November 2009 Ethanol Producer Magazine

NOVEMBER 2009

INSIDE: ADVANCED BIOFUEL PRODUCTION TECHNOLOGIES

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Cellulosic Shortfall

Why 2010 Volume Mandates Won’t be Met and Why Producers Aren’t Worried

ETHANOL PRODUCER MAGAZINE November 2009 2

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52

vol. 15 no. 11

44 PRODUCTIONComing Up Short Th e 2010 volume mandate for cellulosic biofuel was set by Congress at 100 million gallons. Producers know they won’t produce enough to meet the goal, but it’s up to the U.S. EPA to determine what will happen as a result. –By Kris Bevill

52 ADVANCEMENTBeyond Cellulosic While cellulosic ethanol continues to be the focus of many producers, some are choosing to develop other technologies to meet future advanced biofuel mandates. –By Erin Voegele

58 FINANCEPublic-Private Partnerships In an eff ort to deploy new technologies and create local jobs, some public and private entities are teaming up to establish mutually benefi cial relationships.–By Erin Voegele

72 OILBig Oil’s Big Entrance Aft er years of non-participation, oil companies have renewed interest in ethanol production from plow to pump.–By Craig A. Johnson

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Ethanol Producer Magazine: (USPS No. 023-974) November 2009, Vol. 15, Issue 11. Ethanol Producer Magazine is published monthly. Principal Offi ce: 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. Periodi-cals Postage Paid at Grand Forks, North Dakota and additional mailing offi ces. POSTMASTER: Send address changes to Ethanol Producer Mag-azine/Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, North Dakota 58203. BPA Worldwide Membership Applied for October 2006

9 Advertiser Index

12 The Way I See It Change is in the Air By Mike Bryan

16 Business & People

18 Commodities

20 View From the Hill Giving Thanks By Bob Dinneen

21 RFA Update

22 BIObytes

24 Industry News

36 Drive Time has Come to Label Fuel with Country of Origin By Tom Buis

38 Taking Stalk Wood Supply Offers Unique Challenges By Eric Kingsley

40 Finance Performance Management System a Valuable Tool By Micki Debbrecht

42 eBIO Insider Renewable Energy Goes International By Robert Vierhout

86 Events Calendar

88 Marketplace

departments

contents

78

82

84

7

78 WOODY BIOMASS Filling a Need: Forest Plantations for Bioenergy in the South Th e growing number of renewable energy projects in the Southern U.S. utilizing woody biomass will require the development of short-rotation bioenergy plantations.–By Ronalds Gonzalez, Jeff Wright, and Daniel Saloni

82 FEEDSTOCK Algae: Cleaning Up BiofuelsAlgae is in the spotlight as a useful carbon sink. What role can algae play in cleaning up the industry, and the world?–By Sam A. Rushing

84 COPRODUCTS Organic Acids Yield Feed Advantages Organic acids and acidifi ers are powerful tools that can provide one more barrier to disease transmission in large feeding installations.–By Renata Urbaityte

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The Way I See It

Change is in the AirThere is no better time of year for change than the fall.

Change, ironically, has been a reliable constant in the ethanol industry, as producers continue to improve their systems and rise to meet new challenges. This season looks to provide us with new opportunities to prove our adaptability.

The U.S. EPA is scheduled to make its fi nal decision on how to enforce the renewable fuel standard, as established in the Energy Independence and Security Act of 2007 (RFS2), by Dec. 1. I doubt the agency will issue a ruling by Decem-ber, but I don’t doubt that producers will once again meet and beat any challenges put forth by the ruling. And if more time is needed to fully consider the detrimental impact indi-rect land use change considerations could have on biofuels, I won’t mind waiting. As Editor Kris Bevill reports on page 30, industry members fi led comments with the EPA right up until the fi nal hours of the commentary period stressing the importance of this issue as well as numerous others ad-dressed in the RFS2 proposal.

In addition to the RFS2 rule, the EPA is also sched-uled to determine by the end of this year whether a nation-wide increase to E15 is allowable. While I’m always willing to confront change head-on, this kind of change is easy to embrace. The approval by the EPA to allow E15 will open many doors for struggling producers as well as for those anxious to get into the cellulosic game.

The addition of cellulosic biofuel into next year’s RFS is sure to bring about big changes beginning this fall and lead-ing into next year. As Editor Kris Bevill reports in her article, “Coming Up Short,” the cellulosic community has been pre-paring for this for a long time. While many hurdles remain before cellulosic production is part of our mainstream fuel portfolio, make no mistake—next year will mark the begin-ning of the mass use of a variety of renewable transporta-tion fuels in the U.S. Cellulosic producers know they cannot produce all of the biofuel called for in EISA’s RFS for 2010, but that doesn’t matter. Their place has been marked and will be held until they can meet it. As discussed in Bevill’s

article, very important changes will need to be made before 100 million gallons of cellulosic bio-fuel can be produced in a year, but there is no time like now to get started.

Finally, this issue includes our annual fall plant map. I was happy to see many of the plants that were shut down earlier this year have resumed operations, providing further proof that producers can adapt to changes and bounce back if given even the slightest opportunity to do so. Many of the problems experienced by the industry this year have not gone away; they’ve simply been made less signifi cant by our adaptations. Naysayers argued that corn ethanol production would take away from the available food supply, so what did corn producers do? They harvested a bumper crop. Adversaries claimed that the ethanol produc-tion process was environmentally detrimental and unclean. In response, producers have taken measures to install com-bined heat and power systems and cutting-edge technolo-gies to reduce the environmental impact of production. Will continued challenges and changes need to be met this fall and next year? Certainly. But our industry will forge ahead and set the standard for others to follow.

That’s the way I see it.

Mike BryanPublisher & CEO

[email protected]


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To convert 460,000 tons of cellulosic biomass a year, you’ve got to handle 460,000 tons. Gathering, bundling, storing, trucking, unloading, stacking, and conveying it bale by bale using highly mechanized and computerized equipment, over and over, day in and day out. It’s a big, tough, complex job requiring specialized machinery, synchronized logistics, a reliable infrastructure, and a smart business model. Relax. We’ve done this in Denmark for 14 years. Last year Inbicon’s parent company turned 1.6 mil-lion tons of biomass into green energy for generating electricity. Now we’re bringing all that expertise to North America to help jump-start your Inbicon Biomass Refinery. And put you years ahead. We’ve engineered a scale-up of Inbicon conversion technology that will demonstrate commercializa-

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16 ETHANOL PRODUCER MAGAZINE • November 2009

Joe Ayers has accepted the position of plant manager at Brock Grain Systems’ Kansas City, Mo. Ayers has more than 18 years of m a nu f a c t u r i n g management experience and will be responsible for the daily operations of the plant, which produces on-farm and com-mercial grain storage products and accessories. Prior to join-ing the company, Ayers served as vice of president of opera-tions at Continental Disc Inc.

Brock Grain Systems is a part of CTB Inc., a global de-signer, manufacturer and mar-keter of systems and solutions for agriculture and grain indus-tries.

New Hampshire-based cellulosic ethanol producer Mascoma Corp. has an-nounced several management reconfi gurations. Bruce Jam-erson, who previously held the company’s CEO position, will now serve as chairman of Mas-coma and its Michigan-based subsidiary, Frontier Renewable Resources LLC. The company said Jamerson’s new role will allow him to focus on the fi -nancing and deployment of the commercial-scale cellulosic production facility in Michigan

as well as execute other strategic initiatives and partnerships.

Jim Flatt, executive vice president of R&D and operations, will serve as the company’s interim president until a new CEO is hired.

The American Coali-tion for Ethanol elected sev-eral new members to its board of directors during the group’s 22nd annual Ethanol Confer-ence & Trade Show Aug. 11-13 in Milwaukee, Wisc. Newly elected members include: Rand Hahn, CEO, the Re-newable Products Marketing Group; Ron Alverson, chair-man, Lake Area Corn Proces-sors; Russ Newman, vice president, Tharaldson Ethanol; and Kirk Schaunaman, repre-sentative for the South Dakota Corn Utilization Council.

“ACE is proud to continue our unique mission of being the grassroots voice for etha-nol. We’re strengthening that position by adding these well-respected and independent voices to our board of direc-tors,” said Brian Jennings, ACE executive vice president.

Winnebago, Minn.-based Corn Plus LLLP pled guilty in federal court Aug. 19 to violating the Clean Air Act by negligently discharging wastewater from its 49 MMgy production facility into a drain tile located on its property. According to the U.S. EPA, the drain tile emptied into the Rice Lake, which caused pollution in the lake. The vio-lations occurred between 2005 and Aug. 2007.

The company cooperated with the federal government during a two-year investigation and agreed to pay a $100,000 fi ne as well as contribute $50,000 toward a Rice Lake en-vironmental project and further enhance its own environmental compliance plan.

The U.S. DOE has award-ed a $750,000 grant to Oregon-based Trillium FiberFuels to commercialize its cellulosic etha-nol technology, which utilizes an existing industrial enzyme, rather than genetically engineered mi-croorganisms, to convert xylose from straw and other biomass materials to a fermentable sugar. The sugar can then be used to produce ethanol.

The grant was part of the DOE’s Small Business Innova-tion Research Program and was granted to Trillium following two years of successful work by the company. The grant will be used toward Trillium’s two-year plan to transition its technology from laboratory-scale to pilot-scale.

Alfa Laval Group, a heat transfer, centrifugal separa-tion and fl uid-handling product manufacturing company, has ac-quired South Korea-based heat exchanger manufacturing com-pany LHE Co. Ltd. Alfa Laval markets its products to ethanol producers, as well as to food and beverage manufacturers and chemical companies, and employs approximately 12,000 people worldwide.

“I’m very satisfi ed that we were able to acquire LHE, a well-managed company with strong presence in South Ko-rea and with a large potential in Asia,” said Lars Renström, pres-ident and CEO of Alfa Laval. “With the acquisition of LHE, the Alfa Laval Group achieves profi table growth by adding an independent channel to the heat exchanger market.”

Colorado-based ad-vanced biofuel company Gevo Inc. recently named Jack Hutt-ner as executive vice president of commercial and public affairs. In his new position, Huttner will be responsible for external affairs, including trade, media and government relations. Prior to joining Gevo, Huttner served as vice president of commercial and public affairs at Dupont Danisco Cellulosic Ethanol and as vice president of biorefi nery businesses development at Ge-

&Business PeopleEthanol Industry Briefs

Ayers

ETHANOL PRODUCER MAGAZINE • November 2009 17

Sponsored by

nencor, a division of Danisco A/S. Huttner was also instru-mental in forming the industrial section of the Biotechnology Industry Organization and was appointed co-chair of the Bio-energy Technology Advisory Committee by the Clinton ad-ministration, where he oversaw the federal government’s $300 million bioenergy research and development budget.

Glacial Lakes Energy LLC has sold 2,000 units of its ownership share in Granite Falls Energy LLC, a Minnesota-based ethanol plant, to Fagen Inc. The sale was completed in August. Prior to the sale, Glacial Lakes Energy owned 21 percent of the facility. The company now retains approximately 15 percent of the plant’s ownership.

In addition, Glacial Lakes Energy announced in conjunc-tion with Redfield Energy LLC that the two companies have mutually agreed to terminate their management agreement, effective Aug. 21. The fi ve-year management agreement origi-nated when the Redfi eld Energy ethanol facility was constructed in 2005, and was terminated with less than one year remaining on the agreement.

Owen Jones was recently induct-ed into the South Dakota Coopera-tive Hall of Fame. Jones, who was recognized for his lifelong, heroic con-tribution to the co-operative form of enterprise, has served on the board of di-rectors of Britton, S.D.-based 4 Seasons Cooperative. Jones is widely known as an active sup-porter of ethanol blended fuel and was instrumental in the installation of the nation’s fi rst ethanol blender pump in 2006.

New Zealand-based LanzaTech NZ Ltd. has an-nounced the successful devel-opment of a proprietary fer-mentation technology which utilizes non-genetically modi-fi ed microbes to produce etha-nol from the carbon monoxide and hydrogen components of industrial waste gas and biomass-based synthesis gas. In August, the company was granted Frost & Sullivan’s Green Technology of the Year Award at the annual Frost & Sullivan Asia Pacifi c Indus-trial Technologies Awards in Singapore.

Poet LLC announced hiring three general managers since the beginning of Septem-

ber. Robert Flynn, who previously served as general manager at Poet’s 50 Mmgy Lad-donia, Mo., plant, will now serve as general manager of Poet Biore-fi ning – Fostoria, a 68 Mmgy plant in north-

west Ohio. Replacing Flynn at Poet Biorefi ning – Laddonia is Steve Murphy, a 21- year vet-eran of the Woodbridge Cor-poration. Dave Brooks, for-mer general manager of Poet’s Fostoria plant will now serve as general manager of Poet Biore-fi ning – Marion, located in cen-tral Ohio.

CHS Renewable Fu-els Marketing has signed an agreement with NuGen En-ergy to market its ethanol pro-duction. NuGen Energy, which is wholly owned by Central Farmers Cooperative, has the capacity to produce approxi-mately 100 million gallons an-nually at its Marion, S.D. plant. “CHS offers us good exposure to other markets that we would not be able to access on our own,” said NuGen CEO Doug Anderson. “We have nothing but confi dence that CHS can fi nd us the best price. We value their marketing and logistical expertise, as well as their risk management services.”

Inc. Magazine has ranked U.S. Energy Services as one of the nation’s fastest growing companies on its 28th annual Inc. 500 list. The list represents an exclusive, com-prehensive look at America’s independent-minded entre-preneurs. The Inc. 500 posted aggregate revenue of $18.4 billion, an increase of more than 34 percent from last year. Energy ranked second in total revenue with $2.5 billion. U.S. Energy Services, of Plymouth, Minn., ranked 341 for rate of growth, and fi fth overall for to-tal revenue with $439 million.

AE Biofuels Inc. and Pearson Fuels recently announced they have been awarded a $6.9 million grant from the U.S. DOE through its Clean Cities program. Under the terms of the agreement, AE Biofuels will supply Pear-son Fuels with cellulosic etha-nol. The award proposes that the two companies build and supply 55 public E85 fueling stations across California over the next 42 months. EP

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

Jones


COMMODITIES REPORT

Natural Gas Report

Corn Report

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

By Jason Sagebiel, FCStone

Sept. 15—The U.S. DOE’s Energy Information Agency published its June production numbers on Aug. 27, confi rming the stagnant natural gas supply situation exhibited during second quarter earnings releases. Production rose 0.5 percent in June, but overall has effectively held constant, despite falling prices. Even more conspicuous is that the rig count has fallen 58 percent since Sept. 2008. And while price pressures, signifi cant capital expendi-ture reductions in 2009, and the potential for third-quarter shut-ins will likely curtail production several percentage points this fall, im-proved producer balance sheets and lower production costs should equal continued supply-side price pressure into next year.

