August 2010 Ethanol Producer Magazine

INSIDE: VILSACK BACKS ETHANOL VISION AUGUST 2010

EPM

2010

FEW Review Upbeat Mood in St. Louis Permeates Ethanol Showcase August 2010

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contents

vol. 16 no. 8

features 46 EVENT 2010 FEW Review: An Upbeat St. Louis Hearing project updates and learning more about new technologies were highlights of the 26th International Fuel Ethanol Workshop & Expo.

–By Holly Jessen, Luke Geiver, Susanne Retka Schill and Ron Kotrba 60 PROFILE An Iowa Ethanol Booster in Washington Secretary of Agriculture Vilsack talks about the power of ethanol to boost rural economies.

–By Holly Jessen 68 CANADA O’ Ethanol EPM takes a look at Canada’s industry as its national E5 mandate is about to take effect.

–By Anna Austin

76 PROMOTION The New Face of Ethanol Current events and advertising campaigns provide an opportunity for ethanol to build a new image.

–By Luke Geiver

82 WASTE-TO-ETHANOL Hogwash Hog manure is being examined from two angles—using the cellulosic fraction for ethanol production and recycling waste water for ethanol.

–By Holly Jessen

68 Clarifications and Corrections: In the “Healthy Living: DDG’s New Function” feature in the June issue, sources point out that AgraMarke Quality Grains owns a 51 percent interest in Lifeline Foods LLC while ICM Inc. owns 49 percent. In the “Beating Bankruptcy” feature in the July issue, White Energy has not emerged from bankruptcy as of yet as stated, although it has resumed production and is working through the details to complete its reorganization plan.

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ETHANOL PRODUCER MAGAZINE

August 2010

contents departments

contributions

88

88 SAFETY Creating, Auditing EquipmentSpecific Lockout/Tagout Instructions Proper safety procedures guard against injuries from the silent danger posed by hazardous energy.

–By David Ayers

92

96

92 DISTILLERS GRAINS DDGS, WDGS, Modified—Which Makes More Money Today?

Factors vary, but good modeling can help in making wet-to-dry ratio production decisions.

–By Michael Tay

96 BOARD MANAGEMENT FEW Features Board Management Strategies Given current industry challenges, boards of directors must understand their responsibilities and potential liabilities.

8 Editor’s Note The Aesthetics of Brewing

By Susanne Retka Schill 9 Advertiser Index 10 Events Calendar 14 The Way I See It Resilience in the Face of Opposition

By Mike Bryan 16 View From the Hill Weird Science

By Bob Dinneen 18 Drive Ethanol: The Ever-Cleaner Alternative

By Tom Buis 20 eBio Tell Me: What is Residue?

By Rob Vierhoust 22 Taking Stalk The Potential for Sweet Sorghum Biofuels

By Bill Greving 24 Business Matters Grandfathered Status in Healthcare Reform

By Alice Eastman Helle 26 Business & People

–By David A. Crass and Anna J. Wildeman

30 Commodities 32 BIObytes 36 Industry News 110 Marketplace

Ethanol Producer Magazine: (USPS No. 023-974) August 2010, Vol. 16, Issue 8. Ethanol Producer Magazine is published monthly. 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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ETHANOL PRODUCER MAGAZINE

August 2010

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Susanne Retka Schill Editor's Note

The Aesthetics of Brewing

T

he International Fuel Ethanol Workshop & Expo in St. Louis was upbeat, with great speakers as always. You’ll read all about it in this issue. After taking in the special event Wednesday night at St. Louis Anheuser Busch brewery, I want to tease our ethanol producer readers out there a little bit. You guys have to seriously spruce up your act. If it weren’t for a few steel columns poking up, there was barely a hint that AB (as I understand the locals affectionately call the century old institution) is a brewery with its brick-walled buildings and manicured landscaping complete with flower gardens.

Only once on the tour did we catch a tiny whiff of grain and beer smell.

Yes, AB is a showcase, hosting thousands of tourists each year (2,800 a day at the peak). There must be a tradition of well-appointed breweries, though.

The family-held, 100-year-old Schell’s Brewery in New Ulm, Minn., also has wonderful old buildings with character and lovely landscaping to accommodate tourists at the functioning brewery. There may be a lesson here for ethanol producers. The following letter, sent via email and published here as is (spelling, capitalization and all), comes from an unhappy ethanol plant neighbor: i live a few blocks from your plant, and i can not for the life of understand why you were given the ok, to build where you did. the smell is unreal, the dust from the chemicals that lays in my house, car and lungs

is so bad that i now have more breathing problems, than i have ever had in my 57 years of life. But will you do anything about it or even let your neighbors know, heavens no, then that would that you would have to admit to doing something wrong. that like health and well being of others. you should have to pay all of us in eastend for having ruin our lives. sincerly, lks We all have dealt with cranky neighbors who can’t be placated, but perhaps the long tradition of landscaped breweries arose for a reason. In the days before thermal oxidizers, nice buildings and landscaping would help a community take pride in the local brewery. Ethanol plants today are more like industrial sites, and I know from my tours of a handful of ethanol plants that great pains are taken to keep the buildings clean and expensive technologies maintained to minimize odors. Yet many plants are built on the edge of town. Would a bit of attention to aesthetics, in addition to cleanliness and good pollution control, pay off in community good will?

Susanne Retka Schill, Editor sretkaschill@bbiinternational.com

letter to the editor

A

few points regarding your July article “Ethanol to Drink:” You calculate that 2.8 per cent of all the ethanol produced in the U.S. is potable highgrade. Therefore, only 2.8 percent of the existing fuel ethanol capacity could convert to high-grade. This would assume, of course, that the new high-grade plants capture all the business from existing suppliers.

Also, the flavor of high-grade ethanol is not a minor issue as each buyer has very specific demands. Looking at a market from the outside through rose colored glasses is fun, but may not lead to profits.

The American fuel ethanol industry has destroyed the distillers grains market by over producing over-

8

dried DDG’s with high sulfur and antibiotic content.

Inconsistent quality has resulted in a product of questionable value to cattle feeders. The American fuel ethanol industry has also undermined the price of ethanol through unfettered new construction of poorly planned plants resulting in excess capacity. Converting those plants to over produce high-grade ethanol, as your story suggests, would only make the production of high-grade ethanol unprofitable as well.

Kind Regards, Peter Sandfort, Business Development Manager KATZEN International Inc ETHANOL PRODUCER MAGAZINE

August 2010

AdIndex www.EthanolProducer.com 75 & 105 2010 Southeast BIOMASS Conference & Expo 74 2011 International Fuel Ethanol Workshop & Expo

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Susanne Retka Schill Editor sretkaschill@bbiinternational.com

62 Agra Industries Inc.

Holly Jessen Associate Editor

3 Anhydro Inc.

hjessen@bbiinternational.com

Luke Geiver Associate Editor lgeiver@bbiinternational.com

Jan Tellmann Copy Editor jtellmann@bbiinternational.com

Mike Jerke

B O A R D

Chippewa Valley Ethanol Co. LLLP Cilion Inc.

Mick Henderson

Commonwealth Agri-Energy LLC

Keith Kor Walter Wendland Neal Jakel Bert Farrish Eric Mosebey Steve Roe Bernie Punt

Corn Plus LLLP

34 Lallemand Ethanol Technology 53 Lindquist & Vennum PLLP

Mike Bryan Joe Bryan

Siouxland Energy & Livestock Co-op

&

S A L E S

Jeremy Hanson

72 Nalco Co.

84 Check-All Valve Mfg. Co.

80 Natwick Associates Appraisal Services 107 North American Bioproducts Corp.

7 Novozymes 17 Phibro Ethanol Performance Group 23 Pioneer Hi-Bred International Inc. 66 Premium Plant Services Inc.

25 Fagen Inc.

93 Pro-Environmental, Inc.

48 FCStone, LLC

59 Renewable Fuels Association

39 Ferm Solutions Inc.

41 Rev Tech LC 99 RSM McGladrey Inc. 70 SSEA Sweet Sorghum Ethanol Association

CEO

90 Gamajet Cleaning Systems Inc.

35 Tranter Phe

94 Gavilon

79 U.S. Tsubaki

Vice President

15 & 21 Genencor® - A Danisco Division

Vice President, Sales & Marketing

19 Gevo Inc. 108 Growth Energy

Executive Account Manager

67 Verenium 71 Victory Energy Operations, LLC 38 Vogelbusch USA, Inc.

hbrockhouse@bbiinternational.com

95 HEMCO Industries

81 Wabash Power Equipment Co.

Senior Account Manager

29 HPD

43 WINBCO

jhanson@bbiinternational.com

Marty Steen

86 Cereal Process Technologies

11 Fermentis - Division of S.I. Lesaffre

mspoor@bbiinternational.com

Howard Brockhouse

55 Mist Chemical & Supply Co.

91 Freez-it-Cleen

tbryan@bbiinternational.com

Matthew Spoor

64 McC Inc.

mbryan@bbiinternational.com

Chairman

jbryan@bbiinternational.com

Tom Bryan

44 Buckman Laboratories Inc.

89 & 97 EISENMANN Corp.

Little Sioux Corn Processors LP

P U B L I S H I N G

54 Martrex Inc.

50 Crown Iron Works Co.

Lincolnland Agri-Energy LLC

40 Marcus Construction Co.

45 BrownWinick Law Firm

63 & 87 CPM Roskamp Champion

LifeLine Foods LLC

52 Interstates Companies

85 BinMaster Level Controls

73 Cloud/Sellers Cleaning Systems

Illinois River Energy LLC

42 Indeck Power Equipment Co.

51 BetaTec Hop Products

65 Church & Dwight Co. Inc.

Golden Grain Energy LLC

12 & 13 Inbicon

98 Intersystems

2 Burns & McDonnell

Jeremy Wilhelm

5 ICM, Inc.

78 ATEC Steel

104 Biomass Magazine E D I T O R I A L

49 Hydro-Klean Inc.

Account Manager msteen@bbiinternational.com

Bob Brown

Account Manager bbrown@bbiinternational.com

Gary Shields

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ETHANOL PRODUCER MAGAZINE

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August 2010

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ETHANOL PRODUCER MAGAZINE

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2010 International Fuel Ethanol Workshop & Expo

An Upbeat St. Louis The ethanol industry has toughed it out, things are looking better, and the mood was noticeably upbeat at the 26th annual FEW. A positive buzz permeated the event.

By Luke Geiver, Holly Jessen and Susanne Retka Schill

ETHANOL PRODUCER MAGAZINE

August 2010

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F

Environmental Renewable Fuels Group West Des Moines, Iowa renewablefuels@fcstone.com 800.422.3087, ext. 3728

48

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or three days, St. Louis America’s Center, site of the 2010 International Fuel Ethanol Workshop & Expo, was a noisy, busy place as more than 2,000 attendees from 46 states, the District of Columbia and 25 nations, bustled between breakout sessions and the expo, learning about the latest developments in the ethanol industry from presenters and exhibitors. “I think this conference is great in the sense that you can feel the good mood coming back to the industry,” said Poul Andersen, global director of Novozymes, following the ribbon cutting ceremony that kicked off the FEW. “Things are starting to come back and people are much more optimistic.”

International visitor Guillermo Parra Romero, with Paraguay ethanol producer Petropar, considers FEW to be the most important ethanol event of the year. Petropar owns the largest ethanol plant in Paraguay, producing 40 MMly (10.5 MMgy) of anhydrous ethanol. In all, the country produces 120 MMly of ethanol primarily from sugarcane, with 20 percent coming from corn. He comes to the FEW to network and learn about U.S. market trends and commercialization, he said. “For me, it is important to get in contact with the American ethanol fuel industry.”

BBI International chairman Mike Bryan cited the FEW’s longevity and success as he introduced the leadership of Growth Energy who helped with the official ribbon cutting ceremony that Guillermo Parra launched the 26th annual FEW confer- Romero ence, reception and expo. Growth Ener- Petrobar gy CEO Tom Buis seconded Bryan in his remarks. “This continues to grow. The industry continues to grow. We reduce our dependence on foreign oil, we improve the environment and create jobs right here at home,” he said. Speaking later in the expo, Ret. Gen. Wesley Clark, co-chairman of Growth Energy, described the industry’s long-term outlook. “Great wars aren’t won in a single battle,” he said.

“We are in this for the duration.” Clark outlined a theme that echoed throughout the conference, as speaker after speaker referred to the Gulf oil spill. “It’s about oil,” he said about the need for ethanol production and the reason behind America’s presence in Iraq and Afghanistan.

“It’s about the money from oil.”

During the general session the following day, Bryan and Bob Dinneen, president and CEO of the Renewable Fuels Association, amplified the oil theme. “After all the saber rattling and desk pounding happening over this

ETHANOL PRODUCER MAGAZINE

August 2010

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this room is naïve enough to believe that America is going to stop using oil today, tomorrow, or in the near future. But that should not deter us from aggressively proceeding with efforts to develop and deploy the wide range of ethanol technologies you in this room are developing.” Dinneen went on to summarize a number of the policy initiatives and issues facing the ethanol industry.

