Ethanol Fuel from the Fields

Mike Plumer

Natural Resources Management

Objectives

• Ethanol Basics

• Ethanol Process

• Ethanol By-Products

• Water Use

• Clean Air Facts

• Future Needs

What is Ethanol?Ethanol is alcohol that can be made from corn

or other starch based materials such as: wheat,

grain sorghum, potatoes, sugar cane, and wood.

Ethanol is a renewable fuel.

E-10 is the most common Ethanol/gasoline blendIt has up to 10% Ethanol and 90% gasoline

E-85 is a fuel for Flex-fuel vehicles onlyIt has up to 85% Ethanol and 15 % gasoline

What are the Common Ethanol Blends?

Flex-fuel vehicles (FFVs) run on gasoline or a blend of up to 85% ethanol (E85). With a few engine and fuel system modifications, they are identical to gasoline-only models.

Ethanol as an Oxygenate

If you mix 10% Ethanol with 90% gasoline it will raise the octane 2-3 points

90% regular gasoline at 87 octane = 78.3+ 10% Ethanol at 113 octane = 11.3

89.6 This would be Premium Gasoline

Historic U.S. Fuel Ethanol Production

Source: Renewable Fuel Associationwww.ethanolrfa.org

1980-2007

Millions of Gallons

Corn Utilized in Ethanol Production

Source: Renewable Fuels Association www.ethanolrfa.org

1980 – 2007

Millions of Bushels

US Corn Production

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

1991

1993

1995

1997

1999

2001

2003

2005

2007

Year

Bu

sh

els

(0

00

)

13.07 Billion bushel

IL Ag Statistics - NASS

1991 - 2007

47%

19%

24%

4%6%

Feed/Residual

Export

Ethanol

HFCS

Other

US Corn Use by Segment

Even with all of the uses for corn,the US is estimated to carry over 1.8 billion bushels of corn from the2008 crop year into the 2009 crop year

Feed/Residual - 47%

Export - 19%

Ethanol - 24%High Fructose Corn Syrup - 4%

Other - 6%

Current U.S. Ethanol Industry• Produces about 12 Billion Gallon / Year

• 158 Operating Production Plants• 51 Under Construction (~2 billion gallon)• 40% are farmer/investor owned

• Major Market Uses:– Fuel oxygenate – ethanol is 35% oxygen– Reformulated gasoline – environmentally friendly– Octane enhancer – at 10% blend it increases octane 2-3

points– Gasoline Extender – add 10% ethanol

Source: http://www.ethanol.org/

Ethanol plants

Plants under construction

DD

DDD

D

DD

DD

DD

D

DD

DDD

DD

DDDD

D

D

DDD

D DD

DDDDDDDD

D

DDD

D

DD

D

D

D

DD

D

DD

DD

DDDDDD

D DD

DDD

D DD

Source: Ethanol and the Local Economy Sarah A. Low and Andrew M. Isserman

Where is Ethanol produced?

Most ethanol is currently producedfrom corn

>28% (>2 std. dev above avg.) Land in Corn

7 % (average) to 28 % Land in Corn

Ethanol Plants, August 2007

Source: Ethanol and the Local Economy Sarah A. Low and Andrew M. Isserman

Ethanol Plants and Corn Production

Most ethanol is currentlyproduced from corn

Above average cattle on feed

Over 100,000 cattle on feed

Ethanol Plants, August 2007

Source: Ethanol and the Local Economy Sarah A. Low and Andrew M. Isserman

Ethanol Plants and Cattle on Feed

Most DDGS* is feedto beef or dairy cattle

* Distiller’s Dried Grains with Solubles

Ethanol Plants *Distiller’s Dried Grains with Solubles

•Source: Ethanol and the Local Economy Sarah A. Low and Andrew M. Isserman

Ethanol Plants, Railroads, and Rivers

Railroads Rivers

Most ethanol andDDGS* is transported bytruck or rail

Less than 2.5% (average)

2.5% – 5.0%

Greater than 5% (one standard deviation above average)

Ethanol as a Percent of Fuel Use

Source: Ethanol and the Local Economy Sarah A. Low and Andrew M. Isserman

Ethanol Plants - Illinois

Existing

Under construction

Source: Renewable Fuel Association

What’s in a bushel1 bushel = 56 pounds of Corn

32 pounds of starchor

33 pounds of sweeteneror

2.80 gallons of ethanoland

18 pounds of DDGS*and

1.6 pounds of corn oiland

18 pounds of CO2

Products produced are dependant on if an Ethanol plant is a wet or dry mill

* Distiller’s Dried Grain with Solubles

What is DDGS?Distiller’s Dried Grains with Solubles

•DDGS is a co-product of the distillery industries.

