October 2009 Ethanol Producer Magazine by BBI International

INSIDE: DEHYDRATED ETHANOL IMPORTS LIKELY TO INCREASE OCTOBER 2009

What’s Stopping Corn Ethanol Producers from

RECYCLING

YEAST?

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ETHANOL PRODUCER MAGAZINE

October 2009

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October 2009

ETHANOL PRODUCER MAGAZINE

October 2009

contents

vol. 15 no. 10

features 44 YEAST Is Recycling Yeast an Option? While sugarcane-based ethanol producers typically recycle the yeast used in their production processes with measurable success, results could differ greatly for corn ethanol producers. –By Erin Voegele 52 IMPORT Central American Getaway EPM explores the Central American Free Trade Agreement and its impact on the U.S. ethanol industry. –By Kris Bevill 60 ALTERNATIVES Retrofitting for Alternatives A Colorado company has developed an isobutanol technology package that could be used to retrofit ethanol plants. –By Erin Voegele

68 PEOPLE A Lasting Legacy Friends and colleagues of Kathy Bryan share stirring memories of her inspirational life and career. –By BBI Editorial Staff

ETHANOL PRODUCER MAGAZINE

October 2009

Do you want to be a frontrunner in the cellulosic bioethanol industry?

Then it’s time we start working together.

Get the odds in your favor Cellulosic bioethanol is key to optimizing the world’s future energy mix. Novozymes is leading the way in marketing cellulosic ethanol a commercial reality by 2010. And Novozymes’ Cellic® products are just what you need to be a leader in the race to cellulosic bioethanol. So let’s start creating the future today. Together we can make cellulosic bioethanol a winning solution. Find out more at www.bioenergy.novozymes.com

Novozymes is the world leader in bioinnovation. Together with customers across a broad array of industries we create tomorrow’s industrial biosolutions, improving our customers’ business and the use of our planet’s resources.

WHEEL OF FORTUNE

contents contributions

departments

74 LEGAL Managing Technology Convergence and Protecting Innovation Intellectual property is an important component of any technology-based company, and those responsible for protecting it should be aware of their options. –By Joseph Teja Jr. and Michael Pomianek

9 Advertiser Index 12 The Way I See It The Roots of Ethanol Production By Mike Bryan 16 Business & People 18 Commodities 20 View From the Hill Tar Sands Pipeline a Step Backwards By Bob Dinneen 21 RFA Update

78 PROCESS Industrial Biotechs Accelerate Drive to Leverage Glycerin Producing additional amounts of ethanol from the glycerin in whole stillage may boost plant revenue. –By David J. Glaskin

24 Industry News 36 Drive Evidence for Ethanol Keeps Growing By Tom Buis 38 Taking Stalk Sorghum’s Increasing Feedstock Potential By Bill Greving

22 BIObytes

80 TECHNOLOGY Zero Liquid Discharge Systems for Sustainability Zero liquid discharge systems are gaining ground as pragmatic solutions for ethanol producers seeking to create safe, sustainable and environmentally friendly water treatment systems. –By Amelia Jordan

Corrections from our Sept. 2009 issue: The correct spelling of J. Jireh Holdings LLC founder’s name is James Rehkopf. His company was highlighted in the article “Creative Byproduct Possibilities.”

ETHANOL PRODUCER MAGAZINE

October 2009

40 Legal Perspectives Issues in Nuisance Litigation By Haley R. Van Loon 42 eBIO Insider Unholy Alliance? By Robert Vierhout 82 Events Calendar 84 Marketplace

Ethanol Producer Magazine: (USPS No. 023-974) October 2009, Vol. 15, Issue 10. 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. BPA Worldwide Membership Applied for October 2006 7

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47 GEA Barr-Rosin Inc. 51 Genencor速 - A Danisco Division 4 ICM Inc. 14 & 15 Inbicon 30 Indeck Power Equipment Co. 54 Interstates Cos. 35 Intersystems 2 Lallemand Ethanol Technology 8 MAC Equipment 33 Martrex Inc. 55 & 72 Nalco Co.

91 Canadian Renewable Fuels Association

64 Natwick Associates Appraisal Services

76 Cereal Process Technologies

34 Nexen Marketing USA Inc.

32 Check-All Valve Mfg. Co.

6 Novozymes

46 Christianson & Associates, PLLP

81 Peters Machine

56 Crown Iron Works Co. Inc.

37 PhibroChem

58 ethanol-jobs.com

92 POET, LLC

66 Ethanol Producer Magazine

57 R&R Contracting Inc.

43 Delta-T Corp.

41 Renewable Fuels Association

62 ETS Laboratories

31 Resonant BioSciences

28 Fagen Inc.

77 Ronning Engineering

29 FCStone, LLC

75 Roskamp Champion/CPM

63 Ferm Solution

70 Salco Products Inc.

3 Fermentis

71 Vogelbusch USA Inc.

49 Gamajet Cleaning Systems Inc.

73 Wabash Power Equipment Co.

13 Gavilon

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October 2009

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ETHANOL PRODUCER MAGAZINE

October 2009

The Way I See It The Roots of Ethanol Production Congratulations to U.S. corn growers. They have produced yet another bumper crop of corn despite unfavorable weather conditions and roller coaster input prices. As this harvest season nears its end, thoughts turn to feedstocks and the vital role they play in the ethanol production process. The Aug. 12 USDA World Agricultural Supply and Demand Estimate predicted the 2009-’10 corn crop will be the second largest on record and I think it’s important to note that this is not the result of increased acres of corn being planted. In fact, fewer acres of corn were planted this year than last season due to unfavorable spring planting conditions in much of the Midwest. Rather, farmers are simply harvesting bigger yields per acre. It’s a testament to the scientific advancements that continue to be made relative to agriculture, and when corn farmers reap the rewards of scientific advancements, ethanol producers benefit. But it’s not just the kernels that ethanol producers and farmers are interested in. Poet LLC kicked off its 2009 corn cob campaign in early July, harvesting cobs in Texas, South Dakota and Iowa. Vermeer Corp. unveiled a wagon-style cob harvester this year that is expected to serve an emerging market of farmers and biofuel producers. Texas AgriLife Research hosted an energy sorghum harvest demonstration in August, proving that capabilities exist to grow, harvest and convert the tall grass to ethanol in an efficient manner. In Virginia, Osage Bio Energy recently announced a feedstock procurement partnership it has formed with Perdue AgriBusiness to bring in barley to its soon operational Hopewell, Va., plant. The company will utilize winter barley to produce 65 MMgy and has plans to replicate its business model at other East Coast locations. The company said barley can eas-

ily be grown in those areas, but demand needs to be guaranteed before farmers will plant it. There is still much work to be done to perfect alternative biofuel crop and corn production and harvest techniques — but progress is being made. For these reasons, EPM has decided to devote a monthly column to the topic of feedstocks. This month’s “Taking Stalk” column explores sorghum as a feedstock that is gaining popularity. Future columns will examine corn-related issues, cellulosic feedstocks and small grains. The column is intended to provide ethanol producers with insightful information regarding the most important advancements being made to our most important production input—feedstocks. The partnership between grower and producer is strong in the ethanol industry. Without feedstocks, there is no need to discuss processing techniques or output yields or any other element of the production process. And as proven by the demonstrations conducted this season, farmers are influenced by the ethanol industry when exploring new ideas to diversify their crop portfolio and ethanol producers are ready to provide support and new sources of revenue to American farmers. That’s the way I see it.

Mike Bryan Publisher & CEO mbryan@bbiinternational.com

ETHANOL PRODUCER MAGAZINE

October 2009

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The New Ethanol.™ The power to make the old ethanol work.

You’re looking at the electric grid at the Danish port of Kalundborg. Here Inbicon is investing $50 million USD to demonstrate how co-generation makes our technology the practical path to cellulosic conversion. The new Inbicon Biomass Refinery will take steam from the adjacent power plant to soften the biomass. As we produce The New Ethanol, we’ll also produce a lignin powder, which we’ll return to the power plant for generating green electricity. The same principle is making our new 20 Mgpy model the practical choice for North American grainethanol plants. In fact, adding our commercial-scale Inbicon Biomass Refinery to a 100 Mgpy ethanol plant gives you a huge energy payback. Our co-gen operation not only produces all the energy needed

to convert biomass into The New Ethanol. We expect to also produce enough steam and electric power to offset nearly 50% of the host plant’s utility costs. All with zero fossil fuels in the process. We’re ready now to help you meet advanced biofuel mandates, win grants, secure tax credits, and attract capital. To find out more about how The New Ethanol is making old ethanol new again, talk to Inbicon’s North American partners. Call Thomas Corle at 717.626.0557 or e-mail info@inbicon.com.

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Business&People Ethanol Industry Briefs

Denmark-based Novozymes A/S has appointed Adam Monroe as president of its North American region. He has replaced Lars Hansen, who returned to Denmark to head the company’s European region. Monroe Monroe has been employed by Novozymes since 1991 and has served as the company’s production manager for granulation, and as regional director and director of supply chain operations. He is credited with establishing the company’s global manufacturing supply line of enzymes for the biofuels market and currently represents Novozymes on the industrial and environmental board for the Biotechnology Industry Organization. Iowa Corn Promotion Board director and corn grower Pam Johnson has been elected to the National Corn Growers Association Corn Board. Johnson has been on the corn promotion board for eight years and has served in all four of the board’s officer positions. She is currently on the corn board’s industrial usage and U.S. production committee and the research and business development committee. She also chairs the NCGA’s research and business development action team, serves on the U.S. Grains Coun16

cil biotechnology advisory team and participates in farmer-run ethanol and biodiesel cooperatives.

cally significant products introduced during the past year that are designed to meet current and future societal, scientific or business challenges.

Ottawa-based cellulosic ethanol producer Iogen Corp. provided ethanol derived from wheat straw to fuel 40 vehicles used at the Council of the Federation in Regina, Saskatchewan, Aug. 5-7. The Dodge Caravans were used to transport premiers from across Canada, including host Premier Brad Wall, who said he continues to support Iogen’s work to complete a largescale cellulosic ethanol production facility in Saskatchewan.

California-based technology developer Phenomenex Inc. has received an R&D 100 award for its Zebron AB-Bioethanol column. The column uses gas chromatography to analyze the concentration of methanol and denaturant in ethanol in less than 15 minutes. The column is also temperature-stable up to 360 degrees Celsius, which means corrosion inhibitors can be baked off in less than five minutes. The R&D Magazine awards recognize the 100 most techni-

Christopher Thorne has been named as Growth Energy’s director of public affairs and will be responsible for message, strategic communications and media relations for the ethanol industry group. “As Growth Energy broadens the conversation over ethanol’s place in a renewable energy future, Chris will be responsible for making sure we are talking to the right people, at the right time, and saying the right things,” Growth Energy CEO Tom Buis said. Thorne most recently served as senior advisor for public affairs and communications for Sen. Kent Conrad (DN.D.). Prior to joining Conrad’s staff, he was an Associated Press writer in Washington, D.C., Delaware and Illinois.

Cellulosic biofuels producer Range Fuels Inc. has been named to the 2009 AlwaysOn Global 250 List. The list

was created to recognize private, emerging technology companies. Honorees are selected based on the demonstration of growth, market opportunity, quality of innovation and customer traction. Range Fuels CEO David Aldhous said he is pleased the company has been recognized for its efforts to reduce dependence on imported oil, improve the environment and contribute to rural job creation. The company is on track to begin producing cellulosic biofuels at its Soperton, Ga. commercial-scale facility by the second quarter of 2010.

Perkin Elmer Inc. has been awarded a patent by the U.S. Patent & Trademark Office to protect an advanced method in gas chromatography. The patent, titled “Methods and Systems for Characterizing a Sorbent Tube,” protects proprietary methods developed by the company that assist gas chromatographers increased the accuracy of results when using automated thermal desorption gas chromatography. Automated thermal desorption is used for analysis of biofuels, soil, water and other various applications.

ETHANOL PRODUCER MAGAZINE • October 2009

Sponsored by

As part of Growth Energy’s unification with the National Ethanol Vehicle Coalition, the California Ethanol Vehicle Coalition has also become part of the industry group. Having the former NEVC state chapter as a member of Growth Energy is significant because California, whose energy policies tend to influence national energy policy, has implemented its own aggressive alternative fuel policy. The policy calls for replacing 20 percent of California’s petroleum fuel with alternative fuels by 2020.

announced the formation of a new partnership to promote and represent Poet’s Dakota Gold PBX premium distillers grains product line in domestic and international feed markets. The company will handle Poet’s domestic sales through its extensive agricultural network and execute international sales through its export terminal in Virginia. According to Poet Executive Vice President Jeff Lautt, “This alliance further illustrates how we can work in harmony to make a positive difference in today’s dynamic feed markets.”

Robert Flynn has accepted the position of general manager at Poet Biorefining Laddonia, Mo. Flynn brings 30 years of management experience in manufacturing to the position and most recently served as vice president of operations at GT Technologies. A $2 million expansion project was recently completed at the Laddonia plant, increasing its capacity to 55 MMgy. Additionally, the U.S. EPA recently awarded the facility an Energy Star award for its natural gasfired turbine system.

Commodity brokerage firm Atlas Commodity Markets LLC and HoustonStreet Exchange Inc., an electronic trading platform, have launched Atlas Insite, a hybrid voice and electronic biofuels brokerage platform. The system allows clients to complete transactions via the firm’s voice brokers or electronically through the platform and offers a suite of products for physical and financial biofuels and renewable identification numbers markets. Insite offers physical ethanol markets as well as four CME Group ClearPort cleared products.

Poet LLC, a South Dakota-based ethanol producer, and Perdue AgriBusiness, a wholly owned subsidiary of Perdue Inc., recently

Future ethanol producer Osage Bio Energy has part-

ETHANOL PRODUCER MAGAZINE • October 2009

nered with Perdue AgriBusiness to develop a barley contracting program for the areas surrounding its ethanol production facility in Hopewell, Va. The plant is scheduled to begin operations in June 2010 and will consume up to 30 million bushels of barley annually. Perdue will sign up acreage for the contract program and will manage and maintain farmer contracts. Osage founder and CEO Craig Shealy said area farmers can easily double-crop barley with soybeans, but the market needs to be developed. Osage plans to procure all of its feedstock from within 100 miles of the plant.

CleanTech Biofuels Inc., a provider of technology to convert municipal solid waste (MSW) to biomass compatible for renewable energy production, has formed a joint research agreement with cellulosic ethanol technology developer Fiberight LLC to validate the companies’ technologies for converting MSW to renewable fuels. CleanTech will provide approximately 1 ton of MSW from the Chicagoarea to use in Fiberight’s conversion technology. Fiberight CEO Craig Stuart-Paul said initial tests have led to production expectations of more than 80 gallons of ethanol per ton of biomass used. “The success of these ini-

tial runs leads us to believe that biomass produced by CleanTech may be an ideal feedstock for our ethanol production technology,” he said. Minneapolis-based U.S. Energy Services has acquired the energy management services business of Integrys Energy Services Inc., a subsidiary of Chicago-based Integrys Energy Group Inc. Through its energy management services business, Integrys Energy Services provided energy consulting and information services for industrial and commercial clients. U.S. Energy Services will now provide former Integrys Energy Services customers access to a broader list of energy services and carbon management strategies. The transaction is expected to close in the third quarter of 2009. U.S. Energy Services also recently added Brad Smith to its team. In his new position as price risk manager, Smith is responsible for monitoring natural gas and electricity markets, as well as establishing the company’s strategic counsel on pricing recommendations for clients. EP

SHARE YOUR INDUSTRY BRIEFS To be included in Business & People, send information (including photos and logos if available) to: Industry Briefs, Ethanol Producer Magazine, 4650 38th Ave. S. Suite 160, Fargo, ND 58104. You may also fax information to (701) 373-0638, or e-mail it to kbevill@bbiinternational.com. Please include your name and telephone number in all correspondence. 17

COMMODITIES REPORT Natural Gas Report

Economic recovery difficult to predict Aug. 19 — The Institute of Supply Management survey and the Federal Reserve System’s index of industrial production point toward considerably greater productivity in coming months. As such, investment banks began issuing revised gross domestic product (GDP) estimates for the second half of 2009, most commonly ranging from 1.8 percent to 3 percent. This data, plus a much improved, albeit dismal, employment report has led many to conclude that the worst is over. However, when assessing the potential for sustained economic growth in 2010 (the likely inflection point for natural gas supply/ demand tightening), the forecasts are varied and typically not as rosy as the second half of 2009. The basic thought is that manufacturing cannot carry an economic recovery on its own. Consumer spending accounts for almost 70 percent of GDP. And while improvements in manufacturing may kick-start spending and employment, it would require employers to rehire at a very quick pace to avoid a slow and staggered increase in consumer spending. Some of the spending headwinds include: Many of the unemployed are nearing exhaustion of benefits and extended benefits. With huge deficits and President George W. Bush’s tax cuts expiring, tax relief has likely been exhausted.

By Brad Smith, U.S. Energy Services Inc.

Savings rates typically increase during the first years of a recovery. With the drop in net worth, increases in the savings rate will likely continue. While inflation will likely be relatively mild, disinflation has probably run its course and will no longer benefit consumers. Determining the pace and sustainability of a long-term recovery will be the on-going focus. As a point of reference, recessions in 2001 and 1990-’91 were slow to return employment; job cuts were experienced throughout the recovery phase. However, there are two major differences between those recessions and the current situation. In the current recession, 2.9 percent of service sector jobs (3.3 million) have been lost, compared to a .5 percent loss in 2001 and 1990-’91. The other difference is that the current recession has seen GDP fall 3.9 percent since the peak in 2008. That is the steepest decline since World War II and much deeper than the relatively shallow reductions in output experienced in the last two recessions. We don’t really know what a modern recovery from such a steep drop looks like. Some see a massive jump in GDP, while others see a below trend growth pattern in 2010 dogged by consumer spending. EP Brad Smith, price risk manager, can be contacted at bsmith@ usenergyservices.com.

Corn Report By Jason Sagebiel, FCStone

Market volatility expected to continue Aug. 21 — The corn market has experienced great volatility again with spillover selling from the bearish acreage report at the end of June. Crop ratings for corn in the western Corn Belt have been steady versus last year, while the eastern Corn Belt has had more deviation. Corn basis has firmed aggressively during the time the corn market collapsed as producers shut off the selling spigot. Yield expectations have grown to the 159.5 bushel-per-acre level with private analysts predicting slightly higher yields. The USDA expects total production to be 12.7 billion bushels. Ultimately the results would be that a higher carry-out would be expected. That is the case, estimated at 1.6 billion bushels. However, with demand projected to be higher - 12.875 billion bushels - the carry-out to use remains just under 13 percent (illustrated in the accompanying graph). This can potentially lead to a continued volatile situation. Soybeans will be the leader to offer corn direction into the fall and winter. A lessening soybean crop and a continuation of Chinese demand could lead to a ratcheting higher corn market. Still, the demand of corn can fluctuate in all categories — feed, exports and ethanol. Out forward margins will ultimately determine this and will mix the energy complex into the market. It could get interest18

ing, but the cash market and local demand will affect the outcome. Expect prices to test last fall’s low, although soybeans will determine the ultimate outcome despite the potential corn yield. EP

ETHANOL PRODUCER MAGAZINE • October 2009

COMMODITIES REPORT DDGS Report By Sean Broderick, CHS Inc.

