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Energy and Operating Efficiencies In Dry-Mill Ethanol Production Governors’ Ethanol Coalition February, 2007 Greg Kris

Energy and Operating Efficiencies In Dry-Mill Ethanol Production Governors’ Ethanol Coalition February, 2007 Greg Krissek, Governmental Affairs Director. Modern Era of Dry Mill Ethanol Production has Multiple Focuses. Ethanol historically has been a value-added product

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Energy and Operating Efficiencies In Dry-Mill Ethanol Production Governors’ Ethanol Coalition February, 2007 Greg Kris

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  1. Energy and Operating Efficiencies In Dry-Mill Ethanol Production Governors’ Ethanol Coalition February, 2007 Greg Krissek, Governmental Affairs Director

  2. Modern Era of Dry Mill Ethanol Production has Multiple Focuses • Ethanol historically has been a value-added product • Distilleries and food-grade markets • 1980s • Last time for extender market • 1990s • Oxygenate • Octane enhancer • Education needed at the pump

  3. 2000s Era of Commodity Production and Fuel Extender

  4. Will Only Continue with Projected Ethanol Production Growth in the U.S. End of 2007 expect 8.2 Billion gallons capacity = 30% US corn crop US Fuel Ethanol Capacity 2006 = 18% US Corn Crop Can replace ~4% gasoline Average growth = 720 million gal/yr Average growth = 75 million gal/yr

  5. Grain Fermentation Today • Well developed process • Over 25 years of history • High efficiency today, refined over time • Fermentation natural and easy C6 sugars Distillation Fermenter Ethanol CO2 Alpha-Amylase and Glucoamylase Grind Grain “Liquefaction” DDGS Grain Kernels Only C6 Sugars

  6. Historical Energy Usage Dry-Mill Thermal Energy Use per Gallon of Ethanol and Ethanol Yield per Bushel Source: Clean Fuels Development Coalition

  7. Dry-Mill Ethanol Plants • Reuse of energy within plant • Heat exchangers are now common • Heat tolerant yeast • Less energy loss to cooling tower; this energy makes it to beer column • Improved fermentation by control of lactic/acetic acid, methanator cushion • Fewer upsets – increased time efficiency • Routing dryer particulate to thermal oxidizer led to energy gain • Increased number of plants equates to increased learning opportunities

  8. ICM Process Guarantees • Ethanol – 2.80 denatured gallons per bushel #2 yellow dent corn • Natural Gas – 34,000 BTU per denatured gallon of ethanol (24,000 with DWGS) • Electrical Usage – 0.75 kW per denatured gallon per hour • Emissions compliance – Guaranteed United Wisconsin Grain Producers Friesland, WI

  9. Efficiencies Gained • Overall design and piping in the plant • Heat capture and recycling in equipment • Air-to-air heat exchanger • Water treatment and capture of methane as energy source • Emissions containment and energy center integration • Enzymes tolerate higher pH, reducing acid needs • Molecular sieves replaced: • Grit columns • Azeotropic systems • Eliminate benzene & isopropyl ether

  10. Holistic View of the Process and Ethanol Plant • Marketplace has reacted favorably to overall plant reliability and financial viability • Every incremental energy savings and efficiency gain within each part of the production process becomes very important in a commodity business East Kansas Agri Energy Garnett, KS

  11. Energy Prices Lead Plant Designers to Evaluate Alternative Energy Sources • Natural Gas • Coal • Biomass • Ag Residue • Solid waste • Wood chips • Waste steam … but reliability, consistent availability, conversion technology and cost are crucial

  12. Energy Prices Lead Plant Owners and Operators to Optimize Use • 30,000 BTU per gallon of ethanol achievable with good management

  13. New Technologies for Energy are Coming Forward • Integrating technologies in the process but understanding impacts • Steam tube dryers • Co-product needs • Turbines • Supply up to one-third electricity needs if generating needs and cost analysis (capital and operating) make sense • Gasifiers • Corn fractionation • Ultra-filtration of thin stillage/oil separation • Reuse of local effluent water & RO/cooling tower blow down

  14. Thermal/Sugar Biorefinery CO2 Syngas Lignin gasified to CO and H2 GasCleaning CatalyticReactor Biobasedfuels Heat Gasifier Distillation Lignin Fermenter Ethanol & other fermentation products CO2 Air Cellulose Enzymes Pretreatment Saccharification water Fibrous Crop C5 & C6 Sugars

  15. Financial Health of the Industry Attracts After-Market Services • Banks today view little technology risk (vs. 1980s) • Automation and optimization vendors • Plant and company scale-up brings internal support and engineering resources • Attractive to technology graduates • Creates interest for applied research in academia

  16. Creating optimism for the future! Western Plains Energy Oakley, KS

  17. For More Information Contact Greg Krissek Director of Governmental Affairs Phone: 316-977-6549 E-mail: gkrissek@icminc.com icminc.com

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