With the industry facing new greenhouse gas (GHG) reduction targets in the renewable fuels standard, the first panel session of the event discussed corn ethanol’s improving carbon score. Steffen Mueller, research economist at the University of IllinoisChicago, related the results of a survey of ethanol producers showing marked improvement in efficiency of ethanol yield, water use and power use over the past decade. Charles Hurburgh, professor of agricultural and biosystems engineering at Iowa State University, noted that the expected corn yield improvement of 4 to 6 percent per year over John Gell, president of Gell Associates and director of GR the next decade will result in Biofuels describes a proposed integrated project for New 350 to 500 million more bushYork in his presentation at the general session. els of corn each year. There is plenty of corn to meet the needs of the various users, he said, and with the corn utilizaoil spill is over, we will recover,” Bryan tion in traditional markets remaining relsaid. “What’s most important is to learn atively flat, ethanol use of corn actually from this event. We need to maximize needs to expand to absorb the increase. our domestic oil production and maxiPete Moss, vice president of marmize our alternative energy production, keting for Cereal Process Technologies, from all sources.” Delivering the keynote discussed some of the challenges that address, Dinneen told the audience that will be faced by grandfathered ethanol now is the time to break our dependence plants wanting to increase production on foreign oil, adding, “Now, no one in levels. Every new gallon brought online

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August 2010

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after the passage of the 2007 Energy Security and Independence Act that revised the renewable fuels standard must meet a 20 percent GHG reduction threshold if it is to receive a renewable identification number (RIN). To achieve that, ethanol producers are going to have to select one or two of the technologies that significantly improve corn ethanol’s carbon footprint, such as fractionation, deoiling, combined heat and power (CHP), membrane separation, raw starch hydroly-

sis, and wet distillers grains. Raising the question of whether corn ethanol could ever reach a 50 percent GHG reduction and qualify as an advanced biofuel, Moss pointed out that EPA calculations show a dry grind, natural gas-powered plant that utilizes CHP, fractionation, membrane separation and raw starch hydrolysis for wet distillers grains would only make a 36 percent reduction in life-cycle GHG emissions. A dry grind biomass-powered plant utilizing the same technologies would

St. Louis Anheuser-Busch hosted a tour and networking reception following the close of the FEW educational sessions and expo. The following day included tours of Monsanto and the National Corn-to-Ethanol Research Center.

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bump that number up to 46 percent, still short of the 50 percent goal. Moss suggested corn-ethanol plants that add fractionation and deoiling technologies should receive GHG credit for the additional coproducts. A modification in the use of indirect land use impacts on GHG will ultimately be needed to improve corn ethanol’s GHG reduction score, although the biggest challenge is that EISA excluded corn-starch-based ethanol production from qualifying as an advanced biofuel.

The potential for industrial symbiosis was covered in the second panel of the morning. Niels Henricksen, CEO of Denmark-based Inbicon, described the synergies achieved at Kalundborg, Denmark, where Inbicon’s demonstration cellulosic ethanol plant came online in late 2009. Nine organizations at the industrial site have more than 30 agreements in place exchanging energy and recycling water and waste products among a power plant, oil re-

Additional offices in Argentina, Brazil, China, England, Honduras, India, Mexico, Russia and Ukraine.

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ETHANOL PRODUCER MAGAZINE

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PHOTO: BBI INTERNATIONAL, SUSANNE RETKA SCHILL

finery using lignin pellets and municipal solid waste for both cellulosic ethanol power and steam, according to Peter Bendorf, Integro Services Group.

In the panel presentations that followed the morning session, numerous other companies, technologies and research were covered in greater detail, challenging FEW attendees to chose among one of five concurrent tracks covering topics in production/operations, management/business, cellulosic ethanol, distill-

finery, enzyme manufacturer, wastewater treatment facility, Inbicon and others. In the U.S., three projects are developing similar symbiotic relationships. Sandra Broekema, manager of business development for Great River Energy, described the existing synergies experienced by the co-location of Blue Flint Ethanol with the company’s western North Dakota Coal Creek Station power plant. GRE is now building a 62-megawatt combined heat-andpower plant at Spiritwood, N.D., that will meet the steam requirements of the Cargill Malt plant next door and is seeking partners in a proposed 20 MMgy cellulosic ethanol plant.

John Gell described Genessee Regional Biofuels’ proposal to locate a 20 MMgy woody biomass-based cellulosic ethanol plant in the Eastman Business Park in Rochester, N.Y. In addition to water, power and steam, and good transportation logistics, the long-time chemical production site has “public support for development,” Gell said. A brownfield site at Alton, Ill., is being proposed as the location for an ethanol project involving a dry mill corn ethanol plant using cutting edge technologies integrated with an Inbicon bioreETHANOL PRODUCER MAGAZINE

August 2010

ers grains/coproducts, and energy/carbon/environment. EP Luke Geiver and Holly Jessen are associate editors of Ethanol Producer Magazine.

Reach Geiver at (701) 738-4944 or lgeiver@ bbiinternational.com and Jessen at (701) 738-4946 or hjessen@bbiinternational.com.

Susanne Retka Schill is the editor of Ethanol Producer Magazine. Reach her at (701) 738-4922 or sretkaschill@bbiinternational. com.

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“Is ethanol tapping too much water? “ “Biofuels: The water problem” “Ethanol vs. water: Can both win?”

“University report warns water consumption for corn ethanol on the rise” When it comes to ethanol’s image and water use issues, headlines matter, stressed Nandakishore Rajagopalan, associate director of the Illinois Sustainable Technology Center, in the FEW panel covering water issues. “We’ve all heard the negative propaganda about ethanol,” said Trevor Cassel, vice president and director of operations for Biodynamics Inc. “Just do a Google search and you’ll find headline after headline.” Rajagopalan and Cassel spoke during a panel titled “Wringing Water out of the Production Equation” as did Mike Mowbray, marketing manager for U.S. Water Services, and Phil Bonneau from Ortman Ethanol Water Resources. Jon Cohen, vice president and technical director of H-O-H Water Technology, served as moderator.

Although there has been a 40 percent reduction in water use in the ethanol production process in the past 12 years, the typical ethanol plant still uses about three gallons of water to produce one gallon of ethanol, Cassel said, a gallon more water than used for gasoline production. As

PHOTO: WHITNEY CURTIS

Public Opinion Counts on Water

Corn ethanol's continuing progress to improve its environmental performance was featured in the opening general session panel pictured above as well as in many of the breakout panel sessions.

several of the speakers pointed out, cutting back on water consumption or going to zero liquid discharge doesn’t exactly trans-

late into increased income. The yield in positive public opinion, however, just might make it worthwhile.

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ETHANOL PRODUCER MAGAZINE

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In some cases, zero liquid discharge is the only way to comply with environmental restrictions, which are getting stricter every year, Mowbray said. In addition, zero liquid discharge can result in a 20 to 30 percent decrease in water needs. There is no single design that works for every ethanol plant, he added. U.S. Water Services has four approaches: recycling water using cold lime softening, evaporation or crystallization of the discharge stream, and evaporation ponds, which only work in the Southwest. The method chosen must ensure that any water treatment chemicals used are acceptable to be sold as animal feed. “After all, that’s what you guys do, create ethanol and DDGs that are salable on the market,” he said. Mowbray cited a retrofit that reduced water usage from about 3.5 gallons per gallon of ethanol, to 2.8 gallons with the addition of cold lime softening. Further conversion to zero liquid discharge decreased water use at the plant to just over 2 gallons of water per gallon of ethanol.

To grow the industry, Rajagopalan said, water usage at ethanol plants can and must be reduced through a number of methods. Water use could easily be reduced by 10 percent, or, with more

investment and work, by 25 percent, he said. “It depends how much you want to do and how aggressive you want to be.”

One water reduction strategy is to focus on boiler water, which accounts for 12 percent of water use. Reusing filter water backwash can save about 4 million gallons of water a year in a 100 MMgy plant. The plant also could increase reverse osmosis recovery, with yearly potential savings of 17.6 million gallons of water. Minimizing cooling tower waste could save about 11 million gallons of water a year. In all, he said, there’s a potential to save approximately 40 million gallons of water a year at a 100 MMgy plant.

Cassel talked about recycling thin stillage, resulting in valuable coproducts and energy savings. The average 50 MMgy ethanol plant yields 350 gallons of water per minute as thin stillage—currently sent to the evaporator and then the dryer, both costly and heat-intensive processes.

The Biodynamics process uses traditional wastewater treatment processes to remove waste solids, corn oil and other fermentation inhibitors. The water is then recycled to replace thin stillage backset and a fraction of the plant’s freshwater needs. Testing shows the process results in greater

or equal ethanol yields. The company is awaiting the results of an independent third party review to confirm that, he said. In addition, the resulting distillers grains with solubles (DDGS) has a higher concentration of protein, fat and amino acids. On a dry basis, DDGS has 32 percent crude protein. With Biodynamics, it rises to 42 percent. Crude fat is increased from 8 to 10 percent to an adjustable 9.3 to 30.5 percent, and lysine content rises from 1.2 percent to 5 percent.

Bonneau discussed another angle on water—a failure in the system. Basic failures include electrical (a power surge, lightening or electrical shorts) and mechanical (plugged pump or well, metal fatigue or piping failure). The hydrologist recommended periodic maintenance inspections and suggested ethanol plants do testing to gather data. “You don’t have to wait until it’s an emergency,” he said.

—Holly Jessen

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Project updates and technology developments in cellulosic ethanol held the attention of those in the room throughout the FEW breakout sessions. In a panel presentation following the opening session, Larry Peckous, vice president of sales for EdeniQ, led a discussion on corn ethanol’s metamorphosis to cellulosic production.

“Metamorphosis brings to mind the caterpillar which doesn’t die, but emerges as a butterfly. Our industry is ready to emerge,” he said. EdeniQ recently received U.S. DOE funding for a project to examine the cornto-cellulose migration. For that migration’s success, Doug Rivers, director of research and development at ICM Inc., said the integration of starch and cellulose platforms will provide opportunities for process synergies. Other key areas for success will be the infrastructure for biomass handling, pretreatment and conversion strategies that are scalable and cost effective, Rivers added.

Phil Madsen, CEO of Katzen International Inc., closed out the panel by questioning the assumption that ethanol was the best use for cellulose. “In Mother Nature’s plan, sugar is to eat today, starch is to store for tomorrow and cellulose is used to build your house and light fires.” Cellulose to ethanol is not new, he argued, having been done in

54

PHOTO: WHITNEY CURTIS

Cellulosic Ethanol Viewed from All Angles

Cellulosic ethanol developers as well as those servicing the base corn-ethanol industry were among the exhibitors in the FEW expo.

the pulp and paper industry for decades.

It has not proven economic, Madsen said, pointing to the former Soviet Union where only five of the once 50-some cellulosic plants remain. He suggested it may be more fruitful to expand the use of multiple grainbased feedstocks, work on creating a high starch energy corn and design systems using biomass power.

Several companies offered project updates in the cellulosic track. IneosBio is proposing an 8 MMgy cellulosic ethanol plant that would produce 1 to 2 megawatts of electricity from vegetative waste and municipal solid waste (MSW), a joint venture with New Planet Energy at Vero Beach, Fla. Ineos, the EU’s largest ethanol producer, has operated a pilot plant for more than seven

ETHANOL PRODUCER MAGAZINE

August 2010

tion. Rajai Atalla, Cellulose Sciences International, said the notorious recalcitrance of cellulosic material is a reaction to pretreatment. The CSI understanding of the nanoporous characteristics of cellulosic material has resulted in a process using ambient conditions and inexpensive chemicals. “We expect with optimi- Mike Bryan, BBI International chairman, and Tom Buis, CEO of Growth Energy, speak during the FEW's opening ceremonies. zation and further tuning to substrates, we can reduce enzymatic dosing by a fac- cellulosic track. While first generation corn tor of 10,” Atalla said. Borregard/Ligno- ethanol produces enough fuel to run a veTech is taking a different approach in a new hicle 5,000 miles on an acre of land a year, pretreatment process to maximize quality he said, advanced biofuels and technologies lignin production for performance chemi- will achieve 28,000 miles per acre. Combincals, according to Gudbrand Rodsrud, mak- ing the advanced biofuel potential with beting ethanol from C6 sugars and chemicals ter gas mileage performance could achieve from C5 sugars. A pilot plant will start con- 50,000 miles per acre of land. “I don’t think people see the power of what’s coming with struction later this year.