Supplies outweigh demand Aug. 26 — Distillers grains prices have been steady, but trending down with the corn market, which has dropped nearly 50 cents per bushel since Aug. 4. Barge prices are down $8 per ton to $10 per ton and West Coast rail prices are down $4 per ton to $5 per ton, so prices have been moving slowly, which unfortunately echoes feed demand. With most animal producers still not making money, buyers continue with a hand-to-mouth buying attitude and plants haven’t been looking to sell much out forward. However, August and September sales are generally the lowest relative to corn on a year-by-year basis, so it might not be a bad thing. Supplies of distillers grains are expected to ramp up this fall. If exports don’t increase, supplies will be

plentiful. The good thing is export demand has been brisk lately — particularly in containers. Although container supply has been an issue at times, product is moving at a record pace. Although Gulf of Mexico demand has not been what it was during the first half of summer, it should pick up in the fall, creating a bigger concern with elevation capacity than with impending demand. Barge freight is quoted higher through November, so prices will have to rise to pull tonnage away from Canada, Mexico and the West Coast. The questions remain whether demand can keep up with supply, and how and when the corn harvest will end. Regardless, new production records are certain to be established this winter. EP

Regional Ethanol Prices ($/gallon as of Aug. 24)

REGION

SPOT

RACK

West Coast

1.7325

1.880

Midwest

1.640

1.800

East Coast

1.755

1.880 SOURCE: DTN

Regional Gasoline Prices ($/gallon as of Aug. 24)

REGION

SPOT

RACK

West Coast

1.9206

2.1625

Midwest

2.0625

1.9815

East Coast

1.955

2.0743 SOURCE: DTN

DDGS Prices ($/ton) LOCATION

AUG. 2009

JULY 2009

AUG. 2008

Minnesota

135

California*

124

180

Chicago

100

116

135

Buffalo, N.Y.

104

110

150

Central Florida

112

114

SOURCE: CHS Inc.

Corn Futures Prices DATE

Ethanol Report

180

*Central Valley

(Dec. corn, $/bushel)

HIGH

LOW

Aug. 21, 2009

3.32

3.22

3.26 1/4

July 21, 2009

3.32 1/2

3.20 1/2

3.22

Aug. 21, 2008

6.52 1/2

6.40

6.45 1/2 SOURCE: FCStone

By Rick Kment, DTN Biofuels Analyst

Economic recovery helps energy prices Aug. 24 — Trade activity has significantly improved in the gasoline and crude oil markets. The current RBOB gasoline contract rose nearly 30 cents per gallon while crude oil prices increased to more than $74 per barrel, which is more than a $6 jump over the previous month. Ethanol prices have also increased, but on a much smaller scale. In the past month, ethanol prices increased 14 cents per gallon, making the price spread between ethanol and gasoline prices to nearly 41 cents. Overall gasoline demand is coming from both commercial and noncommercial interests in the energy market, as evidence of economic recovery is noted worldwide. Even though the traditional driving season is winding down, traders are actively seeking spot month product. Nearby

contracts are carrying a 14 cent premium over other nearby contract prices. Overall demand is expected to remain stable to strong over the near future. The outlook for other nearby contracts through the end of 2009 may slip slightly but many buyers are viewing gasoline as an investment that will improve in value as the economy recovers. Since corn is the most expensive component of the ethanol production process, the overall movement in ethanol prices has very closely followed the corn price movement through much of the summer. The overall gasoline market has some affect on ethanol prices as the widening gap between the two markets will, in theory, create more blending demand. EP

ETHANOL PRODUCER MAGAZINE • October 2009

Cash Sorghum Prices ($/bushel) AUG. 25, 2009 JULY 17, 2009 AUG. 25, 2008 Superior, Neb. Beatrice, Neb. Sublette, Kan. Salina, Kan. Triangle, Texas Gulf, Texas

2.64 2.85 2.43 3.02 2.57 3.62

2.72 2.74 2.33 2.72 2.43 3.47

4.77 4.82 4.97 5.25 5.21 5.98 SOURCE: Sorghum Synergies

Natural Gas Prices

($/MMBtu)

AUG. 2009

JULY 2009

AUG. 2008

NYMEX

3.379

3.949

9.217

N. Ventura

3.35

3.36

8.36

Calif. Border

3.39

3.27

8.45

SOURCE: U.S. Energy Services Inc.

U.S. Ethanol Production Output March 2009

669,000

February 2009

641,000

March 2008

598,000

(barrels/day)

SOURCE: U.S. Energy Information Administration

VIEW FROM THE HILL

Dinneen

Tar Sands Pipeline a Step Backward At a time when biofuel bashers are blaming ethanol for deforestation in the Amazon as part of the unscientific indirect land use change claim, along comes the U.S. Department of State. The department is agreeing to permit the construction of a brand new pipeline to ship tar sands oil to the United States. This would undoubtedly damage land, pollute water and contribute even more to carbon dioxide emissions than current oil production. The ethanol industry, in its various submissions to the U.S. EPA and other agencies, will continue to argue that it is totally unreasonable and unfair to evaluate the impact of biofuels on land use while completely ignoring the impact of oil production, especially production of oil from tar sands. The U.S. State Department seems to not be on board with President Barack Obama’s clearly stated goal of reducing U.S. dependence on imported oil. Rather, its decision to approve a permit to build a tar sands pipeline is bad energy policy and even worse environmental policy. With regard to the environmental impact of this decision, Deputy Secretary of State James Steinberg stated that concerns about higher-than-average levels of greenhouse gas emissions associated with oil sands crude would be “best addressed in the context of the overall set of domestic policies that Canada and the United States will take to ad-

dress their respective greenhouse gas emissions.” This is double-talk at its finest. Actions that exacerbate carbon emissions at this time in our fight to save the planet should not be treated so cavalierly. This strategy will simply reinforce the resistance of leaders of Saudi Arabia and China to cut their own carbon emissions. Environmentalists, especially those in Canada, are highly critical of tar sands development. Aside from a huge clean-up problem and water contamination, the Canadian branch of the Sierra Club has pointed out that tar sands are the worst type of oil for the atmosphere. Not only is the production of tar sands-based petroleum environmentally damaging, so is refining the oil that is recovered. The Chicago Tribune recently reported that researchers have calculated that “refining the Canadian petroleum produces 15 percent to 40 percent more carbon dioxide emissions than conventional oil.” An attorney for the environmental group Earthjustice said, “By approving this pipeline, we are committing to another generation of dependence not only on fossil fuels but on the dirtiest, most greenhouse gas-emitting fossil fuels.” It should be clear to both policymakers and the public that biofuels offer a far better fuel alternative — for energy security and the environment — than projects like tar sands that cause so much damage.

Bob Dinneen President and CEO Renewable Fuels Association

ETHANOL PRODUCER MAGAZINE • October 2009

RFA UPDATE

w w w. e t h a n o l R FA . o r g Stacking the deck against ethanol

IRS agrees to reconsider ruling Following more than a year of intense work by the RFS with the Internal Revenue Service, the agency on August 24 issued a Notice of Proposed Revenue Ruling clarifying that it will not seek to impose a change in the cost recovery periods used by most ethanol producers. Historically, most ethanol producers have used cost recovery (or depreciation) periods of five years. Approximately 18 months ago, the IRS advised the industry that the cost recovery period should be seven years instead of five years, and it would be retroactive and apply to all tax returns of ethanol producers still open for examination by the IRS. The RFA succeeded in persuading the IRS not to make its decision retroactive. “This decision by the IRS to propose changes on a prospective basis is not only correct but essential in today’s economically challenging climate for America’s ethanol industry,” said Ed Hubbard, RFA director of government affairs, tax and international trade. “We are gratified that the IRS was willing to listen to and accept our arguments on this critical issue.” The RFA told the IRS that its ruling should not apply retroactively since it would result in significant costs to producers who relied on the IRS’ previous acceptance of the five-year depreciation recovery period for such assets. In response, the IRS has proposed that the depreciation classification would apply to assets placed in service on or after the publication of a final revenue ruling. To prevent such retroactive application, the IRS specifically provided that it “will not require taxpayers to adopt this depreciation classification for tangible assets used in converting biomass to a liquid fuel, such as fuel- grade ethanol that is placed in service prior to the publication of a final revenue ruling.” The IRS has invited public comments on the proposed revenue ruling. Comments are due by Nov. 23. A final revenue ruling will not be issued until the comments have been considered.

ETHANOL PRODUCER MAGAZINE • October 2009

The U.S. EPA released the much anticipated peer reviews of its life-cycle greenhouse gas (GHG) analysis and indirect land use change (ILUC) modeling conducted for the proposed rule for the second stage of the renewable fuel standard. Among the “peer” reviewers are several noted anti-ethanol and anti-agriculture activists, including environmental lawyer Timothy Searchinger. The politicallymotivated positions of Searchinger, Dr. Joseph Fargione, and others with respect to ILUC have repeatedly been called into question. “EPA has asked the foxes to guard the hen house on this issue,” RFA President Bob Dinneen said. “By adding lawyers and advocates to a scientific review panel, EPA bureaucrats have made a mockery of the Administration’s commitment to sound science. These reviews absolutely cannot be viewed as objective or unbiased. Many of these reviewers have repeatedly and openly demonstrated unabashed and politically-motivated biases against biofuels in the past, which immediately casts a long shadow of doubt over the legitimacy of EPA’s peer review process.” Searchinger and Fargione’s speculations on the impacts of biofuel production on international land use decisions in foreign nations drew a harsh and immediate response from many in the scientific community when their articles were released in the February 2008 edition of Science. Michael Wang, a fellow peer reviewer, scientist at the U.S. DOE’s Argonne National Laboratory and developer of the GREET model said, “While scientific assessment of land use change issues is urgently needed in order to design policies that prevent unintended consequences from biofuel production, conclusions regarding the GHG emissions effects of biofuels based on speculative, limited land use change modeling may misguide biofuel policy development.” Beyond Searchinger and Fargione, several other vocal ethanol opponents with clear conflicts of interest were asked to “peer review” the EPA work. Among them are two researchers who were co-authors on Searchinger’s controversial and discredited 2008 Science paper on ILUC; staffers from two environmental activist groups; and several academics with an ideological axe to grind against production agriculture and contemporary biofuels. Several of these academics have served as paid consultants to environmental groups with anti-ethanol and anti-agriculture agendas. “This is a perversion of what the peer review process is supposed to achieve,” Dinneen said. “The EPA cannot feel comfortable that it is getting complete and unbiased feedback based on the panel it has assembled here.”

BIObytes Ethanol News Briefs

PHOTO: U.S. POSTAL SERVICE

Bacteria may simplify cellulosic ethanol process

The U.S. Postal Service now has 37,000 flexible fuel vehicles in its fleet.

USPS adds FFVs to its fleet

The U.S. Postal Service announced it will add 1,000 E85 flexible fuel vehicles (FFVs) to its fleet as part of a one-for-one replacement of 6,500 aging vehicles at postal offices and facilities across the country. The remaining 5,500 vehicles will be replaced with gasoline/electric hybrid vehicles and fuel-

efficient, four-cylinder vehicles. With approximately 220,000 vehicles, the USPS operates and maintains the largest civilian fleet in the country. The purchase will bring the total number of alternative fuel-capable vehicles in the USPS fleet to more than 43,000, of which 37,000 are FFVs.

ACE and RFA launch BYOethanol campaign The American Coalition for Ethanol and the Renewable Fuels Association, in partnership with the National Corn Growers Association and several leading corn producing states, recently launched the Blend Your Own Ethanol (BYOethanol) marketing campaign. The goal of the campaign is to install 5,000 ethanol blender pumps nationwide within the next three years. BYOethanol will serve as a onestop source for technical, regulatory, safety and environmental information for fuel marketers.

Bacteria discovered in a decaying sweetgum tree may improve the preprocessing steps for cost-effective production of cellulosic ethanol. JDR2, a strain of Paenibacillus, can break down and digest hemicelluloses, which in traditional cellulosic ethanol production is broken down by acid hydrolysis. A research team from the Uni-

versity of Florida isolated the strain in 2003, and has mapped out the genome and will work to transfer JDR-2’s abilities to bacteria already used for ethanol production through genetic engineering. Cellulosic conversion to fermentable sugars is a major roadblock in the cost-effective production of cellulosic ethanol.

UL establishes new fuel dispensers certification path Underwriters Laboratories, a world leader in product safety testing services, recently announced the establishment of a new certification path for fuel dispensers that distribute midlevel ethanol blends, up to E25. With the addition of the new certification path, UL now offers three certification paths for dispensers of ethanol-blended fuels. These paths include UL 87 for gasoline and ethanol fuel blends up to E10; Subject 87A-E85 for gasoline and ethanol fuel blends up to E85; and

the new path Subject 87A-E25, which addressed gasoline and midlevel ethanol fuel blends up to E25. According to UL Consumer Safety Director John Drengenberg, UL established the new path in order to proactively prepare for the possibility that the U.S. DOE and U.S. EPA may approve the use of increased ethanol-gasoline blends.

DOE awards millions for renewable energy research

While the campaign will not offer financial assistance to fuel marketers, it will serve as a clearinghouse for existing renewable fuels infrastructure incentives.

The U.S. DOE awarded more than $600 million in American Reinvestment and Recovery Act funds for scientific projects aimed at advancing the country’s development of alternative energy. Awardees include several projects that could benefit ethanol production. Pennsylvania State University will receive $21 million to examine bio-polymers in plant cell walls to improve

biomass to biofuel conversion methods; Purdue University will receive $20 million for the conversion of biomass to energy, fuels or chemicals; and Oak Ridge National Laboratory will receive $5.4 million for equipment at the DOE BioEnergy Science Center to examine recalcitrance — the resistance of cellulosic biomass to enzymatic breakdown into sugars.

ETHANOL PRODUCER MAGAZINE • October 2009

Biofuels sustainability can be addressed by considering the agricultural, energy and environmental sectors as one large system, according to “Biofuels, Land and Water: A Systems Approach to Sustainability,” a recent study by the Argonne National Laboratory. Using marginal land and degraded water resources in Nebraska can increase biomass

PHOTO: DAVID RIECKS, UNIVERSITY OF ILLINOIS, COLLEGE OF ACES

Argonne Lab report: systems approach improves sustainability feedstock production to meet 22 percent of the state’s energy requirements, compared with the current 2 percent. Approximately 1.5 million acres were determined to be marginal agricultural land, mostly in the western portion of the state. The systems approach could improve the economic, social and environmental sustainability of biofuels, researchers said. Professor Hao Feng (right) and post doctoral student Xiao Juan Wang prepare to heat metal tubes containing distillers dried grains with different reagents to break the glucose bonds so they can extract sugars that can be used in ethanol production.

Illinois researchers study cellulosic pretreatment process

Fuel retailers in Oregon will be allowed to sell unblended gasoline to consumers beginning Jan. 1.

Oregon expands availability of ethanol-free gas Beginning Jan. 1, fuel retailers in Oregon will have the option of selling ethanol-free gasoline to consumers. The recently-passed legislation was an answer to citizens’ complaints that they had experienced engine problems as a result of ethanol-blended fuel, according to the bill’s sponsors. A 2008 state law already allowed certain retailers to sell

unblended gasoline for use in non-road engines, but legislators said it had been difficult for consumers to access the fuel due to distribution and storage issues. “While improving access to unblended fuel, this new law will give the state’s renewable fuel standard an opportunity to work as it was originally intended,” said state House Republican Leader Bruce Hanna.

ETHANOL PRODUCER MAGAZINE • October 2009

Research underway at the University of Illinois aims to discover if electrolyzed water can be used to effectively pretreat cellulosic biomass prior to enzymatic hydrolysis. The pretreatment process, which is traditionally completed with harsh chemicals, is designed to loosen up the cellulosic structure so enzymes can more effectively attack the sugars it contains. In addition to being more environmentally friendly, the use of electrolyzed water would also negate the need to detoxify biomass prior to the

enzymatic and fermentation stages of fuel production. The team of researchers, led by University of Illinois food scientist Hao Feng, initiated the research by studying the effectiveness of using electrolyzed water to unlock the sugars contained in the corn fiber portion of distillers grains. The research team plans to also study the effectiveness of the process on other sources of biomass, including switchgrass and miscanthus.

PHOTO: QTEROS

Microbiologist Sue Leschine, shown here in the QTeros lab, discovered a microbe that produces ethanol by breaking down its own enzymes and fermenting the sugars.

Qteros microbe achieves unprecedented ethanol outputs Massachusetts-based Qteros recently announced it has achieved unprecedented lab results in the performance of its Q Microbe complete cellulosic conversion process. The microbe can achieve outputs of 70 grams of ethanol per liter of fermentation broth, or 9 percent ethanol by volume, in a single-step process on industrially pretreated cellulosic biomass feedstocks, according to the company. The threshold for commercial production of cellulosic ethanol is considered to be 50 grams per liter. Qteros said this breakthrough makes its process the most economic to date. According to Qteros, “The Q Microbe breaks down a wide variety of plant materials, including corn residues, cane bagasse, woody biomass, cellulose waste and more. It produces prodigious amounts of ethanol by generating its own enzymes and then fermenting the C5 and C6 sugars. The microbe can be engineered to optimize ethanol output from a specific plant material, increasing net energy yield for the whole system. It is the ‘yeast’ component of the conventional bio24

conversion process plus the enzyme component, all in one.” TheQMicrobe(Clostridiumphytofermentans) was discovered approximately 12 years ago in Massachusetts’ Quabbin Reservoir by a University of Massachusetts research team led by Susan Leschine, a microbiologist at the university. It was collected in a sample for another survey and its potential was not realized until about eight years later. “The discovery was almost accidental,” Leschine said. The lab had been testing different microbes when someone inadvertently put too much paper in with the microbial media. Not expecting a positive result, the team tested the media and discovered the microbe was capable of producing high levels of ethanol from raw biomass. “The major impediment to producing cellulosic ethanol is cost,” Leschine said. “The Q Microbe minimizes pretreatment while optimizing cost. Other processes use diluted acids or high-temperature pretreatments, which take a lot of additional energy to perform.”

Leschine said the goal is to develop a microbe that can process feedstocks with little or no pretreatment. “An ideal situation is one where a producer could put large, untreated biomass into a digester and have the microbe do all of the work,” she said. In the past year, the Qteros scale-up team has increased ethanol concentrations by a factor of five in the solution that’s produced when the Q Microbe hydrolyzes and liquefies biomass, according to president and CEO William Frey. Even though it has reached world-class outputs with a non-genetically engineered strain of the microbe, the company expects to make further improvements by taking advantage of ongoing efforts in molecular genetics and strain development. “We knew from the beginning that the Q Microbe was an extraordinary microorganism,” Leschine said. “These results confirm what we predicted: Qteros and the Q Microbe can make cellulosic ethanol a commercial reality.” —Lisa Gibson and Craig A. Johnson

ETHANOL PRODUCER MAGAZINE • October 2009

PHOTO: EASY ENERGY SYSTEMS INC.

Easy Energy Systems Inc. CEO Mark Gaalswyk (left) demonstrates his company’s Modular Ethanol Production System for U.S. Energy Secretary Steven Chu.

