrifuges, and until recently, no dryers. What little alcohol is produced remains in the product.
Innovation
FOOD-GRADE FACILITY: A 3,000 gallon tank on the left serves as the ProBiotein fermenter at Food First in Walhalla, North Dakota. The big unit on the right is a double drum dryer. The gummy fermented material gets spread on two drums that turn in towards each other, much like the laundry rollers of old that would squeeze water out of wet clothes. The material dries on the drum at low temperatures and gets knifed off. PHOTO: SUE RETKA SCHILL
as a source of prebiotic fibers, omega-3 fatty acids, beta-glucans and fermented protein. The ProBiotein.com website describes the product as a fermented functional food fiber made with organic wheat, oats, flax and barley malt. The fermentation process reduces the starches, concentrates the proteins and provides nutritional yeast, plus four prebiotic fibers, all of which support healthy gut function—where 70% of the immune system originates.
KEd d h^͗ ƐĂůĞƐΛǁŝŶďĐŽ͘ĐŽŵ Žƌ >> h^͗ ϭͲ;ϴϬϬͿͲϴϮϮͲϭϴϱϱ Harvest Fuels began adding the trademarked ProBiotein to all its SweetPro feeds in 2004, both lick tubs and bagged supplements where the liquid ProBiotein is mixed with dried materials. The launch of ProBiotein also opened the door for feed supplements aimed at the horse market—SweetPro EquiPride and EquiLix. The reception in the horse feed market was particularly good, Thornberg says, but one reaction prompted his next venture. “People were seeing stronger hooves, clearer eyes and improved coats on their horses. They began to wonder if it would be good for them, and they started eating it,” he recalls. “We said, ‘Don’t do that!’ … I was concerned. You could tell them all day not to, but if it’s working, they’ll keep doing it.” Food not Feed The food project started small, fermenting the same mixture of grains used in the feed version in a converted 300-gallon milk cooler in the kitchen of the former Dairy Queen in Walhalla. Seeing an opportunity, plans for a new building for feed production morphed into a foodgrade facility. The new venture, Food First LLC, began fermenting and drying ProBiotein for human consumption in 2012, packaged in 1-pound and 8-ounce containers. Food First also developed the MicroBiome Bar in four flavors, promoting them
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Innovation
The last steps were completed this winter. Two prop tanks acquired from the original ethanol plant were put back into service, one for cook and the other for saccharification. The added capacity and ability to dry 2,500 pounds per hour opens the way for SweetPro to enter into new markets in poultry and swine. “The completion of the gluten plant conversion for dry ProBiotein DFM puts us in a position to double current sales in the years ahead,” Thornberg says. “We’re just getting started.”
Bob Thornberg (center) works closely with his sons Jordan (left), who oversees the operation of the Food First facility, and Erick (right), who oversees the operation of the EquiPride feed division for horses. PHOTO: SUE RETKA SCHILL
Thornberg says it feels like an uphill battle that’s a lot like the early days of promoting SweetPro. The challenge then was to convince cattle feeders that DDGS were better than molasses-based supplements. On the human consumption side, the challenge is to educate consumers about the benefits of prebiotics. “Dietary fiber and making your gut health and immune system stronger—that’s still really early,” Thornberg says. “People don’t understand.” Back to the First While the food side shows promise of becoming more profitable than feed, Thornberg adds the feed side still has upward potential. This time, an opportunity brought him full circle to the place he started out at in Walhalla. The year Food First launched in 2012, ADM announced it was permanently closing the ethanol plant in Walhalla. Expanded to 30 MMgy by then, Thornberg considered buying the plant, but knew it was too old, too small and poorly situated to be successful. Two years later, the facility was purchased and split four ways, with Thornberg acquiring the part he was most interested in. Salvager Dean Latozke arranged the deal and dismantled the ethanol plant. Walhalla 24 | ETHANOL PRODUCER MAGAZINE | APRIL 2022
Bean bought flat storage and land. Smith Farms got the grain handling and half the administration building to use for its seed business. Thornberg bought the other half of the admin building and adjacent warehouse, which included an attached gluten plant. The warehouse capacity was quickly utilized and over the past decade as funds were available, portions of the gluten mill were put back in service. ADM had added gluten milling shortly after purchasing the plant, but mothballed it after only a few years. “I never knew if we were going to run into a ‘gotcha,’” Thornberg says about the equipment that sat for more than two decades. There was no guarantee that it could be put back into service economically. The electrical room was in good shape, but the natural gas panel had a leak that caused major corrosion and required refitting. Some of the bagging equipment was removed, and ducting redirected to the bagging segments that were kept. The real prize, a ring dryer, was in surprisingly good shape. The dryer and bagging equipment were put into service first, with the liquid ProBiotein trucked over from the feed plant in town. The dryer quickly demonstrated its ability to maintain the valuable nutrients in the DFM through its low temperature drying capability.