Tim Eggeman, chief technology officer cellulosic ethanol down the road,” he said. at ZeaChem, summarized the view of many —Susanne Retka Schill in the 24 presentations that comprised the

PHOTO: WHITNEY CURTIS

years using a gasifier to produce synthesis gas that can be fermented into ethanol. Fiberight is also targeting MSW, an outgrowth of CEO Craig Stuart-Paul’s experience in both the recycling and micro-brewery businesses. Fiberight purchased a first generation corn ethanol plant in Iowa that was running a fully integrated 24/7 process during the FEW. “We hope to have the fully integrated system in robust production by the end of 2011,” Stuart-Paul said. Mick Sawka, vice president of commercial development at Qteros, described his company’s work to enhance a bacteria’s ability to produce its own enzymes and convert all five sugars to ethanol in consolidated bioprocessing. The company hopes to integrate a non-genetically modified version of its microbe with corn ethanol production to convert stillage, wet distillers grains and syrup to ethanol, increasing overall ethanol yield by 20 percent and producing about half the distillers grains with higher protein content, requiring less energy overall.

In a panel presenting new ideas in pretreatment, Johan van Groenestijn from TNO, a Netherlands research organization, reported on work with a novel dilute acid pretreatment system allowing high solid concentrations and direct fermenta-

Extension of the Volumetric Excise Ethanol Tax Credit is the most important issue facing the industry today, said John Urbanchuk, technical director for Entrix Inc., one of many speakers at FEW who referenced the biodiesel industry’s struggles with the lapse of its tax credit. Urbanchuk, whose recent study shows 112,000 jobs will be lost should VEETC not be extended, also highlighted the main reason for the credit.

“The RFS2 says you’ve got to use ethanol, it doesn’t say you have to produce ethanol.”

The failure to extend the credit would allow foreign producers to provide us with a product we can already produce within our own borders, according to Urbanchuk. Because VEETC acts as a domestic fuel production incentive, he added, foreign investors may look elsewhere to start a production facility without the incentive to produce in the U.S. If words weren’t enough, Urbanchuk also provided a number. “Without the extension,” he said, “there will be an 86 percent decrease in industry profitability.” A VEETC expiration would push the industry into survival mode.

Other speakers in the business/management track presented varying views of the future. “You are either green or growing or you are ripe and rotting,” said Britta Bergland, senior analyst for Merjent. Mark Lakers, president of Agribusiness & Food Associates LLC PLLP, summarized the possible paths an ethanol facility can take in 2011-'15 as either consolidation, getting out now, or survival. “Survival is not a plan at all,” he said.

Predicting what might happen is often risky, but not preparing for the future is riskier still. Tom Wapp, commodity price risk manager from United Bioenergy, emphasized that each plant must understand it has a unique fingerprint when planning risk management. A plant in Minnesota must deal with different variables than one in a different region, he said, naming five key characteristics each plant should identify to reveal its fingerprint—goals and objectives, corn origination, ethanol marketing, distill-

56

PHOTO: WHITNEY CURTIS

On Credits, Risk and the Future

Networking opportunities and educational sessions continue to draw participants from all sectors of the ethanol industry to the annual FEW.

ers marketing, and natural gas purchasing.

“Avoid the temptation to compare yourself with other plants unless you know that their fingerprint is identical to your own,” Wapp said. He also noted the importance of setting goals and parameters for the management team, which is then given the green light to operate within those parameters, even within a quickly changing environment. The best place to be is in a neutral position as an opportunistic margin hedger, he added, carrying short corn futures to offset cash purchases as needed. When margins opportunities do appear Wapp said, buy corn futures back and sell ethanol swaps. This may also include buying natural gas and selling distillers in the cash market, futures and/or OTC market. Ultimately Wapp said, a plant needs to “plan the work, and work the plan,” to be successful.

John Christianson, principal for Christianson & Associates, agreed with Wapp’s

depiction of what makes a plant successful, reiterating that companies that have done well have a clear sense of direction and empower the staff to head in that direction.

“With all the uncertainty, we have to analyze where we want to go and what we want to do,” Christianson said. The place to be, he said, is where a plant can maximize grind margin components. The Minnesota-based company’s “Biofuels Benchmarking Report” compares many of these components by region.

Reports like Christianson’s and Urbanchuk’s and the insights of industry insiders are necessary for the success of the industry and will play a large role in the future, regardless of what happens this fall with VEETC. “I think we can tell the truth about the ethanol industry “and work for data that will help fight the battle,” Christianson said.

—Luke Geiver

ETHANOL PRODUCER MAGAZINE

August 2010

Enhancing Coproducts Panel speakers at the FEW discussed back-end coproduct optimization for ethanol plants, including extraction of post-fermentation corn oil from stillage that has been finding a home among biodiesel producers. The chief technology officer for Greenshift Corp., David Winsness, said only about 4 MMgy of post-ferm corn oil was being extracted from whole stillage at U.S. ethanol plants in May 2007. Two years later, that number grew to 33 MMgy and by May 2010 as much as 44 MMgy of post-ferm corn oil was removed and sold as biodiesel feedstock or for other uses. Winsness said by 2022, it is expected that up to 680 MMgy of post-ferm corn oil will be siphoned from the back-end of U.S. ethanol plants.

Winsness said the earlier Greenshift extraction modules were able to secure up to 0.9 pounds per bushel (lbs/bu) of corn oil, but by applying the company’s latest advanced method, up to 1.7 lbs/bu of post-ferm corn oil can be extracted. He said ethanol producers can make up to 7.9 cents per gallon of ethanol produced by selling their post-ferm corn oil.

“This could mean $830 million of new mon-

ey to this industry.” While most corn fractionation processes involve front-end component separation after which the non-starch streams can be sold into various higher-value markets, Greenshift has trademarked the term Backend Fractionation to represent the selective and efficient removal of valuable components within the whole stillage. “It’s barbaric to use a hammer and chisel approach to separating corn components,” said Winsness of some front-end frac processes.

Ryan Heuer, with ICM Inc.’s business development unit, discussed Flottweg’s Tricanter technology, which is a three-phase separator isolating the solid “peanut butter-like material” from the two immiscible liquids with different densities, oil and water. Heuer said unlike competitors’ separation equipment, which use disk stack centrifugation similar to that used for skim milk production, Tricanter technology does not leave entrained solids in the extracted corn oil. He also said the downtime of Tricanter technology is significantly less than with competing oil extraction units.

“There’s a 40 to 60 second delay every six or

seven minutes,” Heuer said referring to disk stack units. “That equals a downtime of about 10 percent,” whereas Heuer said downtime for the Tricanter is only about 1.2 percent. He said the purity of the extracted oil product is comparable to yellow grease and actually trades at a premium to yellow grease.

Radhakrishnan Srinivasan, assistant research professor at Mississippi State University, spoke on the so-called Eluseive process, whose name comes from combining elutriation and sieving. Using the system, Srinivasan said it is possible to make lower-fiber, higher-protein/fat-enhanced distillers grains for chicken and poultry. The separated fiber can be sold to ruminant feed markets. Using four sieve sizes, the DDGS are first separated according to particle size. Air is then blown into each batch, effectively removing the fiber for enhanced DDGS. A one-ton-per-hour Elusieve pilot plant is operating at University of Illinois-Urbana Champagne.

—Ron Kotrba

Award Winners Jeff Broin, on the right, CEO of Poet LLC, was recognized for his pioneering vision, leadership and unstoppable pursuit of industry growth in receiving the 2010 FEW High Octane Award from BBI International Vice President Tom Bryan, far left, at the event’s opening session. Gunter Brodl, below, president of Vogelbusch USA Inc., received the Award of Excellence. In addition, two students were awarded the newly re-dedicated Kathy Bryan Memorial Scholarship. Mary Krull, the daughter of the plant manager at Valero Renewables-Albert City, Iowa, and Nicholas Ballard, the son of a process operator at Big River Resources LLC, Galva, Ill., were the recipients.

Gunter Brodl

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ABW Drills into Advanced Biofuels Advanced biofuels, with an emphasis on those other than cellulosic ethanol, were featured in the one-day Advanced Biofuels Workshop co-located with the FEW and held, June 14. Michael McAdams, president of the Advanced Biofuels Association, called for better cooperation among those in the biofuels arena in order to meet the biofuel goals mandated by the U.S. in his keynote speech.

The industry should stop, step back and recognize what the first-generation ethanol industry has accomplished, said John Monks, business director for DSM. Many have a short attention span and have moved on from ethanol to other biofuels.

There’s no reason, he said, to discount ethanol. “There’s a lot to be learned from that can-do attitude,” he said. DSM, which started as a mining company, believes there are opportunities to retrofit existing corn-ethanol infrastructure to carry it forward into second-generation success. DSM has calculated that utilizing corn fiber as a cellulosic feedstock could yield an additional billion gallons.

“It’s not exactly a no brainer,” Monks said. “There’s going to have to be a lot

58

of work, investment to get it done.”

In addition to renewable diesel and biobutanol, drop-in biogasoline was discussed by Gary Luce, CEO of Terrabon LLC. The company is partnering with Waste Management and Valero to produce a drop in biofuel that can be used with existing infrastructure. The company’s current focus is on municipal solid waste, but will eventually move to also investigating multiple energy crops as well as algae.

Pictured clockwise from the top: Martha Schlicher, Monsanto Bioenergy, Pete Moss, Cereal Process Technolgies, Tom Bryan, BBI International, Charles Hurburgh, Iowa State University, Dave Vander Griend, ICM Inc., Bob Dinneen, RFA.

—Holly Jessen

ETHANOL PRODUCER MAGAZINE

August 2010

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PROFILE

Secretary of Agriculture Tom Vilsack selects questions from the audience at the Clean Energy Economy Forum-Rural Energy Opportunities held at the White House in May. PHOTO: USDA

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ETHANOL PRODUCER MAGAZINE

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PROFILE

An Iowa Ethanol Booster in Washington Secretary of Agriculture Tom Vilsack hasn’t been shy about stating his firm support for the ethanol industry.

By Holly Jessen Photos By USDA

ETHANOL PRODUCER MAGAZINE

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PROFILE

S

ecretary of Agriculture Tom Vilsack makes no bones about it. In an interview with EPM, he calls himself a strong proponent of biofuels and declares his boss, President Obama, is a strong proponent as well. “We want a nationwide robust market for biofuels,” he says. It’s not the only time he’s pledged support for alternative fuels such as ethanol.

Still, with the U.S. EPA announcing yet another delay on the E15 issue and no assurance of tax incentive extensions as of the end of June—some in the industry wonder if it’s all talk and no action.

Certainly a step in the right direction, the USDA’s “Regional Roadmap to Meeting the Biofuels Goals of the Renewable Fuels Standard,” released June 23, acknowledges the role of corn starch ethanol by pointing out that the U.S. is already on its way to meeting the 15 billion gallon goal set by the renewable fuels standard (RFS2). “I am confident that we can meet the threshold of producing 36 billion gallons of biofuel

annually by 2022," Vilsack says. "The current ethanol industry provides a solid foundation to build upon and reach the 36 billion gallon goal.”

To generate the 21 billion gallons of advanced biofuels, the June USDA report says, an estimated 527 biorefineries will need to be built, at a cost of $168 billion, assuming an average size of 40 MMgy for each plant. In addition, the report says that up to 50 percent of advanced biofuel production will come from the Southeast, due to a robust growing season that supports the highest gallons per acre. Closely trailing the Southeast is the central east region, with a potential to produce 43.3 percent of the advanced biofuel production goal.

Beyond just building biorefineries, the USDA recognizes that infrastructure is needed so that biofuels can get from the plants producing them to consumers using them. One area where the department could immediately offer assistance is blender pumps, the report says. Although the bulk of flex-fuel ve-

Secretary of Agriculture Tom Vilsack testifies before the House Committee on Agriculture in Washington, D.C.

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ETHANOL PRODUCER MAGAZINE

August 2010

PROFILE

Developing a clean, green American economy, with a focus on renewable energy and biofuels, "creates the first real opportunity to develop a holistic approach to revitalizing rural America."

Tom Vilsack, Secretary of Agriculture

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hicles (FFV) are in the Midwest, there is a demand for ethanol elsewhere, with the primary targets for blender pumps and FFVs being California, Texas and Florida. In addition, infrastructure to distribute ethanol by rail or truck as well as blending terminals and storage facilities is needed.

The Future of an Industry After Vilsack’s April 28 visit to Macon, Mo., where he accompanied the president on a tour of Poet Biorefining-Macon, EPM had an opportunity to interview the secretary. As stated in the regional roadmap, he stresses

that it won’t just take emergent biofuel technologies to fulfill the RFS2. It will take current technologies too, namely ethanol produced from corn. The president’s visit to a corn ethanol plant was an appropriate recognition of the fact that ethanol will be a permanent part of the U.S. fuel supply, he says. “I think it sends a good message to the biofuels industry.”

When asked about the negative publicity campaign waged by anti-ethanol advocates, the head of the USDA downplays it. Don’t worry about that, he tells EPM. Some people just don’t realize the efficiencies and improve-

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Agriculture Secretary Tom Vilsack makes remarks on his commitment to rural America at the 2010 Agriculture Outlook Forum held in Arlington, Va.