Producers have tapped the market for more than $20 billion in capital so far this year. This is primarily directing investment and rig additions into the shale areas of Appalachia and northeast Louisi-ana. The result is a changing economic landscape. Unconventional

shale plays with break-even rates of roughly $3.50 MMBtu; displac-ing conventional wells with breakeven rates of roughly $6 MMBtu. Forward price forecasts will be heavily reliant on the rate at which unconventional plays, including shale, tight gas and coalbed meth-ane, displace conventional, vertical wells. However, only 8 percent of current supply originates in the more effi cient, shale areas.

In 2010, as economic recovery increases demand and an un-dersupplied market requires increased production, shale infrastruc-ture can only provide a portion of the marginal need. The price of natural gas will need to rise to incentivize production at the higher conventional breakeven rates, while the inevitable move to shale will push prices lower over the long term. EP

Brad Smith, price risk manager, can be contacted at [email protected].

Sept. 18—The corn crop appears to be getting larger as the growing season comes to a close. The prospects for a bountiful yield have grown from previous estimates of 159.5 bushels per acre to a potential new record yield of 161.9 bushels per acre, according to the USDA’s latest estimates. The corn market had been encour-aged by ideas of a frost, but without an early frost in the Midwest the crop will be well-preserved. The collapse in corn prices has led to corn remaining in place with the producer unwilling to make sales. This has corresponded with a tighter cash market (tighter ba-sis) approaching harvest.

While the USDA increased its corn production estimates, it did not make big changes to the overall corn carry-over. The carry-over-to-use ratio remained at 12.6 percent, compared to 14.1 percent last year. The demand portion of the supply and demand table can be disputed with the USDA’s increased feed demand and exports. A higher feed demand while livestock numbers are waning may lead to some debate. One may also dispute export demand predictions, but a weaker U.S. dollar could potentially verify the increase.

Ideal fall weather conditions will guide the market to test last fall’s low; December futures are currently at $2.90 and seasonality’s

typically illustrate that trend. (Note the accompanying seasonality chart.) Caveats to consider in 2010 will be the South America soy crop prospects, the U.S. dollar and infl ation. EP

Unconventional shale plays enter market

Prices refl ect record corn harvest


COMMODITIES REPORT

DDGS Report

Ethanol Report

By Sean Broderick, CHS Inc.

By Rick Kment, DTN Biofuels Analyst

Prices increase, export demand continues

Driving demand slips as summer ends

Sept. 22—As harvest approach-es, DDGS prices are starting to pick up steam. Some of it is due to season-al downtime, some of it is the begin-ning of fall demand, and some of it is due to heavy demand from the export sector, especially for containers.

Traditionally, Chicago has been the predominant area to load contain-ers, but there has been a huge infl ux in railcar demand from the West Coast. Cars are being transloaded into con-tainers at or near the container ports. Buyers had previously been success-ful in waiting for the market to come down so were caught off guard by the uptick in values and stepped in to buy, to ensure not missing the market.

Barge values have been steady, with increases coming primarily as a response to increased barge freight.

The fl urry of business in the Gulf of Mexico at the beginning of the sum-mer was followed by an uneventful August and September.

A looming issue that will affect DDGS is the potential for enforce-ment of regulations that require ships hauling distillers grains, in both con-tainers and bulk, to have CO2 fi re suppression equipment. Only roughly half of the bulk fl eet possesses this type of equipment, so the require-ment could greatly diminish available freight and drive up ocean freight prices.

The obvious impact on the mar-ket is going to be the corn crop—specifi cally the quality of the crop and the potential for toxins due to condi-tions and lateness of the crop. EP

Sept. 18—As schools start and summer travel ends, overall demand for gasoline and ethanol has slipped. This year has been slightly different in that overall demand for gasoline has held on slightly longer than in previ-ous years. General weekly demand for gasoline actually grew throughout August, rather than follow the tradi-tional downward slide. However, gen-eral overall ethanol demand has been stunted throughout much of the sum-mer due to its connection with gaso-line usage.

As summer demand ends, re-newed bullish expectations in the economy have returned, giving trad-ers incentive to return to the energy markets. This is similar to the levels of interest in 2008, but on a much smaller scale. Improved economic conditions have triggered more buy-

ing activity in energy markets and it is assumed that consumers will return to their old habits once they have money to spend. With energy consumption being a recurring habit over the past several decades, this could draw ad-ditional investment funds into the en-ergy market.

Gasoline prices may continue to increase signifi cantly over the coming weeks, but ethanol markets might not follow. Over the past several months, corn prices have had a great impact on the price of ethanol, giving the mar-ket more of a “cost plus” feel than a true companion market to gasoline. Concerns of an early frost continue to hold the attention of ethanol traders. If the frost holds off, corn produc-tion will likely be abundant, indicating lower ethanol prices. EP

Regional Ethanol Prices ($/gallon as of Sept. 18)

Regional Gasoline Prices ($/gallon as of Sept. 18)

DDGS Prices ($/ton)

Corn Futures Prices (Dec. corn, $/bushel)

Natural Gas Prices ($/MMBtu)

U.S. Ethanol Production Output (barrels/day)

Cash Sorghum Prices ($/bushel)

REGION

West Coast

Midwest

East Coast

REGION

West Coast

Midwest

East Coast

LOCATIONMinnesota

California*

Chicago

Buffalo, N.Y.

Central Florida*Central Valley

DATESept. 18, 2009

Aug. 18, 2009

Sept. 18, 2008

NYMEX

N. Ventura

Calif. Border

June 2009

May 2009

June 2008

Superior, Neb.Beatrice, Neb.Sublette, Kan.Salina, Kan.Triangle, TexasGulf, Texas

SPOT

1.7545

1.67

1.77

SPOT

1.8298

1.8677

1.8548

SEPT. 200985

135

95

112

120

HIGH3.29 1/2

3.25 1/2

5.60

SEPT. 20092.843

2.60

2.69

694,000

669,000

585,000

SEPT. 17, 20092.712.692.523.072.593.64

RACK

1.880

1.750

1.820

RACK

2.225

1.89

2.9143

AUG. 200975

124

100

104

112

LOW3.16 3/4

3.18

5.24

AUG. 20093.379

3.35

3.39

AUG. 25, 20092.642.852.433.022.573.62

SEPT. 2008140

188

120

147

176

CLOSE3.18

3.22 1/2

5.27 1/4

SEPT. 20088.394

7.32

7.14

SEPT. 19, 20084.474.424.544.584.575.44

SOURCE: DTN

SOURCE: DTN

SOURCE: CHS Inc.

SOURCE: FCStone

SOURCE: Sorghum Synergies

SOURCE: U.S. Energy Services Inc.

SOURCE: U.S. Energy Information Administration


VIEW FROM THE HILL

Giving ThanksIt seems as though in the ethanol industry has been

spending too much time moving from crisis to crisis late-ly, with little time to stop and appreciate just how far we have come.

Sure, we have faced our fair share of unfair criticism and scurrilous attack from those seeking to maintain the status quo or searching for an ideal that does not ex-ist. We have seen it in the media, where our opponents have spent vast resources to demonize our industry. We have seen it in Congress, where oil patch members and environmental zealots have sought to limit the expan-sion of ethanol. And, we have seen it from the adminis-tration in its execution of the renewable fuel standard.

Focusing solely on these challenges distracts us from celebrating our accomplishments. Our industry will produce a record volume of ethanol this year. As a result, more distillers grains will be fed to livestock, fewer greenhouse gases will be emitted from our tail-pipes, and more of our energy dollars will be invested in America as opposed to building indoor ski slopes in the deserts of Arabia.

This growing abundance of renewable fuel and feed means more Americans will be at work in rural areas all across the country. The continued growth of the industry also means that the impressive increases in the produc-tivity of American farmers will fi nd new markets and a fair market price.

In addition to increases in production, ethanol pro-ducers are improving their effi ciencies. Whether it is bet-ter use of water resources, the creation of new co-prod-ucts, or the development of new energy technologies to displace fossil fuels, a wave of innovation is sweeping over today’s industry that is far too often underappreci-ated.

Next-generation technologies are providing even more optimism. Switchgrass, wood chips, corn cobs and a host of other products are joining grains as a source of domestic renewable fuel. Cellulosic ethanol facilities are being planned throughout the country and are poised to take their research from lab bench to com-mercial scale.

All of these exciting advancements will need a home. Our industry has worked hard to build the market for ethanol. The push for higher level blends will ulti-mately be successful, we believe, but the industry has not waited for this decision. We have worked to expand E85 infrastructure. We have launched new initiatives, such as the Blend Your Own program, to expand blend-er pump infrastructure.

And, we have had some fun along the way. We have taken our message about the future of this industry to new audiences. We are working with our colleagues across the globe through the Global Renewable Fuels Alliance to educate world leaders on the value of re-newable fuels to every country. We took our message straight to small engine owners at the annual Sturgis, S.D., motorcycle rally.

I will be the fi rst to admit that the challenges we face as an industry are many. But it is equally important we take stock of the accomplishments we have achieved and feel pride in the strides we have made.

America’s ethanol producers are leading this coun-try toward a new, renewable energy future. All of the buzz about new, revolutionary technologies would not have been possible without the success and continued innovation of the ethanol industry we have today.

On the whole, our cup runneth over, and for that we can all be thankful.

Dinneen

Bob DinneenPresident and CEO

Renewable Fuels Association


RFA UPDATEwww.ethanolRFA.org

Summer photo contest winners selectedThe RFA’s Flex-Fuel Challenge Summer Photo Con-

test, designed to engage consumers on the use of etha-nol by asking them to share their favorite summer picture, received more than 1,100 submissions in June and July.

The Grand Prize was awarded to Rich Johnson of Omaha, Neb. His photo, “Smelling the Wildfl owers,” was judged on creativity as well as quality. For his effort, John-son received a $1,000 fueling card.

Heather Litton of Westerville, Ohio, received the Most Voted award for her photo submission. She was awarded $100 in fuel.

“Educating consumers is all about engaging them where they live and in ways that motivate them to act,” said Robert White, RFA director of market development. “Based on this contest alone, tens of thousands of Ameri-cans were exposed to ethanol-related information, many for the fi rst time.”

This year’s summer photo contest is the second in a series of similar promotional events by the RFA. The fi rst involved a challenge to college students to explain what renewable meant to them, either by video or picture. Submissions are currently being accepted for the Favorite Photo from Sturgis contest.

Educating the next generation of biofuel visionaries

The RFA and the Renewable Fuels Foundation part-nered with teachers and the National FFA Organization to provide tens of thousands of high school students informa-tion about the opportunities available to them in the fi eld of renewable fuels. In addition, the RFF is offering scholar-ships for students to attend the February National Ethanol Conference in Orlando, Fla., free of charge.

“America’s energy future rests squarely in its high school classrooms today,” said Mike Jerke, chairman of the RFF and general manager of Quad County Corn Pro-cessors in Galva, Iowa. “It is these future scientists, engi-neers and dreamers that will supply both the manpower as well as the brain power necessary to break our addiction to fossil fuels. We are proud to be partnering with the Na-tional FFA to make these students aware of the vast oppor-tunities offered by a robust renewable fuels industry.”

The curriculum was designed to provide FFA mem-bers—many who already have an understanding of ag-riculture and other related industries—with details about the nature of the renewable fuels industry. The curriculum focuses on the ethanol production process, the benefi ts of ethanol production, the interplay between renewable fu-els and agriculture, and a wide range of other issues. The lessons are available through the Team Ag Ed Learning Center, a website designed to provide agriculture teach-ers with new and exciting instructional materials, tools and resources.

The RFF is offering 10 scholarships to cover the cost of the registration fee for the National Ethanol Conference. Students will be required to submit an essay detailing how attending the NEC will benefi t their academic goals, outline their experience with renewable energy industries, supply a copy of school transcripts, and have a grade point aver-age of 3.0 or better. The offer is only open to U.S.-based students and non-commercial individuals.

The application deadline for students is Nov. 30. Stu-dents will be responsible for costs incurred traveling to/from and lodging at the NEC. More information is available by emailing [email protected].


Fourteen Brazilian or-ganizations representing the agribusiness, planted forests and bioenergy sectors recently announced the creation of the Brazilian Climate Alliance. The group’s goal is to contribute solid proposals for the negotia-tions related to the United Na-tions Framework Convention on Climate Change. The group

stresses that Brazil, with more than 40 percent of its makeup originating from renewable sources, should play a leading role in global climate discus-sions. The Alliance’s position paper highlights the global na-ture of the challenges linked to climate change as a key factor for organizations to unite be-hind a single effort.

The Indiana Corn Market-ing Council, the Indiana Soy-bean Alliance and the India-napolis Colts have teamed up to promote biofuels. The new partnership, known as Hoosier Horsepower, aims to educate Indiana citizens on the ben-efi ts of biofuels. Colts tight end Dallas Clark will serve as the program’s spokesman.

The Hoosier Horsepower program will include educa-tional components designed for elementary, middle school and high school students. Stu-dents participating in the pro-gram will have the opportunity

to win prizes, including schol-arships and a classroom visit from the Colt’s mascot, Blue. As part of the program, for each catch Clark makes during the season, the Colts will do-nate $100 on behalf of Indiana corn and soybean farmers to the program’s scholarship fund. More information on the pro-gram is available at www.colts.com/HoosierHorsepower.

The National Science Founda-tion has granted a $3.72 million grant to North Carolina State University for a four-year project aimed at understand-ing the role of lignin in trees. According to the university, the study will be the most comprehensive analysis of lignin ever under-taken. A team of 38 research-ers began work on the project Sept. 15 and will conduct ex-periments on a group of more than 10,000 black cottonwood trees.

In order to understand the lignin biosynthesis pathway, researchers will fi rst eliminate

each of the tree’s 33 pathway genes, one at a time. After determining each gene’s role in pro-ducing lignin, the team will then turn the information into a mathemati-cal model to cre-ate equations that determine how to create specifi c types

and levels of lignin for partic-ular uses. The study’s principal investigator, Vincent Chiang, said this type of systems ap-proach could be used for any biological process in any plant and could guide strategies for improved plant productiv-ity for materials, energy and food.

Indianapolis Colts promote biofuels

NC researchers use switchboard approach to study lignin

BIObytes Ethanol News Briefs

VTT Technical Research Centre of Finland, northern Europe’s largest multi-techno-logical applied research organi-zation, is spearheading an €8.2 million ($12 million), four-year project to develop enzymes that can be used to cut ligno-celluloses from agricultural and forestry waste feedstocks into sugar compounds suitable for ethanol production. The novel high-performance enzymes and microorganisms for conversion of lignocellulosic biomass to bioethanol (NEMO) project will also focus on tailoring the

metabolism of microbes to be capable of producing large volumes of ethanol from such biomass sugars economically and effi ciently.

Eighteen participants from 17 European nations will par-ticipate in the project, including Sweden-based Sekab E-Tech-nology and Switzerland-based Syngenta Crop Protection AG. The EU has provided €5.9 mil-lion for the project, which, if successful, will benefi t the EU’s goal of replacing 5.75 percent of traffi c fuel with biofuels by 2010.