Slow but Satisfying Sitting in the same office where he started out 35 years ago, Thornberg admits his business style reflects his fermentation approach—slow with conservative parameters. “As we paid down debt, we’d add new debt and new capability,” he says. “We made sure we could service debt even if the new enterprise failed. I’ve seen so many plants with processes that people got excited about, but they have to work exactly as projected or they die. It was a long trajectory and a risk-averse strategy on my part, but as we tried new things, if they didn’t work, I’d be able to live with the fact that they didn’t work. It’s not exciting for people who want rockets, but I’ll trade the potential for a big rocket for not having a big explosion,” he says with a laugh. “The feed side has connected in a nice way,” he continues. “Our ability to create the SweetPro brand that’s now a nationwide brand and the EquiPride and EquiLix products that work better than anything else. I don’t say that because it’s our product, but they had to work better in order to compete in a big, mature industry. They had to [compete]. They did. And they do,” Thornberg says. “And that’s fun. “There’s a satisfaction in that. Sometimes persistent little pikers can still play in the big arena. That’s been the juice for me, because the journey is not easy. But the journey is what it’s about.” Author: Susanne Retka Schill Contact: editor@bbiinternational.com
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ETHANOL’S
NEW GROUND GAME With three CO2 pipelines in development, carbon capture and sequestration is poised to become a transformative force in ethanol production. The industry’s quest for net-zero emissions, in part, depends on it. By Katie Schroeder
FIELD WORK: Summit Carbon Solutions, which recently wrapped up a series of informational meetings with landowners throughout its proposed pipeline path, plans to build a roughly 2,000-mile pipeline through Nebraska, South Dakota, Minnesota, Iowa and North Dakota. The unrelated pipeline construction shown here may be illustrative of what ethanol CCS pipeline projects might look like. PHOTO: STOCK
26 | ETHANOL PRODUCER MAGAZINE | APRIL 2022
Projects
ETHANOLPRODUCER.COM | 27
Carbon capture and sequestration (CCS) is arguably the hottest subject in ethanol production right now as three different companies push forward with proposed CO2 pipelines and sequestration systems throughout the Upper Midwest. Summit Carbon Solutions, with more than 30 ethanol plants participating, is currently working on getting easements from landowners before starting construction. More recently, Wolf Carbon Solutions announced its partnership with ethanol producer Archer Daniels Midland Co. as they plan to build a shorter pipeline to service plants in Iowa and Illinois. In January, Navigator CO2 wrapped up informational meetings in communities across its own pipeline footprint. Ethanol Producer Magazine met with representatives of each pipeline to learn more about CCS and what it means for the ethanol industry.