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August 2010

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PROFILE

ments made in the ethanol process over the years. “I think people are operating under the assumption that this is an energy user and not energy saver.” The more important issue, he says, is moving the industry forward. The goal is to enable the industry to flourish to take the pressure off fossil fuel and reduce the nation’s reliance on foreign oil. But it’s not just foreign oil that’s the bad guy here. As the oil spill in the Gulf of Mexico has shown, drilling off U.S. shores has risks with some very serious environmental consequences,

Vilsack points out, and biofuels are an essential part of what it will take to move away from petroleum.

To do that, the blend rate issue must be resolved. “I’m interested in ultimately getting to E15,” he tells EPM, adding that he’d like to see the EPA move as quickly as it can, with proper scientific justification.

He’s not willing to comment whether E15 would be approved for all vehicles or only newer models, saying only that it is currently being researched. Vilsack says the administration must work with the auto

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During an interview with EPM, Secretary of Agriculture Tom Vilsack said both he and President Obama are enthusiastic proponents of biofuels.

industry so flex-fuel vehicles continue to be built. What he doesn’t want to see, he says, is a situation in the market where a large majority of new vehicles aren’t built to utilize ethanol. In addition, there must be a functioning fuel distribution system, so all consumers have easy access to the fuel they want and need. That means, whether it’s a standard vehicle, one that takes E85 or

ETHANOL PRODUCER MAGAZINE

August 2010

PROFILE

an older model, the proper fuel should be available at every gas station. “That should be the goal,� he says.

Vilsack is also in favor of longterm extensions of the ethanol financial incentives. Without incentives such as the blenders credit, or Volumetric Ethanol Excise Tax Credit, and the Cellulosic Biofuel Producer Tax Credit, it will be difficult to get investors interested, he says.

Impact on Rural Areas

Vilsack is no stranger to agriculture or issues facing rural areas. Obama appointed the former Governor of Iowa to the Secretary of Agriculture spot 18 months ago. His goal for the clean energy forum, he says, was to put it in a very rural perspective. “To my way of thinking, it’s really more than the obvious. It’s more than energy independence, it’s more than the commitment to the environment that this administration has made, it’s more than jobs. It is really a critical component to a strategy to rebuild a rural economy

In May, Vilsack hosted a clean energy economy forum at the White House, where speakers included USDA officials, the chairperson of the White House Council on Environmental Quality, the Union of Concerned Scientists and others. Also on hand were farmers, ranchers and producers. Held on the one year anniversary of Obama’s Biofuels Directive, the group discussed renewable energy opportunities for rural communities and the administration's efforts to help rural America build a clean energy economy that creates jobs, reduces the nation’s dependence on foreign oil and enhances its position in the global economy. "Renewable energy production is a key to sustainable economic development in rural America," Vilsack said at the forum. "We must rapidly escalate the production of biofuels to meet the 2022 federal renewable fuels standard goal, and much of this biofuel will come from feedstocks produced by America's farmers and ranchers.�

The week the clean energy forum was held, USDA announced that funds were available from the Biorefinery Assistance Program, Repowering Assistance Payments to Eligible Biorefineries, Payments to Eligible Advanced Biofuel Producers, and the Rural Energy For America Program (REAP)— several key energy provisions of the Farm Bill. USDA is also implementing the Biomass Crop Assistance Program to provide matching payments to help encourage the development of biomass feedstocks.

that, for decades, has been in need of revitalization.�

Ninety percent of the counties with persistent poverty are rural. Those regions have aging populations, with 28 percent of farmers over the age of 65. In comparison, he says, only about eight percent of the general workforce is over age 65.

In addition, rural areas are hemorrhaging residents. A whopping 56 percent of rural counties saw population decreases in the 2000 census, and it’s very likely that trend will continue in the 2010 census figures.

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PROFILE

Secretary of Agriculture Tom Vilsack illustrated the growing productivity of U.S. farmers with this chart.

Iowa is a classic example of what is facing rural areas, Vilsack says. In 1900, more people lived in Iowa than California and Florida combined and the state had

the representation of 13 members in Congress. Today, Iowa has skidded to 30th in population and is represented by only five members of Congressâ&#x20AC;&#x201D;one of which

the state is likely to lose due to further population loss. Most of this countryâ&#x20AC;&#x2122;s founding fathers were farmers rooted in a rural way of life. Today, only onesixth of the population lives in a rural setting. Agriculture became more efficient, requiring fewer farmers, and the country failed to create a companion economy to agriculture to allow people to remain in the rural areas. â&#x20AC;&#x153;This discussion, from my perspective, is really about the core values of the country,â&#x20AC;?

Vilsack says. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s about revitalizing a very important part of that core.â&#x20AC;?

And biofuels are an integral part of that. Developing a clean, green American economy, with a focus on renewable energy and biofuels, he says, â&#x20AC;&#x153;creates the first real opportunity to develop a holistic approach to revitalizing rural America.â&#x20AC;?

Building more biorefineries to create jobs in rural economies will help improve the bottom line for farmers and landowners. It will help repopulate rural communities and help those who want to stay there find good jobs. And not just jobs at ethanol plantsâ&#x20AC;&#x201D;it stimulates jobs at companies that provide parts, equipment and software for the plantsâ&#x20AC;&#x201D;to name just a few examples. â&#x20AC;&#x153;There are just a multitude of good news stories with that,â&#x20AC;? he says, giving moms and dads, grandpas and grandmas the ability to say to youth that they have just as much opportunity for success in rural America as they would if they moved to a bigger city. EP Holly Jessen is associate editor of Ethanol Producer Magazine. Reach her at (701) 738-4946 or hjessen@ bbiinternational.com.

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CANADA

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CANADA

O’ Ethanol With Canada’s renewable fuels standard mandating E5 starting in September, EPM takes a look at the Canadian ethanol industry.

By Anna Austin

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CANADA

I

n stark contrast to its neighbor to the south, the Canadian ethanol industry didn’t experience the sweet boom years that the U.S. industry did, but it also hasn’t suffered sour effects from a declining economy. In fact, it has likely learned a few lessons from its neighbors to mitigate such effects. Significantly smaller than its U.S. counterpart, the Canadian industry hosts 15 commercial-scale fuel ethanol plants in operation or under construction, ranging from 12.5 million to 225 million liters per year to total nearly 1.8 billion liters (about 476 million gallons). That’s a small fraction of that of the U.S., which has an installed capacity of more than 13 billion gallons.

Canadian producers also enjoy fewer incentives and less federal assistance than U.S. producers historically have. Canada’s slow but steady progress, however, seems to be cementing a solid foundation for continued growth.

Canadian ethanol plants are concentrated in Ontario and Saskatchewan, with a scattering in other provinces. Corn is the prevalent feedstock in eastern Canada, most of which is grown domestically with roughly 40 percent imported into eastern Ontario and Quebec, according to a recently completed biofuel economic impact assessment report commissioned by the Canadian Renewable Fuel Association.

Western Canadian plants typically use wheat, of which Canada is a net exporter, ranking sixth in the world among wheat growing countries. In 2008, Canada produced more than 29 million metric tons, and according to the Western Canadian Wheat Growers Association, the seven commercial plants in that region annually require about 1.4 million metric tons of wheat or about 7 percent of the wheat grown in Western Canada.

Aside from corn and wheat, municipal solid waste (MSW) is being targeted as the feedstock for a planned facility in Edmonton, Alberta. Canadian ethanol pioneer Greenfield Ethanol Inc. has teamed up with native cellulosic ethanol developer Enerkem Inc. to build a facility that will gasify 100,000 metric tons

70

of MSW from the city into 40 million liters (10 MMgy) of ethanol.

While new projects such as these continue to build and strengthMarie Labrieen the Canadian Helene ethanol industry, the chief of positive economic governmental impact of the bio- affairs, Enerkem fuel industy is influencing the way government and the public view ethanol and renewable fuels.

Many Angles of Support It doesn’t seem as though Canada is experiencing the aggressive ethanol smear tactics that the U.S. has, and recent polls show significant public support for ethanol and renewable fuels in general. Marie Labrie-Helene, chief of governmental affairs for Enerkem, points out that support seems to be increasing with each year, and companies such as Enerkem that are developing both ethanol and next generation fuels are poised to benefit from the increasing public and government support. According to a national poll conducted last year by Praxicus Public Strategies, 69 percent of Canadians support replacing some of the country’s fossil fuels with renewable fuels— specifically ethanol and biodiesel—and 87 percent of Canadians support federal policies that would encourage the development of next generation biofuels. The study also found 74 percent of Canadians support the E5 mandate taking effect this summer, an 8 percent increase from a poll conducted in April 2008.

Canada's renewable fuels standard (RFS) takes effect Sept. 1, mandating E5 blends, though the Canadian Renewable Fuels Association and other groups are pushing for an increase to 10 percent.

Until that happens, Canada may have difficulty positioning itself as one of the global leaders in the biofuel industry, according to Labrie. “We will need additional programs and incentives, as well as a higher RFS mandate of 10 percent, in

ETHANOL PRODUCER MAGAZINE

August 2010

PHOTO: GREENFIELD ETHANOL

CANADA

Greenfield Ethanol's first facility, pictured above, was built at Tiverton, Ontario, in 1989.

order to build the next phase of development in the biofuels sector and to commercialize next generation technologies,â&#x20AC;? she says.

Meanwhile, federal financial support continues, the most recent being the ecoENERGY for Biofuels Program launched in April 2008 by Natural Resources Canada, which will provide up to $1.5 billion over nine years to boost Canadaâ&#x20AC;&#x2122;s production of renewable fuels. So far, NRC has signed contribution agreements with 21 projects, earmarking $765 million for the majority that are ethanol. The program provides operating incentives to producers of renewable alternatives to gasoline and diesel, based on production levels and other factors.

It seeks to make investment in biofuels more attractive by partially offsetting the risk associated with fluctuating feedstock and fuel prices. Recipients receive production incentives for up to seven consecutive years. This includes existing

ETHANOL PRODUCER MAGAZINE

producers, requests for volume increases from existing agreements and new producers that clearly demonstrated an advanced state of readiness of their project before March 31. Financial incentives are provided for the number of liters of ethanol produced in Canada, based on fixed declining incentive rates established by the program and as agreed upon in each contribution agreement. In 2010, the incentive payments start at 10 cents per liter for ethanol, and decline by one cent each year until 2017.

Other mandates and incentives vary from province to province. The Ontario government has a provincial mandate of 5 percent renewable fuels, while Manitoba hosts an 8.5 percent ethanol mandate and Saskatchewan a 7.5 percent ethanol mandate. Alberta has recently extended its support for ethanol and biodiesel by prolonging its BioEnergy Producer Credit Program by five years to 2016, presenting opportunities to build additional capacity

August 2010

CANADA

in Alberta with a focus on the great potential for second generation renewable fuels that use MSW and forestry and agricultural biomass feedstock.

Additionally, the governments of Saskatchewan and Manitoba offer exemptions from road taxes for fuel ethanol produced and consumed in each province, and the governments of British Columbia and Quebec have committed to exempt the ethanol portion of low-level ethanol blends from their road taxes, though there are no ethanol plants in B.C. yet. As a result of federal

and provincial producer incentives, actual wholesale prices of ethanol have averaged just over 60 cents per liter so far in 2010. For comparison, in mid-June the national average price of gasoline in Canada was $1.03 per liter.

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â&#x20AC;&#x153;From a feedstock perspective, first and second generation ethanol are complementary and they will both play a role in Canadaâ&#x20AC;&#x2122;s energy future,â&#x20AC;? Labrie says, adding that Enerkem will build community-based plants in both urban and rural areas in Canada. â&#x20AC;&#x153;The flexibility of our technology will allow us to not only produce advanced biofuels from non-recyclable MSW but also from forest residues, which are abundant in Canada.â&#x20AC;?

The communities fortunate enough to become homes of future ethanol or advanced biofuel projects built by Enerkem and others may reap significant benefits.

According to the recent CRFA Biofuels Impact Report, the Canadian ethanol industry has stimulated growth in new industry sectors as well as exports.

One significant change in the Canadian ethanol industry in recent years is the increasing proportion of capital equipment that Canadian firms supply to the countryâ&#x20AC;&#x2122;s ethanol and biodiesel plants. Displacing imported equipment has provided a major benefit to the Canadian economy, according to the report.

It also finds that dried distillers grains is becoming a notable Canadian export; as much 50 percent is exported in western Canada, primarily as animal feed for nearby regional U.S livestock. Even making allowance for the opportunity costs of alternate investments, and the opportunity costs of alternate feedstock sales, renewable fuels plants in Canada represent a positive net economic benefit. Together with the operating biodiesel plants in the country, the 28 renewable fuels plants provide a total of 2.25 billion liters of renewable fuels annually, generating annual economic benefits of more than $2 billion to the Canadian economy. This includes more than 1,000 direct and indirect jobs, the report finds.

While first generation ethanol production continues to build out, cellulosic ethanol companies and new projects have begun to spring up in Canada as well. Potentially, they will add greatly to the newly realized economic benefits of biofuel production in Canada.