•Most (~98%) of the DDGS in North America comes from plants that produce ethanol for oxygenated fuels. •The remaining 1 to 2% of DDGS is produced by the alcohol beverage industry.

•Are the dried residue remaining after the starch fraction of corn is fermented with selected yeasts and enzymes to produce ethanol and carbon dioxide.

•After complete fermentation, the alcohol is removed by distillation and the remaining fermentation residues are dried.

University of Minnesota

http://www.ddgs.umn.edu/overview.htm

What is DDGS?Distiller’s Dried Grains with Solubles

•Is predominantly feed to ruminant animals such as beef and dairy cows, but it is also being used more frequently in diets for swine, poultry, and aquaculture.

• Further research is looking at the possibilities for companion animals and human consumption.

University of Minnesota

•DDGS replaces much of the corn that was feed to livestock, so the amount of corn that is used to make ethanol is not totally removed from the food supply.

•The US exports DDGS for animal feed.

http://www.ddgs.umn.edu/overview.htm

2008/2009 US DDG Production

Source: Pro Exporter

08/09 DDG production forecasted at 22,173,000 MT

07/08 Production was 18.3 million MT

MT - Metric Ton = 2200 pounds

DDGS production and consumption

Source: CHS Inc. – Major Marketing of Distiller’s Grain / Renewable Fuel Association

Dry Grind Ethanol

Corn Wet Milling Process

CorCornn

FirstGrind

Water

Fiber

FiberWashing

SecondGrind

Germ

SteepTanks

Starch &Protein

Primary Starch

Separation

StarchWashing

OilExtraction

Germ Meal

Steepwater

Corn GlutenMeal

StarcStarchh

Corn Oil

Corn Gluten Feed

U.S. DDGS Exports 2000-2008 JAN-DEC

(2008 BASIS PRORATA JAN-APRIL)

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

4500000

2003 2004 2005 2006 2007 2008

mt

Latin and CentralAmerica

Africa, MiddleEast, India andPakistan

North Asia

Southeast Asia

North America

EU

Source: IL Corn Growers Assoc.

Production & Demand 2017DDGS Outlook

Pro Exporter 2008

3400 4500 5500 6500 7000 8000 9000 10000 11000 12000 13000

0

5000

10000

15000

20000

25000

30000

35000

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Crop Year

Production Domestic Use Exports

2008 – 2017 Crop YearThousands Metric Ton

Source: Pro Exporter/IL Corn Growers Assoc.

Gallons/water How Much Item

3 1 gallon Ethanol

9.3 1 can Fruit or Vegetables

24 1 pound of Plastic

1,500 1 barrel Crude oil

1,851 42 gallon Barrel of Crude Oil

28,100 1 ton Sugar Beets to Processed Sugar

39,090 1 car to Manufacture

62,600 1 ton Steel

Water Use In comparison:

from USGS/USEPA

Cellulosic ethanol

• Derived from plant fiber

• Fibers must be broken down to get sugar

• Issue is hemicellulose and lignin – Use enzymes or themochemical

• Requires much energy and chemicals

• Requires significant facility safeguards

Cellulosic ethanol

• High volume of material/gallon ethanol

• High transportation costs-limited area

• Disposal of waste products is an issue

• Storage of cellulose– Average plant would need, cellulose stacked 5

feet high and cover a football field each day

Cellulosic Ethanol• Current technology is:

– 1 ton of cellulose = 27 gallons of ethanol– Theoretical maximum is 1 ton= 95 gallons

• Corn ethanol current technology is:– 1 bushel (56#) = 2.85 gallons– Theoretical maximum is 1 bushel=3.3 gallons

• Major cost differences currently:– Corn ethanol is $1.55/ gallon– Miscanthus ethanol is $4.20/ gallon

•The American Lung Association of Metropolitan Chicago credits ethanol-blended fuel with reducing smog-forming emissions by 25% since 1990.

•Ethanol blends are likely to reduce carbon monoxide emissions in vehicles by between 10% - 30%, depending upon the combustion technology. (U.S. EPA)

•The use of 10% ethanol blends reduces greenhouse gas emissions by 12-19% compared to conventional gasoline. (Argonne National Lab)

•In 2004, ethanol use in the U.S. reduced CO2-equivalent greenhouse gas emissions by approximately 7 million tons, equal to removing the emissions of more than 1 million cars from the road. (Argonne National Lab)

Ethanol Clean Air Facts

http://www.ethanol.org/

•Research shows a 35-46% reduction in greenhouse gas emissions and a 50-60% reduction in fossil energy use due to the use of ethanol as a motor fuel. (Argonne National Lab)

•Ethanol contains 35% oxygen, making it burn more cleanly and completely than gasoline.