States of Play The goal of carbon capture is to reduce the atmospheric carbon dioxide emissions produced by various industries. The carbon dioxide is captured, dehydrated and compressed into a liquid, then—in some but not all cases—transported via pipeline to a sequestration site. Once the liquified carbon arrives at the site, it is pumped down into the earth and stored a mile or more below the surface. The deep geologic formations it is stored in must be porous and found beneath a thick cap rock, or upper confining zone, so the carbon dioxide can’t resurface. Some sequestration sites also require a lower confining zone. Summit’s sequestration site is in North Dakota at a 150,000-acre site northwest of Bismarck. Wolf Carbon Solutions and Navigator CO2 both plan to sequester their CO2 within the Mount Simon formation in south-central Illinois. Justin Kirchhoff, president of Summit Ag Investors, explains how carbon
capture technology is proven, reliable and works well with ethanol plants. “I would say, broadly speaking, if you look at the carbon capture industry, the technology and cost is more correlated to the purity of that CO2 source,” Kirchhoff says. “And that’s where we believe ethanol is in a pretty unique position, not only to capture its CO2 without utilizing any new technology, but it also unlocks new market opportunities for those ethanol producers to tap various low-carbon fuel incentives.” Summit Carbon Solutions Summit Carbon Solutions plans to build a roughly 2,000-mile pipeline through Nebraska, South Dakota, Minnesota, Iowa and North Dakota. Currently, the project will partner with 32 ethanol facilities across its footprint to cut each plant’s carbon emissions by as much as 50 percent. According to Kirchhoff, the full CCS pipeline system is planned to be operational in the second quarter of 2024. The company chose North Dakota as its sequestration site because it is one of two states allowing Class VI well permits to be obtained at the state, rather than federal, level, Kirchhoff explains. “North Dakota [also] has extremely well-known geology, and, I would say, a business climate that is very accepting of carbon sequestration,” he says. Summit’s parent company, Summit Agricultural Group, decided to pursue carbon capture after seeing the value in lowcarbon fuel markets through the formation of biofuel company FS Bionergia in Brazil, and its experience in the ethanol industry with Hawkeye Renewables, which owned and operated two U.S. ethanol plants until 2011, according to Kirchhoff. “It was the combination of our knowledge that we gained in Brazil on lowcarbon fuels and previous experience and relationships here in the U.S. that made us say, ‘how can we play in this new world of placing a value on carbon and how that translates to not only ethanol, but we think more importantly, agriculture long-term
Projects
LINING THINGS UP: Navigator CO2's Heartland Greenway pipeline will include 1,300 miles of pipeline connecting to about 20 ethanol and fertilizer facilities across a five-state area. When construction begins, it might look similar to the unrelated pipeline work pictured here. PHOTO: STOCK
given the percentage of the corn crop that winds up in an ethanol plant,” he says. Summit is currently in the process of acquiring right-of-way pipeline permitting and developing its sequestration site in North Dakota. The company recently held a series of informational meetings with landowners throughout its proposed pipeline path.
The Heartland Greenway is projected to start construction in 2024, with participating facilities coming online throughout 2024 and 2025. Over the next 18 to 24 months, Navigator will go through the permitting processes for the states it will build in, as well as applying for federal permitting, including EPA approval for a Class VI sequestration well.
Heartland Greenway Elizabeth Burns-Thompson, vice president of government and public affairs with Navigator CO2, describes the Heartland Greenway project as a “state-of-the-art carbon capture and storage system.” The system will include 1,300 miles of pipeline connecting to about 20 ethanol and fertilizer facilities across a five-state area. The pipeline will go through South Dakota, Minnesota, Iowa, Nebraska and Illinois. The Navigator team is no stranger to pipeline construction and operation, as Burns-Thompson explains, “Navigator has had prior iterations, really the technical expertise that this team and aggregate bring forward is decades of experience constructing as well as operating midstream infrastructure—pipeline infrastructure which is critically important when you look at projects like this.”