ETHANOL PRODUCER MAGAZINE

August 2010

CANADA

Glance at Producers On a much smaller scale, Greenfield Ethanol is to Canada what Poet LLC or Archer Daniels Midland Co. are to the U.S. Initially known as Commercial Alcohols, the company made its first deal for a commercial-scale fuel ethanol plant in 1996. It opened two years later in Chatham, Ontario, and is in full operation today. Greenfield now has four operating corn ethanol plants, and is planning two additional ones—a corn ethanol plant in Hensall, Ontario, and the joint project with Enerkem to produce cellulosic ethanol in Alberta.

Husky Energy, one of Canada's largest integrated oil and gas companies and Western Canada’s largest ethanol producer, has been manufacturing ethanol since 1981. The company has two plants, located in Lloydminster, Saskatchewan, and Minnedosa, Manitoba, that collectively produce 260 million of liters of grain ethanol per year.

Oil sands company Suncor Energy operates Canada's largest ethanol facility, the St. Clair Ethanol Plant in the SarniaLambton region of Ontario. The plant opened in June 2006, and has an annual production capacity of 200 million liters per year, with a $120 million expansion project underway to double its capacity.

According to the company, the plant currently uses 20 million bushels of corn annually, or approximately 10 percent of Ontario's annual corn crop.

On the cellulosic side, Iogen Corp. has been around for the better part of a decade. Its demonstration facility in Ottawa, Ontario, opened in 2004, and is designed to process about 20 to 30 metric tons per day of ethanol from wheat straw. With an approximate daily capacity of 5,000 to 6,000 liters of cellulosic ethanol, the fuel produced at the demonstration facility is currently being purchased

by Royal Dutch Shell, and together the companies have formed joint venture Iogen Energy.

Aside from its project with Greenfield, Enerkem began operations in January 2009 at its commercial-scale syngas-

ETHANOL PRODUCER MAGAZINE

to-ethanol/methanol plant in Westbury, Quebec, and is developing a U.S. DOEbacked waste-to-biofuels plant in Pontotoc, Miss. The $250 million project will recycle and convert approximately 60 percent, or 189,000 tons, of the MSW from the Three Rivers Landfill where the 20 MMgy facility will be built.

There several other ethanol plants are scattered across the country. Some of them are working on expansions, some are partnering for additional projects, and others are simply focusing on optimizing current

August 2010

operations. Keeping the ethanol industry ball rolling, Canada just may demonstrate that its slower and steadier technique wins the race. EP Anna Austin is a Biomass Magazine associate editor. Reach her at 701-738-4968 or aaustin@bbiinternational.com

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ETHANOL PRODUCER MAGAZINE

August 2010

PROMOTION

The New Face of Ethanol 2010 has seen several ethanol-infused television commercials and an unprecedented U.S. oil spill, all of which are shaping the perception of the industry.

By Luke Geiver

ETHANOL PRODUCER MAGAZINE

August 2010

77

PROMOTION

A

month before the gushing cloud of dark brown oil burst out of a broken pipe and the Deepwater Horizon tragedy spilled onto our shores and our television screens, a Consumer Federation of America survey revealed what many Americans are thinking about energy. The survey, conducted by Opinion Research Corp., showed that of the 1,010 adults surveyed, 87 percent believe that it’s “important” the U.S. reduce oil consumption.

“Our survey data strongly suggests that the American public is getting very close to the point, if they’re not already there, where they are prepared to support radical measures to break our nation’s dependence on oil and oil imports,” said Jack Gillis, CFA director of public affairs, in announcing the survey results.

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certainly will influence public perception.

Ethanol supporters hope those images will cast the debates surrounding biofuels in a new light. Luckily, several advertising campaigns were in the works before the oil spill. Visually and verbally, the campaigns are aimed at changing the American public's perception of ethanol.

The Visual Even with a strong national presence at the pump, the general appearance and perception of ethanol in the mainstream has mainly been provided by billboards, print advertisements and websites. Since April, however, television commercials created by prominent ethanol promoters have been airing on CNN, MSNBC, Fox and HLN networks. Supported by Poet LLC, Growth Energy, UNICA and the National Corn Growers Association , the ads are giving a new face to ethanol reminiscent of the “Got Milk” presence.

The newest of these, from the NCGA, began airing June 28. Speaking over a series of images that starts with a

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flaming oil rig in the middle of an ocean, a voice declares, “It’s clear that events here at home and abroad demand a different solution to our energy needs.” NCGA coupled its TV commercial with a series of print ads featuring individual farmers and farm families with one person holding a numbered sign, the number associated with an important statistic. One ad states, “An acre of corn removes 8 tons of harmful greenhouse gas, more than that produced by your car.”

Ken Colombini, director of communications for the NCGA, says the ad campaign was developed to advance the success of the Renewable Fuels Reinvestment Act, and to assist with the inclusion of pro-corn ethanol provisions in the proposed energy bill. “Whatever the vehicle, NCGA supports energy legislation extending the Volumetric Ethanol Excise Tax Credit and the tariff on imported ethanol,” Colombini says. “If VEETC expires at the end of this year, U.S. ethanol production capacity could decrease by 38 percent and impact rural communities

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August 2010

most heavily. For corn farmers, this also could mean a 30 cent per bushel price drop.”

Darrin Ihnen, president of the NCGA, also cites the future energy bill in talking about NCGA’s investment of more than $1 million in the new campaign for ethanol. “Legislation is before Congress to continue much needed incentives and there is a new energy bill on the horizon, making it an important and critical time to talk about ethanol’s many environmental and economic benefits to our country.”

As the NCGA commercial plays out on the screen, it makes the case that the answer to our energy needs are right here in the U.S. “One answer grows in our own backyard,” the commercial states,“turning American corn into America’s energy.”

Pointing to a June 21 USDA study citing the improved efficiency of corn ethanol production, Ihnen adds, “it’s no wonder we’re saying ‘Now is the time for ethanol.’ The industry is making great progress and corn growers have another re-

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Commuters on the Washington, D.C., metro are met with Growth Energy's campaign to present the facts on ethanol.

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This banner appearing in a D.C. Metro station is a compilation of the short pro-ethanol statements used in Growth Energy's pro-ethanol campaign.

cord crop in the field so we can meet all needs.” Overlapping an image of a young farming family, the voice in the commercial adds, “We feed the world.

We can fuel it, too.”

Poet’s television campaign, launched well before the oil spill, aims at telling the story of ethanol to a larger audience, according to Greg Breukelman, Poet’s senior vice president of communications. In three separate commercials featuring a plant manager, a farmer and a scientist, the camera zooms in on the person speaking freely amongst people bustling by, in a place where cornfields are miles away—New York City. The plant manager wearing a hard hat, a pair of khakis and holding a clipboard, starts his free verse poem, “American Dollar, a poem,” and goes on to say, “The dollar is still building the tallest buildings in the world. It just built one in Dubai. $250 billion a year for foreign oil will go a long way.” The commercial ends with

the speaker (a fictional character named Steve Ross) walking away into the crowd of people on a busy street. A phrase on the screen then comes into focus saying, “For every billion gallons of ethanol produced, we create 20,000 American jobs.” Similarly, Poet’s other two commercials also include a free verse poem on the subject of ethanol. The farmer spot shows a man dressed in a faded brown Carhart jacket with baseball cap in hand speaking about what his family can do for America: “Give me a little rain mixed with a little sun. I’ll give you plenty of food with fuel to boot. And I’ll do the same thing tomorrow.” And the commercial featuring a woman scientist dressed in a white lab coat tells the viewer, “I turn waste into fuel…and one day I’ll let you tell the Middle East where they can ship their tankers.”

It wasn’t just the U.S. industry reaching out to consumers. UNICA, the Brazilian Sugarcane Association aired

ETHANOL PRODUCER MAGAZINE

August 2010

PROMOTION

its commercial during the 99th edition of the Indianapolis 500. Several Indy car drivers including well-known driver Helio Castroneves, say in the spots, “I compete with sugarcane ethanol.” The commercials “seek to educate American consumers about sugarcane ethanol and how it can benefit their pockets, the environment and the market,” says Joel Velasco, UNICA’s chief representative in North America.

The Verbal While plant managers reciting poetry, family farmers holding signs or Indy 500 drivers promoting the fuel in their cars, all help shape a new face for ethanol on the television screen, there are other important, less visible measures being taken. Following the gulf oil spill, the Renewable Fuels Association president and CEO Bob Dinneen wrote to President Obama, closing with the statement: “I encourage you to unleash the ingenuity and productivity of American farmers and ethanol producers to help end America’s dangerous addiction to petroleum.” The letter to the president is only one example of the group’s highly successful and informed pursuit to promote, educate and lobby for the use of ethanol. RFA has turned to using new media to spread the ethanol message. Robert White, director of market development for the RFA, recently won an award for his role in using social media outlets such as Facebook and Twitter. “Robert is certainly a deserving recipient of this award,” said Dinneen. “His recognition is evidence of the commitment RFA has made to utilizing all available outlets to spread the word about the exciting evolution of America’s ethanol industry.”

Boiling the ethanol story down to a simple message was the goal of Growth Energy’s series of television ads that, by a stroke of luck considering they were developed well before the oil spill, include the statement “No beaches have been closed due to ethanol spills.” In a combination of visual and verbal elements, the Growth Energy spots feature ETHANOL PRODUCER MAGAZINE

a single statement over a bright green background. Phrases such as “No wars have been fought over ETHANOL,” or “We won’t have to wait millions of years to replenish our ETHANOL reserves,” linger on the screen before the Growth Energy logo appears. There is no alarming image, no actual face speaking, just a factual statement on a green screen. The advertisements first appeared on television in April and the messages have been plastered across a Washington D.C. metro station. “There is no question as to ethanol’s benefits— we are just seeking to turn up the volume and target our audience at a critical time,” says Chris Thorne, director of public affairs for Growth Energy.

Arguing that the nation is in a critical time following the Gulf spill, or that Americans want to move away from foreign fossil fuels, given the CFA survey answers, might seem easy. But, Brian Jennings, executive vice president of the American Coalition for Ethanol, points out that the industry needs to be respectful in the way it promotes itself in the aftermath of the tragedy. “We don’t have to choose to rely on oil,” Jennings he says. “We could pivot to the alternatives that are here now, which is primarily corn ethanol.”

That corn ethanol is a viable alternative to oil won’t be the automatic conclusion, however. Thus it is providential that multiple campaigns to boost the image of ethanol appeared just when an oil crisis erupted and anticipating another tough fight in Washington. In more than one recent report from organizations pushing for investment in clean energy, a long list of worthy alternatives is given—without a word about renewable fuels or biofuels, let alone the word ethanol. Going directly to the American public may be just what is needed. EP Luke Geiver is an associate editor of Ethanol Producer Magazine. Reach him at (701) 738-4944 or lgeiver@bbiinternational.com.

August 2010

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Hogwash

Could hog manure be an environmentally friendly avenue for ethanol production? Meet some people who think the answer to that question is “yes.”

By Holly Jessen

PHOTO: NATIONAL PORK BOARD

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ETHANOL PRODUCER MAGAZINE

August 2010

WASTE-TO-ETHANOL

ETHANOL PRODUCER MAGAZINE

August 2010

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WASTE-TO-ETHANOL

O

f all the possible feedstocks for an ethanol plant, hog manure has to be one of the most aromatic. A Canadian hog farmer and a group of researchers in North Carolina are approaching hog waste from different angles—one targeting recycled water and the other looking directly at the cellulose fraction.

What these projects have in common is converting what comes out of the posterior of a pig into ethanol.

Will Kingma, owner of Kingdom Farms, thinks that ethanol—as part of a bioenergy cluster—is the answer for his hog operation near Bentley, Alberta.

Kingma envisions a future where his hog operation works synergistically with four elements: a water recycling system, an ethanol plant, ethanol coproducts for feed and biodigestion for power generation.

Kingma’s 1,800 sows produce about 35,000 to 40,000 pigs a year that, in turn, produce about 18 million gallons of ma-

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Since 1958 West Des Moines, Iowa USA ETHANOL PRODUCER MAGAZINE

August 2010

WASTE-TO-ETHANOL

Kingdom Farms Plan -Recover 70 percent of water in manure (savings of $8 per head) -6.6 MMgy wheat-to-ethanol plant (half the water from recovered water) -Half the WDG to feed hogs (savings of $10 to $12 per head) -Half the WDG to biodigester for power generation (saving onethird the capital cost for the ethanol plant)

nure. After getting complaints from the citizens of nearby Bentley, Kingma started looking for ways to reduce the odor. â&#x20AC;&#x153;We wanted to be able to produce hogs in a neighborly fashion,â&#x20AC;?

Kingma tells EPM. He was also looking for ways to bolster his business financially, due to the poor economics of hog farming.