European collaboration to focus on enzyme development

Brazilian organizations unite to fi ght climate change

Seventeen European nations will participate in a project to develop enzymes for cellulosic ethanol production.

Vincent Chiangco-director, forest biotechnology groupNorth Carolina State University


The Memphis Bioworks Foundation has completed a study titled “The Potential of Sweet Sorghum in the Delta Region.” The report serves as a macrocosmic analysis of the potential for sorghum as a biofuel feedstock in areas sus-ceptible to drought, or requir-ing low input. Conducted by the Battelle Technology Part-nership Practice, the study in-

cluded participation by com-panies in Arkansas, Kentucky, Mississippi, Missouri and Ten-nessee. The study concluded the Mississippi Delta Region, including Memphis, can secure a key leadership role in the emerging multi-billion global bioeconomy by leveraging its assets and attracting technol-ogy partners from outside the region.

The Alternative Fuel Trade Alliance, a group composed of the Renewable Fuels Asso-ciation, the National Biodiesel Foundation, the Propane Edu-cation & Research Council, the Clean Vehicle Foundation and ASG Renaissance, received a $1.6 million U.S. DOE grant to support educational awareness aimed at Clean Cities coordina-tors and related stakeholders.

Specifi cally, grant funds

will be used to train high-level public spokespeople; increase awareness of sustainability as it pertains to the stated technolo-gies; increase the number of states that enforce fuel qual-ity standards; train stakeholders on fi re safety issues; provide an alternative fuels forum for col-lege students, and increase the overall availability of domestic alternative fuels.

Alternative Fuel Trade Alliance receives DOE grant for Clean Cities

Genome British Columbia is funding two research proj-ects aimed at increasing the production of biofuels from British Columbia’s biomass by utilizing lodgepole pines killed by pine beetle infestation. Ap-proximately 36 million cumu-lative acres of trees have been affected by the beetles.

The fi rst project, focused on optimizing the trees for ethanol production, is be-

ing co-funded by Novozymes A/S and the Canadian Natu-ral Sciences and Engineering Research Council. The second project will focus on identifying genetic characteristics of wild poplars. The U.S. DOE Bio-energy Sciences Center, USDA Forest Products Laboratory, and Sweden-based Sveriges Lantbruksuniversitet Energyp-oplar will co-fund the project.

Researchers study infested pines, poplarsMemphis Bioworks concludes sweet sorghum study

Employees in Microbiogen’s laboratory work to develop the company’s proprietary non-genetically modifi ed yeast.

Microbiogen, an Aus-tralia-based yeast develop-ment company, was recently awarded a $2.5 million grant under the Australian govern-ment’s Second Generation Biofuels Research and Devel-opment Program. The fund-ing will be used to help the company further develop its new non-genetically modifi ed yeast, which is cable of utiliz-ing both C5 and C6 sugars. “Microbiogen’s yeast is an im-

proved variant of yeast that grows effi ciently on xylose, ferments glucose and tolerates harsh industrial conditions,” Microbiogen CEO Geoff Ball said. To date, the yeast strain has been tested on a variety of cellulose-rich biomass feed-stocks, including corn stover, sugarcane bagasse, pine waste and newspaper. The company is in negotiations with poten-tial collaborators to complete testing on an industrial-scale.

Microbiogen develops yeast to utilize C5, C6 sugars

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The Mississippi Delta region could take a lead role in sorghum-to-ethanol production.


EPM’s biannual fuel ethanol plant map for fall 2009 demonstrates improving con-ditions for ethanol producers nationwide. Imperative to the ethanol industry’s over-all well-being, more plants are online and producing than earlier this year. The spring map included 36 U.S. plants that were not producing, accounting for 2.17 billion gal-lons of annual production capacity. As the markets have begun to correct and com-modity prices came back in line with his-torical averages, the number of U.S. plants not producing ethanol has dropped to 24, representing 1.45 billion gallons of annual production capacity.

As of Sept. 16, total U.S. ethanol pro-duction capacity was 11.56 billion gallons from 183 producing ethanol plants. An additional 1.1 billion gallons of capacity is represented by 10 plants currently under construction. At that time, only 169 plants were reported to be producing, with a total capacity of 10.4 billion gallons.

In Canada, the numbers are much more consistent. Between the spring and fall plant maps, one production facility came on line, bringing Canada’s total production capacity

to 1.4 billion liters per year (approximately 370 MMgy). The Canadian industry, while still signifi cantly smaller than the U.S. indus-try, reported no plants ceasing production as of Sept. 16. In total, 85 percent of the North American ethanol industry is pro-ducing, fi ve percent of the total potential capacity is under construction, and only 10 percent is not producing.

For the fi rst time, the fall plant map includes the scope of the industry build-out between 2002 and 2008. Looking back, between 2002 and 2004, ethanol plant con-struction in the U.S. represented a month-to-month average of approximately 500 million gallons of potential capacity. EPM’s plant construction list over the same time period averaged just 13 plants per month, and 12 plants per year announcing fi nished construction and operation.

By comparison, from 2005 to 2008, average month-to-month capacity rose to 3.1 billion gallons of potential capacity. The plant construction list averaged 52 plants under construction each month and com-pletions rose to 32 per year. Between 2002 and 2004, the industry added an average

production capacity of 344 million gallons per year. From 2005 to 2008, that number leaped to 2 billion gallons per year.

Also included on the fall plant map is a list of the fi ve top producing companies in the fuel ethanol industry. Between March and September, two new companies entered EPM’s Top 5 list. Abengoa Bioenergy was replaced by Hawkeye Growth/Hawkeye Re-newables in the fourth position and Green Plains Renewable Energy Inc. took the fi fth place slot from The Andersons Inc. Archer Daniels Midland Co. continues to be North America’s largest ethanol producer, fol-lowed by Poet LLC and Valero Renewable Fuels LLC, which launched itself into the Top 5 this spring after purchasing most of VeraSun Energy Corp.’s bankrupt plants.

Every subscriber of EPM will receive a complimentary plant map. For additional information on current production levels in the ethanol industry as well as timely plant updates, EPM’s plant list and map are avail-able online at www.ethanolproducer.com.

—Craig A. Johnson

Plants return to production after idle summer

According to EPM’s fall plant map, total U.S. ethanol production capacity is nearly 12 billion gallons.


New Hampshire-based Mascoma Corp. recently announced it has entered into a feedstock processing and lignin sup-ply agreement with Chevron Technology Ventures, a division of Chevron U.S.A. Inc.

Under the agreement, CTV will pro-vide Mascoma with a variety of lignocellu-losic feedstocks. According to a Mascoma spokeswoman, it is expected that these feedstocks will consist primarily of wood-chips, agricultural waste materials and en-ergy crops, such as switchgrass.

Mascoma will convert the feedstock material supplied by CTV into cellulosic ethanol at the company’s 200,000 gallon per year demonstration-scale facility in Rome, N.Y.

The fi rst step in Mascoma’s production process involves mildly heating and grind-ing up the lignocellulosic material. This sep-arates the feedstock’s fi bers, making it eas-ier for enzymes to digest the material. The company’s proprietary genetically modifi ed microbes are then added to the biomass material. The material is then processed

to produce sugar, which is fermented into ethanol. According to Mascoma’s spokes-woman, the technology is unique because the company’s microbes are able to break down cellulose into sugar as well as ferment those sugars into ethanol. Lignin is created as a byproduct of Mascoma’s cellulosic eth-anol production process.

Under the agreement formed with CTV, Mascoma will supply the lignin byproduct to CTV for evaluation and testing. Accord-ing to Chevron spokesman Russell Johnson, CTV is evaluating a variety of feedstock conversion technologies that could poten-tially be used to produce advanced biofuels. The lignin supplied by Mascoma will be one feedstock used to evaluate those technolo-gies. According to Johnson, Chevron is pri-marily interested in developing technologies for biofuels that are compatible with cur-rent vehicles and infrastructure.

Mascoma’s spokeswoman specifi ed that CTV’s experiments will likely focus on evaluating the possibility of converting lignin into petroleum replacement fuels,

such as renewable jet fuel and diesel prod-ucts. Although the lignin research will be conducted at CTV’s laboratory, she said CTV and Mascoma will be working collab-oratively on the project.

“This is an important moment for us at Mascoma,” said Jim Flatt, company president. “The upgrading of our byprod-uct lignin to high-value transportation fuel is an important step in our effort to prove the effectiveness of integrated biorefi ner-ies. It has been our goal all along to make our process as integrated and sustainable as possible.” The company is hopeful that the technology developed with CTV will be suitable for a wide variety of feedstocks, a spokeswoman said.

Mascoma is developing a full-scale cel-lulosic ethanol production facility in Kin-ross, Mich. Groundbreaking on the plant is planned for the fi rst half of 2010 with com-mercial production of cellulosic ethanol to begin in early 2013.

—Erin Voegele

Chevron to supply lignin feedstock to Mascoma

Under its agreement with Chevron Technology Ventures, Mascoma Corp. will convert feedstocks provided by CTV into ethanol and lignin at the company’s 200,000 gallon per year demonstration-scale facility, which is located in Rome, N.Y.

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The projected high per-gallon cost of many cellulosic ethanol tech-nologies has been a primary factor impeding further development of the industry. To remain competitive in the marketplace, cellulosic ethanol com-panies must be able to produce ethanol at or below the cost of gasoline.

Connecticut-based American Energy Enterprises Inc. has developed a cellulosic ethanol process that is expected to achieve this benchmark. The company is developing a facility that will utilize waste wood and is expected to produce ethanol at between 80 cents to 85 cents per gallon.

The project was launched several years ago, but experienced some de-lays that can be attributed to the current economic crisis. The company is currently awaiting approval of a $50 million U.S. DOE grant. According to Christopher Brown, American Energy Enterprises’ chairman, the agency is expected to award recipients funds during November and December.

Brown estimates that American Energy Enterprises’ facility could break ground as early as October and be operational by mid-2010. While the facility will eventually have a production capacity of 80 MMgy to 100 MMgy, it will be constructed in a modular format and feature up to 10 trains of production. Each train will be able to produce approximately 8

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American Energy Enterprises Inc.’s proposed ethanol facility will utilize local waste wood products to produce low-cost cellulosic ethanol.

MMgy to 10 MMgy of ethanol. The facility’s fi rst train of produc-tion is expected to be operational by August 2010. Brown said nine additional trains would be added at a rate of one per month.

Once operational, the facility will utilize feedstocks that are in-digenous to the New England region, including waste hard and soft woods that are currently disposed of in landfi lls. Brown said feed-stock procurement is a primary factor in the ability to produce low cost cellulosic ethanol, and pointed out waste wood disposal fees at local landfi lls currently cost companies between $17 per yard and $20 per yard. “Having that material brought to us with low cost helps [maintain] low upfront [expenses],” Brown said. In addition, he con-tinued, the company’s dilute acid hydrolysis process also features low overhead costs. While it will primarily employ waste wood as feed-stock, Brown said his company is also working with local farmers to revitalize former farmland and use it to grow energy crops, such as miscanthus and switchgrass, which could also be used as feedstock in the future.

The company is in the process of licensing yeast developed by Purdue University researcher Nancy Ho. According to Brown, the yeast licensed from Purdue is expected to dramatically increase ethanol yields. While the use of other yeast strains would allow the company to produce 30 gallons to 50 gallons of ethanol per ton of feedstock, Purdue’s yeast are expected to produce between 80 gallons

and 100 gallons of ethanol per ton of feedstock. The high yields achieved through the use of Purdue’s yeast will further help to re-duce the per-gallon cost of American Energy Enterprises’ ethanol.

Various off-take agreements for the company’s byproducts are also expected to add to the company’s bottom line. According to Brown, off-take agreements have already been formed to sell the fa-cility’s carbon dioxide, furfural and gypsum byproducts. In addition, the facility will feature a 65 megawatt cogeneration system that will be powered by the facility’s lignin byproduct. Additional waste mate-rials produced by the plant will be used to produce a clean fertilizer that will be donated back to the farmers who supply energy crop feedstocks to the company.

In addition to developing cellulosic ethanol production facili-ties, Brown said American Energy Enterprises also plans to help bring additional E85 availability to New England. In the future, the company expects to explore the possibility of producing ethanol-blended home heating oil. Brown said he intends for his company’s cellulosic ethanol production facility to serve as a research center, offering student interns real-world experience in biomass processing and major universities a facility to apply the biomass technologies they develop.

— Erin Voegele

Waste-to-ethanol projects move forward

Several projects that aim to produce ethanol from waste mate-rials have gained traction in recent months. In the southwest region of the U.S., California-based Fulcrum BioEnergy Inc. is developing a project that will use a proprietary gasifi cation process to produce ethanol from synthesis gas (syngas).

Fulcrum’s technology transforms post-recycled municipal solid waste (MSW) into syngas, which is composed of carbon monoxide, hydrogen and carbon dioxide. A proprietary catalytic technology is then used to convert the syngas into ethanol.

Fulcrum recently announced that it has successfully proven its catalytic technology at its North Carolina pilot facility, the Turn-ingPoint Ethanol Plant. The company is developing a 10.5 MMgy commercial-scale facility near Reno, Nev. According to Karen Bun-ton, Fulcrum’s administration manager, construction of the Sierra Biofuels Plant is expected to begin in early 2010.

Indianapolis, Ind.-based Agresti Biofuels is also developing an ethanol plant that will utilize MSW. The proposed facility, which will be located in Pike County, Ky., was originally scheduled to break ground in late 2008. However, construction was delayed due to the economic crisis. According to Zbigniew “Zig” Resiak, Agresti’s

LanzaTech NZ Ltd.’s pilot facility, located adjacent to the BlueScope Steel plant in Glenbrook, New Zealand, produces ethanol from waste industrial gases.

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program director, construction is scheduled to begin as soon as fi nancing is complete, which he estimates will in late 2009 or early 2010.

The proposed facility, which will be built adjacent to the exist-ing Pike County landfi ll, will be constructed in phases, initially pro-ducing approximately 1.5 MMgy, later scaling up to 25 MMgy.

According to Resiak, Agresti and Pike County have partnered to complete the project. The county has provided Agresti with the landfi ll-adjacent site, which it is also preparing for construction through grading and utilities work. The county will also be the fa-cility’s sole feedstock provider.

Agresti’s process utilizes four well-established technologies which Resiak said will be combined for the fi rst time in one facility. In the fi rst step of the process, MSW is dumped into a pool of wa-ter, where it is sorted into three groups: recyclables, cellulosic mate-rials and metals. The cellulosic materials are converted into sugars using a weak acid hydrolysis process that utilizes gravitational pull vessels. The extracted sugars are then fermented into ethanol. In addition to the project in Kentucky, Agresti is pursuing similar cel-lulosic ethanol projects in Hawaii and Vietnam.

In New Zealand, LanzaTech NZ Ltd. has developed a propri-etary fermentation technology that can be used to produce ethanol using waste industrial gases or biomass-based syngas. According to LanzaTech’s co-founder Sean Simpson, industrial waste gases,

such as those that result from steel processing, contain high con-centrations of carbon monoxide. Carbon monoxide and hydrogen are also the main components of syngas, which can be created by gasifying any biomass resource, including MSW, organic industrial waste or waste wood.