•E85 has the highest oxygen content of any fuel available, making it burn even more cleanly and even more completely than any other fuel. •E85 contains 80% fewer gum-forming compounds than gasoline.

•Ethanol is highly biodegradable, making it safer for the environment.

Ethanol Clean Air Facts cont.

http://www.ethanol.org/

Blending Ethanol• Most states allow 10% ethanol in gasoline• Blends up to 85% can be used in Flex Fuel

vehicles• Research shows new cars can use up to 30%

blends (USDOE, ACE 2006)

• New regulations may allow blender pumps• California uses 5.7% to meet clean air

standards

Ethanol Blends

• In Europe, Saab has the engine technology to burn blends or pure ethanol with excellent mileage (often exceeding gasoline)

• In US, hopefully, some one will bring the technology here

Blending

• US allows a $ .051/gallon tax incentive for blending 10% ethanol, which goes to whom ever does the blending

• This was done to encourage stations to put in tanks/ infrastructure

• Today oil companies take the credit or some ethanol plants are now blending

Ethanol Fuel• Single molecule, burns to produce CO2 and

water• Gasoline is complex hydrocarbon that

produces many pollutants• Ethanol is 113 octane and is used to enhance

gasoline to 87 to 90 octane• 10% ethanol is safe in all engines,

– Pre-1980 engines may cause seal/gasket problems

Ethanol Economics• Renewable fuel based on price of corn or

cellulose feed stock• Ethanol plants are located near supply of

feed stock• Local plants equal local jobs• For every gallon of petroleum used in

ethanol production 13 gallons of ethanol are produced (Cassman, Nebraska Center for Energy Sciences)

Ethanol Economics • Current ethanol availability has reduced

the cost of gasoline by $.20-.35

• Price of ethanol is:

Corn price + processing costs – co-products

• Oct. 29 price: $ 1.955 / gallon

Next May is $1.81

Table 1. Example of Relationship Between Oil and Gasoline Prices.Crude Oil Price Wholesale Unleaded Gasoline Price$/barrel $/gallon 40 1.38 50 1.73 60 2.07 70 2.42 80 2.76

Source: CARD Briefing Paper 06-BP49, November 2006.

Ethanol and Environment

• Greenhouse Gas Emissions (GHG) are reduced by 48-59% compared to gasoline– Rapid adoption of new technology in

ethanol production is increasing efficiency– Increasing use of farmer conservation

practices could increase efficiency to 87%

Liska, Cassman: Journal of Industrial Ecology, 1-21-09

Steffen Mueller*• Corn ethanol - Global Warming Intensity(GWI)-

- 40% better than gasoline

• Corn ethanol with carbon sequestration (13% no-till/strip till) 46% better than gasoline

• Corn ethanol plant did not promote conversion of non-agri. land to corn

• Further Reductions in GWI from:

• Corn ethanol with carbon sequestration incentives (100% no till or alternatively 50% no-till / 50% winter cover crop) 81% better than gasoline

• Advanced processes and co-products have the potential for further reductions

*with University of Illinois at Chicago

Texas A&M: Don’t Blame Corn

• Higher corn prices have had very little effect on consumer food prices

• The underlying force driving economic change is higher energy prices

Energy’s Bigger Impact

• A $1 per gallon increase in the price of gas has triple the impact on food prices as does a $1 per bushel increase in the price of corn

What Is Driving Food Prices?

US Dept of Labor Data Unadjusted percentage change from March 2007 to March 2008

Food                                            4.5%Food at home (cereals, meats, fruits, etc.)     4.7%Transportation                               8.2%Fuel oil                                        40.2%Motor fuel                                     26.4%

USDA: Don’t Blame Corn

• Higher corn prices increase feed and costs for farmers and food manufacturers, but pass through to retail prices at a rate less than 10 percent of the corn price change.

For more information:

• University of Illinois Extension site:

http://web.extension.uiuc.edu/state/Click on Energy button

• Fact sheets available

• CABER site: www.bioenergy.uiuc.eduwww.ethanol.org

Created by: • Mike Plumer, Natural Resource Educator

Carbondale Center