After several years of searching, Kingma is partway to his goal. The first step was installing a Livestock Water Recycling system, recovering 70 percent of the liquid in hog manure as potable water. The process reduces the original manure volume by 85 percent, resulting in a small amount of solids and an ammonium-rich fertilizer that can be sold or used on the farm. Its planned processing speed is 30 gallons of manure a minute, said Ross Thurston, president of LWR, the Calgary, Alberta, company that manufactures the system.

This is the first system installed on a hog farm and several more are in the works, he says. The company has units that can handle varying amounts, from 10 million gallons of manure yearly, to two combined units processing up to 75 million. Kingma estimates the savings alone from reducing the amount of material to be trucked away amounts to about $8 a head. LWR breaks it down this way: The current cost of handling

ETHANOL PRODUCER MAGAZINE

and transporting manure ranges from 90 cents to $1.50 a gallon while the LWR system costs about 25 to 40 cents per gallon of manure to operate. â&#x20AC;&#x153;Their pay-out will be less than two years,â&#x20AC;? Thurston says.

The next step for Kingdom Farms is a wheat-to-ethanol project. The 6.6 MMgy proposed ethanol plant is currently in the engineering, permitting and financing stage, with a projected construction start in the spring or fall of 2011, Kingma says. The plan is for recycled water from the LWR system to supply about 50 percent of the ethanol plantâ&#x20AC;&#x2122;s water needs.

The ethanol plant will produce wet distillers grains (WDG), half of which will be pumped directly to the barns and fed to the hogs on site. Currently, Kingdom Farms purchases WDG from the Permolex International ethanol plant located about half an hour away. Producing WDG on site will save the hog operation another $10 to $12 a head.

August 2010

The remaining WDG will go into a biodigester to produce methane gas for electrical generation. It would produce more than enough power for on-farm use and may also produce enough electricity to be sold to the grid, Kingma says. In addition, because thereâ&#x20AC;&#x2122;s no need to dry the distillers grains, the plant wonâ&#x20AC;&#x2122;t need centrifuges or dryers, which should save about one-third of the capital costs.

Zeroing in on Cellulose Jeffrey Macdonald teaches biomedical engineering at the University of North Carolina. Heâ&#x20AC;&#x2122;s also CEO of BioRxn, a startup company working to develop a cost-effective way to turn manure into electric power and ethanol while reducing odor. Macdonald got the idea when driving through North Carolina, the state ranked second behind Iowa for hog production. Two North Carolina counties, Duplin and Sampson, have a population

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WASTE-TO-ETHANOL

Jeffrey Macdonald and his partner Andrey Tikunov have designed a bioreactor they hope will make a big impact on the North Carolina hog industry.

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of about 50,000 each, more than 2 million hogs each and a big odor issue.

All the volatile aromatics in the air got him thinking. Why not take that problem and turn it into methane, CO2, recycled water and ethanol? Hogs, once they hit 200 pounds, excrete an amazing 2.2 gallons of waste a day, Macdonald says. That’s nearly 10 million gallons of manure daily from the more than 4 million hogs in Duplin and Sampson counties alone. Macdonald calculates North Carolina hogs are currently wasting $900 million a year in unutilized power.

He calculates that BioRxn technology could convert the waste from 1,000 hogs to 20 kilowatts of energy and receive a premium of 18 cents per kilowatt from a renewable energy credit.

At a typical hog operation in North Carolina, hog manure is moved from barn pits to lagoons and then spread over fields as fertilizer. The state has limits on how much manure can be spread as fertilizer, however, and operators aren’t allowed to create any more lagoons than the ones already in use.

Macdonald’s idea is to put a bioreactor between the hog barn and the lagoon, remove gasses and cellulose and send recycled water to the lagoon. “We don’t want to get rid of the lagoon, per se, we’ll just get rid of the stink,” he says.

Another positive will be that by reducing the nutrient load in the lagoons, hog operations could potentially expand since the land limitation for spreading waste due to overloading of nutrients would be mitigated.

Macdonald and Andrey Tikunov designed a bioreactor using tubes filled with water and bacteria for separation and anaerobic digestion of the hog manure. The methane produced could be used for electric generation for use on the farm or to be sold to the grid.

To produce ethanol from hog waste, Macdonald says one avenue could be simple fermentation of the sugar fraction at the start of the process. In addition, the team has also submitted a grant proposal to research the

ETHANOL PRODUCER MAGAZINE

August 2010

WASTE-TO-ETHANOL

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use of acetogenic bacteria in the final stage of the BioRxn process to produce ethanol.

The next step in the bioreactor design may be to separate the cellulosic fraction to be sold as feedstock to an ethanol plant. Hog feed is, after all, 80 percent corn, Macdonald says. Swine are not ruminates like cows, and instead of digesting cellulose, they concentrate it. So, the cellulose would be a high value feedstock, and unlike wood chips, it would be preprocessed and soluble.

“What the market needs will dictate the direction that we take it,” says Michael Van Hoy, scientific and business advisor for BioRxn. The intriguing thing about the BioRxn bioreactor is that as a gas lift multi-phase bioreactor it should be more efficient than stirred bioreactors. Van Hoy compares a single-phase stirred tank to human digestion—if it was done using only the mouth. The multi-phase bioreactor, however, is like

using the whole human digestive system, the mouth, stomach and intestines.

“We’re designed that way for a reason,” he says. “And for similar reasons, our multi-phase bioreactors should be more efficient than a single phase stirred bioreactor.”

At this point, Kingma’s idea of using water recycled from hog manure for ethanol production is the closest to becoming a reality. BioRxn’s project is in the very early stages of development and the company is still working to scale up the bioreactor to handle about 20,000 gallons of hog waste a day and, possibly, isolate and degrade the cellulose into cellulosic ethanol, Macdonald says. If successful, these projects could turn the sour smell of hog manure into the sweet smell of opportunity. EP Holly Jessen is associate editor of Ethanol Producer Magazine. Reach her at (701) 738-4946 or hjessen@ bbiinternational.com.

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SAFETY. BY DAVID AYERS

PHOTO: APPLIED SAFETY MANAGEMENT

Contribution

The bottom lock out is properly tagged while the top needs a tag attached.

Creating, Auditing Equipment-Specific Lockout/Tagout Instructions Hazardous energy is a silent killer. The power can be on, but there is no smell, taste or other indication that electrical, hydraulic, pneumatic, steam, mechanical or chemical power is present. Proper safety procedures require a methodical approach.

Countless injuries have been attributed to multiple hazardous energy inputs. The maintenance technician locks out the power but does not bleed off the stored energy in a charged line and block the chemical feed lines. Other

injuries can be attributed to a lack of labeling of hazardous energy inputs along with electrical panel labeling. Some injuries happen when the facility is modified but the equipmentspecific lockout/tagout (LO/ TO) procedure is not updated.

An LO/TO standard covers the servicing and maintenance of equipment where an unexpected energization or start up, or a release of stored energy could cause injury.

Writing an LO/TO standard starts with tracing back and

labeling all inputs and crafting an equipment-specific procedure.

Implementing the safety program begins with thinking carefully about the role of employees in three job classifications:

The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Ethanol Producer Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).

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Au t h o r i z e d — a n employee who locks or tags out machines or equipment in order to perform servicing or maintenance or equipment.

Affected—an employee whose job requires him/her to operate equipment or services on which servicing or maintenance is being performed under lockout or tagout, or places him/ her in an area in which servicing or maintenance is being performed.

All others—Employees not directly involved in authorizing or operating specific equipment must be trained to recognize LO/TO devices and tags and to not attempt to start a machine under LO/TO.

Training Employee training is very important for a fully functional lockout/tagout program.

All personnel should understand the duties of authorized, affected and other employees. It should be stressed that those not designated as authorized should not work on the equipment. Many employees have been injured because they watched the machine being serviced, decided they could do it themselves and inadvertently skipped a step or did not lockout/tagout

the equipment unexpected at all. activation or Equipment re-energizais to be locked tion of the out and tagged equipment whenever a during sersafety guard is vicing. Don’t removed or bywait for an David Ayers passed. LO/TO occupational accident should be imple- safety consultant involving mented whenev- Applied Safety hazardous er an employee Management energy to ocis expected to cur, however. place any part of their Be proactive and create body into a danger zone equipment-specific lockduring a machine operat- out/tagout procedures ing cycle. This applies to for potential hazards. hazardous moving parts For those new to and hazardous energy the field of facility mansources. agement or just starting to address equipmentspecific lockout/tagout Exempted procedures, the project Situations Some pieces of can seem like Mission equipment will not need Impossible.

There may be pushan equipment-specific back from supervisors lockout/tagout proand managers who want cedure. Examples into address the problem clude hazardous energy as the equipment or mathat has a single energy chinery breaks.

While source which can be easthis is a tempting arguily identified and isolatment, when equipment ed, and machinery that is plugged into a socket or machinery break, the where the technician has emphasis is to “hurry up control of the plug, there and get it back on-line,” is no potential or stored not to step back and energy, and re-accumula- write a safety procedure.

A step-by-step aption of hazardous energy proach will help in ascannot happen whether sessing the current situait be it electrical, hydraution and addressing gaps lic, pneumatic, steam or in procedures.

A best other. management practice There is also an exemption from creating is to form a team since equipment-specific lock- this task is too large for out/tagout procedures one person. Garner supif the facility has had no port from those techniaccidents involving the cians involved on a daily

ETHANOL PRODUCER MAGAZINE

August 2010

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SAFETY. BY DAVID AYERS basis—there will likely be site knowledge that has not been documented. A team also helps to build a sense of ownership instead of the attitude “it’s the facility manager’s job, let him do it.” The following five-step approach works well: 1. Ensure all valves, breakers, steam lines, chemical distribution lines, gas lines, etc. are properly labeled and tagged. Add directional arrows to lines containing steam, liquids (water or chemicals) and gases. A best management practice is to have labels every 10 feet from point of service to the equipment.

Also place the labels on both sides where the services cross through a wall, floor or ceiling. Have the equipment technicians who service the equipment assist you. Brass tags work great for outside areas.

2. Ensure that all valves, breakers, etc. have the ability to be locked out/tagged out. If you have an older facility, you may have equipment or machinery that was designed and manufactured prior to the lockout/tagout standard. You will have to use tagout in this case and ensure it provides the same level of protection as if it were locked out. Survey the equipment to determine the type of lockout device along with the size. Butterfly valves come in many sizes and the lockout devices must be sized prop-

erly to lockout the valve.

Also determine the number of locks that will be needed and be prepared for a worst-case scenario where multiple lockout operations occur simultaneously.

3. Check the facility blueprints or modified “as-builts” to make sure all information is up to date. It is not uncommon that when a facility is modified that services are abandoned in place. Document such abandonments both on the drawings and the service itself. There are several good software packages in which to store and modify drawings. A best management practice for storage on compact discs is to copy the software used for the drawing along with the system requirements in case the CD is to be used for reference in the future.

Regular backups need to be incorporated.

4. Write the equipmentspecific LO/TO procedure, which can be integrated into existing maintenance documents and checklists.

Have the technicians who perform the daily work help in writing the procedure.

If they cannot identify all the lockout/tagout points, then they probably are not performing lockout/tagout correctly.

5. Review the procedure with the technician.

Be specific and thorough.

In particular, watch for vague statements such as

ETHANOL PRODUCER MAGAZINE

August 2010

Creating equipment-specific lockout/tagout procedures can be difficult, but if you get the help of the technicians who work on the equipment every day, it can be very fast and smooth.

“lockout the valve”—most plants have hundreds of valves. Verify that what is written on paper matches the actual procedure and that it is easily understood, and not just by the person writing the procedure or servicing the equipment. Test it by having an unassociated technician walk through the procedure. This is also a great tool for cross-training.

additions to the facility are input into your current blueprint system. When equipment or utility services are modified, ask the equipment supplier to help with the equipment-specific lockout/ tagout procedure. A great time to train your technicians, is when the equipment is initially installed in the facility, as the vendor is there and can help.

Creating equipment-specific lockout/tagout procedures is very important in preventing accidents associated with servicing equipment with hazardous energy. Equipment with multiple inputs of hazardous energy must be surveyed to ensure all forms of the hazardous energy have been lockout/tagged out. Survey the equipment to ensure you have enough equipment for a worst-case scenario of having to perform several lock-

out/tagouts at the same time. Creating equipment-specific lockout/tagout procedures can be difficult, but if you get the help of the technicians who work on the equipment every day, it can be very fast and smooth.

A step-by-step-approach followed by verification works very well. This will help ensure you have no injuries attributed to the inadequate control of hazardous energy. EP David Ayers is the principle occupational safety consultant at Applied Safety Management. Reach him at david.ayers@ appliedsafetymanagement.com or (443) 896-7540.

System Maintenance Once the procedures are written and training is complete, consider how to maintain the system. Ongoing documentation is also very important so that equipment and site knowledge is not lost should the technician move on. Equipment-specific procedures must be kept up-to-date.

A best management practice is to review the procedure yearly when the piece of equipment has its annual preventive maintenance check. The technician can demonstrate the entire safety procedure and show his/ her competence in locking out/tagging out the equipment to be serviced.