LanzaTech has developed a proprietary non-genetically modi-fi ed fermentation microbe that can be used to convert the carbon monoxide and hydrogen components of these gas sources into eth-anol. “The carbon component is used as a food source for the pro-prietary LanzaTech microbe during the biofermentation process,” Simpson said. “The microbe uses this energy to produce ethanol.”

LanzaTech has tested its fermentation technology at a pilot facility located adjacent to the BlueScope Steel plant in Glenbrook, New Zealand. According to Simpson, LanzaTech expects to have the technology installed on a commercial scale at an established industrial facility by 2013.

Golden, Co.-based GeoSynFuels LLC is also working to devel-op a MSW-to-ethanol process. The company formed a joint research agreement with CleanTech Biofuels Inc., under which CleanTech will provide samples of MSW-derived feedstock for GeoSynFuels to use in its proprietary enzymatic hydrolysis process.

—Erin Voegele

29

The public commentary period on the U.S. EPA’s proposed implemen-tation of the second stage of the renewable fuels standard (RFS2) offi cially closed Sept. 25. The agency, which is now reviewing the thousands of com-ments submitted in response to its proposal, is scheduled to issue its fi nal rule by Dec. 1, although most affected parties believe it will delay its rule until 2010.

Many ethanol-related groups fi led fi nal-day comments as a way to sum-marize the many issues being confronted by the complex rule. The most-ad-dressed issue was, not surprisingly, the inclusion of indirect land use change (ILUC) in the EPA’s lifecycle analysis for biofuels.

The American Coalition for Ethanol requested that the EPA eliminate ILUC from the rule entirely and said it could not support the rule unless this is done. “By breathing life into the controversial ILUC theory, EPA is setting a dangerous precedent for future sources of biofuels,” ACE Executive Vice President Brian Jennings said. “We recommend that EPA should insist upon greater scientifi c consensus and real-world data of so-called ILUC effects from biofuels before moving forward to apply them to the fi nal rule.”

US EPA reviewing public RFS2 comments

The U.S. EPA is considering thousands of comments on its proposal for implementing the second stage of the renewable fuels standard, as legislated by the Energy Independence and Security Act of 2007.

The Renewable Fuels Association asserted that Congress nev-er intended for ILUC to be considered in the EPA’s rule, and the agency is overreaching its authority by making those inclusions.

Many commenters addressed the EPA’s glaring exclusion of petroleum-based fuels from its ILUC analysis. Minnesota Depart-ment of Agriculture Commissioner Gene Hugoson said, “To em-ploy these enormous and game-changing results against biofuels without applying similar rigor to petroleum fuel impacts seems a very shaky foundation on which to build a renewable fuel standard for future generations.” Jennings said the EPA’s exclusion of pe-troleum’s indirect greenhouse gas emissions as a result of energy spent by the U.S. military to protect oil supplies and transporta-tion routes is “remarkable and, frankly, bizarre. … To ignore these petroleum-related indirect emissions means that EPA’s comparison of emissions from biofuels versus petroleum is at best intellectu-ally dishonest and at worst a deliberate attempt to obfuscate the truth.”

Jennings said the EPA, with a “strong backing of groups who do not want to see biofuels succeed,” gave credence to a contro-versial and untested ILUC theory masterminded by anti-ethanol attorney Tim Searchinger. Jennings said Searchinger devised ILUC to be a market-induced ripple effect that is predicted to occur as a result of the use of increased volumes of corn ethanol and doesn’t

consider that farmers in developing nations and remote regions make decisions based on their immediate need to feed their families rather than corn futures prices in the U.S.

Growth Energy President Tom Buis specifi cally addressed the grandfather provision of the proposed rule as a key issue. “EPA needs to follow the law, and their current proposal would subject today’s production facilities to a confusing array of new require-ments that would make it very hard to recover the value of the eth-anol industry’s billions of dollars of investment in current ethanol plants,” he said. Growth Energy maintains that corn ethanol plants that were in operation or under construction in 2007 be allowed to operate fully without being hindered by new regulations.

Members of the ethanol industry do not oppose a delayed fi -nal rule from the EPA but stressed that 2010 volume requirements should be set as soon as possible. The RFA reminded the agency that the EPA has a statutory mandate to ensure RFS volumes are met each year, including 2010, regardless of the implementation of a fi nal RFS2 rule. Jennings urged the EPA to enforce volumetric requirements as soon as practicable, but in a way that does not ap-ply ILUC, adding, “It is more important to our members that the RFS2 rule is done right than done quickly.”

—Kris Bevill

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Minnesota Project releases biofuels update

The Minnesota Project recently released a study titled “Transporta-tion Biofuels in the United States: An Update,” which details the prog-ress made in cellulosic ethanol and corn ethanol research, and discusses biofuels generally. The study focused on four main cellulosic feedstocks, including: corn stover, miscanthus, switchgrass and wood.

Dealing with many of the most divisive issues in the public debate over ethanol, the report specifi cally rebuts claims made regarding etha-nol’s energy effi ciency and water usage, as well as land use theory and food versus fuel arguments.

Bringing to light facts about biofuels, the study notes a University of Nebraska-Lincoln study which found that for every unit of fossil energy input, 1.5 units to 1.8 units of energy are created in the form of ethanol. The study also pointed out that replacing natural gas with biomass com-bined heat and power facilities dramatically improves the energy ratio.

According to the report, the ubiquitous food versus fuel debate highlights the confl ation of entangled facts that make two separate is-sues seem like corollaries. In 2007 and 2008, along with rising infl ation, corn prices constantly increased, leading casual observers to conclude the price increase was caused by ethanol production. Citing the Congressio-

According to a recent Minnesota Project study, corn ethanol has made notable technological advancements in recent years, but cellulosic ethanol is primed to improve the fuel’s environmental impact even more.

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nal Budget Offi ce, the study stated “the rise in price of corn resulting from expanded ethanol production contributed between 0.5 and 0.8 percentage points of the 5.1 percent increase in food prices over that time.”

Along with food versus fuel, the indirect land use change theory is another thorny issue in the public’s perception of ethanol. The Minnesota Project concluded, “For the sake of effectively addressing global warming, we must have accurate analysis of the total carbon impact of biofuels. Just as ignoring some components’ contributions to carbon emissions would limit the effectiveness of biofuels in reduc-ing greenhouse gas emissions, so too would overestimating the carbon impact of biofuels production by inhibiting the growth of replace-ment fuels for petroleum and transportation fuels.”

A key issue for many in the ethanol industry is the use of corn stover to produce ethanol. The report viewed the practice negatively, as corn stover provides needed nutrients for healthy soil. According to the report, “harvesting of corn stover holds the greatest poten-tial for negatively impacting soil erosion and water quality…. Stover also helps prevent soil erosion by slowing surface water runoff and increasing water retention. Removing stover from farmland has the potential to harm soil productivity and increase erosion which can then reduce water quality through increased sedimentation and nutri-ent runoff.”

In addition to soil erosion, water use has become a primary concern for ethanol production in areas which experience frequent droughts, or where concerns over consumption or pollution may hin-der construction and operation. The report noted that in 2005, the ethanol production process required an average of 4.2 gallons of wa-ter to produce 1 gallon of ethanol, with most of the water being lost during cooling. “Corn ethanol facilities have made water effi ciency ad-vancements in recent years to cut water usage by 20 percent or more. New technologies that make use of gray water for cooling purposes or recycle water for reuse could dramatically cut the water demand of corn ethanol facilities to below the average 2.25 gallons of water that petroleum refi neries consume to produce 1 gallon of gasoline.”

And with cellulosic ethanol on the horizon, the gains are even greater. “Cellulosic biofuels, in comparison, have lower estimated wa-ter demands. Many technologies extract water from biomass material as part of the process of extracting the cellulose…. Some technolo-gies have even shown promise to produce a net excess of water.”

The Minnesota Project is a nonprofi t organization that promotes the sustainable production and equitable distribution of energy and food in communities across Minnesota.

—Craig A. Johnson


Brazil introduces sugarcane restrictions

On Sept. 17, Brazil President Luiz Inácio Lula da Silva proposed a bill that, if passed, will greatly restrict land available for sugarcane farm-ing and processing in the world’s largest sugarcane-producing country. Promoted as an “unprecedented initiative,” the bill would effectively make 92.5 percent of Brazilian land off-limits to the sugarcane industry. The bill was drafted in response to fi ndings from the National Agro-Ecological Zoning for Sugarcane (ZAE Cana) study, which was the fi rst study conducted in Brazil that incorporated economic and social consid-erations into its sustainability model.

“Environmental preservation is a top priority of the Brazilian gov-ernment,” said Celso Manzato, environment unit chief of the Brazilian Agricultural Research Corp. “Sugarcane is an integral crop for Brazil’s domestic food supply, renewable energy market and our national ex-ports, and therefore there is a great demand for growth. These measures have been proposed to ensure that sustainable development models are in place to promote the responsible development of this industry.”

Specifi cally, areas of native vegetation, as well as all protected lands in the Amazon, Pantanal and Upper Paraguay River Basin regions would be restricted from use. Expansion of sugarcane production plants would

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Proposed changes to Brazilian policy would greatly limit available areas for sugarcane production expansion in an attempt to reduce the crop production’s environmental impact.


be limited to unrestricted areas that do not require irrigation and have slopes less than 12 percent, which would allow for mechanized har-vesting and eliminate the need for crop burning to clear the ground. Credit extension policies will favor expansion of sugarcane facilities to areas that consist of underused or degraded pasture land. Cur-rently operating industrial facilities will be granted exemptions from the proposed policy changes.

According to the Brazilian government, the proposed criteria leave approximately 64 million hectares (158 million acres) available for sugarcane production. The sugarcane industry currently utilizes approximately 8.89 million hectares for sugarcane fi elds.

The Brazilian Sugarcane Industry Association (UNICA) said while it supports the ZAE Cana concept, various aspects of the pro-posal demand greater analysis. The association said it was not allowed to review the full proposal prior to its release. One specifi c concern that UNICA has declared needs to be addressed involves defi ning the concept of food security, since sugarcane is used to produce both food and energy. “The proposed approach could lead to restrictions in growing sugarcane that would have the reverse effect in terms of food security, by restricting the production of additional sugar,” the association stated.

While the association will continue to analyze the proposal, members welcome the restrictions on deforestation in protected ar-

eas and reiterate that UNICA’s stance has historically argued there is no need to clear forests for sugarcane expansion. Current sugarcane production area occupies 2.4 percent of the country’s arable land, and only 1 percent of the land has been dedicated to ethanol produc-tion, according to UNICA. Of the 1 percent of arable land used for ethanol production, the country has benefi ted by supplying 50 per-cent of its fuel needs with domestically produced ethanol.

The president’s proposal came during a tumultuous sugarcane harvest season. Brazilian producers had to endure weeks of heavy rains at the height of harvest, which resulted in a signifi cant loss of volume as well as quality of the crop. September predictions es-timated an overall 20 million ton loss for the 2009 harvest season as compared to 2008. However, domestic demand for ethanol has steadily increased as more fl exible fuel vehicles (FFVs) have entered the market and as ethanol costs have managed to stay competitive with gasoline. UNICA reported that domestic hydrous ethanol sales rose 24.4 percent in August compared to the same month last year. Brazil’s National Association of Automobile Manufacturers reported that 88 percent of light vehicles sold in-country are FFVs and pre-dicted that 65 percent of Brazil’s entire fl eet will be fl ex-fuel capable by 2014.

—Kris Bevill

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t is often said that American consumers can move the world’s economy with their spending decisions. In most cases, there is federal policy to help consumers make well-informed decisions, based on knowledge about the product’s quality, its maker or its origin.Country-of-origin labeling is an effective way to inform

consumers. Almost all consumer products, from clothing to cars, from fresh tomatoes to canned tuna, have a feder-ally mandated label telling the consumer the identity of the country of origin. That label ensures consumers can make informed decisions about how to spend their dollars—deci-sions that sometimes have major implications.

It is time for country-of-origin labeling standards to be applied to the automobile fuel market in the United States. Consumers should know at the pump whether the gasoline they are pumping is derived from foreign oil.

Why is this important? Because, as concluded in a widely available study conducted by the Center for Forensic Economics, every dollar spent on foreign oil means the U.S. economy loses as much as $1.55 to foreign economies. That massive transfer of wealth amounts to more than $1 billion per day leaving the United States— as much as $500 billion when gasoline prices spike. On top of that $1 billion-per-day leak from our economy, taxpayers must also pay an average of $50 billion annually for the costs of protecting oil shipping routes, according to a study by Institute of the Analysis of Global Security.

This is the true cost of our nation’s addiction to foreign oil, and it is hidden from consumers.

By mandating country-of-origin labeling on automotive fuel, consumers will be able to fi nd out if their gasoline is

refi ned out of oil from Canada, Venezuela, the United Arab Emirates, or whether it includes domestically produced gas-oline. It can be labeled as simply as: “This gasoline is refi ned from oil imported from Canada and Niger, and is blended with ethanol made in the United States.”

Market transparency based on country-of-origin label-ing is a key to changing spending habits and increasing de-mand for ethanol.

American ethanol is the only existing alternative to gas-oline today that is creating jobs in the United States, while cutting greenhouse gas emissions and reducing our depen-dence on foreign oil. Country-of-origin labeling for fuel will let consumers know if they are pumping a domestically pro-duced fuel, such as ethanol, or fuel from a foreign source.

Gen. Wesley Clark, Growth Energy’s co-chairman, un-veiled the labelmyfuel.com initiative at the Farm Progress Show in Decatur, Ill., where it was warmly received by farm-ers, ethanol producers and the media. Growth Energy has already begun talking to lawmakers in Washington, D.C., about a bill that would establish standards for country-of-origin labeling on fuel. It is our intention to move on this as soon as we can, but we expect stiff resistance from our op-ponents, who would do anything to put ethanol out of busi-ness and fully intend to keep consumers in the dark about the ramifi cations of their spending choices.

The American ethanol supporters who make up Growth Energy intend to fi ght for country-of-origin labeling on fuel. It is an idea whose time has come.

Tom Buis is the CEO of Growth Energy. Reach him at [email protected] or (402) 932-0567.

Time has Come to Label Fuel with Country of OriginBy Tom Buis

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lmost one-quarter of the U.S. is covered in timberland—land growing a commercial timber crop that can be used to make lumber, paper, energy and other products. Throughout the Southeast, Northeast, Great Lakes region and

parts of the West, forests are the dominant land use.This fact hasn’t escaped the attention of cellulosic

ethanol and advanced biofuel developers. As some have focused on switchgrass, corn stover and other agricultural crops and residues, others have pursued wood as their feedstock of choice. Wood is abundant, and more than 70 percent of the timberland in this country is in private hands, providing ample opportunity to harvest wood in a sustainable manner.

However, forest-derived wood has some very real dif-ferences from agricultural feedstocks. Project developers, fi nancial backers and others need to be aware of and ac-count for these differences.