Secretary Chu examines modular ethanol production system U.S. Energy Secretary Steven Chu examined three Minnesota renewable energy projects in August, including a mobile selfcontained ethanol plant developed by Welcome, Minn.-based Easy Energy Systems Inc. The technology, trademarked as the Modular Ethanol Production System, is a self-contained, fully-automated ethanol production system that is pre-built in Easy Energy System’s factory and shipped to the end user. Company CEO Mark Gaalswyk compares the MEPS system to a set of Legos. Each production module is formed by a set of easy-to-assemble pods, each of which serves a different function. Some pods facilitate distillation, while others produce heat, pretreat feedstock or complete the fermentation process. “The pods are interchangeable,” Gaalswyk said. “They can be pulled out and replaced with improved technology as the technology changes.” For example,

Easy Energy Systems offers a variety of pods that can be used to produce heat to fuel the production process, including those designed to burn natural gas, biomass, sugarcane bagasse or methane. If a facility currently powered by natural gas chooses to implement a renewable source of power, the natural gas pod can easily be removed and replaced with one that burns biomass. Together, the pods form a modular production unit, which can vary in size from 500,000 gallons per year to 5 MMgy. The production modules can be combined to configure a production plant of nearly any size. The modules can also be designed to process a wide range of ethanol feedstocks. The company offers an add-on pod that can be used to convert a traditional firstgeneration MEPS to second-generation fuel production. Gaalswyk said that the MEPS’ smallscale modular design is able to address the Achilles’ heel of cellulosic ethanol produc-

ETHANOL PRODUCER MAGAZINE • October 2009

tion; the logistical challenges of transporting and storing bulky cellulosic feedstocks. “Our feeling is the answer will be distributed ethanol plants that are fully automatic and economical to build,” he said. Gaalswyk said he expects the purchase price of a 1 MMgy cellulosic METS will cost between $4.5 million and $5 million. “We felt that to be able to do this economically, we had to be able to build the [systems] in our factory and ship them out like peas in a pod,” Gaalswyk said. The prebuilt, easy-to-assemble nature of the MEPS will also allow his company to better serve the international market. “There are many opportunities in developing nations where you don’t send 100 people to go stick-build a plant,” he said. “Each one of our pods is about the size of a shipping container, and we can just ship it out and they can assemble the pods.” —Erin Voegele

PHOTO: TEXAS AGRILIFE EXTENSION SERVICE

Alternative feedstock harvest successful

A silage wagon unloads energy sorghum during a harvest demonstration in Texas.

The 2009 harvest season is underway and this year ethanol producers have stakes in more than just corn harvests. Poet LLC, which first announced its corn cob harvest intentions in February, conducted its first commercial corn cob harvest throughout July in Texas, South Dakota and Iowa. Poet is in the process of converting its 50 MMgy corn-based ethanol plant in Emmetsburg, Iowa, to an integrated corn-to-ethanol and cellulose-to-ethanol biorefinery that will produce 125 MMgy of ethanol, 25 MMgy from corn cobs. Poet harvested close to 10,000 acres of cobs this year during demonstration harvests in the three states. According to Poet, the company is interested in cobs as an economical, environmentally friendly feedstock for cellulosic ethanol. Additionally, researchers at Iowa State University conducting a five-year study on the impact of cob removal have first-year results that determined removing corn cobs from fields has no substantial impact on soil nutrient content, according to Poet. Also involved in the 2009 cob harvest is Iowa-based agricultural equipment manufacturer Vermeer Corp. The company offered a limited

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ETHANOL PRODUCER MAGAZINE • October 2009

number of CCX770 Cob Harvesters to North American famers for the 2009 harvest season. The wagon-style harvester, designed to tow directly behind select corn harvesting combines to collect and unload cobs, was available through direct rental from Vermeer. “We believe that we have a machine that is going to go out and work and do the job, but we need to continue to stay close to the harvester and look for new opportunities in product development,” product manager Jay Van Roekel said. “By renting [the harvester] it allows us to stay in close contact with our customers. That way we can train directly, we can set up the machines, and we can find out if there are any service issues.” Van Roekel said the first-generation cob harvester is a heavy-duty machine designed for large-scale operations. “It’s really not the answer for a guy with 200 acres of corn,” he said. “It’s really too commercialized for that.” Vermeer is continuing to work to develop solutions for those who would like to harvest cobs on a smaller scale, he added. While those in the cellulosic ethanol industry have shown a great deal of interest in the product, Van Roekel said there is also interest in collecting cobs for other purposes, such as using cobs as a feed supplement for mixed rations, livestock and pet animal bedding, cogeneration with coal to produce electricity, and gasification. Cobs can also be in other industrial applications, such as construction materials, abrasives and absorbents.

ETHANOL PRODUCER MAGAZINE • October 2009

A demonstration harvest of energy sorghum was also conducted this season. Research engineers at Texas AgriLife Research demonstrated sorghum modules made from a cotton module builder. The process begins with the harvester transferring the sorghum to a silage wagon. Next, the silage wagon travels to the module builder and transfers the material. The biomass is compressed into a module, and is then ready for a protective wrap to be applied before transporting to an energy facility. The wrap system protects the biomass from degradation until it is ready for transport to a conversion facility. “Lambert Wilkes, with support from Cotton Inc., developed the technology with Texas AgriLife Research and solved how to harvest cotton and store it after transporting it from the field,” said Stephen Searcy, an AgriLife Research agricultural engineer. “That’s what we’re trying to do in biomass logistics. It’s very low energy density and takes lots of plant material.” Investigating how energy sorghum can be a sustainable crop in a farmer’s portfolio is another aspect of the work done by AgriLife Research scientists and specialists with Texas AgriLife Extension Service. “We really see this crop as another the farmer can have in their portfolio,” said Juerg Blumenthal, AgriLife Extension Service agronomist. —Craig A. Johnson

PHOTO: NUGEN ENERGY LLC

Five former VeraSun plants sold to producer/owners

The NuGen Energy LLC production facility in Marion, S.D.

Purchasers of former VeraSun Energy Corp. plants have provided a silver lining on the dark cloud of the company’s bankruptcy. The major ethanol producer’s bankruptcy filing in March was a blow to the industry and interested parties have since monitored the status of VeraSun’s properties in anticipation of their sale, possibly as a signal of the industry’s recovery from a difficult period. It has taken longer than expected, but sales agreements for many of the production facilities have been reached. According to AgStar Financial Services spokesman Jim McKissick, sales are complete on five of the six VeraSun ethanol plants the group acquired. AgStar President and CEO Paul DeBriyn said that although the sales took longer than the lending group initially anticipated, lenders are satisfied and the outcome is consistent with the acquisition plan. Most recently, on Aug. 4 a lending group led by AgStar announced that Shakopee, Minn.-based Guardian Energy LLC had entered into an agreement to purchase the 100 MMgy Janesville, Minn., ethanol plant. Guardian Energy, a wholly owned subsidiary of Guardian

Eagle Investments, was formed to own and operate the Janesville ethanol plant. The group is comprised of farmers and locally owned ethanol plants known for the development of Renewable Products Marketing Group. Group members represent an annual production capacity of more than 500 MMgy. In late August, a binding purchase agreement had been signed and the sale was expected to close by Sept. 15. Guardian Energy said the never-operated plant would be fully operational within 30 to 60 days of the closing date. AgStar will continue to lead a group of lenders in financing Guardian Energy. “We are excited to have a regional group of producers who own successful ethanol plants purchase this facility,” DeBriyn said. “We know they are committed to maintaining the value of the ethanol industry for local producers.” A purchase agreement has also been signed for the Dyersville, Iowa, facility. Big River United Energy LLC, a company comprised of Big River Resources LLC, United Cooperative and Rumbold & Kuhn Inc., said it planned to have the 100 MMgy production plant up and running in the third quarter, under the management of Big River Resources. AgStar will also continue to lead lenders in financing the Dyersville plant. In addition, Central Farmers Co-op recently bought back the 110 MMgy ethanol plant it built in Marion, S.D., and has been successfully operating since May. The plant was renamed NuGen Ener-

ETHANOL PRODUCER MAGAZINE • October 2009

gy LLC, and is a wholly owned subsidiary of Central Farmers Co-op. The facility was purchased from Marion Energy Investments LLC, the banking group that bought the plant out of bankruptcy when VeraSun filed for Chapter 11 bankruptcy protection, said Steve Domm, general manager of Central Farmers Co-op. The Marion facility, which began production in 2008, was originally built and owned by Millennium Ethanol LLC, which was also a subsidiary of Central Farmers Co-op. “We were able to negotiate a deal with the original lender on the facility that we felt gave us longterm staying power and gave us the opportunity for long-term success to make it work, and we closed the deal,” Domm said. Finally, Green Plains Renewable Energy acquired two former VeraSun ethanol plants located in Central City and Ord Nebraska. The 100 MMgy Central City plant and the 50 MMgy Ord plant were purchased for $123.5 million; $10 million was committed by GPRE and the remainder is being financed by AgStar’s lending group. In mid-August, AgStar continued to seek a buyer for the 110 MMgy production plant in Hankinson, N.D. Former VeraSun facilities in Bloomingburg, Ohio, and Linden, Ind., that had been acquired by lender WestLB had also yet to be sold. —Craig A. Johnson

Technology converts carbon dioxide, sunlight into ethanol Cambridge, Mass.-based Joule Biotechnology Inc. has developed a new technology that uses a highly-engineered photosynthetic organism, sunlight and carbon dioxide (CO2) to produce ethanol and other biobased products. Trademarked as Helioculture technology, the modular, directto-fuel process requires no agricultural land or fresh water. Joule Biotechnology’s modular SolarConverter system is used to facilitate the process, from sunlight capture to product conversion and separation. In addition to ethanol, Joule Biotechnology’s CEO Bill Sims said the technology may also be used to produce biobased hydrocarbon products, such as diesel, and a wide range of chemicals traditionally derived from petroleum. Sims said that his company chose to validate its Helioculture technology using ethanol. His decision was influenced by the fact that a variety of other companies are also working to produce ethanol, making it easy to make cost and productivity comparisons. Once commercialized, the company estimates that its Helio-

culture technology will be capable of producing more than 20,000 gallons of ethanol per acre annually while consuming approximately 150 tons of CO2 per acre per year. “What we have are highly engineered photosynthetic organisms existing in a solution of nonfresh water … and some nutrients,” Sims said. “They exist inside this novel Bill Sims solarconverter that is capturing the sun’s rays president and CEO, … We have sunlight as an input and CO2 as a Joule Biotechnology feedstock. So, we are capturing CO2 and driv- Inc. ing photosynthesis inside the converter. The organisms have been modified to directly secrete a variety of solar fuels and solar chemicals.” One key difference between Joule Biotechnology’s process and cellulosic technologies is the lack of an intermediary feedstock. “There is no biomass, there is no algae, grass or woodchips — or anything else that has to be harvested or grown and processed,”

Sims said. In addition, the process effectively sidesteps many of the roadblocks that face other second-generation biofuel technologies, including costly biomass production, multiple processing steps, substantial scale-up risk and high capital costs. According to Sims, Joule Biotechnology expects to break ground on a pilot facility in 2010. He estimates that the technology could be installed on a commercial scale as early as 2012. “It is our belief that there is just no other technology that has brought forth a true path to energy independence,” Sims said. “And, the important aspect of that includes limited land usage. We don’t require agricultural land at all, and we do not require fresh water. What we have is a unique direct-to-fuel process that makes the entire Helioculture system far simpler … and allows us to target creating clean renewable fuel at prices at or below that of fossil fuels. At the same time, we are harnessing the power of the sun and converting CO2 — which is something people see as bad — into something usable. From that perspective, we think this is something that is quite a compelling story and entry into the petrochemical space.” Joule Biotechnology Inc.’s Helioculture technology features a modular solar converter system that houses highly engineered photosynthetic organisms capable of converting sunlight and carbon dioxide into fuels and chemicals.

—Erin Voegele

SOURCE: JOULE BIOTECHNOLOGY INC.

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Accidental high ethanol blends cause complaints The Virginia Department of Agriculture and Consumer Services received more than 500 consumer complaints regarding fuel containing high levels of ethanol between June 8 and July 7. The complaints focused on fuel sold at retail locations in the Tidewater area of the state, which includes the cities and counties along Virginia’s coastal region. As of mid-August, inspectors from VDACS’ Office of Product and Industry Standards had investigated each complaint. While the vast majority of fuel sampled by OPIS investigators was found to be in compliance, five Stop Sale orders were issued. The affected pumps were sealed out of service and labeled with a prominent tag designed to prevent customers from inadvertently purchasing the contaminated fuel. In each of these five cases, the retailers quickly brought their fuel into compliance, and upon subsequent testing by OPIS, the Stop Sale orders were lifted. In fewer than 10 separate instances, inspectors found that retailers who took delivery of suspect fuel had voluntarily closed their pumps and replaced the suspect fuel with fresh gasoline.

According to Elain Lidholm, VDACS director of communications, the ethanol level of the fuel found at the investigated locations varied from 16 percent to 50 percent ethanol. Since the investigators’ field test kits can only measure up to 50 percent ethanol, it’s possible that some of the fuel blends contained even higher percentages of ethanol. Early indications were that the contamination originated at the wholesale level and by mid-August, the department had confirmed that the source of the contamination had been traced to a single entity. VDACS is working with the state’s Attorney General’s Office to determine if civil penalties will be incurred. “Early indications are that it was an honest mistake,” Lidholm said. “There doesn’t seem to be any indication of intentional contamination.” Testing fuel blends at the loading rack before they are delivered for retail sale is one way this kind of blending error can be avoided. Wilks Enterprise Inc. provides one such testing product, known as the InfraCal Blend Analyzer.

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The InfraCal Blend Analyzer is designed to be easy to use for non-technical personnel. “They have no moving parts, can be operated from a battery pack, and are designed to be portable, rugged and unaffected by environmental changes,” said Wilks Enterprise President Sandra Rintoul. “They are simple. You just put a sample on the sample area, press a button and get the result.” The analyzers can be used to test fuel blends that contain between 0 percent and 98 percent ethanol, and are accurate to +/0.2 percent for blends of E0 through E20, and +/- 1 percent for blends ranging from E20 to E98. According to Rintoul, the analyzers are most often used by terminal operators and those working in regulatory agencies. At terminals, the analyzers are typically located in the field. “They load the trucks and take a sample from the truck, and test it right there at the loading rack,” she said. “We also have several weights and measures people using them to test at pumps.” Wilks Enterprise Inc.’s InfraCal Ethanol Blend Analyzer is a portable device that can be used by non-technical personnel to test the ethanol content of fuel blends. PHOTO: WILKS ENTERPRISE INC.

—Erin Voegele

Florida becomes biofuels start-up incubator Florida Gov. Charlie Crist touted his state’s investment in biofuels and renewable energy development during his speech to attendees at the 2009 Farm to Fuel Summit, held July 29 to 31 in Orlando, Fla. According to Crist, Florida has awarded more than $43 million in grants for renewable energy and energy efficiency projects since 2006, of which more Gov. Charlie Crist than $23 million has been awarded to bioenFlorida ergy projects. “Florida’s success as a national leader in renewable energy technology, including ethanol and other biofuel production, benefits the state’s economy and environment while reducing our dependence on foreign oil,” Crist said. “I am committed to continuing the diversification of Florida’s energy portfolio and the development of our state as a green technology business hub.” An E10 mandate will go into effect in 2010 and second-generation biofuels will be a major part of an integrated solution for meeting Florida’s energy needs, according to Crist. The state is cur-

rently funding research related to the production of ethanol from feedstocks such as sorghum and citrus waste. Several future cellulosic ethanol producers have selected Florida sites for their production facilities, including Verenium Corp., Southeast Renewable Fuels LLC and Coskata Inc. Verenium Corp. and British Petroleum plc partnered last year to form Highlands Ethanol LLC with the intent to develop and commercialize cellulosic ethanol. The company plans to break ground on a 36 MMgy cellulosic ethanol production facility in Highlands County, Fla., in 2010. Production is expected to begin by 2012. The joint venture recently announced Highlands Ethanol will do business under the name Vercipia Biofuels — Latin for “green beginnings.” The Florida Energy and Climate Commission, tasked with dis-

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ETHANOL PRODUCER MAGAZINE • October 2009

bursing money received by the state via the American Recovery and Reinvestment Act, recently awarded the company a $2.5 million grant for the project. Verenium said the project will provide the state’s economy with up to 400 construction-related jobs and 140 permanent skilled jobs upon the plant’s completion. Florida-based Southeast Renewable Fuels LLC made recent advancements related to its proposed sweet sorghum production facilities. In July, it announced a contract with local power provider Seminole Electric Cooperative to supply it with electricity generated through a combined heat and power system to be installed at the company’s proposed Hendry County facility. The commission awarded Southeast Renewable Fuels a $2.5 million grant to be used to advance its project. In return, Southeast Renewable Fuels plans to employ approximately 47 full-time workers upon completion of the facility. Two additional sorghum-based production facilities are planned for locations to be named in Florida, according to Southeast Renewable Fuels Executive President and Chief Operating Officer Donald Markley. Highlands EnviroFuels LLC received $305,000 from the commission for its Highlands County project, which will utilize no-till practices for sweet sorghum production and will convert the sor-

ETHANOL PRODUCER MAGAZINE • October 2009

ghum, as well as sugarcane, to ethanol at a 20 MMgy Brazilian-style facility. An estimated 30 to 40 jobs will be created upon the plant’s completion. Wes Bolsen, chief marketing officer and vice president of business development for Coskata Inc., recently told EPM that the company is making progress in its plans to develop a 100 MMgy cellulosic ethanol production facility in Clewiston, Fla. The plant would use sugarcane bagasse as feedstock and is dependent on a land sale and use agreement with U.S. Sugar as well as a grant from the state. Coskata did not receive any funding during the most recent round of energy and climate commission grant disbursements. According to Crist, Florida was one of the first states to begin implementing funding received via the American Recovery and Reinvestment Act of 2009 and has received $63 million ear-marked for economic development in renewable energy and energy efficiency. Money is being dispersed via the Florida Energy & Climate Commission, which was established by the state in 2008 to serve as the central office for state energy and climate change programs and policies. —Kris Bevill

DRIVE Buis

Evidence for Ethanol Keeps Growing By Tom Buis

f you’ve seen the news recently, you know that scientific research is increasing in support of producing more corn ethanol. There were several developments that help make our case that ethanol is our country’s best alternative to foreign oil: it creates green jobs, it is cleaner than gasoline, and as a renewable fuel, it strengthens America’s economic and national security. My first update comes thanks to the U.S. EPA and the peer review study it released in August on a proposed rule to measure indirect land use change. As you know, the indirect land use change provision is controversial and many believe there is no direct correlation between the production of corn ethanol in the United States and land use changes elsewhere. The EPA’s own peer review study proved that there is no consensus in the science community on a model to accurately measure indirect land use change. Comments from the EPA-selected scientists found almost no agreement on the modeling, the data or the science. Growth Energy is calling on Congress to adopt legislation that would task the National Academy of Science with conducting a comprehensive and thorough study of this issue. My second update comes from Las Vegas, where Growth Energy Co-Chairman (Ret.) Gen. Wesley Clark announced details of our national Biofuels Road Map at the National Clean Energy Summit. Growth Energy’s road map would help create and support more than 1.3 million new “green collar” jobs by 2022 through the production and distribution of ethanol. That’s something we can all get behind. At the summit, Clark also spoke about the need for greater transparency in the U.S. petroleum market — and the fact that many Americans aren’t aware of the hidden costs of foreign oil. When we stop at our local filling station, the gasoline we pump into our vehicles is most likely not a local product, it is brought into the country at great cost: more than $50 billion per year in taxpayer dollars just to protect oil

shipping routes, on top of the estimated $500 billion a year we send to petroleum-producing countries such as Venezuela, Saudi Arabia and Russia. Growth Energy will shortly embark on an effort to bring greater transparency to the petroleum market, and help American consumers learn where their gasoline dollars go. Finally, on an end note, more evidence is piling up to dispel the food versus fuel myth that was concocted by a multimillion-dollar Grocery Manufacturers Association campaign. We have reports from the USDA that American farmers are anticipating record corn and soybean harvests. That reinforces what we in farm country already know: there’s a mountain of grain out there, with enough to use for fuel production without driving up food prices. We also saw a Government Accountability Office report tracking the increase in prices for farmers compared to the price of groceries. The GAO report concluded that supermarket prices have gone up 128 percent since 1982 – or four times the increase that farmers saw for their crops during that same period. That proves that the Grocery Manufacturers Association greatly exaggerated the link between the affect of ethanol production on crop prices, and the cost of food to consumers. In the coming weeks and months, Growth Energy will be assembling the membership of our Growth Force, comprised of individuals who support the production and distribution of ethanol. Growth Force will be our best asset to fend off the misinformation campaigns by the major food and oil companies that oppose our efforts. And we’ll be rolling out new legislative initiatives to help Americans know the truth about the hidden costs of oil – and the benefits of growing our own energy through ethanol. Tom Buis is the CEO of Growth Energy. Reach him at TBuis@GrowthEnergy.org or (402) 932-0567.