Wolf Carbon Solutions Wolf Carbon Solutions U.S., an affiliate of Canadian company Wolf Midstream, plans to build a 350-mile pipeline going between Iowa and Illinois, with the capability of transporting 12 million tons of carbon dioxide every year. Nick Noppinger, manager of Wolf Carbon Solutions U.S., says that the plant will initially connect to two ADM ethanol facilities and is in active discussions with ADM about capturing emissions from associated cogeneration facilities that power its ethanol and corn processing operations. The pipeline is projected to begin operation mid-2025. Affiliate company Wolf Midstream has experience with CCS. The company built the Alberta Carbon Trunkline, which is “the only third-party, anthropogenic CO2 system in North America,” Noppinger explains. “That went online about two years ago and
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it has successfully captured over two million tons to date.” “Our sponsor and the Wolf executive team looked at that success story and said we can replicate this down south,” Noppinger says. “And there’s a much greater need—just through the scale of how much industrial is in the U.S. versus Canada— there’s a much greater need for carbon capture and sequestration in the U.S. and we think it’s the easiest and most shovel-ready way to decarbonize industrial facilities that are out in the market right now.” Wolf is currently reaching out to landowners, stakeholders and politicians who could be impacted by the pipeline to hear their questions before establishing a pipeline route, according to Noppinger. “Once we’ve had those discussions, we will then establish several different ideal rights-ofway, or pipeline routes, and talk specifically to those landowners to see if we can get a deal done to establish and secure that right of way,” he says. Benefits from Farm to Plant Carbon capture pipelines have the potential to benefit the Midwest from the ground up, benefitting the agriculture industry along with ethanol producers. “There’s a reason we call it the corn and soybean belt,
Projects right, it acknowledges just how important agriculture is to the fabric of the Midwest,” Burns-Thompson says. “And so, having a robust processing framework and industry there is critically important. Not just for the farmers that are depending on having markets for the grains that they’re producing [but also] … to meet the demands of an ever-evolving marketplace.” The push toward decarbonization gives CCS an opportunity to increase the value of ethanol and the price of corn, according to Noppinger. “It will position ethanol as a very low-carbon fuel … which is really seeking a decarbonized type of industry,” he says. “So, that means the entire value chain, from ethanol down to the price of corn and the land the corn is grown on, will benefit. As ethanol becomes more competitive and fetches a higher price, that will cause more sustainable demand for corn, and support the price of corn, which will benefit landowners.” A Step Toward Net-Zero Carbon capture has the potential to give ethanol producers more stability and a competitive advantage in markets where low-carbon products are favored. Ethanol producers have an opportunity to get ahead of the game by lowering their carbon
footprint and heading toward net-zero now. Kirchhoff explains how this could help the ethanol industry remain competitive. “The push toward EVs is centered around lowering the carbon footprint,” he explains. “And our view is that if you just look at our ability to sequester CO2 that comes off of an ethanol plant, we believe that very credibly by the end of this decade, ethanol plants that are capturing and sequestering their CO2 can have a net-neutral carbon footprint. And frankly, that’s a spot that’s very challenging to get to from an electric vehicle perspective, largely because of all that goes into manufacturing the battery, even before you try to get electricity from the grid.” Noppinger also emphasizes how the ethanol industry can use the movement toward decarbonization to its advantage. “The global economy is moving into a new world where decarbonized products are at a competitive advantage and get a premium in the marketplace,” he says. “Ethanol already has some of those advantages because it is a low-carbon fuel. By capturing the carbon dioxide from the ethanol process and sequestering it, we are further lowering their carbon intensity score, or CI, which will make it even more competitive in the fuel space … [including] other types of applications like sustainable aviation fuels. Our