Wood has many uses. In addition to lumber and paper production, there are long-proven and established technologies that use biomass for thermal applications (heat) and electricity production. Cellulosic ethanol proj-ects need to fi nd locations where competing with existing facilities is economical.

There is no “harvest imperative” for wood. Unlike crops that have to be harvested at a certain time in order to capture value, wood can be left “on the stump” for de-cades if landowners are unhappy with the price offered for their wood. While left alone, the wood continues to grow and add value, providing a landowner as many reasons not to harvest as there are to harvest.

Wood is not a fungible commodity. There is a wide variety of species, each with unique characteristics that may work well in some conversion processes and poorly in others. Some facilities can take a mix of species while others are species selective. Some technologies require a clean, bark-free chip; others can utilize the tops, limbs and other parts of a tree less desired by competing users.

Wood does not have a transparent marketplace with known pricing. Unlike corn or oil, wood is bought and sold the old-fashioned way—with wood buyers fi nd-ing loggers and landowners willing to shake hands on a deal. This is done at small sawmills buying a few truck-loads of wood each day and at large pulp and paper mills using millions of tons of wood each year. While there is much to admire in a system where two individuals develop long-standing relationships in order to conduct business, it leaves questions for fi nancial backers of any project. What will the price be? How do I know that someone can deliver at this price? What happens if they don’t? Long-term, known price contracts have not been the norm in the forest industry, sometimes causing bankers to take a step back from an otherwise strong project.

Even with its challenges, wood provides great oppor-tunities for cellulosic ethanol projects. Wood is available year-round, and does not degrade quickly after harvest. The pulp mills and biomass electricity industry have paved the way by supporting the harvesting equipment and sup-ply infrastructure that new projects can utilize. More than 11 million U.S. landowners have timberland, most of them family owners. The emerging energy markets could be coming at an opportune time in many areas, providing new markets as old ones fade.

Many developers looking at wood projects see oppor-tunity, and rightly so. Some of them assert that landown-ers will be willing and able to grow, harvest and transport wood to facilities for little or no money. This, of course, is false. Cellulosic projects that understand their wood needs, their competitors, pay a fair price for wood, and position themselves as a stable and reliable market will have a strong chance for success. Others may have a press release announcing the project as their fi rst and last activity.

Eric Kingsley is a vice president at Innovative Natural Re-source Solutions LLC. Reach him at [email protected] or (207) 772-5440.

Wood Supply Offers Unique ChallengesBy Eric Kingsley

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Performance Management System a Valuable ToolBy Micki Debbrecht

valuating an employee’s performance can be the least favorite task on a manager’s to-do list. How-ever painful the experience may seem, using a sound performance management system can ease the headache.

The goal of a performance management system is to sup-port your organization’s mission and strategy. Performance measures are results-based and will give both employees and supervisors information they need to improve productivity. In addition, the organization benefi ts from an overall increase in effectiveness.

Job DescriptionsOnce a person is hired, an evaluation is recommended

to be given after 90 days and then on an annual basis. Be sure the discussion occurs in a neutral environment and is positive, yet truthful, about an employee’s work behavior and skills. If a manager anticipates the evaluation will take a nega-tive turn, refer to the employee’s job description and be sure the employee understands their specifi c tasks. Oftentimes, a negative evaluation takes place simply because the employee does not fully understand what is expected of them. Utilizing measurement tools will ensure objectivity and provide an op-portunity for clear, concise communication, leaving little room for misinterpretation.

Job descriptions are an important tool to document over-all job expectations. When an employee is brought in to dis-cuss work behavior, a manager can easily refer back to the description and review expectations for their assigned posi-tion. If a job description is not used during an evaluation, it may seem that the employee is being rated subjectively rather than objectively.

Conducting evaluations is unpopular because asking an employee to do a better job seems hurtful and unfriendly. Re-member the performance evaluation should also include posi-tive feedback about what the employee has done well. This should be an opportunity to discuss a “snapshot” of the evalu-ation period and set goals for the forthcoming year.

Performance GapsThe process will also help identify gaps in performance—

the difference between actual and expected behaviors. Gaps in performance identify skill sets that need further develop-ment. If necessary, a plan for improvement can be established or it may be determined the employee is not suited for their assigned position. Again, the system’s intent is to support your organization’s mission and strategy. If an employee lacks the competencies or skills needed to perform well, they may need to be reassigned or asked to leave the organization. A per-formance management system can also help managers be consistent in the amount of time they spend with average- to lower-performing employees.

Documentation is only one component of delivering the message. When conducting the review, schedule uninterrupt-ed time to discuss the written evaluation and allow time to so-licit employee feedback. Often, managers don’t like to verbally deliver performance reviews because it feels confrontational and causes anxiety. Providing positive, yet truthful, objective feedback is healthy and employees are often grateful for the one-on-one opportunity to clarify and discuss expectations.

Common errors in performance management systems include a lack of documentation of both positive and negative behaviors; allowing one performance factor to weigh too heav-ily among others; and tendencies to rate employees as aver-age or to favor one employee over another. In order for the performance management system to be effective, a manager has to identify and address objective facts about the employ-ee’s actual performance and modify job-related behavior.

Although it is often overlooked, implementing a sound performance management system can prove to be an effective tool in reducing legal liability, improving employee productivity and increasing morale.

Micki Debbrecht is a human resource consultant at Kennedy and Coe LLC. Reach her at [email protected] or (316) 691-3736.

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Renewable Energy Goes Internationalhe International Renewable Energy Agency is a new organization formed to promote the use of 100 percent renewable energy worldwide. Driven by Germany and its ministry of environment, it was offi cially established earlier this year in Bonn, Germany. A total of 136 coun-

tries became members. Almost all European nations are mem-bers, as are the U.S., India and numerous African nations. Miss-ing, however, are China and, rather remarkably, Brazil.

The agency’s mission is straightforward: advocate the pro-motion and use of renewable energy. Clearly, this can be done by a dedicated organization more effectively than has been done by the International Energy Agency which, after all, is primarily associated with fossil fuel and for which renewable energy is just one of 23 topics it addresses.

IRENA’s website indicates that it aspires to become the main driving force for promoting a rapid transition towards the wide-spread and sustainable use of renewable energy on a global scale. It wants to provide practical advice and support for both industrialized and developing countries, thereby improving frame-works and building capacity. Collecting reliable data, facilitating fi nancial mechanisms, disseminating best practice and techno-logical expertise are also part of its core tasks. Knowing the com-plexity of renewables and the potential opposition against their further development, it seems to be an ambitious agenda.

So far, only six of the 25 minimum necessary nations have ratifi ed the implementation agreement. IRENA is still in an interim phase, but an interim director-general has been appointed and the seat of the organization has been chosen.

The choice of its seat—Abu Dhabi—is quite remarkable. IRENA has been put smack in the middle of oil wells. Now, why would an institute to promote renewable energy locate itself in a fossil fuel region? Was it because the United Arab Emirates pro-vided the money? Does the U.A.E. want to boost its image as be-ing renewable energy friendly? It is not clear to the outside world. The other two applicants to host the interim secretariat, Bonn and Vienna, will host IRENA’s center of innovation and technology and

the agency’s liaison offi ce for cooperation with other organiza-tions active in renewable energy.

The interim director-general is France’s Madame Hélène Pelosse, who previously headed the cabinet of the French Minis-ter for the Environment. During last year’s French Presidency of the EU, Pelosse led negotiations on the EU energy and climate package. Negotiations were concluded successfully and Pelosse has most likely earned her new position because of that result.

I recently had the opportunity to speak with Pelosse. From that meeting a few things became clear. It is too early to say what IRENA’s political priorities will be but emphasis will most likely be given to best practice. Pelosse spoke with great enthusiasm about having one developing country, most likely in Africa, as a show-case for renewables. This is tremendously important. Many Afri-can countries can no longer cope with the heavy fi nancial burden of importing fossil fuel for their energy needs. Renewable energy is the obvious way out. There is plenty of opportunity for wind, sun and biomass energy in Africa. What is lacking is technology and money. IRENA could do a great job in that part of the world.

I became concerned when Pelosse discussed biofuels. She believes biofuels cannot be considered sustainable unless the is-sue of indirect land use change (ILUC) is resolved. This surprises me. The topic of ILUC is, to a large extent, a fabrication created by political fractions that hope it will deliver the fi nal blow to the bio-fuels industry. Trying to solve the problem of ILUC by penalizing biofuels will not change the situation. Hopefully, Pelosse will soon see the positive effects of biofuels, because a director-general of IRENA that is not able to advocate biofuels would be a great setback for our industry.

Aside from this, I believe an organization such as IRENA is long overdue. Renewable energy policy, technology and best practice need to be defended by a dedicated organization.

Robert Vierhout is the secretary-general of eBIO, the European Bioethanol Fuel Association. Reach him at [email protected].

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PRODUCTION


ShortShortAs the U.S. EPA ponders comments submitted in response to its proposed rule for the second stage of the renewable fuel standard, cellulosic biofuel

producers wonder how they will produce enough fuel to meet a 2010 mandate, and what will happen to the industry if they don’t.

By Kris Bevill


PRODUCTION

COMING UPCOMING UP

The U.S. EPA’s proposed rule for the second stage of the renew-able fuel standard (RFS2) is fi lled with complicated issues

that address everything from indirect land use impacts to defi nitions of feedstocks and greenhouse gas emission reduction rates. A fi nal rule is not expected from the EPA until at least Dec. 1 and could possibly be delayed until next year due to the complexity of the issues being addressed. Nevertheless, in its proposal, the agency calls for 2010 mandate requiring 100 million gallons of cellulosic biofuel to be produced and, so far, there is no indication the agency plans to lessen the volume requirement.

A Harsh Reality The mandate, considered aggressive

even at that time, was initially established in the Energy Independence and Security Act of 2007. The aggressive nature of the man-date, which typically would a positive for the renewable fuel industry, could prove to be too optimistic and potentially damaging for the industry, as it appears U.S. produc-ers will struggle to produce even half of the 100 million gallons of cellulosic biofuel re-quired next year. David Woodburn, a senior research analyst at Chicago-based research, brokerage and investment banking fi rm

ThinkEquity LLC, says there is no way the industry can produce 100 million gallons of cellulosic biofuel next year. He authored a report earlier this year that estimated a total of 39 million gallons of cellulosic biofuel is a more likely amount to be produced next year. “Unless there are plants that have been built under the market’s nose, there’s really no way we can reach 100 million gallons either with U.S. production or, in my view, international production in 2010,” he says. “It’s not necessarily bad news or a failure. They were aggressive goals to start with.”

Woodburn and his colleagues regu-larly track the status of biofuel projects and producers and used in-house information as well as EPA and U.S. DOE estimates to reach the 39 million-gallon conclusion. In his report, Woodburn disputes the EPA’s inclusion of several producers on its list of 2010 cellulosic biofuel contributors—specifi cally Alabama-based Cello Energy. The EPA expects the company to contrib-ute three-quarters of the cellulosic biofuel mandate by producing a cellulosic biomass-based diesel fuel substitute at four separate facilities. However, Woodburn says until he obtains evidence of construction at three of the four sites or is made aware of fur-ther funding received by the company, he can only expect Cello to contribute 20 mil-

PRODUCTION


Verenium Corp. has been producing cellulosic ethanol from sugarcane bagasse and energy cane bagasse at its 1.4 MMgy facility in Jennings, La. since last year. The company doesn't expect to commercialize its process until 2012.

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lion gallons of cellulosic biofuel to the total volume mandate.

Woodburn also points out that many of the facilities expected to produce cel-lulosic biofuel next year are pilot-scale or demonstration-scale facilities and are likely to produce less than their nameplate capaci-ties. Delays in construction and start-up of facilities are also likely to occur. Therefore, Woodburn says that speculating a cellulosic biofuel production shortfall is “just admit-ting reality.”

Industry View“We do not believe that the cellulosic

biofuels mandate will be met in 2010,” says Range Fuels Inc. CEO David Aldous. Many industry experts have been anxious to see the company begin producing cellulosic biofuel at a commercial-scale at its Soperton, Ga., facility and believe Range Fuels to be a front-runner in the cellulosic fi eld. How-ever, the company is only expected to pro-duce 10 million gallons of cellulosic biofuel next year. Aldous is confi dent that longer-term production mandates are achievable, but will hinge on the federal government’s commitment to mandates and a compre-hensive energy policy. “A comprehensive energy policy must include signifi cantly reduced dependence on foreign oil, mate-rial short-term and long-term reduction of greenhouse gases from transportation fuels

and incentives for green job creation in bio-fuels,” he says.

“A minor delay in achieving the fi rst target in a 15-year schedule is not signifi cant in and of itself,” says John Howe, vice presi-dent of public affairs at Verenium Corp. “It is widely recognized that the industry will not be in a position to produce 100 mil-lion gallons during 2010. What is crucial to the industry is to keep the schedule of the mandate in place, as it provides the basis for this emerging industry’s access to the capi-tal required to develop and commercialize these important new technologies.” Vere-nium, also a front-runner in the lead-up to commercialized cellulosic ethanol produc-tion, has for some time known it would not produce at a commercial-scale until 2012, although the company initially called for a 2010 start-up. Howe says Verenium expects to produce no more than 1 million gallons of cellulosic ethanol at its 1.4 MMgy Jen-nings, La. facility next year, but that it’s on track to bring its fi rst 36 MMgy facility into production in two years.

Brian Jennings, executive vice presi-dent of the American Coalition of Ethanol, says the ethanol blend wall, logistical chal-lenges regarding biomass production, col-lection and handling, and high construction costs coupled with technology conversion hurdles have all contributed to stalled or de-layed cellulosic biofuel projects. “This is a

PRODUCTION


What is “cellulosic biofuel?”In its proposed rule for the second stage of the renewable fuel stan-

dard (RFS2), the U.S. EPA defi nes cellulosic biofuel as: “any renewable fuel, not necessarily ethanol, derived from any cellulose, hemicellulose or lignin, each of which must originate from renewable biomass.” The fuel must also achieve a 60 percent greenhouse gas emission reduc-tion when compared to gasoline or diesel fuel.

By contrast, the fi rst RFS qualifi ed any ethanol as being cellulosic regardless of whether cellulosic feedstock was used, as long as the facility used animal wastes or other waste materials to displace at least 90 percent of the facility’s fossil fuel needs. The difference in defi nitions could cause signifi cant confusion as to what types of fuel qualify for next year’s cellulosic biofuels mandate and create a regulatory night-mare if the RFS2 rule is implemented in mid-2010 as opposed to the beginning of the year.

consequence of how the economic downturn and technology challenges run head-on into a policy that’s more prescriptive than it needed to be,” he says. “Ask who came up with 100 million gallons in 2010 and why they came up with that number. I’d be fascinated as to what that answer might be.”