ETHANOL PRODUCER MAGAZINE • October 2009

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TAKING STALK Greving

Sorghum’s Increasing Feedstock Potential By Bill Greving

s economic pressures continue for the ethanol industry, more plant managers are looking for feedstock options and, with increasing frequency, sorghum is among the feedstocks being considered. Sorghum is one of the five top cereal crops in the world. The United States was the world’s largest producer of grain sorghum in 2007. However, it is far from being a household name, even in ethanol producing areas in Kansas, Texas, Louisiana, Nebraska, Arkansas, Oklahoma and Missouri — the top sorghum producing states. Recent declines in acreage and production have led to decreased private investment in sorghum and also brought about a technology gap between sorghum and other crops such as corn, cotton and soybeans. Enter the biofuels industry. Private, public and checkoff-funded research examined new possibilities for sorghum in the ethanol production process. Sorghum is now the number two crop used for grain-based ethanol production. In 2009, approximately one quarter of total domestic grain sorghum production is projected to be used in the U.S. grain-to-ethanol market. Among the benefits of using grain sorghum as a crop for sustainable ethanol production is its ability to produce the same amount of ethanol per bushel as comparable feed grains while using up to one-third less water during the plant’s growth process. Sorghum also typically requires fewer herbicides and insecticides than crops such as corn and uses fertilizer more efficiently. From an ethanol production standpoint, grain sorghum is equal to corn as an input. One bushel of grain

sorghum or corn produces an equal amount of ethanol. With that in mind, ethanol producers can make grain sorghum part of a successful feedstock procurement strategy — especially in areas where there is a ready supply of grain sorghum. Most major ethanol construction companies now design their plants to either use grain sorghum or corn. A number of new-generation ethanol plants are capable of receiving both sorghum and corn at the same time. However, for older plants, minor modifications may be necessary, including smaller filtering screens to handle the smaller sorghum kernel as compared to corn. The United Sorghum Checkoff Program was created to increase demand for sorghum in a variety of ways besides biofuels. Future private, public and sorghum checkoff-funded research opportunities include creating better yields in stressful and low-input environments; development of production and weed control strategies (general education on production); nutritional improvement, such as increased digestibility and protein quality; and biofuels production. The USCP is also funding research to examine sorghum’s role in fighting cancer, high cholesterol and obesity. The USCP provides up-to-date information on sorghum’s potential to be used as an ethanol feedstock, including facts on sourcing, conversion, sorghum byproducts such as distillers grains, and technical information at www.sorghumcheckoff.com. Bill Greving is the chairman of the United Sorghum Checkoff Program. Reach him at wand@ruraltel.net.

ETHANOL PRODUCER MAGAZINE • October 2009

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LEGAL PERSPECTIVES Van Loon

Issues in Nuisance Litigation By Haley R. Van Loon any ethanol producers have already been confronted with the prospect of nuisance litigation. In this type of litigation, an ethanol producer’s neighbors bring suit alleging that their rights have been interfered with by some aspect of the operation of the ethanol plant. Good planning, careful operation and promptly addressing complaints may help ethanol producers minimize the risks posed by nuisance litigation.

Unreasonable Interference According to one state Supreme Court, a nuisance is defined as, “[w]hatever is injurious to health, indecent, offensive to the senses, or an obstruction to the free use of property, as essentially to interfere with the comfortable enjoyment of life or property . . .” Generally speaking, a nuisance is any use of property which unreasonably interferes with neighbors’ comfort and reasonable use and enjoyment of property. Judges and juries take into account a number of factors in determining the existence of a nuisance, including: which party was there first, the nature of the area in question and the nature of the activity in question. What constitutes an unreasonable use is typically determined by reference to what a “normal” person in that locality would think. Further, while almost all property uses entail some sort of interference, nuisance law prevents only “unreasonable” interference, so nuisance litigation necessarily involves a question of the degree of interference. In considering which party to a location was there first, it is important to note that modifications made to an ethanol facility may change a court’s assessment under this factor, because changes to an operation may essentially restart the

clock regarding which use occupied an area first. Under the second and third factors, the courts examine the typical uses of property in that locality and also examine the activity itself, including any beneficial aspects of the activity. Within the framework of nuisance law, neighbors to ethanol plants have cited factors like odor, particulate, noise, bright lights and increased traffic as evidence of nuisance. Further, the shear size of ethanol facilities may make them targets for nuisance litigation. As part of bringing suit, plaintiffs often seek injunctions to prevent a plant from operating. Plaintiffs also seek monetary damages to compensate them for diminution in their property value and for future interference with the use and enjoyment of their property. Plaintiffs may also seek damages for personal injuries like physical ailments and emotional distress. Finally, plaintiffs can also ask for punitive damages to punish the defendant for creating the nuisance.

Strategies to Prevent Nuisance Litigation Existing facilities can also take steps to minimize exposure. Getting to know neighbors and being attentive to their concerns can go a long way towards alleviating problems. Further, keeping abreast of technology changes and being mindful of all aspects of production can help prevent problems before they start. Existing facilities can also add berms, plant trees and use other devices to shield and/or separate projects from neighbors. Haley R. Van Loon is an associate with BrownWinick, a Des Moines, Iowa-based law firm serving the renewable fuels industry. Reach her at vanloon@brownwinick.com or 515-2486625.

ETHANOL PRODUCER MAGAZINE • October 2009

eBIO INSIDER Vierhout

Unholy Alliance? e all know that the performance of biofuels is relative to the amount of emissions from fossil fuels. The big question is, what are the emissions from fossil fuels? If biofuels replace the marginal fuel, the answer should be found by comparing biofuels with the fuel that is the most expensive to obtain and is, at the same time, a high greenhouse gas (GHG) emitter. However, it is not that easy. European laws and regulations can be inconsistent, confusing and devious. An example of this can be found in an EU law on renewable energy, which holds a clause precisely on the issue of GHG emissions from fossil fuels. It contains a value for the emissions and a statement that the fossil fuel comparator “shall be the latest available actual average emissions from the fossil part of petrol and diesel consumed in the community.” Obviously, a method is needed to calculate these emissions, and that is where the problems start. The EU methodology originally agreed upon for calculating GHG emissions applies to the production and use of transport fuels (fossil fuels), biofuels and bioliquids (biofuels used for the production of electricity). Unfortunately, Some of the variables in the methodology are clearly only relevant for biofuels and some are related to fossil fuel only, making the law less straightforward than we had hoped. When European regulators signed off on the package of laws on energy and climate, they included a law on the quality of (fossil) fuel. This directive, commonly referred to as the Fuel Quality Directive, forces oil companies to reduce emissions over the entire life cycle of fossil fuels by 2020. Oil companies argued that it is impossible to reduce emissions upstream or at the refinery level. The only stage where savings could be achieved would be downstream by using huge volumes of biofuels. So, the regulator applied a precautionary principle and all the biofuel sustainability rules were copied into this law.

When biofuel sustainability rules were added to the FQD, the wording on the methodology to calculate fuel emissions was changed and any reference to fossil fuels was left out. The result is that there are now two different methodologies to calculate emissions from fossil fuels: one clearly spelled out in the Renewable Energy Directive and one vague methodology coming from the oil industry. This raises the fundamental question of which law will prevail. The European Commission environment department responsible for implementing the FQD started a “public” consultation procedure on the calculation of GHG emissions of fuels. A note that has been prepared by them makes their agenda clear: the emissions reduction by fossil fuels has to be achieved by reducing flaring and venting at the refinery level through, for example, carbon capture and storage, and by increasing the use of electric vehicles. What is the bigger picture behind all this? The European Commission environment department has never been a supporter of biofuels. Their big fear is that both the automotive and oil industries will use biofuels to avoid having to make the necessary structural changes to either engine or production process to deliver GHG savings. Keeping the fossil GHG intensity baseline at the same level by leaving non-conventional fuels out of the equation makes biofuels less attractive. The oil industry would probably not object to that. A higher baseline means more savings to realize, something that is not their prime objective. Achieving more savings by other means than biofuels will result in higher costs; using more biofuels results in less revenues. Making sure that the fossil fuel comparator does not change is best guaranteed by using the industry’s own emissions data. If the environment people can accept it, why change it? It seems to be just another unholy alliance against the biofuels industry. Robert Vierhout is the secretary-general of eBIO, the European Bioethanol Fuel Association. Reach him at vierhout@ebio.org.

ETHANOL PRODUCER MAGAZINE • October 2009

YEAST

ETHANOL PRODUCER MAGAZINE

October 2009

YEAST

Is Recycling Yeast an Option? Sugarcane ethanol producers typically recycle the yeast used in their fermentation process. While yeast recycling can offer a variety of benefits, it can also introduce problems with contamination and shift a plantâ&#x20AC;&#x2122;s fermentation profile. By Erin Voegele

ETHANOL PRODUCER MAGAZINE

October 2009

YEAST

razilian consulting company Fermentec recently announced its researchers have developed a new strain of yeast that allows for a relatively high concentration of ethanol in the fermentation process while reducing the volume of vinasse that is produced. Vinasse, the primary coproduct of the sugarcane ethanol production process, is commonly used as a fertilizer. In Brazil, the yeast used to ferment sugarcane mash during the ethanol production process is often recycled. For this reason, the alcohol content of the fermentation process generally ranges from 8 percent to 10 percent. A higher concentration of alcohol would kill the yeast, making it impossible to recycle the microbes. By comparison, the alcohol concentration in the fermentation stage of corn ethanol production typically reaches approximately 16 percent to 20 percent. Through the use of improved temperature control and the use of its unique yeast, Fermentec’s CEO Henrique Amorim says that his company’s researchers were able to increase the concentration of ethanol in the fermentation process up to 16 percent without killing off the yeast. This achievement was possible due to the company’s new strain of yeast, which has been designed to tolerate higher concentrations of ethanol and more acidic conditions.

'The sugarcane process lends itself very easily to separate the yeast by centrifugation. Essentially, [sugarcane/molasses ethanol producers] recycle their yeast almost indefinitely. Some plants actually claim they don’t add new yeast whatsoever. Other plants throw in a fresh batch of yeast every so often, just to make sure that the yeast population doesn’t change.' Dennis Bayrock, PhibroChem Ethanol Performance Group

According to Amorim, the next step in Fermentec’s research process will be to increase the ethanol concentration in the fermentation process up to 21 percent while maintaining the viability of the yeast. He also says he is interested in studying the possibility of recycling yeast in the corn ethanol production process, and is currently awaiting an opportunity to do so. While South American sugarcane ethanol plants typically use a continuous production process and recycle yeast, North American corn ethanol plants, which typically employ a batch process, do not. Instead, a new batch of yeast is added during each batch of fermentation. Differences in the two production process, as well as specific feedstock-related challenges, may make it difficult to recycle yeast in corn ethanol plants.

Lallemand Ethanol Technology supplies yeast to facilities that make ethanol from a variety of feedstocks, including corn and sugarcane. According to Craig Pilgrim, Lallemand’s global marketing and product development manager, the specific varieties of yeast supplied to each type of facility often differ. This is due to the specific characteristics of each feedstock. “We select the best strain for sugarbased fermentations based on different criteria, such as the ability to dominate fermentation, mutation resistance, etc., which may be different than corn-based fermentations, which are usually batch fermentations and have different sets of criteria,” he says. While yeast is utilized similarly in each type of production process and the main goal is always to ferment the sugars into alcohol, he says the

ETHANOL PRODUCER MAGAZINE

October 2009

PHOTO: FERMENTEC

YEAST

The Fermentec research team

substrates, nutrients, environmental conditions and end product concentrations are not always the same.

Recycling Yeast in Sugarcane Ethanol Production In the continuous production process employed by most sugarcane ethanol plants, the feedstock is continuously added and pushed through the production line. Once fermentation is complete,

which takes approximately 8 to 10 hours, Amorim says the beer is pumped to a continuous centrifuge, where the yeast is separated out of the solution. The resulting yeast cream is then treated with water and acid and pumped back to the fermentor. “The sugarcane process lends itself very easily to separate the yeast by centrifugation,” says Dennis Bayrock, the global director of research and development

for PhibroChem’s Ethanol Performance Group. “Essentially, [sugarcane/molasses ethanol producers] recycle their yeast almost indefinitely. Some plants actually claim they don’t add new yeast whatsoever. Other plants throw in a fresh batch of yeast every so often, just to make sure that the yeast population doesn’t change.” The recycling of yeast is possible in the sugarcane ethanol production process because the substrate is a relatively clear liquid, Pilgrim says. “It is basically a sugar solution that has been extracted by squeezing the juice out of the cane,” he continues. “Because the liquid is relatively free of insolubles, yeast can either be centrifuged out or separated and/or recycled using membranes. The yeasts can then be washed with acid or treated with an antibiotic to lower bacterial contamination and then re-added to the next fermentation, resulting in large numbers of dead and live yeast. The fermentations go quickly due to large numbers of yeast and the low levels of sugar and ethanol.” Pilgrim says a main driver of recycling yeast is cost reduction. “One only has to use a fraction of the yeast that would be used in a corn ethanol plant,” he says. However, he also notes that the cost of yeast is relatively low compared to the other inputs required for ethanol production.

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October 2009

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YEAST

“In reality, yeast is not a major component of the cost for running a fermentation,” Bayrock says. Raw materials, enzymes (if used) and utilities account for the majority of this cost. “So, if you are looking [to yeast recycling] as a cost savings for the plant, it wouldn’t be all that great,” he says. However, Amorim says that, when done correctly, yeast recycling can increase yields because more yeast is added to the fermentation, which speeds the process. “Typical batch fermentations for a dry-grind ethanol facility in North America are about 48 hours,” Bayrock says. “Many continuous plants in South America run only about a 9 or 10 hour fermentation. With approximately 5 times to 10 times as much yeast present in fermentation due to yeast recycling as compared to batch plants, fermentation rates are significantly increased.” They are able to economically add this much yeast because they recycle it. However, Bayrock notes that it can be difficult to maintain the quality of yeast over a significant period of time — both genetically and microbiologically. While Bayrock agrees that recycling yeast can be beneficial from a production point of view, he also points out that recycled yeast can shift their metabolism over time. This can significantly affect a plant’s fermentation profile. “The disadvantage of using continuously-recycled yeast is that over time, you can introduce genetic changes within the yeast,” Bayrock continues. This can shift the fermentation profile, which also affects other areas of the plant. The batch system typically employed by the corn ethanol industry enables a plant to be more responsive to problems with yeast or contamination. “If you have any process upsets, or difficult fermentors, or bad performing yeast, you sacrifice one batch — maybe two — but the rest of the fermentors are essentially isolated from each other and production can be recovered,” Bayrock says. In a continuous production

process, issues resulting from process upsets and contamination could be much more severe.

Feedstock Related Issues The primary difficulty with recycling yeast in the corn ethanol production process stems from the corn feedstock itself. While the concentration of solids in sugarcane mash are extremely low, the concentration of solids in corn mash are very high. According to Pilgrim, recycling yeast in the corn ethanol production process would require that the corn mash is centrifuged several times to remove these solids. He says this is not very practical and that yield losses would occur. He also notes that the ethanol content in the fermentation process would add to the difficulties of recycling yeast. “In dry-grind grain fermentation in North America, the yeasts almost always produce more than 10 percent to 12 percent volume to volume (v/v) ethanol,” he says. “Many plants are producing 16 percent to 20 percent v/v. At levels of ethanol over 10 percent to 13 percent v/v, yeasts will not grow and many are dead. To recycle dead yeasts would not be very effective, and particles are present that would increase solids and viscosity dramatically. Moreover, backset that is recycled to conserve water usage would become impossible to handle.” In addition, Pilgrim says recycling yeast reduces efficiency. “Due to the fact that the yeast are not as robust or viable after recycling, it opens up opportunities for other organisms to compete for substrate,” he says. “This can lead to increased levels of acetic and lactic acid that reduce yeast growth and vitality, effecting yield and productivity. It also opens the door for wild yeast to take over the fermentation. Wild yeasts with less sensitivity to such end products will survive and continue to thrive and, ultimately, ethanol yields will be reduced. This leads to suboptimal fermentations.”

ETHANOL PRODUCER MAGAZINE

October 2009

YEAST

Putting Recycling into Practice Amorim says that the ability of corn ethanol producers to recycle yeast would only be possible in plants that utilize a wet-mill process. He also says recycling yeast could be beneficial to these facilities because reducing the solids present in the fermentor will make the heat exchange process more efficient, and will reduce the needed volume of fermentors. However, he also acknowledges that several challenges would need to be overcome in order to recycle yeast used in the corn ethanol production process. Specifically, a process would need to be developed to economically remove solids while keeping sugar loss to a minimum. According to Bayrock, some North American dry-grind ethanol plants have experimented with using a centrifuge to settle out the particulates of corn mash prior to fermentation. “Some plants are actually separating out [the solids] to fermentation. This clearer liquid is then transferred to the fermentor and yeast is inoculated,” he says. “This essentially allows these plants to fit more sugar into the fermentor (since corn fiber is not used and also takes up volume in a fermentor), and could also allow them to separate out the yeast in a similar fashion to that of the South American sugarcane ethanol plants. Because you have a clearer suspension, the yeast can actually be centrifuged out fairly easily,” Bayrock says. “That would require two centrifuges. One at the beginning of the fermentation to remove solids from the mash and then another, smaller one at the end of fermentation to separate out the yeast from the mash.” While technically it would be possible to recycle yeast in this way, Bayrock says it probably wouldn’t offer much of an economic advantage. In addition, any economic advantage that is realized would likely be overshadowed by other issues. “If you are recycling yeast, you have a greater chance of having a contaminant re-circulate through your entire system, causing problems,” Bayrock says. Using new yeast directly from a manufacturer essentially guarantees very low levels of contamination. In fact, Bayrock says that recycled yeast often have a contamination level that is 1,000-fold higher than the contamination of new yeast purchased from a yeast manufacturer. Pilgrim also notes that the batch production process allows for much tighter controls over infections. If there is an infection, it is also much easier to contain. He says that some new sugar beet ethanol plants in Europe use a batch process and do not recycle yeast, even though sugar beet mash is comparable to sugarcane mash. He also says he expects that many U.S.-based sugarcane ethanol plants that are under development will choose a batch production process as well. EP

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Erin Voegele is an Ethanol Producer Magazine associate editor. Reach her at evoegele@bbiinternational.com or (701) 3738040.