This is a nice way to ensure the periodic review is conducted while integrating it into an existing work flow plan. Ensure any modification or new

ETHANOL PRODUCER MAGAZINE

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DISTILLERS GRAINS. BY MICHAEL TAY Contribution

DDGS, WDGS, Modified— Which Makes More Money Today?

Model-predictive control projects can help ethanol producers improve decision making when pricing and producing distillers grains.

The cost to dry stillage, or any biomass, is generally calculated based on a straightforward linear assumption—the more biomass dried, the higher the cost. We live in a nonlinear world, however, where linear logic doesn’t always hold true. When it comes to producing biomass, this is often the case because the energy-related costs required to dry an extra ton of biomass depend on a number

of constantly shifting—and not necessarily linear—factors, including wet cake moisture levels, dryer loading and current drying efficiency.

These fluctuating variables present myriad challenges for commodity managers when pricing stillage to sell to a local market.

Often the biggest hurdle is trying to identify the ideal amount of wet/local stillage to produce on a

given day. This is a difficult decision to make when the manager doesn’t have an effective way to determine the market price “tipping point” that should change their decision about how much wet or dry stillage to produce that day.

A dryer/stillage management model project can help commodity managers overcome some of these challenges. Model-based

control is based on a mathematical model designed to be optimized based on price. The model incorporates real-time costs of manufacturing, along with scenario optimization, and can tie this information to a browser page available to commodity and plant managers.

Producers can use this model to calculate the ideal business scenario based on varying

The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Ethanol Producer Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).

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market pricing for ethanol plant coproducts. To maximize gross revenue, plant managers can use a dryer model (including auxiliary equipment tied to the production of dry or wet distillers grains) to gauge the amounts of dry distillers grain with solubles (DDGS) and wet distillers grain with solubles (WDGS) they should produce at specific prices. Alternately, they can determine what the market price for wet distillers grains needs to be in order to make producing wet grain more attractive than producing dry stillage.

Whole Stillage Wet Cake Pad

Centrifuge Feed Beer Column

Thin Stillage

Syrup Tank Steam or Vapor

Syrup Tank

A number of dryer configurations are used, with the most common in the U.S. industry being two rotary dryers in series. Other layouts may require flash- or steam-tube dryers.

Laying Out the Process

SOURCE: PAVILION TECHNOLOGIES

Dry mill ethanol plants that produce DDGS operate using a variety of process configurations with the most common industry layout using two rotary dryers in series. Other layouts may require flash- or steam-tube dryers. As a general rule, plants use from one to four dryers, depending on dryer and plant design and capacity.

In plants using two rotary dryers, producers have the ability to make from zero to 100 percent DDGS. The remaining distillers

grains will become wet or modified product, where modified is a combination of centrifuge wet-cake, concentrated stillage syrup and partially dried product.

DDGS is comprised of 10 to 15 weight percent water, and WDGS is 45 to 55 weight percent water.

The percentage of grain a plant operator decides to dry is based on orders from the commodity manager, who is selling both WDGS and DDGS. Order

volume is determined by both product demand and market prices.

Consider the following example. The key performance indicator calculation sheet (see graphs on page 94) shows the impact on revenue as operators adjust screw speeds for wet-cake, partially dried-cake and syrup on a wetpad screen in order to increase or decrease the tons per hour of WDGS produced. The calcula-

tions show the plant manager his estimated production revenues (in tons per hour multiplied by dollars per ton) of WDGS, DDGS and ethanol. Net gross profit (operating margin) also is shown. This is calculated by subtracting ongoing production costs from corn, natural gas, enzymes, water, electricity and other direct costs of production.

The graphs show that ethanol production has remained fairly

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DISTILLERS GRAINS. BY MICHAEL TAY

Real-time calculation of product revenues and operating margin per hour calculated as amounts of wet and dry distillers grain production is varied.

SOURCE: PAVILLION TECHNOLOGIES

stable over this time. However, as the screw conveyor settings are shifted to make varying amounts of wet product, estimated WDGS and DDGS revenues also shift. In the short period trended in the example, the last third of the production is most notable. WDGS production is highest during this period, and as a result, net operating margin drops significantly. This decline indicates that rather than the cost savings intended by producing more wet product, the change in operation actually decreases overall gross margin.

The reasons for negative impact vary, but the ultimate cause is a pricing imbalance.

Pricing for WDGS per ton, when compared to the equivalent DDGS that would have been made, minus the costs of drying this additional product, was unbalanced. In this case, the commodity manager priced the WDGS too low, so when the plant produced additional wet stillage, the producer lost money. The producer should have continued to make dried product instead of wet.

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Avoiding this problem sounds fairly simple—either increase the price of WDGS compared to DDGS, or don’t sell the WDGS. But unfortunately, the effectiveness of the producer’s dryer performance adds a number of complexities that make the solution far from simple. In our example, the producer used rotary dryers. With this type of dryer, actual effectiveness of drying depends on a number of variables, including moisture content, air temperature, air humidity, air flow rates, feed water content and dryer loading (or bed level).

Looking at a single variable on its own— dryer loading, for example—showcases the complexity of building an accurate model to determine ideal production levels. In dryer loading, load level has a nonlinear impact on drying efficiency, and producers should seek an ideal full load where solid stillage level fills the maximum flight angle with the best air/ solids interaction. (See Keey, R. B., “Drying of Loose and Particulate Matter,” 1992 Hemisphere Publishing.) At this angle, drying air fully interacts with the maximum surETHANOL PRODUCER MAGAZINE

August 2010

face area of the stillage, which maximizes the effectiveness of the dryer. If the full load is decreased, extra hot air bypasses the stillage, negatively impacting effectiveness. Similarly, increasing the full load increases the “to-bedried” stillage level, but doesn’t add drying surface area, thus limiting effectiveness.

In the example case, there is an ideal load size, but there are two dryers in series, so determining the ideal load becomes slightly more complex. Either one dryer is ideally loaded and the second less than optimally loaded, vice versa, or some sub-optimum loading level is averaged across the two dryers. When a dryer is sub-optimally loaded, the producer spends more money per ton of product dried. As a result, the relative costs to dry or not dry another ton of distillers grains vary any time the loading level is changed.

Each variable in the dryer performance model represents a new and different set of challenges, and dryer loading is only one such example. Despite the varied complexities, it’s possible to create a nonlinear dryer performance model that includes key parameters related to dryer performance.

way, and probably the easiest way from an anticipated reporting perspective, is to constrain or limit the economic optimizer at 50 percent, or at whatever the documented pathway or allowable operating limit is set. In this case, the optimizer would not violate the set limit, even when it may be temporarily opportunistic to make more DDGS. Another more mathematically elegant solution that is more complex in terms of reporting requirements is to add an additional economic penalty to the optimizer that is equal to the value of the RIN credits. With a penalty in place, the mathematics would allow the producer to decide when it makes economic sense to exceed a 50 percent limit—even though it may include the loss of prospective RIN credits on a fraction of production.

While the elegant solution is interesting from a mathematical and hypothetical perspec-

tive, the simpler solution makes more sense in the real world. The same model can be exercised within a variety of scenarios and used to determine when changes to permits and allowable operating conditions are needed.

However, in day-to-day plant operations, decisions regarding how to run on a given day are constrained within the capabilities of the plant’s current equipment and operating permits. Nevertheless, significant savings—on the order of 3 to 5 percent increased operating margins or more—may be realized using model-based optimization based on current economics to support operating decisions. EP Michael Tay is manager sales engineering for Pavilion Technologies, a Rockwell Automation Company. Reach him at mtay@pavtech.com or (512) 438-1482.

An Added Complexity: RFS2 So far dryer optimization is dependent on two factors—developing a sufficiently accurate model of available drying operating handles and equipment performance, and identifying current market pricing drivers for the business. The U.S. EPA’s revised renewable fuel standard (RFS2) and other similar legislative drivers may add complexity by mandating GHG emissions regulation.

RFS2, for example, is anticipated to reward producers with renewable identification number (RIN) credits who dry 50 percent or less of their distillers grains. Given the regulation, the pricing difference between WDGS and DDGS is one decision driver, but there is an added penalty consideration if the plant will be within bounds for RIN credits at 50 percent dried production and out of bounds at 51 percent.

Mathematically, there are two ways for producers to simplify the issue. The simple ETHANOL PRODUCER MAGAZINE

August 2010

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BOARD MANAGEMENT. BY DAVID A. CRASS AND ANNA J. WILDEMAN Contribution

FEW Features Board Management Strategies Focusing on the bottom line and hiring good managment are only a few of the duties and obligations of a board of directors.

The latest strategies for managing margins, managing idled and distressed plants, and maximizing RINS were discussed by panelists and attendees during the Management/Business track sessions at the 26th Annual Fuel Ethanol Workshop and Expo held in St. Louis in June.

In a session titled “Boardroom Leader-

ship and Plant Strategies,” attendees heard industry experts describe the latest strategies on managing staff, commodities and financial risk to prevent balance sheet erosion, and received advice and guidance on how members of the board of directors can utilize these tools to discharge their obligations. The panelists’ presentations were excellent and the audience was

engaged during the Q&A session. Most of the questions focused on the structure, workings and obligations of the board of directors.

In the ethanol industry, now more than ever, each producer must strive to be the lowest cost/most efficient, employ strategies to protect margins, build favorable cash flow and protect balance sheets. Given price volatil-

The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Ethanol Producer Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).

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As crude oil continues to spew from the bottom of the Gulf of Mexico and prosecutors begin to talk of criminal charges against corporate officials, members of boards of directors are reminded to take their role seriously.

ity of both corn-based ethanol’s feedstock and products, there is incredible competitive pressure to maximize operational efficiency with feedstock, energy use, coproducts, personDavid A. Crass nel, market partners and Agribusiness, food processing and financial planning. Opdistribution group erations that win will be chair those that minimize the Michael Best & Friedrich cost of turnover, protect their balance sheets by actively deploying all the tools available for risk management (commodity risk and financial risk), stay abreast of evolving technologies and the opportunities that these Anna J. technologies present, and Wildeman take appropriate manageland, resources practice group ment and legal steps to Michael Best & minimize liabilities.

Friedrich Given these industry challenges and opportunities, a brief summary of the board of directors’ duties is in order. The board’s purpose is to oversee the management of the company by:

Reviewing and monitoring the company’s financial and operating performance Setting its vision and developing policies and strategies to attain that vision Hiring, setting goals for and evaluating the company’s chief executive officer Overseeing risk management and financial management strategies Developing and implementing succession plans for both management and the board itself.

The division of power between the board and the management team will be defined in a company’s governing documents—articles of incorporation and bylaws. Regardless of the governance structure of a corporation, effective communication between the board and the management team is essential to effectively manage legal and operational risk and evaluate the financial and operational position of the company.

As a general matter, each board member has the following legal obligations: Duty of Care or Diligence Directors must discharge their duties in good faith, with care that an ordinary prudent person in a like position would exercise under similar circumstances, and in a manner reasonably believed to be in the best interests of the corporation.

Duty of Loyalty Directors must refrain from engaging in personal activities in such a manner as to injure, take advantage of or conflict with the company. Many companies develop and implement an internal conflict of interest policy to help define the scope of this duty.

Duty of Compliance Directors must discharge their duties in compliance with the law and the articles of incorporation and bylaws. To discharge this obligation, a board must fully understand what law applies to its actions. The law governing a board’s actions

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BOARD MANAGEMENT. BY DAVID A. CRASS AND ANNA J. WILDEMAN should be identified in the company’s articles of incorporation or bylaws, or will otherwise be defined by state law.

Duty of Disclosure Directors must disclose to other directors and shareholders material facts within their knowledge. This disclosure should be carefully coordinated with the management team and with legal counsel.

Fiduciary Duty In addition to all of the above, directors have a general fiduciary duty, which requires them to act in the best interests of the company. This duty requires directors to act in good faith on all occasions and give conscientious care and best business judgment to their tasks. A director’s special skills, background or expertise may affect the expected performance and degree of fiduciary duty of that particular director. For example, a director who is also an attorney or an accountant—even though they do not provide professional services for the company— would likely be expected to identify potential legal issues or accounting concerns that arise

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during the course of discharging their duties as a director.

Director Liability As crude oil continues to spew from the bottom of the Gulf of Mexico and prosecutors begin to talk of criminal charges against corporate officials, members of boards of directors are reminded to take their role seriously. The scope of board member liability can be defined by state law, as well as the company’s articles of incorporation and bylaws. Typically, director liability will arise from breaches of any of the duties noted above, authorization of unlawful dividends or distributions, or failure to comply with applicable federal and state laws, including Securities and Exchange Commission disclosure requirements.

When liability concerns arise, actions of the board as a whole are generally analyzed. However, a director’s special knowledge may require liability to be determined

on an individual basis. For example, a director who is also a securities analyst and investment portfolio manager should have a better understanding of a company’s intrinsic value than most other directors. With such special knowledge, that director may be expected to review a proposed takeover price with greater scrutiny and counsel the board if the proposed price appears inadequate.