According to Jennings, cellulosic and advanced biofuels could be promoted by the federal government without being overly regulated and many legislators agree. How-ever, the mandate model has been put into

play and now the indus-try must work to meet its demands or to modify the mandate to a more reasonable level. Accord-ing to the proposed rule, the EPA recognizes that cellulosic biofuel is in the infant stages of com-mercialization and the current economic climate could impact its progress. Due to the complexi-ties involved in project-

ing achievable production volume levels next year, EPA offi cials asked for comments and additional information that could infl uence its fi nal rule, possibly resulting in a lowered mandate. Despite its request, nearly all of the comments presented to the agency prior to the Sept. 25 commentary deadline addressed

indirect land use change and virtually ignored the EPA request for input regarding cellulosic biofuel production mandates.

Safety Net?So what are the implications of an unmet

goal? If the cellulosic biofuel volume mandate is reduced, it is likely that some form of a pre-cautionary measure proposed by the EPA to counteract a shortfall would be put into effect. According to the proposal, one way to make

up the production shortage would be to allow excess advanced biofuels to fi ll the gap left by a shortfall of cellulosic biofuel. According to the proposal, “For instance, if we determined that suffi cient biomass-based diesel was avail-able, we could decide that the required volume of advanced biofuel need not be lowered, or that it should be lowered to a smaller degree than the required cellulosic biofuel volume.” The agency proposes that it would then also lower the total renewable fuel volume to the

PRODUCTION

Range Fuels Inc. is one of few companies on schedule to begin producing cellulosic biofuels in 2010. The company plans to produce 10 million gallons of cellulosic biofuel from woody biomass at its facility in Soperton, Ga.

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Brian Jenningsexecutive vice president,American Coalition for Ethanol

same degree so as to not allow conventional biofuels to meet standards that were put in place to support cellulosic or advanced bio-fuels.

The EPA would also issue credits to re-place not-produced gallons of cellulosic biofu-el in the form of renewable identifi cation num-bers (RINs), which refi ners would be required to purchase to meet their obligatory non-pe-troleum fuel requirements. The price for these RIN credits would be calculated by determin-ing the difference between the cost of a gallon of gasoline and $3, with a minimum price set at 25 cents. Revenue generated through the sale of these credits would be placed in the U.S. De-partment of Treasury general fund, according to EPA senior press offi cer Cathy Milbourn. The total number of RIN credits issued by the agency would be no greater than the total re-duced cellulosic biofuel standard, but would be allowed to be used by refi ners to meet advanced biofuel and total renewable fuel standard man-dates as well as cellulosic biofuel mandates. It is this item that has caused concern among etha-nol industry members.

“If we’re unable to meet the threshold and EPA wants to reduce the target and make these credits available for sale, we don’t want them to be used to qualify for the obligations for other categories of renewable fuel use,” Jennings says. “It’s a very serious issue and it’s only one of dozens of very serious issues [in the pro-posed rule].”

At the request of an ACE member, whom Jennings declined to name, Jennings drafted a comment to the agency stating that the pro-posed handling of credit issuances is not in line with Congress’ intentions for cellulosic biofuel production. “It was, and remains, the intent of Congress to increase, not diminish, the use of renewable fuels, and in particular, to help launch an ambitious platform for cel-lulosic biofuels,” Jennings commented, adding that this proposed revised RIN system could inhibit cellulosic biofuels commercialization. In addition, the proposed price system for the credits could result in cellulosic biofuels being placed at a price disadvantage, further nega-tively impacting investment in the industry.

“The mandate in 2010 will not be met by the industry and thus the use of RIN credits is necessary,” Aldous says. “A pressing issue is there are no clear and defi ned indications of how these RIN credits will be administered by the market. If the RIN credits are structured properly, it will mean increased investment in cellulosic biofuel production.”

Clayton McMartin, president of Clean Fuels Clearinghouse, which owns and oper-ates the RINStar Renewable Fuels Registry, says if cellulosic biofuel RINs were being is-sued today they would sell for approximately $1 each, compared to 10 cents for each etha-nol RIN. He says the 25-cent price fl oor for credits could offer some reassurance to inves-tors, but there remains much uncertainty. “If

you’re building a capital project and you’re banking on that credit, you know the least amount of money you’re going to get for your cellulosic RINs, what we call a Type C RIN,” he says. “The most you’re going to get, we really don’t know. The EPA Administra-tor is really the wildcard and could change the market instantaneously depending on if they issue those cellulosic RINs.”

Howe says the RIN credit program is “a common sense response” by the EPA. “If production cannot be achieved, then it is a logical step for EPA to provide these credits as a substitute for the production shortfall. EPA’s proposal is to issue the quantity of cred-its required to compensate for any production shortfall at the end of the calendar year, so that its action does not distort the market for cellulosic ethanol.”

Woodburn says the RIN credit proposal could give the early cellulosic biofuel produc-ers an added boost, but he doubts their busi-ness plans are beholden to revenues generated through RIN sales. “I think that’s the least of their concerns,” he says. “I think everybody right now is just trying to scale up.” EP

Kris Bevill is the editor of Ethanol Producer Magazine. Reach her at (701) 373-8044 or [email protected].

PRODUCTION

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ADVANCEMENT


Beyond Cellulosic

While cellulosic technologies receive the most attention as related to scale-up of next-generation ethanol production, other technologies are also being developed to meet future advanced biofuel mandates.

By Erin Voegele


ADVANCEMENT

Research and development efforts to establish viable, economi-cal, commercial-scale cellulosic ethanol technologies have been

ongoing for decades and always seem to be fi ve years away. Approaching advanced bio-fuel mandates as established in the Energy Independence and Security Act of 2007 has increased interest and investment in many of these technologies. And while many cel-lulosic ethanol companies have made re-cent breakthroughs and are on the verge of reaching commercial-scale production levels, a diverse range of advanced ethanol technol-ogies is nearing or, in some cases, entering commercial-scale production as well.

In many cases, these alternative technol-ogies have managed to circumvent several of the challenges that still face cellulosic ethanol production. Some of these companies have developed advanced biofuel technologies that effectively negate problems associated with high input costs, feedstock handling and logistics, and scale-up issues. In addition, many of these alternative processes are em-ployable in areas that cannot easily support either traditional corn ethanol production or cellulosic production, including urban and desert areas.

Gasifi cation and Syngas Conversion Technologies

While cellulosic technologies typically employ either an enzymatic or an acid hydro-

lysis process that requires pretreatment and a predominantly homogeneous feedstock, both Warrenville, Ill.-based Coskata Inc. and Montreal, Quebec-based Enerkem Inc. have developed gasifi cation and syngas conver-sion technologies that are feedstock fl exible and require no pretreatment. In addition, while both traditional and cellulosic ethanol technologies are only able to convert the sug-ar-based portion of any feedstock into fuel, Coskata and Enerkem’s technologies are able to transform the entire feedstock into etha-nol.

During the front-end gasifi cation pro-cess employed by both technologies, car-bon-rich feedstock is heated in a controlled environment with pressure and a little oxy-gen. Rather than causing combustion, the heating process results in a gaseous mixture of hydrogen and carbon monoxide known as synthesis gas (or syngas), which is simi-lar to natural gas. The hydrogen and carbon monoxide molecules can then be reconfi g-ured into a variety of end products, including ethanol. “It’s sort of as if you would suspend the [feedstock] material and raise it to its gas-eous state, halfway between a solid state and combustion,” Enerkem CEO Vincent Chor-net says.

Although both technologies utilize simi-lar and well-established front-end gasifi cation processes and can employ any carbon-rich feedstock, including post-recycled municipal solid waste (MSW), cardboard, wood chips,

crop waste or glycerin, that’s where the simi-larities between the two technologies end.

In Enerkem’s process, feedstock is con-verted into syngas inside the company’s pro-prietary gasifi cation system. It is then cleaned. “We remove particulates and tar, and we also condition [the syngas] in terms of making sure we get it to the right hydrogen and carbon monoxide quantity,” Chornet says. “The result is a clean, chemical-grade gas that is very simi-lar to natural gas.”

The hydrogen and carbon monoxide mol-ecules contained in the syngas are then recom-bined into methanol using a copper-based met-al catalyst. In the fi nal step of the process, the methanol is used to build ethanol molecules.

Enerkem was formed in 2000 and estab-lished a pilot facility in 2003. The pilot facility has operated more than 3,500 hours and has been used to test Enerkem’s technology using more than 20 different feedstocks.

In 2007, Enerkem commenced construc-tion on a 1.3 MMgy commercial-scale facility in Westbury, Quebec. The facility is designed to utilize decommissioned electric poles as feedstock. To date, the Westbury facility has produced conditioned syngas. It is expected to begin alcohol (methanol/ethanol) production near the end of this year.

While Enerkem’s production technology is feedstock fl exible, Chornet says his com-pany’s primary focus is on post-recycled MSW because it is widely available and has a cost-negative nature.

ADVANCEMENT


According to Chornet, Enerkem cur-rently has four additional projects in the pipeline that are expected to produce a com-bined 90 million gallons of ethanol annually, including a 10 MMgy facility in Edmonton, Alberta, that will utilize post-recycled MSW. “The [company’s] next step is to build the Edmonton project,” he says. “It is now fully permitted and we are looking for construc-tion to begin by the end of the year.” That facility is expected to be operational by mid-2011. Enerkem is also working to develop a 20 MMgy facility in Pontotoc, Miss., that is expected to utilize post-recycled MSW, wood residues, construction and demolition debris and treated wood.

While the front-end gasifi cation process utilized by Coskata’s syngas conversion tech-nology is similar to Enerkem’s, the back-end ethanol production process is markedly dif-ferent. Instead of using a metal catalyst to drive conversion of hydrogen and carbon monoxide into fuel, Coskata uses a biological catalyst to ferment the syngas into ethanol.

“The core of Coskata technology is a set of anaerobic bacteria that breathe in syngas,” says Wes Bolsen, Coskata’s chief marketing offi cer and vice president of government af-fairs. Because the process creates only etha-nol rather than a mixed stream of alcohols, Bolsen says the technology is able to realize high yields.

According to Bolsen, the anaerobic organisms employed by the technology

are not genetically modifi ed. “Our base-level organisms came out of the Oklahoma Biofuels Consortium, and we’ve spent the past three years really transforming them through mutations and selective breeding.”

By using anaerobic organisms rather than a chemical catalyst, Bolsen says Coska-ta is able to ferment the syngas into ethanol using low temperatures and low pressure,

which reduces the technology’s energy con-sumption. “It’s the simplicity of the process that really makes it one of the leading con-version technologies,” he says.

Coskata was formed approximately three years ago and has since developed a pilot facility adjacent to its headquarters near Chicago. In addition, the company has established a semi-commercial facility near

ADVANCEMENT


Enerkem Inc.'s 1.3 MMgy facility in Westbury, Quebec, will produce ethanol from decommissioned electric poles.

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Pittsburgh and is in the process of devel-oping a commercial-scale 55 MMgy facil-ity in the Southeast that will utilize woody biomass to produce ethanol. Bolsen says the design and engineering of the facility is complete and a location has been se-lected. Construction is expected to begin as soon as fi nancing is in place.

Photosynthetic Technology While Coskata and Enerkem have

developed feedstock-fl exible production technologies, Cambridge, Mass.-based Joule Biotechnologies Inc. and Bonita Springs, Fla.-based Algenol Biofuels Inc. have man-aged to eliminate feedstocks entirely. In-stead, Joule and Algenol’s respective tech-nologies utilize photosynthetic processes that consume carbon dioxide and sunlight and directly secrete ethanol.

Because the primary inputs of these two photosynthetic processes are not plant-based feedstocks, they are employ-able in areas that have been traditionally unable to support biofuels technologies, including desert and coastal areas that lack agricultural land.

According to Algenol CEO Paul Woods, his company’s technology is com-pletely different than second-generation ethanol technologies. There is no biomass that needs to be processed or additional inputs, such as chemicals or enzymes, that need to be added. “It’s all done in one al-gae cell,” he says. The algae employed by Algenol’s technology are like tiny ethanol factories. “I think everything about our technology is just a little simpler and a little more elegant and a little easier,” Woods says. “We have algae and sunlight and sea-water. We introduce carbon dioxide, and that’s it.”

The algae are housed in bioreactors, which are large, durable, sealed plastic con-tainers that measure approximately 5.5 feet wide by 50 feet long. The bottom third of the bioreactor houses the algae culture, while the top third is headspace in which the ethanol evaporates into as it is pro-duced. The ethanol is collected from the headspace and purifi ed.

Fresh water is the primary byproduct of the technology. “Right now, for every gallon of ethanol we are producing, we are provid-

ADVANCEMENT


Coskata Inc. engineer Mike Sura works on one of his company's proprietary bioreactors.

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ing one gallon of fresh water,” Woods says. “We are not a net user of fresh water; we are actually a net provider of fresh water.” Depending on where Algenol establishes its algae farms, the fresh water could be used to supplement municipal water supplies or for agricultural purposes.

Algenol currently has more than 200 region-specifi c enhanced algae strains. Woods stresses the enzymes are genetically “enhanced,” rather than genetically modi-fi ed. “Algae normally make tiny quantities of ethanol,” he says. “We enhanced them and we make them so they are very specifi c to the regional climate that they are going to be living in. Right now, we have algae that produce more than 6,000 gallons [of etha-nol] per acre per year.”

Although Algenol was formed only three years ago, Woods has been working to develop the technology in his spare time for more than 25 years. He says when oil prices rose in 2006 he decided it was time to pur-sue the technology on a commercial level.

Woods says the technology is ready to deploy in pilot-scale and demonstration-scale facilities, but Algenol is awaiting U.S. EPA and USDA approval before moving forward. “I think we’ve taken a very conser-vative approach,” he says. “We clearly don’t think we have genetically modifi ed organ-isms, but they are genetically enhanced, so I think we took a very conservative approach by going straight to the EPA and USDA and telling them exactly what we are doing. We are hoping these organizations give us the go-ahead to work on this on American soil.”

Joule’s technology, known as Heliocul-ture, also uses a photosynthetic, direct-to-ethanol process. The technology combines sunlight and carbon dioxide in a solar con-verter that holds a solution of brackish or gray water, nutrients and highly engineered photosynthetic organisms which secrete ethanol.

Joule CEO Bill Sims compares his company’s solar converters to a fi eld of existing solar panels. The difference is, in-stead of capturing sunlight and converting it into power, Joule’s technology harnesses sunlight and carbon dioxide to produce a liquid fuel. “These are fl at panels that you can imagine being tilted toward the sun, and

the solution is running through them in a continuous process,” he says. The solution eventually ends up at a central plant where the ethanol is separated and the solution is re-circulated back through the process.

While Sims says Joule is not prepared to disclose exactly what kinds of organisms are employed by the process, he notes that the technology is projected to be able to produce 20,000 gallons of ethanol per acre per year.

Joule was established approximately two years ago, but only recently announced it was working on an ethanol production technology. “We were operating in stealth mode and made our introduction to the market at the end of July,” Sims says. “We felt it was appropriate to function in stealth mode since we knew we were working on a transformational technology in a huge mar-ketplace.”