ETHANOL PRODUCER MAGAZINE

October 2009

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IMPORT

Central American

GETAWAY Central American and Caribbean countries continue to serve as rendezvous points for Brazilian ethanol companies seeking to dehydrate their way out of the 54 cent U.S. import tariff. The loophole that allows this has a bad rap among U.S. producers, but is it deserved? By Kris Bevill

ETHANOL PRODUCER MAGAZINE

October 2009

IMPORT

ETHANOL PRODUCER MAGAZINE

October 2009

IMPORT

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ILLUSTRATION: CARIBBEAN BIO-ENERGY INC.

n the tiny deep-water port community of Puerto Castilla on the northeastern Caribbean Sea coast of Honduras, plans are being finalized to build and operate the country’s first ethanol dehydration facility. The location, chosen because of its access to the deep waters of the Caribbean Sea and direct route to U.S. ports, is surrounded by agricultural land ripe for sugarcane production and a country that holds the unfortunate rank of being the second poorest nation in Central America. Add to this the Caribbean Basin Initiative and the Central American Free Trade Agreement and the combination appears to be an almost irresistible ethanol export opportunity. That’s what Dan Christensen determined when he began exploring the Caribbean for ethanol opportunities several years ago. The former Green Plains Renewable Energy executive has many years of U.S. ethanol production experience, and when he discovered the facility in Puerto Castilla he knew it was the right place. In 2007, he formed Caribbean Bio-Energy Inc. and has since negotiated a 15-acre plant site with the intent of building and operating a 110 MMgy dehydration facility. The facility will import hydrous ethanol from Brazil, dehydrate it and export the finished product to the United States and other destinations. The entire facility, including the initial shipment of Brazilian ethanol, can be complet-

Caribbean Bio-Energy Inc.'s future facility site

ed for just $30 million — one-quarter the cost of building a similar-sized U.S. production facility. Not surprisingly, cost was a driving factor in Christensen’s decision to enter the Caribbean market. Also influential to Christensen’s decision were two pieces of U.S. legislation — the Caribbean Basin Initiative and the Central American Free Trade Agreement.

CBI and CAFTA The CBI has been an issue of contention between U.S. ethanol producers and

diplomats since its passage in 1989. U.S. producers argue that it provides Brazilian ethanol suppliers a loophole to avoid paying the 54 cent per gallon U.S. ethanol tariff and that it threatens the domestic industry’s production cushion. Diplomats and other proponents of the CBI counter that the initiative provides impoverished nations a chance to boost their local economies and that the amount of tariff-free ethanol finding its way into the U.S. is not enough to make a dent in domestic production. In addition, CAFTA signed into law by President George W. Bush in 2005, carved

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ETHANOL PRODUCER MAGAZINE

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IMPORT

CAFTA by the Numbers According to U.S. Central Intelligence Agency data, El Salvador was the first country to ratify CAFTA and did so in 2006. Notable exports of ethanol to the U.S. had been made from El Salvador prior to CAFTA’s passage, but ethanol exports doubled between 2005 to 2006, according to U.S. International Trade Commission statistics. And those numbers doubled again — from 44.5 million gallons to nearly 75 million gallons — between 2006 and

ETHANOL PRODUCER MAGAZINE

ILLUSTRATION: CARIBBEAN BIO-ENERGY INC.

out country-specific shares of CBI ethanol for the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua in the hopes of stimulating economic development in those countries. The CBI limits the total amount of ethanol allowed to be imported to the United States to just 7 percent of the previous year’s entire domestic consumption. To date, the six CAFTA nations combined with Jamaica and Trinidad and Tobago (the leaders in dehydration/duty-free ethanol importing), have not come even remotely close to meeting this cap, which could validate the argument that the initiative serves as no threat to the U.S. ethanol industry. However, CAFTA is just beginning to be put to use in participating Central American countries, and the amounts allowed to be imported into the U.S. are increasing every year. Caribbean Bio-Energy Inc. plans to import ethanol from Brazil to Honduras, dehydrate it and ship it to the U.S. for a total cost of $1.90 per gallon.

2007. The upward trend is expected to continue as more investors enter the market. Costa Rica, which exported just over 37.5 million gallons of ethanol to the U.S. in 2008, didn’t enact CAFTA until the beginning of this year. ITC statistics show just 749,100 gallons of ethanol were imported to the U.S. from Costa Rica between January and May

October 2009

2009, which can be attributed to the global slowdown and reduced demand, according to the CIA. Guatemala boasts sugar as one of its three main exports and has benefited greatly by increased sugar demands for ethanol production. The CIA credits CAFTA, which was put into effect in Guatemala in

IMPORT

2006, for greatly increased export investments. However, security concerns, lack of skilled workers and poor infrastructure have hampered extensive foreign interest and could be the reason why dehydration facilities have yet to be located in that country. The Dominican Republic became an official participant of CAFTA in 2007 and Nicaragua and Honduras have been CAFTA participants since 2006, but none of these countries have made their entrance onto the U.S. ITC’s ethanol export radar. It is expected that this scenario could soon change, as

FRACTIONATION

•

EXTRACTION

•

investors begin to realize the export opportunities made available by CAFTA. The financial benefits offered to businesses via CAFTA are not lost on Christensen, who sees Honduras as an opportunity to have the best of both worlds - the dehydration/export market and the local production/distribution market. “Initially we liked [Honduras] because of the low cost of production,” he says. “Now, as we’ve continued to be involved with it for a number of years, we’re seeing that there’s a whole new market in the need for biofuels. Honduras just

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passed a new biofuels law and is offering some fairly substantial tax incentives to provide ethanol to that marketplace.” In fact, many countries in the region have proposed or recently-passed ethanol mandates, and Christensen points out that most of the countries do not have well-developed ethanol industries or import tariffs on the fuel.

The Final Destination Mike Warren, executive director of global research and strategic services at Florida-based Hart Energy Consulting, is working with Caribbean Bio-Energy to complete its Honduran dehydration facility project. He says an E10 mandate in Honduras will mean an initial 7.5 million gallon market for ethanol—not much compared to the 9 billion gallons used in the U.S. in 2008. Which explains why dehydration will dominate Christensen’s inital plan and why he expects to export up to 85 percent of his ethanol to U.S. ports. According to Christensen, he will be able to dehydrate ethanol at his Honduran facility for approximately 18 cents per gallon and export ethanol to the U.S. for a total cost of $1.90 per gallon. Because his facility will sit near the docks of the deepest Caribbean Sea port in Honduras and will have storage tanks capable of holding more than 12 million gallons of ethanol, he believes he will have a competitive advantage over other Central American dehydration operations. If he were to locate on the opposite coast — the Pacific Ocean side — he would have to send loads through the Panama Canal, which means he wouldn’t be able to use large ships and he’d have a longer haul to get to U.S. ports. His direct route to ports on the Gulf Coast and East Coast may even hold an advantage over some U.S. producers. Christensen says the cost of shipping ethanol from Midwest production facilities to the Southeast can, in some cases, cost the blender more than it would to import it from the Caribbean. Unlike U.S. corn ethanol producers, Christensen doesn’t have many variables to consider when determining his

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IMPORT

operating costs. “It costs approximately the same amount to ship it from Brazil to Honduras and from Honduras to the Gulf Coast and East Coast markets in the U.S.,” he says. “The only variables are the price to acquire it and the price to sell it.” U.S. producers may be uncomfortable with dehydration facilities in Central America and the Caribbean, but Christensen doesn’t see any reason for imported ethanol to impact domestic production. “In fact, there may be a benefit in satisfying demand and some of the quotas that have been imposed by the government,” he explains. “We believe that [increasing renewable fuel standard mandates] will be part of the incentive for us to send ethanol to the U.S.” “You have to look at it as a safety valve,” Warren says. “What happens if there is a drought here in the United States? At least you can get some ethanol into the country duty-free, and that is a very good thing.” He says the fact that the 7 percent cap on CBI imports has never been met proves there is no need for U.S. producers to feel threatened. Warren also points out that imported ethanol can serve an important role in filling the supply gap while cellulosic ethanol is being developed in the U.S. on a commercial-scale. One thing U.S. producers and dehydration facility operators can wholeheartedly agree on is that the 54 cent ethanol import tariff should remain in place. For Christensen, the tariff provides a window of opportunity for him to get his product into the U.S. Opening up imports directly from Brazil would impact his business negatively and he would like it to stay in place at least until he enacts the ethanol production phase of his project. U.S. ethanol producers want to avoid a flood of Brazilian ethanol from entering and possibly pricing them out of the market. Sen. Charles Grassley (R-Iowa) has been a staunch advocate for the U.S. ethanol industry and for retaining the ethanol import tariff, but he recently made several larger points about the tariff ’s impact on Caribbean nations and CAFTA. “Caribbean countries have developed an ETHANOL PRODUCER MAGAZINE

ethanol dehydration industry because of the existing carve-out, creating employment and wealth in the region,” he stated. “The Jamaican ambassador to the United States says a mere lowering of the U.S. ethanol tariff would be a ‘doomsday scenario.’ The U.S. ethanol tariff is another way to promote economic development among the vulnerable economies of our neighbors in the Caribbean.” It is clear that the debate surrounding CAFTA and the CBI, as well as the ethanol import tariff, is far from concluded. Ethanol

October 2009

imports are increasingly difficult to track as more countries begin to test the market and the true economic effects of CAFTA are yet to be known. CBI imports continue to increase and, as the domestic ethanol market grows to accommodate increased mandates, imports could exceed the quota within the next few years. EP Kris Bevill is the editor of Ethanol Producer Magazine. Reach her at (701) 373-8044 or kbevill@bbiinternational.com.

ALTERNATIVES

RETROFITTING FOR ALTERNATIVES

Colorado-based Gevo Inc. has developed a three-part technology package for retrofitting existing ethanol plants to produce biobased isobutanol. The design allows ethanol producers to leverage existing infrastructure to produce a multitude of alternative fuels and high-value end products. By Erin Voegele

ICM Inc.’s St. Joseph, Mo., pilot facility is retrofitted to utilize Gevo’s technology. PHOTO: GEVO INC.

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ALTERNATIVES

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evo Inc. was founded four years ago by three California Institute of Technology (CalTech) researchers with the goal of developing an advanced biofuel that could sustainably and effectively replace petrochemical products.“What we are doing is developing second-generation biofuels,” Gevo’s Vice President Brett Lund says. “To do this, we wanted to develop a technology that could be used as a retrofit in existing ethanol plants.” The result is a three-part technology package that Gevo has developed that essentially allows current ethanol producers to leverage existing infrastructure to produce higher value end products. This is accomplished through a minor retrofit that requires a small, one-time capital investment. Since its inception in 2005, Gevo has attracted an impressive list of investors, including Khosla Ventures, Richard Branson’s Virgin Green Fund, Burrill & Company, and the French oil and gas company Total. “[Total’s] investment really gave us a lot of commercial validation, in our opinion,” Lund says. “They are one of the largest oil and gas companies in the world; they’ve gone out and looked at all the alternative technologies that are out there, and chose to invest in Gevo.”

from water. Through the development of GIFT and its propriOne primary component of etary biocatalyst, Gevo has been Gevo’s technology package is the able to overcome both of these company’s genetically modified issues. biocatalyst. The biocatalyst is a “The problem with butanol strain of yeast that has been bioin the past has been that as soon logically engineered to produce as the biocatalyst starts producisobutanol rather than ethanol. Brett Lund ing butanol, the butanol becomes According to Lund, Gevo’s re- vice president, toxic … and kills it,” Lund says. searchers essentially shut off the Gevo Inc. “What we’ve done is genetically yeast’s ability to produce ethanol and engineered it to produce isobutanol in- modified [the biocatalyst] to make it produce a lot of butanol and make it very tolstead. The pathway of the biocatalyst, or the erant so it doesn’t die. “We’ve also developed [our GIFT way in which the biocatalyst is able to make technology] to separate the butanol from isobutanol, was licensed by Gevo from the the organism as it is produced, and that University of California, Los Angeles. The further helps in assisting the organism so it company has also licensed other intellectual doesn’t die while it’s producing fuel,” Lund property relating to the biocatalyst from CalTech and maintains strong research re- continues. That innovation in engineering also negates the issue of water separation. lationships with both institutions. Another primary component in Gevo’s “As the fermentor is producing butanol, technology is the method the company has we separate it from the fermentation …. in developed to separate the isobutanol from a pure form. So, we are basically pulling it the biocatalyst as it is produced. Gevo has off as it is produced,” he says. “That allows patented this separation technology known us to avoid having to do very costly water as Gevo Integrated Fermentation Technol- separations.” Gevo’s technology is feedstock flexible ogy. and has been designed to utilize all tradiHistorically, there have been two main tional ethanol feedstocks as well as cellulosic issues with biobased isobutanol production: biomass. “We’ve developed our technology intolerance of the biocatalyst to high levels to work using corn, sugar and cellulosic bioof isobutanol and problems with effectively and economically separating the isobutanol mass,” Lund says. “We don’t actually convert

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ALTERNATIVES

cellulose into sugar, but we have developed our technology to work with mixed sugars from cellulosic biomass.” The final primary component of Gevo’s technology involves the conversion of isobutanol into a wide variety of end products. “We have developed technology to convert isobutanol into a number of hydrocarbons,” Lund says. “We can turn it into renewable gasoline, renewable diesel or renewable jet fuel.” Isobutanol can also be converted into a number of chemical products, including rubbers, plastics, polymers and fibers. The end products can be produced in two ways: the conversion component of the technology can be incorporated into

the ethanol plant during the retrofit, which would allow the facility to produce renewable gasoline, jet fuel or diesel onsite, or the isobutanol could be shipped to a central location for processing.

Demonstration-Scale Production The process used to retrofit an existing ethanol plant to utilize Gevo’s technology is relatively simple. “To complete the retrofit, we use all of the existing equipment that is in [the plant],” Lund says. “We also add a few pieces of equipment and bring in our biocatalyst. So, instead of using the yeast that is used to make ethanol, we use ours — which is used to make isobutanol.” Once the retrofit is complete, the plant operates essentially in the same way as a traditional ethanol plant. To date, Gevo has scaled up to pilot-level production at its facility in Denver. Gasoline produced at the plant has been tested in vehicles and, according to Lund, jet fuel produced at the facility conforms to ASTM standards and has successfully entered tier two testing with the U.S. military. A larger demonstration-scale pilot project is currently underway at ICM Inc.’s 1 MMgy pilot facility in St. Joseph, Mo. The two companies began working together on the project in October 2008, and ICM’s pilot plant is expected to begin producing isobutanol in late September.

PHOTO: GEVO INC.

A plant retrofitted with Gevo’s technology will be able to produce isobutanol, which can be used as a fuel blendstock, much like ethanol is. It can also be converted into a variety of end products, such as renewable gasoline, renewable diesel or renewable jet fuel, as well as rubbers, plastics, polymers or fibers.

Gevo Fuel Chemist Yassin Al Obaidi fuels a vehicle with biobased gasoline.

“We partnered with ICM because ICM has designed and engineered most of the ethanol plants in the United States,” Lund says. “If you want to make any modifications to an ICM plant, you need to work with them to do it. In our opinion, they are one of the best design and engineering groups in the ethanol industry.” According to Brian Burris, ICM’s general counsel, ICM’s reputation for quickly bringing new technology to market also served as an attractive factor to Gevo when it was forming a relationship with his company.

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ICM’s St. Joseph plant has primarily been used to test ethanol production processes. “We test different sorts of feedstocks, different sorts of yeast, and different sorts of enzymes at our pilot plant,” Burris says. “We do that for our own research and development, and we also do that for hire.” According to Burris, in addition to the retrofits required to employ Gevo’s technology, ICM installed some additional safeguards to the plant. “One of the things that we did — since St. Joseph is a food facility — is we put in some very special safeguards so there can be no possible contamination of the food facility,” Burris says. The relationship formed between Gevo and ICM is exclusive. “They have committed contractually to work with us exclusively in the field of butanol,” Lund says. “Likewise, they are our exclusive partner for retrofitting ICM-designed plants.” While this project involves fuel that can be produced as an alternative to ethanol, Burris notes that ethanol is still ICM’s primary business. “ICM is an ethanol company — that’s where we’ve got our roots

The technology is designed to be employed at plants with annual production capacities ranging from 25 MMgy to100 MMgy. Gevo’s projected estimates currently show that it will cost about 30 cents per gallon to retrofit a facility.

— and we are still very bullish on ethanol and think that it’s got a good future,” he says. “But, to the same extent, the industry is depressed right now and people are looking at all sorts of different ways to improve margins. This might be an attractive play for someone who wants to bet that butanol will be a successful product.”

Through the St. Joseph pilot project, the two companies are working to develop an engineering package that will be used to retrofit other ICM designed facilities. Once the pilot plant is up and running, it will also be used to demonstrate the technology to the owners of other ICM facilities. These owners will be able to tour the pilot facility and see exactly how the plant was modified and how it works. “That will really give them a lot of confidence … that the same can be done in their plants as well,” Lund says. In addition to proving that the technology can be successfully scaled-up, the pilot facility will also provide Gevo with access to large quantities of fuel that can be used for testing and evaluation purposes.

Commercialization According to Lund, there are a variety of advantages to retrofitting an ethanol plant to produce isobutanol — the foremost being flexibility. A plant retrofitted with Gevo’s technology will be able to produce isobutanol, which can be used as a fuel blendstock, much like ethanol is. Adding even more flexibility to the technology, a retrofitted ethanol plant could still produce ethanol. This would be accomplished by simply turning off the additional pieces of equipment that were added to the plant during the retrofitting process and replacing the biocatalyst with traditional yeast. “There is really a lot of optionality,” Lund says. “You can produce ethanol; you can produce biobutanol; and you can take biobutanol and turn it into any of those hydrocarbons — gas, jet, diesel or chemical. So, you really have a lot of opportunity to arbitrage the market depending on what you want to produce, what’s in demand and what’s selling for a good price.” One benefit of isobutanol is that it overcomes many of the limitations that face ethanol, according to Lund. “Butanol is not water soluble, which means that it can be sent in existing pipelines and

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ALTERNATIVES

the existing infrastructure that petroleum is shipped in,” he says. “Butanol also behaves more like a hydrocarbon, which lends itself to using chemistry on it to convert it into those other fuels.” With the development of its demonstration facility nearly complete, Gevo is now working towards larger scale production. “Currently, we are looking to acquire ethanol plants, or partner with ethanol plants, to retrofit them to utilize our technology and start producing fuels on the commercial level,” Lund says. He estimates the first large-scale production facility will be up and running in 2011. The company will also likely consider projects involving new construction in the future. “The technology works equally as well in greenfield plants or existing ethanol plants, and both are definitely on the agenda,” Lund says. “The design and engineering for the greenfield plants will also be done by ICM, so we’ll have two packages.” The technology is designed to be employed at plants with annual production capacities ranging from 25 MMgy to 100 MMgy. Gevo’s projected estimates currently show that it will cost about 30 cents per gallon to retrofit a facility. “If you had a 100 MMgy plant, it would be about $30 million to complete the retrofit,” Lund says. While Gevo plans to bring the technology to market itself by acquiring, retrofitting and operating ethanol plants, Lund says the company will also seek to license the technology to third parties. According to Lund, Gevo expects to see strong interest in its technology due to its potential to benefit ethanol producers currently struggling due to prevailing market conditions. In addition to interest from U.S. producers, Lund says Gevo is also seeing strong international interest develop, particularly in Brazil and Europe. “[Those employing Gevo’s technology] will be able to leverage all existing infrastructure and produce a product that's worth considerably more than the one they are producing now; which helps them to achieve a much higher margin and

ETHANOL PRODUCER MAGAZINE

return than they are getting producing ethanol,” Lund says. Those employing Gevo’s technology will also benefit from its optionality. “There is a lot of flexibility in what they can produce,” Lund says. “If they want to produce ethanol, they can produce ethanol; if they want to produce butanol, they can produce butanol; and if they want to produce any of these other hydrocarbons, they can produce those. That gives them a lot of flexibility and helps with market fluctuations.” “It seems that given the current environment — where a lot of ethanol plants

October 2009

out there right now are struggling — this is a way to help leverage their existing infrastructure and investment and help them return to higher margins on a different fuel,” Lund says. EP Erin Voegele is an Ethanol Producer Magazine associate editor. Reach her at evoegele@bbiinternational.com or (701) 373-8040.