system will decarbonize ethanol and make it one of the most competitive low-carbon fuels in the marketplace for the next stage of energy transition.” In the ever-shifting ethanol market, carbon capture could be an opportunity for ethanol to get a competitive edge. Kirchhoff says, “I think ethanol plants should be looking for opportunities one way or another to capture their CO2 and ensure they remain competitive from a carbon perspective as they look at their business long term.” Burns-Thompson says she expects the ethanol industry to continue to adopt technologies to improve and evolve. “We’ve continued to evolve that process, and these plants will continue to look different ten years down the road even after CCS,” she says. “It’s hard to say what the next technology will be, but I can tell you that they didn’t look the same ten years ago, and they won’t look the same ten years from now. They’ll continue to optimize and get better, much like ethanol always has, it’s incredibly resilient.” Author: Katie Schroeder Contact: katie.schroeder@bbiinternational.com
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Spotlight BY SUMMIT CARBON SOLUTIONS
Rising through Partnership As the sun rises over Kelly Nieuwenhuis’ farmland, a gold glow radiates off his 2,800 acres of row crops. Nieuwenhuis and his brothers have been farming in O’Brien County Iowa for 39 years. “There is something peaceful about being out in the field harvesting corn knowing that you’re feeding and fueling America,” explains Nieuwenhuis. However, for the past several years, he, like other farmers across the Midwest, have faced uncertainty when it comes to the corn and ethanol industries. When Nieuwenhuis heard about Summit Carbon Solutions’ proposed carbon capture pipeline, his uncertainty faded and was replaced with hope. “It is critical that we embrace this project and the substantial boost it will provide to ethanol and corn growers here in Iowa and across the country. Doing so will help ensure future generations of farmers are able to be successful and prosperous,” he says. Summit Carbon Solutions announced its plan to build the world’s largest carbon capture pipeline last year. The project will connect ethanol biorefineries across five states in the Upper Midwest—Iowa, Minnesota, Nebraska, North Dakota and South Dakota. The proposed project will capture carbon dioxide emissions from ethanol plants, compress it, and transport it to North Dakota to be permanently and safely stored more than a mile underground. By capturing and permanently storing carbon dioxide emissions from partner ethanol biorefineries, Summit Carbon Solutions will cut the carbon footprint of the pipeline participants’ ethanol in half, which will ensure the environmental and economic sustainability of the facilities for the long term by opening new markets and improving profitability. “This project will be transformational for the ethanol industry and, by extension, the agriculture industry. Farmers and landowners in Iowa understand that ethanol production consumes over 50% of our corn crop every year, which is a big reason why we’ve had early success signing hundreds of pipeline easements with farmers who have a vested interest in our success,” says Bruce Rastetter, CEO of Summit Agricultural Group.
32 | ETHANOL PRODUCER MAGAZINE | APRIL 2022
Summit recently filed applications for permits in Iowa and South Dakota and will continue its permit application process with other states and jurisdictions in the coming months. “We’re pleased to have begun the permitting process for Summit Carbon Solutions, which keeps us on schedule to be operational in the first half of 2024,” says Rastetter. “Our team knows the challenges many farmers and landowners face daily. We are working with the agriculture community to create a long-term beneficial partnership.” The ethanol industry plays a critical role across the United States. It supports 360,000 jobs, contributes more than $45 billion to annual U.S. GDP, utilizes approximately 40% of corn produced in the U.S., and provides a $14 billion boost to grain markets. “Summit Carbon Solutions’ project will benefit farmers across the state by maintaining a strong corn market while supporting ethanol producers. The project will also provide tax revenue for the counties along the route and help the environment,” says Walt Wendland, CEO of Ringneck Energy, one of Summit Carbon Solutions’ ethanol plant partners in South Dakota. Thirty-two facilities are signed on to the project; by participating, ethanol producers will be poised to offer a net-zero fuel by 2030. The project will allow these plants to access new and emerging markets that have adopted low carbon fuel standards. “Siouxland Energy is proud to be part of a project that is transforming the ethanol industry. The Summit Carbon Solutions’ project is necessary to strengthen the future of the agriculture industry. Without a reliable, competitive ethanol industry, corn prices will plummet,” explains Jeff Altena, operations director at Siouxland Energy. Once completed, the project will have the capacity to capture and permanently store up to 12 million tons of carbon dioxide every year. Summit aims to have the project completed and operational by 2024.
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