According to Sims, Joule has entered into fi nal negotiations for a pilot plant location. Construction on that facility is expected to begin during the fi rst quarter of next year. “Because the technology is modular, and therefore very scalable, we expect to scale the pilot facility to an indus-trial-sized facility also within 2010,” Sims says. A commercial facility is expected to be established by 2012.

Although the technologies being de-veloped by these companies are markedly different from both traditional corn-based and cellulosic ethanol technologies, the leaders of each company stress that a wide variety of technologies will be needed to produce 36 billion gallons of renewable fuel by 2022 and therefore the various eth-anol production technologies shouldn’t be pitted against one another as competition.

“It’s not an either-or situation in my mind,” Woods says. “I think the country really needs all these technologies to come together and provide domestic fuel sourc-es.” EP

Erin Voegele is an Ethanol Producer Magazine associate editor. Reach her at [email protected] or (701) 373-8040.

ADVANCEMENT

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PRIVATE In an effort to deploy new technologies and create local jobs, some public and private entities are teaming up to

establish mutually benefi cial relationships.

By Erin Voegele


FINANCE

PUBLIC-PARTNERSHIPS

public-private partnership is a contractual agreement between a public entity and a private entity in which

skills and assets are shared in order to ultimately provide a service or facility for use by the general public. Involved parties share the risk in exchange for the potential to reap the rewards. While this kind of relationship has tradition-ally been employed to provide munici-pal services, such as wastewater treat-ment services, or for projects designed, built and maintained by a private entity but owned by a public entity, a vari-ety of communities are expanding the scope of these relationships to provide resources and support to technology startups as a way to create jobs in their communities.

According to Anita Molino, vice president of programs and energy in-stitute chair at the National Council for Public-Private Partnerships, part-nerships designed to spur job creation are likely to become more common in the future. She says these types of rela-tionships may or may not include some type of financial component.

“I think [public-private partner-ships] have been a big boon to the emerging technologies world,” Molino

says. Although many public entities, such as city and state governments, are struggling with the same recession-induced financial limitations that cur-rently plague the private sector, there is a wide variety of resources—other than direct financial support—that cities and states can offer startup companies. Examples of this type of non-financial support include access to city resources and work spaces.

“The fact is [small start-ups] are the future provider of green jobs and it is, in fact, small businesses that con-tinue to provide the most job growth,” Molino says. The creation of jobs not only helps a municipality retain and at-tract citizens, but also benefits the local government through the expansion of the tax base and new sources of rev-enue, she says.

Toledo Takes a RiskThe city government of Toledo,

Ohio, recently established a public-pri-vate partnership with SuGanit Systems Inc., a cellulosic ethanol start-up com-pany headquartered in Virginia.

SuGanit was established in 2006 by Praveen Paripati, who also serves as the company president and CEO. Since its inception, the company has been work-

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A

ing in collaboration with the University of Toledo to develop a feedstock fl exible cellulosic process. “We’ve been working on a technology that will be able to make cellulosic ethanol from grasses such as switchgrass, agricultural residues like corn stover, and forest waste and trees,” he says. “The technology is able to con-vert very different types of feedstock into sugars. From those sugars we can make ethanol or other chemicals.”

There are two primary components of SuGanit’s technology. One is a pre-treatment process that is designed to make enzymatic hydrolysis more effec-tive. The second is a process that will al-low the company to convert C5 sugars into ethanol using regular yeast. Both

technologies have been licensed from and co-developed with the University of Toledo.

“[The pretreatment process] is based on ionic liquids that help make cellulose and hemicellulose amenable to enzymatic hydrolysis,” Paripati says. The second component of the technol-ogy uses a chemical process to convert certain C5 sugars into sugars that tra-ditional yeast can utilize. In this way, Paripati says the process does not re-quire the use of genetically modified yeast.

Ryan Reiter, a development techni-cian in Toledo Mayor Carty Finkbein-er’s office, spearheaded the efforts to form a relationship between SuGanit and the city. He says the whole concept of the partnership is to help expedite the development of SuGanit’s technol-ogy. “To do this, we are sharing some of our resources with him,” Reiter says. Paripati and Reiter first met in mid-2008. “My initial task was basically to convince him to open up shop here in Toledo,” Reiter says. “My job [in the economic development office] is to help create jobs.” This includes help-ing start-up companies reach the point where they can begin to hire employ-ees.

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SuGanit Systems Inc. utilizes offi ce and laboratory space at the University of Toledo's Clean and Alternative Energy Incubator.

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When considering the formation of a public-private partnership with an entity, Reiter says the city analyzes two aspects of the potential project—its ability to create jobs in the community and the potential for a clear payoff for taxpayers.

When considering the formation of a public-private partnership with an entity, Reiter says the city analyzes two aspects of the potential project—its ability to create jobs in the com-munity and the potential for a clear payoff for taxpayers. The relationship formed with SuGanit is expected to achieve both.

“In the short term, this project is going to save the city of Toledo more than $250,000 on an annual basis,” he says. “Long-term, it is going to create jobs.” The project is expected to save the city a substantial amount of mon-ey because SuGanit’s future facility will utilize waste feedstocks that the city currently has to pay to dispose of, including leaves, grass clippings and tree waste.

Although not all public-private partnerships include a financial com-ponent, the city of Toledo is offering SuGanit some financial incentives. According to Reiter, the company will receive a 30 percent rebate on its local payroll taxes for three years un-der the Toledo Expansion Incentive program. In addition, if SuGanit se-lects a qualifying property in which to establish its full-time operations, the company could also qualify for some property tax abatements. In the event SuGanit hires more than 25 people, it would also be eligible for some state tax incentives.

The city is also offering SuGanit a variety of non-financial resources. It is assisting SuGanit in the procure-ment of feedstock and is willing to act as a resource in connecting Pari-pati with others in the community. When the time comes, Reiter says he will also help SuGanit navigate the red-tape of the permitting processes for both the pilot-scale facility and a commercial-scale facility.

The local port authority has also offered SuGanit assistance with the possibility of locating a cellulosic ethanol production facility at the lo-cal port. While Reiter says the city government is not currently involved

with the establishment of SuGanit’s pilot facility, it is willing to offer as-sistance in that area as well.

Once pilot-scale production of cellulosic ethanol begins, the city plans to fuel select vehicles in its fleet with SuGanit’s ethanol. The city will also conduct mileage and emissions testing on these vehicles, as well as supply SuGanit with a fuel storage tank and pump to be used to fuel the test vehicles.

“The University of Toledo is also playing a critical role in this project,” Reiter says. The university houses the Wright Center for Photovoltaics Inno-vation and Commercialization, which is a business incubator with available office and lab space in which SuGanit has set up temporary operations.

Forming relationships with city governments can benefit start-ups in other ways as well. “The fact that you’ve got the local mayor’s office and economic development on board [with your project], helps give you credibility,” Reiter says. “Right now, a lot of these alternative energy start-ups need credibility. It is very hard to get funding as a start-up.” This cred-ibility can often help start-ups secure needed grant funding. “It does give companies a leg up from a federal and state funding standpoint when they show they are getting local govern-ment support,” Reiter continues.

Partnership ConsiderationsMolino says a private entity

should consider a variety of factors before establishing this type of re-lationship with a local government. This includes gauging the willingness of the public entity to become actively involved in the project, as well as the regulatory environment of the com-munity. She says regulation can be a real burden for start-up companies. “To the extent that communities can provide one-stop shopping for per-mitting and other forms of regulation is very helpful to these companies,” Molino says.

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new technology developments, it is hard to develop commercial plants.”

Reiter says that given the current economic climate, he thinks public-pri-vate partnerships make a great model for helping new businesses develop. He notes that the city has no equity stake in Su- Ganit or its projects. “We are not getting in the business of cellulosic ethanol, we are just helping [SuGanit] out and sharing our resources with [the company] in an attempt to create jobs.”

Paripati encourages other start-ups

to be open to forming similar types of relationships with public entities. “Gov-ernment institutions are typically meant to help the economy develop,” he says. “We should take the long view and try to develop long-term partnerships that [benefit] both the local government and the company.” EP

Erin Voegele is an Ethanol Producer Magazine associate editor. Reach her at [email protected] or (701) 373-8040.

Although money is always a pri-mary concern for start-ups, Molino says it is important not to overlook the tremendous benefits of the many non-financial resources a community may be able to offer. “Money is important, but one should certainly not overlook the tremendous benefit a willing, able public participant can be,” she says.

“The city of Toledo has turned out to be an enthusiastic supporter of this new technology,” Paripati says. “[City leaders] are looking for eco-nomic development [opportunities], and cellulosic ethanol seems to have caught their fancy. Having the kind of support we are receiving from both the city of Toledo and the state of Ohio has convinced us to try to do the whole development process and also have a commercial-scale process in the Toledo area. It’s always good to have a broad base of support in the commu-nity you are trying to develop a busi-ness in. When the local authorities and the state are not keen in creating these

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'Having the kind of support we are receiving from both the city of Toledo and the state of Ohio has convinced us to try to do the whole development process and also have a commercial-scale process in the Toledo area. It’s always good to have a broad base of support in the community you are trying to develop a business in. When the local authorities and the state are not keen in creating these new technology developments, it is hard to develop commercial plants.'

Praveen Paripati, president and CEOSuGanit Systems Inc.

PROFILE

Raphael Katzen circa 1977PHOTO: KATZEN INTERNATIONAL INC.


Raphael “Ray” Katzen dedicated his life to achieving commercial-scale cellulosic ethanol production from a variety of feedstocks at a competitive price. The following article, which fi rst appeared in the Feb. 2006 issue of EPM, highlights the lasting impact he had on the industry.

By Ron Kotrba


PROFILE

The Project of a Lifetime

In journalism, the opportunity to interview a person whom history has credited great feats doesn't come along too often. What if, for example, it were possible to score

an interview with Alexander Graham Bell on his invention of the telephone, and the nature of its necessity in modern society? Likewise, imagine springing quotes from James Watt, the guy who drastically advanced steam engine technology.

For an ethanol industry reporter, a conversa-tion with Raphael Katzen holds nearly the same weight and historical import—and that’s not sur-prising considering he is known as one of the industry’s founding fathers. Not only has Katzen been instrumental in developing modern dry mill ethanol plant technologies, he has been simulta-neously absorbed in advancing the technologies for lignocellulosic conversion, and drafting the framework needed to build a tried-and-true cel-lulose industry, both in the U.S. and abroad.

Katzen’s pet undertaking, Project 20, has been on the table now for almost a decade, but its development has spanned a lifetime. Project 20 is an ambitious charge to produce 20 billion gallons of cellulosic ethanol by 2020. According to the man behind the legend—and with only 15 years before the target date—Katzen told EPM that realizing Project 20 is still fully possible.

An Industry 50 Years-plus in the Making

“Ray Katzen was contemplating ethanol from lignocellulosic feedstocks when he was in college, before people even knew how to spell

‘cellulosic ethanol,’” said Philip Madson, presi-dent of Katzen International Inc., the well-known technology company that Katzen founded in the 1950s.

In 1953, Katzen resigned from Vulcan Cincin-nati (formerly Vulcan Copper and Supply Co.) and started a sole proprietorship. Later that same year, Katzen took on partners and changed the compa-ny name to Raphael Katzen Associates. Two years down the road, Katzen’s company went interna-tional, changing the name once again to Raphael Katzen Associates International Inc. (RKAII), which it remained until 1997 when Katzen and his wife retired. Upon retiring, they sold their stake in the business back to the company, and set up a private consulting engineering practice in Florida. After Katzen’s exit from RKAII, the company shortened its name to Katzen International Inc.

But before Katzen formed his company and became an internationally known, compelling fi g-urehead for the ethanol industry, he worked for the aforementioned Vulcan Copper and Supply Co., which had a Defense Department plant con-tract with the federal government to build a cel-lulosic ethanol plant during the height of World War II. Converting wood waste to ethanol in Springfi eld, Ore., Katzen began working on that project in Cincinnati, Ohio, in 1942.

The plant was completed as the war ended, however, with the war over, the government no longer needed the surplus ethanol so it closed the plant. It did operate for a few months though—successfully, according to Katzen. “Vulcan ran the plant for a few months, mainly to prove its capac-

ity of 300 dry tons of wood per day and yield of 50 gallons of ethanol per ton,” Katzen told EPM. But ethanol could be made much cheaper from ethylene then, so Vulcan recommended abandoning the project. Even more than 50 years ago, techniques for converting lignocellulos-ic biomass to ethanol were on people’s minds—especially Katzen’s.

“The plant was using obsolete tech-nology,” Katzen said in reference to the Springfi eld wood-to-ethanol plant. “There were scaling problems with the tars and resins, plus calcium sulfate that was pro-duced in degrading the sugars. It was diffi -cult to run. Technology has changed radi-cally since then. Now I recommend a mild acid pretreatment followed by enzymatic hydrolysis.”

While still with Vulcan, Katzen be-came deeply acquainted with Cuba. This was before Castro and his Marxist Revo-lutionaries grasped hold of political and military power in 1959, much to the dis-may of the fallen Fulgencio Batista, the United States and Katzen. “Castro and I are enemies,” Katzen said without minc-ing words. “He ruined my business down there.”

Prior to that, Katzen designed the Bacardi family’s fi rst modern distillation systems. Originally based in Santiago, Cuba, the still-famous rum makers moved major operations to San Juan, Puerto Rico,

before Castro’s reign began. Katzen Inter-national still continues its service to Bac-ardi, even after all those years.

Pre-Castro Cuba enchanted Katzen. “After [World War II], we saw a market in Latin America, especially in Cuba, which

was an energized and developing country,” Katzen said. “I bought some property for a combined home and offi ce in Varadero Beach, the most beautiful beach in the world. Before Castro, 85 percent of my business was in Cuba.”

PROFILE

From left to right, Otto Hohnerlien, Ray Katzen, Oscar D'Arte and Guillermo De La Vega, at Katzen International's 50th anniversary party.

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Although many consider Brazil as the fi rst country to build a successful ethanol industry, chances are they learned much from Katzen. “After World War II, Ray was virtually solely responsible for the building of the fuel ethanol program in Cuba,” Madson said. “Brazil took all the credit for making ethanol from sugarcane juice and molasses, but it is believed that the Brazilians learned much from Katzen’s work in Cuba. There are certainly incestu-ous roots there—none of this happens in a vacuum.”

According to Madson, the Cuban people are still grateful to Katzen for revolutionizing the sugarcane industry in Cuba. “He is forever known down there as the doctor who turned on the lights [at Centrol Fransisco] in Cuba,” Madson said. Back then, electricity for the rural villages didn’t come from the government, but rather the sugar mills as a benefi t to its workers, Madson explained.

After 1959, Katzen and his partners fl ed Cuba and the political tumult, return-ing to Cincinnati, Ohio, where the future held much work for them.