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PEOPLE

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October 2009

PEOPLE

A Lasting

Friends and colleagues of Kathy Bryan share stirring memories of her inspirational life and career. From managing a farm-scale ethanol plant in Minnesota to establishing the world’s leading ethanol magazine and conference, Bryan’s impact on the ethanol industry is deep and lasting. By BBI Editorial Staff

n EPM’s early years, press time — the 24-hour period before a publication is sent to print — became a production spectacle. Post-it notes, printouts, coffee cups and soda cans blanketed the magazine’s tiny editorial office in Grand Forks, N.D., while an endless stream of facsimiles from the magazine’s Editorin-Chief, Kathy Bryan, arrived late into the night. Tom Bryan, then managing editor of EPM, recalls the intense pressure of not just getting the magazine done, but getting it done right. “Early on, I wrote every story and Kathy edited each one of them, regardless of her schedule,” he says. “I would email Kathy a proof of the magazine and she would fax it back, marked up with edits cover to cover. It didn’t matter where she was. She would send me faxes from her home office in Colorado or from crammed hotel business centers in China or Europe. She always came through.” As a leader in an industry defined by both quantity and quality, it was fitting that Kathy was a master of both. Her work ethic and attention to detail made her a great magETHANOL PRODUCER MAGAZINE

azine editor, a proficient biofuels consultant and a masterful conference organizer. More importantly, her unique ability to connect with people made her a respected industry leader, a charismatic company president, a thoughtful colleague, a caring friend, a supportive parent and loving grandparent. Kathy Bryan, president and co-founder of BBI International, died on July 11 in her Salida, Colo., home after a courageous 14-month battle with cancer. Kathy was the co-owner and principal visionary behind the International Fuel Ethanol Workshop & Expo, the long-time editor-in-chief of EPM and the co-founder of the Energy Independent newsletter that preceded it. She contributed to the quality and integrity of BBI International’s publications and conferences in innumerable ways. Her leadership, guidance and vast industry connections were invaluable to the success of her company and the development of the industries she served. Kathy dedicated more than a quartercentury of her life to the ethanol movement. She ran a hands-on production facil-

October 2009

ity on her Minnesota farm in the 1980s and helped pioneer the avant-garde concept of “a still on every hill.” It was on that farm that some of today’s ethanol industry veterans first met Kathy. “Her family had a plant in Minnesota at the same time that my parents had a plant in Minnesota,” says Poet LLC CEO Jeff Broin. “She was a true pioneer coming from the early, early days of the industry when the production process was close to non-existent. What she saw in her life was the evolution of the industry, literally from its roots — from having one of the very first ethanol plants that was built — to seeing ethanol become close to 10 percent of the U.S. gasoline supply.” Long-time industry veteran Larry Johnson, now the North American business developer for Inbicon A/S, remembers those early days in the business. Johnson says Kathy frequently joked about how they first met — with Kathy emerging from a fermentation tank she was cleaning. “She always kidded me about that,” he says. Broin also first met Kathy on her Min-

PHOTO: BBI INTERNATIONAL

PEOPLE

Bryan was a beloved mainstay at the International Fuel Ethanol Workshop and Expo, the small event she and her family developed into the world's largest ethanol industry event. Above, she gives a welcome address during one of the many expo hall grand openings she emceed over the years.

nesota farm — cleaning a fermentor. “It was more than 20 years ago when touring her ethanol plant during a college course,” Broin says. “She was actually cleaning the inside of a fermentor with iodine. Of course, I had heard of her before but that’s when I met her.”

It was 1983 when Johnson first met Kathy, after bringing a load of damaged corn to her facility. Kathy was doing the bookkeeping for the ethanol plant and, after selling the spoiled corn, Johnson says he sat down with her and started complaining about the price of corn, eventually talking Kathy into writing a $35 check to join the Minnesota Corn Growers Association. Industry veteran Keith Kor, general manager of Corn Plus LLLP, remembers Kathy from those old days too, when he managed a small plant in Houston, Minn. “She liked to call her plant the ‘still on the hill,’ so I told her my plant was the ‘still in the valley,’” Kor says. “She was a strong advocate for the ethanol industry, even when ethanol wasn’t cool.” Not long after Johnson and Kathy met, she joined him as a director of the MCGA. Because they lived only 30 miles apart, the two would drive to board meetings together. “That’s when we would do our strategizing,” Johnson recalls. “She was a great strategist, and she made a point to know everyone and know them all by name. She won over a lot of people.” Johnson recalls many ethanol promotional trips in his six-cylinder “ethanol answer van” with Kathy and others, handing out yellow nickels and key chains and pumping fuel. “She was such a natural for dealing in the political world,” he says. “At that time, being a woman was different in that arena, also being her normal outlandish self with so much energy. She was always so believable. She was a great asset to policy issues both in Minnesota and nationally.” Kathy chaired the Minnesota Ethanol Commission for five years in the late 1980s. She spent years lobbying for state and national programs and was a conduit for sharing information and keeping track of what was once a small group of people. She was also a respected consultant and global ambassador for the biofuels industry. She played an integral role in the planning and facilitation of dozens of ethanol, biodiesel and biomass events around the world over the past two decades.

PEOPLE

Kathy’s passion and dedication did not go unnoticed over the years. For her tireless work, a “Kathy Bryan Day” was created by former Minnesota Gov. Rudy Perpich when what became known as the “Minnesota Model” of ethanol production was under creation.

A Powerful Force with a Welcoming Smile Perhaps one of the biggest accomplishments Kathy bestowed upon the ethanol industry was the turning of a relatively small ethanol event started by her Gist-brocades colleague, Bob Sutthoff, into the industry’s “must-attend” annual event — the International Fuel Ethanol Workshop & Expo, which celebrated its 25th anniversary in 2009. Her friends and loved ones say the size of the industry and the growth of the FEW continually amazed Kathy. “With her enthusiastic flair, Kathy was the cement linking the scientific program with the business side of the FEW,” says Mike Ingledew, scientific director of the Ethanol Technology Institute. “Her approach was very successful in attracting the producers, the vendors and the scientific community in all parts of the alcohol process to a meeting that grew and became second to none.” Ingledew remembers how Kathy also took great care to organize and integrate students into the annual FEW program with scholarships and her communication with the selected students. “She always looked to the future,” he says. “Kathy could never be replaced due to her great love for people and for our industry. We miss and will continue to miss her as a person and as a leader in our community.” Less than a month before her death, Kathy received the FEW’s 2009 High Octane Award, which Ingledew says was “a small reflection” of what her peers feel about the legacy she created. Kathy’s powerful presence in the business, combined with her ability to connect and relate to people, made her who she was — a positive force with a welcoming smile. That’s how Hosein Shapouri, senior agricultural economist for the Office of Energy Policy and New

Uses, remembers Kathy. “She believed in expanding the horizon and was a catalyst that energized the people around her, and led to creating an organization that was able to bring together experts from across the world,” he says, adding that her departure leaves a personal and professional void in the industry. “She was a great force, and I remember her as a person who combined a sense of humor with intense energy and professionalism in her life and work.” “She had energy — an energy that came from passion and a love of what she was doing,” says Rick Handley, principal associate with Rick Handley & Associates. “It didn’t matter what the venue was or how busy Kathy would be, she always would take time to stop and chat and say ‘hi’ to the people she knew — and it wasn’t just a polite ‘hi’ but a sincere interest in how you were. You could tell.” “Kathy was a true matriarch of her family and the whole ethanol family — our family,” says Jere White, executive director of the Kansas Corn Growers Association. “She worked tirelessly but somehow kept a smile handy for others,” he says. “She was smart and her presence raised our collective intelligence. She worked with a divergent group of people, yet made all of us feel included. Her time with us, while too short, will benefit us for a long, long time.” Pacific Ethanol Inc. CEO Neil Koehler says the FEW has been a focal point of exchange, growth and networking within the industry, which have all been critical components. “She was such a force in this business, but it wasn’t just a business for her — it was a mission,” Koehler says. “And that spirit, optimism and heart she brought to the industry will be missed.” Kathy’s passion for renewable fuels went beyond giving farmers new outlets for their crops, or creating jobs, or boosting the rural economy. Kathy’s message was one of hope, changing the world and preserving the environment. Brandt Bensema, director of business development at InterSystems Inc., says, “Because of her belief in the ‘cause,’ she was able to communicate to others and gain worthwhile followers. “I had never met a woman in the business world like her,” Bensema

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says of their initial encounter. “Although my association with Kathy was mainly through the FEW events, I felt a bond to her. My family also became part of her spirit. My daughter had the unique opportunity to be a tour guide for Kathy during a trip to Japan several years ago. It just so happened that an environmental informational event was taking place in Tokyo that they were able to attend together. Kathy was a friend to many and through that, forged relationships that spanned many years in the industry. I’ll miss Kathy's warm smile and the hug I always received when we greeted each other at the FEW.” A true international ambassador for the biofuels industries is how Kurt Markam, director of the Minnesota Agricultural Marketing Services Division, remembers Kathy. “I enjoyed the cooperation our agency had with Kathy in developing the three symposiums in Beijing,” he says. “She had a remarkable networking talent that extends all over Asia.” Markham says he never saw Kathy meet a stranger. “Everyone seemed to know her, and be drawn to her energy, enthusiasm and optimism,” he says. “In many ways Kathy was the heart of our industry.” Fagen Inc. CEO Ron Fagen says Kathy always had a great smile. “When you would see her coming with a smile on her face, it made you smile,” Fagen says. “Kathy was a very upbeat and positive person, a great mother and a personal friend. She was a true pioneer in the ethanol industry, and she will surely be missed.” Senior marketing specialist for the Minnesota Department of Agriculture, Ralph Groschen — who presented and hand delivered the High Octane Award to Kathy less than a month before her passing — says perhaps Kathy’s biggest contribution of all was her ability to communicate. “She was so warm,” he says. “She befriended people in about three seconds. She talked to people who were for and violently against ethanol and seemed to be able to get on a level with 99 percent of them. That is an extraordinary talent.”

Were it not for the great communication skills Kathy possessed, Groschen says the grassroots ethanol effort in Minnesota and its subsequent aggressive biofuels program would have quite possibly turned out differently. Randall Doyal, CEO of Al-Corn Clean Fuel, says, “The passion and love that Kathy inspired in others for her fledgling industry led to the creation of the landmark legislation that formed Minnesota's program,” a program known around the world, according to Doyal. He adds, “Kathy took her passion to a national stage and helped foster the growth of the industry.” Groschen recalls, “It was her ability to walk into an office in a non-threatening manner, conveying that message and doing it very professionally — sometimes with great vigor and other times with just the right amount of finesse. She’s a unique soul — she’s one in a million, maybe 10 million.”

Proving Herself in a Male-Dominated Business Kathy was a powerful woman in an industry largely dominated by men. Shirley Ball, chairman of Ethanol Producers and Consumers, recalls her 1987 meeting with Kathy. Ball served on a USDA panel examining the cost effectiveness of ethanol, which met several times over a period of months before issuing a report that put ethanol in a positive light. “Kathy came to every one of those meetings and always had input,” Ball says. “I admired her knowledge. She knew everybody and was so aware of the industry, and understood it.” Throughout their years promoting biofuels, the two industry pioneers often spoke at each others’ conferences. “We’ll certainly miss her,” Ball says. “She was the inspiration behind all the workshops BBI did — she knew all the people.” Another influential woman in the business, Kelly Davis, who is now the director of customer and technical services for Hawkeye Gold, says although she originally met Kathy in the 1980s, it was a decade later when her most important contact with Kathy occurred.

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PHOTO: BBI INTERNATIONAL

PEOPLE

Bryan was passionate about celebrating the achievments of industry professionals who, like her, contributed significantly to the growth and progress of the ethanol industry. Above, she presents Iogen Corp. founder Pat Foody Sr. with the International Fuel Ethanol Workshop & Expo Distinguished Service Award for his important role in developing cellulosic ethanol.

“I was thinking about leaving the industry,” Davis says. “But Kathy called me up and said that she would post a classified ad for me in the [Ethanol Independent] newsletter if I would consider staying involved with ethanol. Well, I agreed and ended up going to work at the time in Minnesota for Chippewa Valley Ethanol Company, so Kathy has had a huge impact on me and my career.” Lucy Norton, managing director for the Iowa Renewable Fuels Association, says, “The word ‘no’ was not in Kathy’s vocabulary. She was a positive, can-do person. And although a rare treasure has left us, she still gives us all hope and courage to carry on.” Norton recalls her first meeting with Kathy at an ethanol meeting hosted by the National Corn Growers Association. “Kathy was asked by the meeting chair to give a brief report following the break,” Norton remembers. “Kathy smiled, gave a little giggle and said she’d be happy to. So while everyone went for coffee, Kathy stayed behind to make some notes. Through her creativity and humor she came up with an analogy that compared the fledgling ethanol industry to a recently planted tree with young roots. The

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audience was captivated, hanging on her every word.” Renewable Fuels Association president and Kathy’s longtime personal friend, Bob Dinneen says, “Kathy was the very first person I met in the ethanol industry. She has been a mentor, a confidante and a friend for more than 20 years. I will miss her greatly. “The thing about Kathy that will always be with me, however, is her indomitable spirit. Kathy was an indefatigable optimist and her confidence that ethanol would succeed was never shaken by misinformed detractors or volatile market conditions. She knew ethanol would prevail because it was the right thing to do for farmers, for the environment and for national security. It is no exaggeration that the U.S. ethanol industry would not be what it is today without Kathy’s passion and perseverance.” EP She will be missed. This article was compiled by the BBI International editorial team.

October 2009

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LEGAL. BY JOSEPH TEJA JR. AND MICHAEL POMIANEK Contribution

Manage Technology Convergence While Protecting Innovation Intellectual property is a key component to the success of any technology-based company, but it is especially important for energy and/or environmentally-related ventures.

leantech is a broad field with several narrow subsectors— the technologies embraced run the gamut from older technologies already in the public domain and now being recycled, to cutting-edge research coming out of academic and industry labs. Some of the innovations involve fundamental technology breakthroughs that may warrant broad protection. In other cases, however, an incremental and seemingly narrow improvement in an already crowded area of development may provide an important

enabling solution having significant commercial value.

Cleantech Common Themes Keen observers of the biomass/ cleantech industry note various attributes that appear to be common themes for many cleantech ventures. First, cleantech typically requires a significant interdisciplinary knowledge of scientific and engineering principles, including chemistry, materials science, mechanical and electrical engineering, biology and biotech, environmental sciences, and/or

information technology and computer science. Second, cleantech endeavors often require a longer time frame to get to market, in some instances more than 10 years, and require persistence, patience and long-range business strategies. Third, there may be limited possible routes to market, such as an existing hierarchy which controls some infrastructure, forcing cleantech companies to sensitively consider how their innovations “plug in” to the bigger picture. In addition, cleantech is often capital intensive, involving a bigger financial scope and scale than

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).

ETHANOL PRODUCER MAGAZINE

October 2009

patents in a given cleantech other tech sectors, and can business strategy. Are patent be significantly affected by filings useful to the business government regulations and primarily to instill investor public perception. confidence or to bar market Considering technoloentry in one or more jurisgies related to the conversion dictions? Is marketplace exof biomass into transportaclusivity and a strong defention fuels as a specific exJoseph Teja Jr. sive position important? Is ample is illustrative of how co-chair, the intellectual property (IP) these themes can play out. cleantech group Wolf, Greenfield & expected to provide leverage Innovation required to bring Sacks PC for licensing and partnering such technologies to comopportunities? These and mercial fruition can span other answers help structure and integrate a wide range of a successful patent protectechnology specialties. Extion strategy. amples include horticulture, Agreements. For many plant biology, forestry, genetcleantech endeavors, there ics, microbiology, fermentais an expanded role for techtion, gasification/pyrolysis, nology partnerships, consulcatalysis, chemical purificatants and advisors in a varition, pipelining/transportaMichael ety of fields, thus warranting tion and combustion/engine Pomianek co-chair, a greater attentiveness to the design. Many of the solutions cleantech group protection of proprietary inbeing proposed, such as cel- Wolf, Greenfield & formation through carefully lulosic ethanol, algal biodiesel Sacks PC crafted agreements. Similarly, and thermochemical conversion of biomass to hydrogen or liquid trade secrets may provide additional or transportation fuels, have yet to be alternative protection for some innoproven to be practical or economical vative solutions that involve improveat scale and are likely to require large ments to and/or combinations of excapital outlays over long time frames to isting technologies or are related to reach an endpoint of substantial mar- aspects of commercial implementation ket penetration and revenue generation. that provide commercial advantage but Moreover, each proposed biomass- for which copying by competitors may based transportation fuel solution ulti- be difficult to determine. Trademarks. These also have an mately has to deal with the formidable hurdle of integrating itself into the important role as energy policy tends existing gasoline/fossil diesel distribu- to be an emotionally charged issue, and tion/vehicle requirements infrastruc- the impact of branding on public perture or of inventing – or compelling ception can significantly affect market others to invent – a new transportation value. infrastructure.