Although directors can be held personally liable for damages that result from breaches of their duty of care and loyalty, they can also be protected by the “business judgment rule,” which serves to reduce liability exposure of directors to claims for mismanagement and breach of their fiduciary duty of care. The business judgment rule creates a presumption that in making a business decision, the directors of a company acted on an informed basis, in good faith and in the honest belief that the action taken was in the best interest of the compa-

ETHANOL PRODUCER MAGAZINE

August 2010

ny. Courts generally do not review the quality of a boardâ&#x20AC;&#x2122;s business decisions, only that required procedures were followed in reaching those decisions and that the board undertook a good-faith effort to inform itself and rely on facts, information and opinions generated during a reasonable business inquiry.

Courts are more inclined to find personal liability when directors engage in gross negligence or obviously demonstrate a prolonged failure to participate diligently or to exercise oversight and supervision.

Additional liability protections may exist for directors, including state law limits on liability, indemnification and insurance. A majority of states allow articles of incorporation to expressly limit director liability in some circumstances. These limits typically apply only to monetary liabilities to the corporation and its shareholders, and not to injunctive relief or monetary liability to third parties. A majority of states also specify the circumstances when a company will be required, or permitted, to indemnify directors against liability. Mandatory indemnification typically arises when a director is wholly successful in defending its actions in court; permissive indemnification can arise if a director acted in good faith and with reasonable belief the actions were in the best interest of the corporation. Director and officer insurance policies are intended to cover a company for certain indemnification payments required by law or by articles of incorporation.

Despite the potential limits on director liability, no protection is fool proof and directors must remain vigilant. The increased attention from the public on corporate activities and the increase of shareholder lawsuits against failing investments during this

ETHANOL PRODUCER MAGAZINE

economic downturn makes it more important now than ever for directors to ensure they are diligently discharging their obligations, seeking out and obtaining the type of information and advice necessary to make decisions and are otherwise actively involved in developing the strategies that the management team can pursue to discharge the vision and mission of the company. EP

August 2010

David A. Crass is chair of Michael Best & Friedrichâ&#x20AC;&#x2122;s Agribusiness, Food Processing and Distribution Group and a leader in the firmâ&#x20AC;&#x2122;s renewable energy practice. Reach him at (608) 257-3501 or dacrass@michaelbest.com. Anna J. Wildeman is a member of the Land and Resources Practice Group where she assists both buyers and sellers in assessing environmental issues. Reach her at (608) 283-0109 or ajwildeman@michaelbest.com

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Hydro-Klean, Inc. 515-283-0500

Clean Cities

Ferm Solutions 859-402-8707

Hydro-Klean, Inc. 515-283-0500

Hydro-Klean, Inc. 515-283-0500

www.cte-global.com

ETHANOL PRODUCER MAGAZINE

August 2010

EPM MARKETPLACE J.C. Ramsdell Enviro Services, Inc. 877-658-5571 www.jcramsdell.com

Tank Cleaning Services Hydro-Klean, Inc. 515-283-0500 Seneca Companies 800-369-5500

www.hydro-klean.com www.senecaco.com

Westmor Industries 320-589-2100

www.westmor.biz

Consulting

Construction

Environmental

Fabrication

Aquaterra Environmental Solutions, Inc. 877-913-8200 www.aquaterra-env.com

Agra Industries, Inc. 715-536-9584 Andy J.Egan Co. 616-791-9952

www.agraind.com www.andyegan.com

Plant Construction

Cantley Inc. 865-360-4080 Golden Specialty 888-472-9898

www.goldenspecialty.com

ICM, Inc. 877-456-8588

www.icminc.com

Seneca Companies 800-369-5500

www.senecaco.com

Feasibility Studies Harris Group Inc. 206-494-9422

www.harrisgroup.com

Management Services Agra Industries, Inc. 715-536-9584

www.hydro-klean.com

www.icminc.com

Project Development www.hydro-klean.com

Harris Group Inc. 206-494-9422

www.harrisgroup.com

Safety www.hydro-klean.com

Rail Safe Training, Inc. 712-212-4145 www.railsafetraining.com

Scrubbers Hydro-Klean, Inc. 515-283-0500

www.harrisgroup.com

ICM, Inc. 877-456-8588

Railcars Hydro-Klean, Inc. 515-283-0500

www.icminc.com

Harris Group Inc. 206-494-9422

Railcar Spill Response Hydro-Klean, Inc. 515-283-0500

ICM, Inc. 877-456-8588

Plant Optimization

Railroad Tracks

Plate-Frame Hydro-Klean, Inc. 515-283-0500

www.agraind.com

Employment

www.hydro-klean.com

Recruiting Smoke Stack Hydro-Klean, Inc. 515-283-0500

S.E Weinstein Company 800-258-1701 www.seweinstein.com www.hydro-klean.com

SearchPath of Chicago

Tank Cleaning Equipment

Tanks

Cloud/Sellers Cleaning Systems 800-234-5650 www.sellersclean.com

ATEC Steel 620-856-3488

Gamajet Cleaning Systems Inc 877-GAMAJET www.gamajet.com

Agra Industries, Inc. 715-536-9584

ETHANOL PRODUCER MAGAZINE

August 2010

815-261-4403, x100

www.searchpathofchicago.com

RenewableEnergy-Careers.com www.atecsteel.com

815-261-4480,x111

RenewableEnergy-Careers.com

www.agraind.com

101

EPM MARKETPLACE Engineering

Centrifuges

Dryers-Rotary Steam Tube

Design/Build

Aaron Equipment 630-350-2200 www.aaronequipment.com

ICM, Inc. 877-456-8588

Control Systems

Quality Kiln and Dryer Inc 318-335-2001 www.qualitykilnanddryer.com

Agra Industries, Inc. 715-536-9584

www.agraind.com

Harris Group Inc. 206-494-9422

Process Design ADF Engineering Inc. 937-847-2700

adfengineering.com

ICM, Inc. 877-456-8588

www.icminc.com

Process Design-Cellulose

www.harrisgroup.com

ICM, Inc. 877-456-8588

www.icminc.com

Kahler Automation Corp.

507-235-6648 www.kahlerautomation.com

Specialty line cleaning Waste Transporation Ultra-High Pressure Hydro-Blasting (40,000 psi) Custom Designed Waste Reduction Programs

Intersystems 800-228-1483

www.intersystems.net

www.iisgllc.com

Equipment & Services Perten Instruments, Inc. 801-936-8165

Eco-Tec, Inc. 905-427-0077

102

Fractionation-Corn

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

www.icminc.com

Total-Yield Diesel from Distillers 402-640-8925 www.total-yield.com

www.perten.com

Insulator Miller Insulation Co., INC 701-297-8813 www.millerinsulation.com

SRS Engineering Corpration 951-526-2239 www.srsbiodiesel.com

Laboratory-Equipment Perten Instruments, Inc. 801-936-8165

Dryers-Fluid Bed Buhler Aeroglide 919-851-2000

www.agraind.com

Instrumentation Perten Instruments, Inc. 801-936-8165

DDGS Diesel

www.icminc.com

Grain Handling & Storage Agra Industries, Inc. 715-536-9584

Corn Oil Recovery ICM, Inc. 877-456-8588

www.buhlergroup.com/us

ICM, Inc. 877-456-8588

Cooling Towers

www.aeroglide.com

www.perten.com

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

Dryers-Rotary Drum

Loading Equipment Determan Brownie, Inc. 800-835-6074

www.determan.com

Maintenance Software ICM, Inc. 877-456-8588

www.aeroglide.com/ethanol or call +1 919-851-2000

Blowers & Fans FlaktWoods 716-845-0900

www.fluideng.com

Cereal Process Technologies 217-779-2595 www.cerealprocess.com

www.superior-ind.com

With rotary drying technology

by Ronning Engineering www.eco-tec.com

Filtration Equipment

Superior Industries 320-589-2406

www.perten.com

Biogas Scrubbers

www.winbco.com

Buhler Inc. 763-847-9900

Custom Rotary Driers for DDGS & Biomass Feedstocks

Analytical Instruments

WINBCO Tank Company 641-683-1855

Conveyors–Mechanical

Distillation Equipment Zac Cudney Zac.Cudney@IISGLLC.com 313-841-5800 24-Hour Service: 800-992-9118

Fermentors

Fluid Engineering 814-453-5014

Conveyors–Drag

Industrial Services Done Right

www.icminc.com

www.icminc.com

Millwright www.flaktwoods.com

ICM, Inc. 877-456-8588

www.icminc.com

Agra Industries, Inc. 715-536-9584

www.agraind.com

ETHANOL PRODUCER MAGAZINE

August 2010

EPM MARKETPLACE Moisture Analyzers Perten Instruments, Inc. 801-936-8165

Thermal Oxidizers

Mergers & Acquisitions Moglia Advisors 847-884-8282

www.perten.com

Molecular Sieves

Legal Services

Grace Davison Renewable Technologies 410-531-8731 www.gracebiofuels.com ICM, Inc. 877-456-8588

Attorneys

PROVEN RELIABILITY

www.icminc.com

for VOC, CO & PM ABATEMENT

Parts & Services ICM, Inc. 877-456-8588

www.icminc.com

Process Control

EISENMANN Corporation Crystal Lake, Illinois

Harris Group Inc. 206-494-9422

815.455.4100 es.info@eisenmann.com

www.harrisgroup.com

Productivity Enhancements ICM, Inc. 877-456-8588

www.icminc.com

Pumps PeopleFlo Manufacturing 847-929-4774 www.peopleflo.com

www.perten.com

Structural Fabrication Agra Industries, Inc. 715-536-9584

www.agraind.com

Tanks ATEC Steel 620-856-3488 Agra Industries, Inc. 715-536-9584

WOHLSIFER & ASSOCIATES, P.A. 850-219-8888 www.wohlsifer.com

Marketing Fuel Ethanol CHS Renewable Fuels 651-355-6271

www.chsinc.com

Market Data

Industrial Safety Done Right Specialty line cleaning

QA Test Products Perten Instruments, Inc. 801-936-8165

www.mogliaadvisors.com

Waste Transporation Wastewater Treatment Services ADI Systems Inc. 1-506-452-7307

www.adisystemsinc.com

Hydro-Klean, Inc. 515-283-0500

www.hydro-klean.com

ICM, Inc. 877-456-8588

Ultra-High Pressure Hydro-Blasting (40,000 psi) Custom Designed Waste Reduction Programs

www.icminc.com

www.atecsteel.com

Water Treatment www.agraind.com

Spokane Industries Inc. 509-921-8868 www.spokanemetalproducts.com

EPM MARKETPLACE With all contact information placed in one convenient location, Ethanol Producer Magazine not only contains top editorial content but also a useful directory in each publication. Whether a first-time advertiser wanting to raise awareness of your business or a frequent display advertiser looking for added exposure, EPM Marketplace is the perfect solution.

ETHANOL PRODUCER MAGAZINE

H2O INNOVATION 763-566-8961 www.H2OINNOVATION.com

Finance

www.iisgllc.com

Appraisals Natwick Associates Appraisal Services 800-279-4757 www.natwick.com

Miscellaneous Maas Companies 507-424-2640

Due Diligence Harris Group Inc. 206-494-9422

Zac Cudney Zac.Cudney@IISGLLC.com 313-841-5800 24-Hour Service: 800-992-9118

www.harrisgroup.com

www.maascompanies.com

Research & Development Engine Testing

Insurance ERI Solutions, Inc. 316-927-4294

August 2010

Roush Industries 734-779-7736

www.roush.com

erisolutions.com 103

EPM MARKETPLACE Transportation Marine Odin Marine, Inc. 203-969-3400

www.odingroup.com

Rail Ameritrack RailRoad Contractors, Inc. 765-659-2111 www.ameritrackrailroad.com

Rail Consulting Rail Safe Training, Inc. 712-212-4145 www.railsafetraining.com

Railcar Gate Openers The Arnold Company 800-245-7505 www.arnoldcompany.com s.com www.ethanol-jobs.com www.ethanol-jobs.com www.ethanol-jobs.com www.ethanol-jobs.com www.ethanol-jobs.com www.ethanol-jobs.com www.ethanol-jobs.com www.ethanol-jobs.c

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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. Itâ&#x20AC;&#x2122;s all here.

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EPM MARKETPLACE Renewable Energy Solutions

104

ETHANOL PRODUCER MAGAZINE

August 2010

ATTEND.EXHIBIT.SPONSOR.

November 2 - 4, 2010 Hyatt Regency Atlanta Atlanta, Georgia

www.biomassconference.com/southeast

With an exclusive focus on biomass utilization in the Southeast – from the Virginias to the Gulf Coast – the Southeast Biomass Conference & Trade Show is a dynamic regional offshoot of Biomass Magazine’s International Biomass Conference & Expo, the largest event of it’s kind in the world. www.biomassconference.com/southeast 866-746-8385 service@bbiinternational.com

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