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Explore the benefits of corn fractionation systems for ethanol production, including reduced energy and water usage, diversified product streams, and improved efficiency. Learn about different fractionation technologies and their outputs, operating costs, and impact on capital and variable costs.
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Examining the Product Streams & Costs of Corn Fractionation Systems 2009 AACC International Annual Meeting Baltimore, Maryland September 14, 2009 Chad Hart Assistant Professor/Grain Markets Specialist chart@iastate.edu 515-294-9911
Ethanol Production Based on the pace over the 1st 5 months of 2009 Sources: Renewable Fuels Association, Energy Information Administration
Ethanol Margins Source: ISU -- CARD
Corn Composition • Looking for: • Improved efficiency • Reduced energy usage • Reduced water usage • Diversified product stream Why Fractionate? Source: 2009 FEW Conference presentation by Reg Ankrom (CPT)
Information from Reg Ankrom’s ppt at the FEW conference Source: Dave Elsenbast, REG
Fractionation Technologies • MOR Technologies • Corn Value Products • Langhauser Associates • FC Stone Carbon LLC and Maize Processing Innovations • Buhler Inc. • Cereal Process Technologies • FWS Technologies • American Milling Group • ICM Inc. • POET • Renessen LLC • Delta-T Corporation
MOR Technologies • Combines wet and dry milling techniques • Outputs: • Ethanol • High protein distillers grains • High oil germ (food use, 42% oil content) • Bran (60% for food and 40% for feed) • Offers oil extraction technology as well • Claims a 2% starch loss from process
Langhauser Associates • A wet fractionation approach • Outputs: • Ethanol • High protein distillers grains • High oil germ (food use, 48-50% oil content) • Bran (80% for food and 20% for feed) • Includes oil extraction technology • Operating costs roughly 10% higher than traditional plant
FC Stone Carbon & Maize Processing • A wet fractionation approach • Outputs: • Ethanol • High protein distillers grains (47% protein) • High oil germ (food use, 42% oil content) • Bran • Includes oil extraction technology
ICM • A dry fractionation technology • Outputs: • Ethanol • High protein distillers grains • High oil germ (food use, 26% oil content) • Bran • Snack grits • Corn meal • Can include oil and protein extraction technologies
Capital Costs • Range from $10 million to $40 million for a 50 million gallon ethanol plant • The inclusion of corn oil extraction technologies moves costs to the higher end of the spectrum • Most vendors point to a payback period of under 3 years Variable Costs • Decreased energy needs per gallon for: • Liquidification and cooking • Distillation • Drying of distillers grains and solubles • Possible energy generation from bran • Could reduce energy demand by nearly 50%
Product Streams Corn costs: $3.14 per bushel, Illinois ethanol plant report (USDA-AMS, as of early Sept. 2009) Traditional ethanol plant: 2.8 gallons of ethanol @ $1.60/gallon = $4.48 17.75 lbs. of DDGS @ $92/ton = $0.82 Revenues per bushel = $5.30 Ethanol plant w/ fractionation: 2.72 gallons of ethanol @ $1.60/gallon = $4.35 13.5 lbs. of high protein DG @ $102/ton = $0.69 5 lbs. of germ @ $115/ton = $0.29 3 lbs. of bran @ $65/ton = $0.10 Revenues per bushel = $5.42
Tapping into Many Markets Source: 2009 FEW Conference presentation by Neal Jakel (Delta-T)
Ethanol Margins Source: ISU -- CARD
Thank you for your time!Any questions?Iowa Grain Quality Initiative:http://www.iowagrain.org/My web site:http://www.econ.iastate.edu/faculty/hart/