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LEGAL. that follow (to protect a key value-added proposition for later market entry or licensing/acquisition leverage). Those involved in developing a cleantech IP strategy need to understand all of the technology dimensions involved. For example, appreciable protection may be available not only for the resulting combination of technologies that leads to a particular innovative solution, but additionally for one or more of the respective technology pieces, and/or how the respective technology pieces fit together. As noted above, technology convergence also warrants an increased sensitivity to such issues as ownership and protection of proprietary information in agreements. In academic and corporate research settings, different areas of research that historically may have had no apparent connection to each other, or to energy

and the environment, may suddenly find themselves significantly relevant in combination. Just one example is the synergy between diverse areas such as microbe biology and high-efficiency low-power electronics for certain fuel cell-based biomass to electrical power generation applications. Where or how innovations will be adopted or plugged in to an existing infrastructure is another area for consideration. IP directed to integration with an existing production/delivery/ distribution infrastructure may in some cases transcend protection of the core technologies associated with a given cleantech innovation and be of key importance. For example, in the biomass space, IP directed to improving the logistics and economics of biomass harvest and delivery to conversion facilities or IP directed to facilitating the integration of biomass-derived fuel or

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energy into existing distribution or end user infrastructure may ultimately be of greater value than IP covering specific biomass conversion technologies. Incremental or narrow innovations in cleantech can be commercially valuable and IP protection should not be ruled out if a broad scope of protection appears to be unavailable. In energy-related challenges, innovators often need to simultaneously consider supply and demand issues, environmental impact, and national security interests, and provide solutions that positively impact price, reliability and scalability. Even in crowded areas of development, incremental innovations, however seemingly trivial, that achieve any one or more of these things and provide a lynch-pin type of enabling solution are likely to be extremely valuable. Similarly, patent protection should not be discounted or dismissed for cleantech ventures with a long time frame to market or a long technology lifespan. Strategic approaches to filing patent applications may be available in some jurisdictions to potentially increase patent enforcement life, for example, until the effort reaches a certain state of “maturity” or potential commercial viability. Another possibility for extending the overall life of a cleantech patent portfolio is to file one or more initial applications relating to core aspects of the technology, and then stagger subsequent patent filings to incremental improvements or changes over time. Given the global applicability of cleantech innovation, strategic international IP protection may be of significant importance. Typically, protecting innovation globally takes into consideration those jurisdictions in which significant market opportunities are present or anticipated, as well as jurisdictions in which potential competitive activity may be likely. For biomass ven-

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October 2009

tures, additional sensitivity is warranted toward international regulations, government subsidy and taxation policy, prevailing and projected economics of existing fossil fuel based alternatives, access to and price of required biomass raw materials, prevailing energy/fuel distribution and end user infrastructure, and jurisdiction-specific enforcement issues relating to energy and the environment. As noted above, the impact of branding on public perception can significantly affect market value, and cleantech endeavors may face particular challenges given the limited branding vernacular available (“green,” “clean,” “eco,” “earth” and “bio”). In the long run, it may be more beneficial to consider alternatives to the more obvious green-branding choices while being mindful of the heightened sensitivity of public perception to energy and environmental issues. While there is no one-size-fits-all approach when it comes to biomass/ cleantech IP, some general attributes of many cleantech efforts that should be considered when assessing possible IP strategies. We have identified what we believe to be the most salient of these attributes and explored how they should inform an approach to IP protection. To summarize some of our key recommendations: Appreciate the importance of understanding all technology dimensions involved; technology convergence creates potential for enhanced IP protection. In academic and corporate research settings, technology convergence contributing to many cleantech solutions may provide rich possibilities for invention mining and creative bundling for commercial exploitation. IP directed to integration with existing production/delivery/distribution infrastructure can, in some cases,

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transcend core technologies and be of key importance. Legacy technology does not mean unprotectable technology. Incremental/narrow innovations can be commercially very valuable; don’t rule out protection if broad scope appears to be unavailable. For biomass and other cleantech ventures characterized by a long time to market and long technology lifespan, increase patent enforcement life via strategic filing approaches. International IP protection considerations for cleantech should include sensitivity to the dynamics of local economic conditions and international policies (e.g., regulations, incentives) as well as jurisdiction-specific enforcement issues. Consider elevated importance of public perception on branding, but be-

October 2009

ware of “green gridlock” when considering trademark protection. While some of the identified cleantech attributes may have a greater significance than others for a given venture, being mindful of the variety of issues germane to many energy and/ or environmentally-related ventures will invariably be helpful toward building a sensible model for protecting cleantech innovations. EP Joseph Teja Jr. and Michael J. Pomianek co-chair the cleantech group at Wolf, Greenfield & Sacks PC. Reach Teja at jteja@wolfgreenfield.com and Pomianek at mpomianek@wolfgreenfield.com.

PROCESS. BY DAVID J. GASKIN Contribution

Industrial Biotechs Accelerate Drive to Leverage Glycerin Producing additional amounts of ethanol from glycerin in whole stillage may boost plant revenue.

Glycerin is at the forefront of a mobilization to improve the production yields of ethanol plants. Ethanol fermentation produces glycerin as a by-product and emerges from the distillation columns in whole stillage. In 2008, 170 dry-mill plants in the U.S. producing a combined 9.23 billion gallons of ethanol, generated more than 350 million gallons of glycerin. Researchers in the biotechnology industry are well aware of this situation and have recently invested in the means to develop technologies to convert glycerin to ethanol and a portfolio of other end-products.

Squeezing the Most from Grains Industrial biotechnology company Glycos Biotechnologies Inc. (GlycosBio) of Houston, Texas, has recently developed a biotransformation technique that directs the glycerin in stillage into ethanol at high yield efficiency. Using microorganisms as biocatalysts â&#x20AC;&#x201C; enzymes or microbes that initiate or accelerate chemical reactions â&#x20AC;&#x201C; that provide a route for the production of ethanol from glycerin, GlycosBio makes possible for the first time, to conversion of a disadvantaged byproduct of dry milling into its primary product. In this way, eth-

anol producers can tap thin stillage streams exiting the distillation and centrifuge units to maximize the production of ethanol and improve the value of its coproducts. What does this mean for the ethanol industry? This new biological process enables owners of grain-fed plants to use glycerin streams within their plants to both increase production efficiency and provide revenue management flexibility. If both the residual C5 and C6 sugars and glycerin present in the stillage are converted to ethanol, average production yield could rise from 2.85 gallons per bushel to

3.05 gallons per bushel. Translating this into dollars, a 100 MMgy plant producing approximately 320,000 tons of dried distillers grains can churn out 7.4 million extra gallons of ethanol by mining carbon sources internally, or $13.32 million at todayâ&#x20AC;&#x2122;s prices. The science begins by modifying the metabolic pathways of selected microorganisms to digest glycerin and ensuring that growth conditions and metrics are met by the cultured strains. From there, only strains that consume large amounts of glycerin with a minimum of interfering, coproducts are selected. Highthroughput screening expedites

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the selection of characteristics based on glycerin consumption, conversion yield, and minimizing competing metabolites. Exclusive production of ethanol is key. Successful strains are introduced into fermentation reactors containing thin stillage with two goals in mind: minimize reaction time and select strains for actual process stream conditions.

Big Possibilities Experts believe that the glycerin-to-ethanol production technology will align well with next-generation cellulosic ethanol technology. As cellulosic ethanol phases into production, these byproduct conversion technologies can serve the same purpose that they do with today’s grain-fed plants. Until then, the technology can utilize the glycerin in dry-mill plants or the corn oil in wet-mill plants, imparting biorefinery process advantages to both. By harnessing processed components within thin stillage, these new microbial biocatalysts make possible higher yield productivities, lower operating costs, and greater product renewability (sourcing secondary carbons internally improves overall renewability). That is something that ethanol producers recognize and have expressed anticipation to possess. Large producers such as Poet LLC and Hawkeye Energy Holdings LLC, engineering, procurement and construction firms such as ICM Inc. and Delta-T Corp., and agricultural majors Archer Daniels Midland Co. and Cargill Inc. all have large strategic resources that present a compatible need for such integrated biorefinery tools. Earlier this year, GlycosBio

validated its ability to co-ferment C5 and C6 sugars, alongside glycerin, to produce ethanol. Scientists have since doubled the production tier of ethanol, while both increasing the rate kinetics and glycerin consumption of the strain. By integrating all underutilized carbon components within a plant, additional capacity is made available to diversify co-product areas. Converting glycerin and residual sugars to ethanol has the potential to capture 18 percent more operating margin, taking into account recaptured savings in heat and electricity and current prices for corn and ethanol. The technology makes sense wherever ethanol prices happen to be. When ethanol prices drop, the flexibility is there to drive more feed co-products. Furthermore, downswings in ethanol prices summon a larger disruptive capability of the technology, – whereby a flexible technology (i.e., the ability to biologically ferment glycerin into higher value biochemicals) can provide revenue and profit diversity during periods of lower ethanol crush spreads. That is the concept of a biorefinery – for example, in a petroleum refinery, several strata of liquid fuels, chemicals and energy are produced. A biorefinery accomplishes this with biological reactions, chemical and biochemical processes. ADM, Cargill and other traditional grain suppliers are among the most heavily involved in chemical production from biomaterials. Cargill owns the massive NatureWorks biopolymeric plastics and resins operation in Nebraska. ADM formed its industrial chemicals unit in 2007, with

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the intent to produce USP-grade propylene glycol among other renewable chemicals. DuPont-Tate & Lyle BioProducts has been successful in its joint venture to produce and market 1,3-propanediol, a clear liquid used as a building block in the production of polymers. Other companies including Green Biologics Ltd. in the UK, Arkema SA in France and Myriant Technologies in Quincy, Mass., are also developing processes around glycerin as a viable starting material for diverse chemicals such as butanol, acetone and acrylic acid.

Advent of the Biorefinery At the heart of the matter is the rising cost of traditional feedstocks and the saturated nature of their land-use complexities. Grain-based ethanol, the largest and most fungible of bio-based chemicals, is center stage at the economic, environmental and policy debates that surround biofuels. Several biotech companies are positioning themselves for the ethanol industry of 2020. The more prominent technologies are using a combination of synthetic biology and thermochemical approaches to convert second-generation – mostly non-food biomass – feedstocks into ethanol. But Genencor, a division of Danisco AS and Iogen Corp. as well as smaller players such as BioEnergy International LLC and Integrated Genomics have their sights set on a projected $215 billion bio-based chemicals market. Management consulting firm McKinsey & Co. predicts that sales of chemicals from renewable biobased sources will

consume 10 percent of worldwide chemical sales in 2012. It is not a new idea, but the U.S. DOE is betting that these chemicals and other products will service biofuel plants as more profitable coproduct alternatives to livestock feed and glycerin. For these tremendous biobased chemical markets, the pool of potential feedstocks increases by an order of magnitude. From algae systems to waste starches to fatty acids, using these materials is so new that it’s often enough work for a new start-up to figure out the scientific and commercial pathways from one of these feedstocks. The successful approach will be to develop strains that metabolize high levels of glycerin to ethanol quickly, with additional capabilities and breakthroughs and follow-up research into systems that will produce chemical intermediates to replace petroleum-derived chemicals, such as dimthylsuccinate and propylene polyols. In fact, many companies in this field are pursuing the blue ocean of bio-derived solvents, monomers and chemical intermediates. According to McKinsey, biofuels will account for $91 billion of these sales. By 2020, most chemical manufacturers will have significant capacity devoted to bio-processed fuels and chemicals. EP David Gaskin is director of planning for Glycos Biotechnologies, Inc. Reach him at dgaskin@ glycosbio.com.

TECHNOLOGY. BY AMELIA JORDAN Contribution

Zero Liquid Discharge Systems Offer Sustainability Creating safe, sustainable and environmentally friendly water treatment systems is a priority for ethanol production plants. Zero liquid discharge systems are gaining ground as pragmatic solutions.

Regulations and environmental compliance parameters are being tightened, public perception of industrial manufacturingâ&#x20AC;&#x2122;s impact on the environment is at an all-time high and concerns are mountining over the quality and quantity of our water supply. As a result, zero liquid discharge (ZLD) systems have become more prevalent. ZLD describes the complete elimination of liquid discharge from a manufacturing process. More companies and industries have to treat or eliminate waste streams to a much higher standard than ever before. There are several approaches to solving this problem, some of which can be integrated into existing processes. Thorough evaluation of the impact of feasibility,

cost (capital and operational) and complexity is a critical step before selecting a treatment strategy. The goal of a well-designed ZLD system is to minimize the volume of liquid waste that requires treatment while also producing a clean stream suitable for use elsewhere in the plant processes. Typical sources for waste streams in an industrial setting include cooling tower blow down, reverse osmosis (RO) concentrate, multimedia filter backwash and spent ion exchange (IEX) softener regenerant. The key to reducing overall wastewater flow is to select and/or optimize the equipment in order to optimize the flow stream quality the equipment generates. Cooling tower blow down volumes can be greatly minimized

with the use of high quality makeup water. This can be achieved by treating the makeup water for cycle-limiting ions such as hardness and silica. RO concentrate volumes can be minimized by integrating high efficiency systems to condition the water upstream of the RO units, such as softening, alkalinity removal and pH adjustments. A typical RO system rejects roughly 25 percent to 50 percent of the water it treats as waste; while a high efficiency system only has about 5 percent water waste. Filter backwash waste can be minimized by integrating backwash methods incorporating air wash scouring, or simultaneous air and water techniques. The collected backwash water can be captured, settled and recycled, while the set-

tled solids are collected in a filter press and sent for disposal. IEX backwash and regenerant waste can be recycled and reused. A common ZLD approach is to concentrate (evaporate) the waste water and then dispose of it as a liquid brine, or further crystallize the brine to a solid. A typical evaporator uses tube-style heat exchangers. The evaporated water (distillate) is recovered and recycled while the brine is continually concentrated to a higher solids concentration. Concentrated brine is disposed of in a variety of ways. It can be sent to a publicly owned treatment works facility that uses evaporation ponds in areas with net positive evaporative climates (evaporation exceeds precipita-

ETHANOL PRODUCER MAGAZINE

October 2009

tion), or treated in a crystallizing system, such as a circulating-magma crystallizer or a spray dryer. Crystallized solids can be landfilled or land applied, depending upon the crystal characteristics. In April of 2009, U.S. Water Services completed a complex water treatment system in Galva, Ill., combining both high efficiency RO with evaporation/crystallization technology for the first time ever in an ethanol facility in order to achieve zero discharge. Due to environmental restrictions, applications such as these were necessary in order for the plant to operate. This particular facility integrated four major processes for the water to travel through. The first process is dual softening, consisting of a strong acid cation cycle and a weak acid cation. The second process is a decarbonator which greatly reduces carbon dioxide. A high efficiency reverse osmosis unit was put in place as part of the third process, enabling water recoveries of 95 percent to 97 percent to be achieved, thus greatly reducing discharge volumes. The last process is evaporation and crystallization, where ZLD results can be achieved by evaporating down the waste stream volume by 80 percent to 90 percent. The remainder is then crystallized to a landfillable solid, in this case a salt cake, which is non-hazardous to the environment. Some industrial water consumers have installed cold lime softening (CLS) systems to pre-condition the water used for plant processes. CLS technology has been around for decades. It is used to remove minerals, principally calcium, magnesium, iron and silica, from water fed to the cooling towers and RO systems, subsequently increasing efficiency and reducing waste volume. In the spring of 2006, the first dry grind ethanol plant designed and operated with no liquid discharge to the environment began production in central California. The production system was developed by U.S. Water Services. Listed as an environmentally sensitive area, Californiaâ&#x20AC;&#x2122;s San Joaquin Valley does not allow any aqueous industrial discharge. In

ETHANOL PRODUCER MAGAZINE

order to build the plant in this prime agricultural location, a process for re-using the discharge from the cooling tower, pretreatment equipment and process streams needed to be developed. After carefully analyzing the local water quality, as well as the plant process demands, U.S. Water Services designed a process using CLS to precipitate many of the minerals from the water. The minerals, which are rich in calcium, are then added to the dried distillers grains with solubles supplementing the nutrient value of this valuable animal feed byproduct of ethanol production. As environmental, political and public health entities place more focus on waste water management, ZLD strategies are increasingly being evaluated for feasibility in industrial facilities. The ZLD approach taken greatly depends on the quality of water available for use. Precipitation, evaporation, crystallization, recycling and other creative approaches such as CLS are all viable approaches to this end. While most plants donâ&#x20AC;&#x2122;t have the restriction of zero discharge from their facilities, CLS may still be a useful application. Depending on the specific permit regulations that a plant faces, itâ&#x20AC;&#x2122;s often possible to significantly reduce liquid discharge volumes, without actually eliminating it. In addition, many state permitting agencies see CLS as a means to pollutant control, as it is one of the few available processes that actually removes minerals from the water rather than simply discharging them in a concentrated waste stream as RO and IEX systems do. Through the use of new treatment technologies, and by using old technologies in novel ways, a significant impact can be made on the amount and quality of water that a facility uses and discharges. EP Amelia Jordan, P.E., is design engineer for U.S. Water Services. Reach her at info@ uswaterservices.com.

October 2009

EVENTS CALENDAR

Biofuels Markets Mexico & Central America October 7, 2009 Mexico City, Mexico Attendees will be provided information concerning the key challenges and opportunities for biofuels development in the region, including sustainability concerns, feedstocks, financing and downstream considerations. 971 4 8135211 www2.greenpowerconferences.co.uk/v8-12/ Prospectus/Index.php?sEventCode=BF0907MX

Bioenergy Engineering 2009 October 11-14, 2009 Bellevue, Wash. The conference will provide professional education for all aspects of engineering in the biofuels and bioenergy systems, from genetics through production, distribution and use. Sessions will cover advances in bioenergy engineering research and technology development; biorefinery design, construction and operation, and the future of biofuel production. (972) 355-5128 www.bioenergyengineering2009.com

Biofuels 2009 October 27-29, 2009 Budapest, Hungary Industry leaders from more than 50 countries and five continents are expected to attend this event, hosted by the World Refining Association. Session topics will include a global overview on the biofuels industry, strategies of refineries within the biofuels field, new supplies and processing for feedstocks, and a bioethanol market outlook. +44 (0) 20 7067 1800 www.wraconferences.com/2/4/articles/57.php

Oct

2009 Algae Biomass Summit October 7-9, 2009

Air Quality VII October 26-29, 2009

Biomass & WtE: Waste to Energy October 28-29, 2009

San Diego, California Attendees will have the opportunity to explore the emerging industry of algae as feedstock for biofuels and related products. Technologists, producers, scientists, investors and policy makers will present information related to the commercial viability of algae production, evolving technologies, processing concepts and project finance.

Crystal Gateway Marriott Arlington, Virginia This will be a forum for reviewing the current state of science and policy in conjunction with air quality, relative to the energy industry. The focus will be on related air quality impacts regarding policy; markets; health and ecosystems; measurement methods; separation, capture, and storage; emission control and prevention; and atmospheric reactions and modeling.

Shanghai, China Attendees will include producers of biomass, biodiesel, ethanol and cellulosic ethanol; local, municipal and provincial government representatives; enzymes and catalyst providers; and other industry experts. The conference will focus on power generations, cellulosic ethanol and biotechnology for fuels & chemicals, dedicated energy crops, agricultural residues, and energy from municipal solid waste.

(701) 777-5000 www.undeerc.org/AQ7

(65) 6345 7322 www.cmtevents.com/aboutus.aspx

(763) 458-0068 www.algalbiomass.org/

ETHANOL PRODUCER MAGAZINE

October 2009

Biofuels Environmental and Economical Sustainability Summit November 16-18, 2009

World Ethanol 2009 November 2-5, 2009 Le Meridien Montparnasse Hotel Paris Industry experts, including senior representatives from the oil and automotive industry, will assess the outlook for agricultural commodities and non-food feedstocks. Attendees will include senior executives from all sectors in the value chain.

Washington D.C. Industry leaders and government officials will review and discuss the major economic and legislative restraints and future strategies affected the biofuels industry. Topics to be discussed include increasing financial stability, risk management, lowering carbon emissions and the commercial viability of cellulosic ethanol. (800) 882-8684 w w w. b i o f u e l s i n d u s t r y s u m m i t . c o m / E v e n t aspx?id=209906

+44 (0)20 7017 7500 www.agra-net.com/worldethanol

Canadian Renewable Fuels Summit November 30-December 2, 2009 Westin Bayshore Hotel Vancouver, British Columbia, Canada The annual event, hosted by the Canadian Renewable Fuels Association, will focus on topics including: the new Canada-U.S. clean energy dialogue, second-generation biofuels, low carbon fuel standards, and the industryâ&#x20AC;&#x2122;s economic outlook. (613) 594-5528 ext. 223 www.crfs2009.com/

Nov

Pacific Rim Summit on Industrial Biotechnology & Bioenergy November 8-11, 2009

Introduction to Biofuels November 30-December 1, 2009

Hilton Hawaiian Village Beach Resort & Spa Honolulu, Hawaii Hosted by the Biotechnology Industry Organization, the fourth annual summit will address the latest issues in industrial biotechnology including algae for fuels, marine bioresources, advanced biofuels and dedicated energy crops.

London The two-day conference will offer an overview of biofuels technologies and markets, including: the basics of how biofuels are derived, the factors and debates influencing the market and its competitive framework. Speakers will also review current and upcoming market activity, with a focus on transportation biofuels.

(202) 962-9200 www.bio.org/pacrim/index.asp

www2.greenpowerconferences.co.uk/v8-12/ Prospectus/Index.php?sEventCode=TBF0911UK

ETHANOL PRODUCER MAGAZINE

October 2009

EPM MARKETPLACE Ferm Solutions 859-402-8707

Ag Products & Services

Anti-Microbial

Equipment

Bio-Cide International.Inc 405-329-5556

www.bio-cide.com

www.ferm-solutions.com

Cleaning Dryer Systems

MAXIMIZE

Hydro-Klean, Inc. 515-283-0500

Your Ethanol thano ol Yield!

Seneca Companies 800-369-5500

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

With MaxET a Non-Antibiotic Antimicrobial for Fermentation, Propagation, and CIP

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

Emergency Spill Response Hydro-Klean, Inc. 515-283-0500 Seneca Companies 800-369-5500

t 405.329.5556 www.bio-cide.com bi idd 405 329 5556

Hybrid Corn

Ferm Solutions 859-402-8707

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

Associations/Organizations EPPIC Environmental Index 334-277-1364 www.eppicenv.com

Trade API Credit Exchange 202-682-8192

www.api.org/ace

PhibroChem 800-223-0434

www.lactrol.com

Reach your customers

www.ferm-solutions.com www.lactrol.com

Enzymes

Filter Media

Genencor 585-256-5249

www.genencor.com

Novozymes 919-494-3101

www.novozymes.com

www.hydro-klean.com

BWF America, Inc. 800-733-2043

www.bwf-america.com

Hydro-Klean, Inc. 515-283-0500

www.hydro-klean.com

Water Treatment

Heat Exchanger

Buckman Laboratories, Inc. 901-278-0330 www.buckman.com

Hydro-Klean, Inc. 515-283-0500

Yeast

Seneca Companies 800-369-5500

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

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

www.hydro-klean.com

Premium Plant Services, Inc. 218-929-2166 www.premiumplantservices.com

Stabilized Liquid Yeast, Thermosacc,® Superstart™

Your Ad HERE

www.senecaco.com

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

EPM MARKETPLACE

Hydro-Klean, Inc. 515-283-0500

Resonant BioSciences, LLC. 866-933-0408 www.puremash.com

Your Solution. Advertise Today.

www.hydro-klean.com

Evaporators

Chemicals PhibroChem 800-223-0434

www.hydro-klean.com

Your Ad HERE Lallemand Ethanol Technology 800-583-6484 www.ethanoltech.com Fermentis-Division of SI Lesaffre 800-558-7279 www.fermentis.com

Your Solution. Advertise Today.

EPM MARKETPLACE

ETHANOL PRODUCER MAGAZINE

October 2009

EPM MARKETPLACE Seneca Companies 800-369-5500

Insulation www.senecaco.com

Construction Buildings-Custom HOFFMANN,INC. 563-263-4733

www.hoffmanninc.com

Buildings-Modular

Petrochem Insulation 707-644-7455

www.petrocheminc.com

Management Marcus Construction Company 800-367-3424 www.marcusconstruction.com

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

www.hydro-klean.com

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

www.hydro-klean.com

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

Concrete Silos www.hydro-klean.com

HOFFMANN,INC. 563-263-4733

Plant Construction www.hoffmanninc.com Agra Industries, Inc. 715-536-9584

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

Fabrication www.hydro-klean.com

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

www.hydro-klean.com

Tank Cleaning Equipment Spraying Systems Co. 630-665-5000

www.spray.com

Agra Industries, Inc. 715-536-9584

www.agraind.com

Andy J.Egan Co. 616-791-9952

www.andyegan.com

HOFFMANN,INC. 563-263-4733

www.hoffmanninc.com

VAL-FAB Inc. 877-482-5322

www.valfab.com

Tank Cleaning Services

Lipten 800-860-0790

Hydro-Klean, Inc. 515-283-0500

Reimer Welding Inc. 218-773-0886

www.hydro-klean.com

ETHANOL PRODUCER MAGAZINE

October 2009

www.agraind.com

www.lipten.com www.reimerwelding.com 85

EPM MARKETPLACE Harris Group Inc. 206-494-9422

Railroad Tracks Railworks 913-888-4091

www.railworks.com

R & R Contracting, Inc. 800-872-5975

www.rrcontracting.net

Stack www.hoffmanninc.com

Tanks www.agraind.com

ATEC Steel 620-856-3488

www.atecsteel.com

www.caldwelltanks.com

WINBCO Tank Company 641-683-1855

www.winbco.com

Lipten 800-860-0790

Central Energy Plant

Harris Group Inc. 206-494-9422

ProQuip, Inc. 330-468-1850

www.proquipinc.com

Air Pollution/Odor Control Ceco Abatement Systems, Inc. 630-493-0624 www.cecoenviro.com/Abatement

www.harrisgroup.com

Iowa Lakes Community College 800-242-5108 www.iowalakes.edu

Employment

Analytical Instruments Gusmer Enterprises, Inc. 847-277-9785 www.gusmerbiorefining.com Perten Instruments, Inc. 801-936-8165

www.perten.com

Blowers & Fans

Recruiting McDermott & Bull-Energy Practice 415-722-8966 www.mbsearch.net

Robinson Fans, Inc. 724-452-6121

www.robinsonfans.com

Boiler Systems

Engineering

Lipten 800-860-0790

www.lipten.com

Biomass Energy Lipten 800-860-0790

Environmental Air Resource Specialists,Inc. 970-484-7941 www.air-resource.com Aquaterra Environmental Solutions, Inc. 877-913-8200 www.aquaterra-env.com ICM, Inc. 877-456-8588

www.icminc.com

Pinnacle Engineering Inc. 507-280-5966

www.pineng.com

Seneca Companies 800-369-5500

www.senecaco.com

Agra Industries, Inc. 715-536-9584 HOFFMANN,INC. 563-263-4733

www.agraind.com www.hoffmanninc.com

Alaqua Inc.

Evaporators, Crystallizers, Distillation, Columns, Solvent Recovery, Heat-Exchangers, Process Engineering 7004 Boulevard East, Ste.28A Guttenberg, NJ 07093 USA Tel: 201.758.1577 Fax: 201.758.1522 info@Alaquainc.com

Weaver Boos Consultants 888-645-5240 www.weaverboos.com

Feasibility Studies

www.lipten.com

Design/Build

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

www.alaquainc.com

Process Design www.harrisgroup.com

Management Services Greenway Consulting,LLC 320-589-3085 www.greenwayconsulting.net

Plant Optimization Granatus Consulting, Inc. 218-773-0005 www.granatusinc.com 86

www.lipten.com

SearchPath of Chicago 815-261-4403 www.searchpath.com/chicago

Consulting

Harris Group Inc. 206-494-9422

www.icminc.com

Education

Agra Industries, Inc. 715-536-9584

Equipment & Services Agitation Equipment

ICM, Inc. 877-456-8588

Project Development

HOFFMANN,INC. 563-263-4733

Caldwell Tanks 502-964-3361

www.harrisgroup.com

ICM, Inc. 877-456-8588

www.icminc.com

Process Engineering Associates, LLC 865-220-8722 www.processengr.com Vogelbusch USA, Inc. 713-461-7374

www.vogelbusch.com

Hurst Boiler & Welding Co., Inc. 800-666-6414 www.hurstboiler.com

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

ETHANOL PRODUCER MAGAZINE

October 2009

EPM MARKETPLACE Combustion Equipment

Corn Oil Recovery

Eclipse.Inc. 815-637-7213

ICM, Inc. 877-456-8588

www.eclipsenet.com

Fermentation Monitoring www.icminc.com

ETS Laboratories 707-963-4806

www.etslabs.com

Computer Software

Distillation Equipment

Fermentors

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

SRS Engineering Corporation 800-497-5841 www.srsbiodiesel.com

ATEC Steel 620-856-3488

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

WINBCO Tank Company 641-683-1855

Dryers-Fluid Bed

Filtration Equipment

Aeroglide Corporation 919-851-2000

You produce fuel. We fuel your success.

www.aeroglide.com

Littleford Day, Inc. 859-525-7600

www.littleford.com

Barr-Rosin,Inc 630-659-3980

www.barr-rosin.com

Barr-Rosin,Inc. 630-659-3980

Integrated business management system for purchase/sales contracting, risk management, plant production and material usage data collection, and automated receiving and loadout.

www.barr-rosin.com

ICM, Inc. 877-456-8588

800.518.0472 JohnDeereAgriServices.com

www.icminc.com

www.winbco.com

www.fluideng.com

Fire Suppression flamex@sparkdetection.com

Fractionation-Corn Buhler Inc. 763-847-9900

Dryers-Rotary Drum

Ethanol Efficiency.

Fluid Engineering 814-453-5014

FLAMEX Inc. 336-299-2933

Dryers-Ring

www.atecsteel.com

www.buhlergroup.com/us

Cereal Process Technologies 217-779-2595 www.cerealprocess.com Crown Iron Works 651-639-8900

www.crowniron.com

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

ICM, Inc. 877-456-8588

Dryers-Rotary Steam Tube

MOR Technology, LLC 618-522-8324 www.mortechnology.com

ICM, Inc. 877-456-8588

www.icminc.com

Grain Handling & Storage

Agra Industries, Inc. 715-536-9584

Ductwork Encore Business Solutions 204-989-4330 www.encorebusiness.com

HOFFMANN,INC. 563-263-4733

Control Systems

Dust Control Systems

ICM, Inc. 877-456-8588

MAC Equipment, Inc. 816-891-9300 www.macequipment.com

www.icminc.com

Revere Control Systems 800-536-2525 www.reverecontrol.com

U.S. Tsubaki 847-459-9500

Emission Monitoring Systems MonitorTech Corp. 866-682-6771

Conveyors–Mechanical

www.hoffmanninc.com

www.monitortechgrp.com

MAC Equipment, Inc. 816-891-9300 www.macequipment.com

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

October 2009

McC, Inc. 763-477-4774 www.mccormickconstruction.com

Heat Exchangers Munters - Des Champs Products 540-291-1111 www.deschamps.com

Instrumentation Perten Instruments, Inc. 801-936-8165

www.perten.com

Insulator

www.ustsubaki.com

Conveyors–Pneumatic

www.agraind.com

Continuous Emissions Monitoring Systems Easiest installation, operation and maintenance Meet or exceeds EPA requirements NOx, O2, CO, SO2 and others Turnkey systems for under $100,000.00 P.O. Box 9271, Columbus, Oh 43209 866-682-6771 sales@monitortechcorp.us

Industrial Construction & Engineering 636-970-1650 www.ic-e.cc Miller Insulation Co., INC 701-297-8813 www.millerinsulation.com

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

www.perten.com 87

EPM MARKETPLACE Laboratory-Outsourcing

Motors

Scales-Truck

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

Trico TCWind, Incorporated 320-693-6200 www.tricotcwind.com

Weigh-Tec Inc. 1-800-461-4153

Laboratory-Supplies

Paint & Protective Coatings

Seals

CHATA Biosystems

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

Aesseal Inc. 865-531-0192

Parts & Services

Separation Equipment

877-246-2428 customerservice@chatasolutions.com

Phenomenex 310-212-0555

www.phenomenex.com

Laboratory-Testing Services Midwest Laboratories, Inc. 402-829-9877 www.midwestlabs.com Trilogy Analytical Laboratory 636-239-1521 www.trilogylab.com

SafeRack 866-761-7225

www.carbis.net www.saferack.com

Jouleâ&#x20AC;&#x2122; Industrial Contractors bbosher@jouleinc.com www.jouleinc.com

Mapcon Technologies, Inc. 800-922-4336

www.mapcon.com

CPM/Roskamp Champion 800-366-2563 www.cpmroskamp.com

Millwright www.agraind.com

www.perten.com

Sartorius Mechatronies-Omnimark 800-835-3211 www.sartorius-omnimark.com

Molecular Sieves

Pipe-Fittings Robert-James Sales, Inc. 800-666-0088

Robert-James Sales, Inc. 800-666-0088

WINBCO Tank Company 641-683-1855

Harris Group Inc. 206-494-9422

www.rjsales.com

www.winbco.com

www.harrisgroup.com

www.icminc.com

Vaperma, Inc. 418-839-6989

www.vaperma.com

Laidig Systems, Inc. 574-256-0204

www.laidig.com

Agra Industries, Inc. 715-536-9584

www.agraind.com

Agra Industries, Inc. 715-536-9584

Brown Tank LLC 651-747-0100

www.agraind.com

www.peopleflo.com

www.atecsteel.com www.browntank-mn.com

Federal Equipment Company 800-652-2466 www.fedequip.com Paragon Trailer Sales 800-471-8769

www.paragontrailer.com

WINBCO Tank Company 641-683-1855

www.winbco.com

Your Ad HERE www.perten.com

Your Solution. Advertise Today.

EPM MARKETPLACE

Resource Recovery www.eco-tec.com

Reach your customers

Scales-Software

ICM, Inc. 877-456-8588

DuraTech Industries / Haybuster 701-252-4601 www.haybuster.com

ATEC Steel 620-856-3488

Valley Equipment Co. Inc. 423-753-3541 www.valleyequipment.com

Eco-Tec, Inc. 905-427-0077

Size Reduction-Shredders

Tanks

Pumps

Perten Instruments, Inc. 801-936-8165

www.fluideng.com

Structural Fabrication

VFTechnical Services, LLC 423-794-6747 www.vftechserv.com

PeopleFlo Manufacturing 847-929-4774

Fluid Engineering 814-453-5014

Storage-DDGS

QA Test Products

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

www.rjsales.com

Process Control www.icminc.com

Mills-Hammer

Agra Industries, Inc. 715-536-9584

www.isco-pipe.com

Pressure Vessels www.mecsol.com

Maintenance Software ICM, Inc. 877-456-8588

ISCO Industries 800-345-4726

www.aesseal.com

Puritan Magnetics, Inc. 248-628-3808 www.puritanmagnetics.com

Pipe-Flanges

Maintenance Services

Mechanical Solutions, LLC 515-332-7035

www.icminc.com

Pipe

Robert-James Sales, Inc. 800-666-0088

Loading Equipment Carbis, Inc. 800-845-2387

ICM, Inc. 877-456-8588

www.truck-scales.com

John Deere Agri Services 800-518-0472 www.johndeereagriservices.com

Your Solution. Advertise Today.

EPM MARKETPLACE

ETHANOL PRODUCER MAGAZINE

October 2009

EPM MARKETPLACE Thermal Oxidizers

Used Equipment

Ethanol Production Existing Producers Louis Dreyfus Commodities 402-844-2680 LDCommodities.com POET LLC 605-965-2200

PROVEN RELIABILITY

www.poetenergy.com

Finance Accounting

for VOC, CO & PM ABATEMENT

Christianson & Associates PLLP 320-235-5937 www.christiansoncpa.com Eide Bailly LLC 605-977-2703

EISENMANN Corporation Crystal Lake, Illinois

www.eidebailly.com

Appraisals

815.455.4100 es.info@eisenmann.com

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

Due Diligence Harris Group Inc. 206-494-9422

www.harrisgroup.com

Insurance ERI Solutions, Inc. 316-927-4294

Pro-Environmental, Inc. 909-989-3010

erisolutions.com

Mergers & Acquisitions www.pro-env.com

Valves Kent Group, Inc. 715-358-7528

Check-All Valve Mfg. Co. 515-224-2301

EPM MARKETPLACE With all contact information placed in one convenient location, Ethanol Producer Magazine not only contains top editorial content but also

www.kentgroupinc.com

www.checkall.com

North American Safety Valve 800-800-8882

Risk Management www.nasvi.com

R.J. Oâ&#x20AC;&#x2122;Brien 800-621-0757

www.rjobrien.com

Wastewater Treatment Services Biothane Corporation 856-541-3500x501 Hydro-Klean, Inc. 515-283-0500

Software-Accounting www.biothane.com www.hydro-klean.com

Encore Business Solutions 204-989-4330 www.encorebusiness.com

Software-Commodity

ICM, Inc. 877-456-8588

www.icminc.com

tion. Whether a first-time adver-

UEM, Inc. 561-385-7515

www.uemgroup.com

tiser wanting to raise awareness

Water Treatment

Attorneys

of your business or a frequent dis-

Aquatech International Corporation 724-746-5300 www.aquatech.com

BrownWinick Law Firm 515-242-2400 www.biofuellawyers.com

Fluid Engineering 814-453-5014

Faegre & Benson, LLP 612-766-6930

a useful directory in each publica-

play advertiser looking for added exposure, EPM Marketplace is the perfect solution.

Legal Services

www.faegre.com

Yield Enhancement EdneiQ, Inc. 310-592-4158

ETHANOL PRODUCER MAGAZINE

www.fluideng.com

John Deere Agri Services 800-518-0472 www.johndeereagriservices.com

October 2009

www.EdeniQ.com 89

EPM MARKETPLACE Marketing Distillers Grains CGB Feed Ingredients 985-867-3554

www.cgb.com

Fuel Ethanol Gavilon 402-595-5678

www.gavilon.com

Miscellaneous Nelson Ink Promotional Products 218-222-3831 www.nelsonink.com

Transportation Marine Evolution Markets, Inc. 914-323-0259

www.evomarkets.com

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

Railcar Moving Shuttlewagon, Inc. 816-767-0300

www.shuttlewagon.com

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.

www.BiomassMagazine.com

Railcar Parts Salco Products, Inc. 630-783-2570

www.salcoproducts.com

Terminals & DSP ERS Rail Transload 205-322-8312

www.ersrail.net

Utilities Utility Integrys Energy Services 608-235-2547 www.integrysenergy.com

Your Ad HERE Your Solution. Advertise Today.

For additional information please contact us at (701) 746-8385 or at advertising@biomassmagazine.com.

EPM MARKETPLACE

Reach your customers Your Solution. Advertise Today.

EPM MARKETPLACE 90

Renewable Energy Solutions

ETHANOL PRODUCER MAGAZINE

October 2009

SAVE THE DATE

6th Annual Canadian Renewable Fuels Summit November 30th â&#x20AC;&#x201C; December 2nd, 2009. Westin Bayshore Hotel, Vancouver, British Columbia. SUSTAINABLE GROWTH FOR CANADA

Celebrating its 6th year, the annual Canadian Renewable Fuels Summit brings together a diverse group of international professionals whose common goal is to promote and discuss the production and utilization of renewable fuels. Discussions include: the Canada-US Clean Energy Dialogue, second generation biofuels, low carbon fuel standards, and our sectorâ&#x20AC;&#x2122;s economic outlook. This summit provides various networking and business development opportunities for current and future ethanol and biodiesel producers, as well as, feedstock providers, researchers, policy makers, traditional energy producers, service providers, investors and other industry stakeholders. Some 2009 Agenda Session Highlights: Future Technologies, Global Biofuels Outlook, Advanced Renewable Fuels, COP15 Beyond Kyoto: What Will it Mean to Biofuels?, US Biofuels Update, Emerging Issues, Feedstock Developments and many other important discussions. Refer to www.crfs2009.com for further agenda and registration information. Sponsorship opportunities still available. Contact Deborah Elson at d.elson@greenfuels.org or 613-594-5528 for further information.

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