Foreseeing the Future of Two Ethanol Industries

In the late 1970s, before Madson be-gan working for RKAII, he was search-ing for an ag-oriented job in chemical

engineering. He kept hearing the name “Katzen,” but he couldn’t get in touch with the man. “It wasn’t until after look-ing coast-to-coast to fi nd an ag-related chemical engineering job that I found Ray Katzen right in my backyard—literally,” Madson said, sort of laughing. “I could see the roof of Ray’s house (the home Katzen lived in when he founded the company) from my dining room window. Of course, I didn’t know that was his for-mer house until after we met.” According to Madson, Katzen had the ear of every-one in the industry then, as he still does. “At the time we met, I didn’t yet appre-ciate the industry or his standing in it,” Madson said.

Back then, the distillation and dehy-dration systems varied from industry to industry. Katzen created the blueprint for what a proper system should be, and then Madson and others helped bring that vi-sion to life. They delivered Katzen’s model of an effi cient continuous mashing, cook-ing and liquefaction process, and simulta-neous saccharifi cation and fermentation distillation dehydration system for a dis-jointed ethanol industry, as it were. This is just one of many examples of Katzen’s keen foresight.

Lonnie Ingram, director of the Flor-ida Center for Renewable Chemicals and Fuels in the University of Florida’s De-

partment of Microbiology and Cell Sci-ence, met Katzen long ago. “He spoke, and it was clear that he was way ahead of his time,” Ingram says. Ostensibly, the U.S. DOE agreed.

In 1978, after the two Organization of the Petroleum Exporting Companies energy crises of that decade, Katzen’s company got a call from the DOE to look into ethanol as a possible source of feed-stock for butadiene (synthetic rubber) production. The DOE wanted studies on the energy balance, yield and the “food versus fuel” issue. “We preferred business from industry over government, but we did what they asked,” Katzen told EPM.

The whiskey business is the original dry mill industry, so that was looked at fi rst. That study’s fi ndings demonstrated that fuel ethanol could be made on a large scale using one-third the energy used to make whiskey then. The study, published by the DOE, sold more than 30,000 cop-ies and was reprinted. “Even today, we occasionally see someone pull out a dog-eared copy of that study the company did so many years ago,” Madson said.

Along with the reduced energy fi nd-ing in the study, it made an amazingly ac-curate prediction of the optimal capacity for dry mill ethanol plants. Almost 30 years ago, before Fagen Inc., ICM Inc. and Broin Companies (now Poet LLC) plants

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dotted the Midwest, RKAII’s study fore-told that the optimal capacity for a fuel ethanol plant would be 50 MMgy. “Now isn’t that incredible? He had the foresight so many years ago to envision what is true today—most plants in the U.S. are ap-proximately that size," Madson told EPM. Katzen also predicted that there could be 350 50 MMgy plants across the United States. That’s a grand production total of 17.5 billion gallons a year. The USDA told Katzen that if the nation’s capacity to produce ethanol exceeded 5 billion gal-lons, corn prices would spike due to the laws of supply and demand.

Project 20 What does this historical account

have to do with Project 20? Simply put: Everything.

“It was clear that the concept of Project 20 was there from the beginning,” Madson stated. “But the actual words for the project came later, around the early 1990s. It was written in very simple and concise terms. He had hoped it would be

the ‘battle cry’ of the industry.” Basically, Project 20 has been 50-plus years in the making, consciously or not.

It was clear to Katzen that the US-DA’s suggestion on the theoretical maxi-mum availability of corn for ethanol pro-duction was on target. “There is a limit,” Katzen said. “That’s why and when we started pushing cellulosic ethanol.”

To get Project 20 rolling—and with-out spending time considering whether the government would certify blends of 20 percent gasoline and/or diesel as EPA-approved fuels—a commercial cellulosic ethanol industry must be started. “The key is putting together a total system package that’s economically competitive,” Madson said. “When ethanol [or corn] prices rise, that opens the door for other economi-cally competitive technologies.”

Katzen, however, had a narrower defi nition of the catalyst to spark com-mercialization of cellulosic ethanol. “The key to making a cellulosic ethanol indus-try economically competitive is the cost of enzymes,” Katzen told EPM. Accord-

ing to him, the DOE/National Renew-able Energy Laboratory research and de-velopment program with Novozymes and Genencor, which has already signifi cantly lowered the cost of enzymes needed for lignocellulosic conversion, is on the right track.

So the technology is there, but a few obstacles still exist to commercializing the production of cellulosic ethanol, one of which is sort of a chicken-and-egg conundrum. “You don’t get commercial optimization of anything … until you’re in the commercial arena, until you start commercializing,” Madson said. Never-theless, at least four more obstacles are readily apparent: passing the needed gov-ernment legislation such as loan guaran-tees, state, local and federal incentives, and uniform fuel standards; encouraging lending reforms to stimulate more willing, yet protected, fi nancing of cellulosic eth-anol plants (because institutions are much more willing to lend money on a project like 50 others that have passed before it, rather than on a fi rst-of-a-kind project);

PROFILE


are higher than in [grain] dry mill plants.” Biomass as a feedstock is much cheaper than corn though, and lignin residues can be burned to provide energy, steam and electric power.

Spanning more than half a century, Katzen’s unprecedented work with ethanol and cellulose is indeed a solid starting point for bringing Project 20 full-circle.

“Since Ray retired from the company, Katzen International hasn’t changed its fun-damental business strategy,” Madson said,

refl ecting on Katzen’s lifetime of engineering and business achievements. “It’s been 50 years, and we’re still growing on the same philoso-phy. That tells me Ray Katzen’s original phi-losophy was right.”

Katzen died July 12 at the age of 93. EP

Ron Kotrba is the editor of Biodiesel Mag-azine. Reach him at (701) 738-4942 or [email protected].

continued research and development to look at things such as lowering the investment costs of these plants, which are high, by developing lower-cost ma-terial alloys, for example; and, lastly, building and optimizing a biomass col-lection and distribution infrastructure.

On the fi nance issues, Ingram hit the nail on the head. “We need to miti-gate risk and incentivize investors,” he said.

Also, biomass collection is a big barrier. “There are billions of tons of waste in the United States, but no one knows how to collect it economically,” Katzen said. That’s why Katzen has been talking to John Deere on modify-ing its harvester. “We’re looking at the harvester throwing the corn kernels into a truck on one side, blow the light stuff into the fi eld and then the stalks and cobs get put into a second truck.” Piles of biomass left sitting in the fi elds rot away. “We need to keep it off the ground at harvest time,” Katzen fore-warned.

Both Madson and Ingram agreed that a good point to start collection is where the biomass has become a fi -nancial burden. “The fi rst commercial plants need to be built where compa-nies are paying to dispose of their waste materials,” Ingram said. “It would be profi table for both sides.”

Getting fi nancing for—and build-ing—demonstration plants is a neces-sary fi rst step, according to Katzen. Abengoa Bioenergy currently retains Katzen as a consulting engineer to do just that. Katzen is working on engi-neering Abengoa’s cellulosic ethanol demonstration plant in Spain and its pilot plant in York, Neb. The capacity for the Spanish demonstration plant is 5 million liters per year (1.32 MMgy) using wheat and barley straw, and is ex-pected to be operational by mid-year.

“Project 20 is achievable,” Katzen told EPM. “The process technology is available, enzyme effectiveness and costs are good, but the investment costs

PROFILE


OIL

Oil companies were noticeably absent during the ethanol industry boom from 2004 to 2007. Now, as some of those fi rst-generation ethanol plants struggle to survive, Big Oil has begun to take an interest.

By Craig A. Johnson



OIL

With the implementation of the renewable fuel stan-dard (RFS) in 2003, a man-date to blend ethanol into

gasoline was created, and the ethanol in-dustry boomed. For the next several years, construction of ethanol plants account-ed for most of the industry investment. Builders were in short supply, or booked for months in advance. Newspapers were fi lled with stories of ethanol plants go-ing up across the Midwest. Many of them turned out to be just stories, but the build had begun and ethanol became a house-hold word almost overnight.

Existing fuel producers and refi n-ers, companies such as Royal Dutch Shell plc, BP plc and Exxon Mobil Corp., were initially caught fl at-footed by the explo-sion of growth in the ethanol industry. "I don't know much about farming, I'm not an expert on biofuels, and there's not a lot of technology I can add to moonshine," Exxon Mobil Chairman and CEO Rex Til-lerson said at a Houston energy confer-ence in May 2007. "There is really nothing

we can bring to that whole issue. We don't see a direct role for ourselves with today's technology."

Statements regarding the utility of ethanol as a gasoline additive notwith-standing, companies such as Shell have turned their focus to the next generation of biofuels—specifi cally cellulosic. A recent statement from Shell points to the likeli-hood it sees second-generation biofuels as realistic for investment. “Shell is invest-ing in second-generation biocomponents, which can offer around 90 percent reduc-tion in 'well-to-wheels' CO2 production (when used neat, compared with conven-tional gasoline/diesel); [will] use non-food feedstocks (such as straw and wood); and [notes] some types can offer better engine performance. However, second-generation biocomponents will not be available in sig-nifi cant commercial quantities for fi ve to 10 years and in this time, demand for fi rst generation biocomponents will continue to grow as a result of government policy and mandates.”

The message from Shell seems clear—corn-derived ethanol is not where its inter-est lies. Most oil companies prefer to be vertically integrated. Owning the means of production from well-to-pump costs less and streamlines the process as companies can realize many economies of scale.

Valero’s Biofuel AmbitionsIn recent years, the ethanol industry

has been hit hard by extreme economic challenges, from high feedstock and ener-gy costs, to large loans and thinning mar-gins. Everyone knows that some plants found these challenges insurmountable, which led to bankruptcies across the in-dustry, the largest of which being VeraSun Energy Corp.’s liquidation in 2008. Its fail-ure opened a path to ownership for any company interested in entering the ethanol industry at a greatly-reduced cost. Initial speculation that anybody could buy up these plants for pennies on the dollar was soon replaced by the conventional wisdom that an oil refi ner might be the perfect buyer for these distressed facilities.

OIL

The largest oil company to enter the ethanol industry so far is Valero Energy Corp., a San Antonio-based Fortune 500 company. The company is currently the

nation’s largest oil refi ner, processing 3 million barrels of oil per day—just shy of 1.1 billion barrels per year. In the ethanol industry, Valero made news in March when

it purchased six of VeraSun’s plants. At present, Valero owns seven of the former VeraSun plants, and controls an impres-sive 780 MMgy, making it the third largest

OIL

The former VeraSun Energy Corp. ethanol plant in Charles City, Iowa, is one of seven production facilities now owned and operated by Valero Renewable Fuels LLC.

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ethanol company in the U.S. According to Bill Day, manager of corporate commu-nications for Valero Energy, all seven of the former VeraSun plants are operating at capacity.

Valero’s interest in ethanol began with the implementation of the RFS. “[Valero] looked at getting into the ethanol pro-ducing business for a couple years, prior to buying those plants,” Day says. “Of course, Valero’s been in the ethanol pur-chasing business since the renewable fuels standard [required us] to blend into our gasoline. Since we were going to be re-

quired to blend ethanol into our gasoline, we fi gured it might be a good idea to get into the production business.”

For Valero, the timing could not have been better. “When we started looking at ethanol production, it was not an attrac-tive time to get into the business. There was a lot of building going on and costs were pretty high.” That was a few years ago, when ethanol construction boomed. According to EPM’s plant construction lists, construction represented about 560 MMgy per month in 2004. Three years lat-er, construction was almost 10 times that, representing an average month-to-month construction capacity of 5.3 billion gal-lons. Anyone who might have wanted to build a plant had to get in line.

“Values for ethanol plants started dropping as a lot of overcapacity was in-troduced into the marketplace,” says Day, chronicling the events leading up to Vale-ro’s purchase. “The price of fuel got very high, the price of corn got very high and a lot of ethanol plant operators started hav-ing fi nancial problems. Many were looking to sell their plants, or had been forced into bankruptcy, which was the case with Vera-Sun. We were able to pick up these seven plants out of the VeraSun bankruptcy auc-tion for about 30 percent of what it would have cost us to build the ethanol plants from scratch.”

The predator-prey analogy may seem apt at fi rst but Day quickly points out that were it not for Valero, the cities and towns that these plants call home might have struggled even more. “The timing was great in terms of Valero getting a good deal on these plants, and it also worked out well for the employees of the plants because we’ve kept them on and kept them in their jobs.” The employees are a part of Valero’s new subsidiary Valero Renewables, which also oversees the company’s wind farm in the Texas panhandle.

Second-Generation Ethanol

One question in the energy sector has been whether oil companies will invest in fi rst-generation plants such as Valero, whose plants are all corn-fed, or wait for cellulosic ethanol to be commercialized. According to recent reports, companies such as Houston-based KBR Inc., histori-cally an oil industry engineering/construc-tion fi rm, have been evaluating emerging biofuels technologies to see if they can get beyond bench scale. All seem to be strug-gling with how these processes scale-up.

Valero’s move constitutes the fi rst major move towards fi rst-generation etha-nol production by an oil company, and as such has attracted the attention of many industry analysts and observers. “It’s very interesting to see the oil companies—

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Getting into corn ethanol may be new specifically, but vertically integrating themselves in the energy industry is what oil companies have been doing for years. Just like an ethanol plant, oil companies are sometimes forced to exist in a liminal space between profit and loss.

Craig Moyerco-chairman, energy, environment and natural resources, Manatt, Phelps & Phillips Law

“The plants that we bought from VeraSun are all very modern,” Day says. “They have the ability to add on new tech-nologies as they become available. We are interested in cellulosic technologies and are doing some investment in that area. And we would be interested [in placing] cellu-losic technology onto our plants once that technology becomes commercially viable.”

Inasmuch as Valero entered the etha-nol industry by purchasing fi rst-generation plants, it’s clear that it doesn’t expect corn

ethanol to be its only investment. Clearly, Valero didn’t feel it necessary to wait for second-generation fuels to be available, and commercially viable. Rather, buying VeraSun’s former plants may be the direc-tion the energy industry was headed in all along. EP

Craig A. Johnson is the contributions edi-tor of Ethanol Producer Magazine. Reach him at (701) 738-4946 or [email protected].

especially the inde-pendent refi ners, those not tied to the upstream—dive into the biofuels space, ” says Craig Moyer, co-chairman of the energy, environment and natural resourc-es practice at law fi rm Manatt, Phelps & Phillips. “They’re taking plants that turn feedstocks into transportation fuel,

and then they will market those trans-portation fuels. It’s not that far from their core business.”

Getting into corn ethanol may be new specifi cally, but vertically integrat-ing themselves in the energy industry is what oil companies have been doing for years. Just like an ethanol plant, oil com-panies are sometimes forced to exist in a liminal space between profi t and loss. “The refi ning business has always been one of feast and famine,” Moyer says. “Refi ning transportation fuel has always been a narrow margin and sometimes supply outstrips demand and those mar-gins go negative and poorly capitalized companies go belly-up.”

Valero, by purchasing plants that produce a key component of its fuel blend, realizes a savings over other fuel producers and refi ners. According to Day, Valero blends about 50 percent of its ethanol into its own fuel and sells the rest on the open market. Getting the ethanol at cost is healthy for the bottom line, and gives the company a competi-tive edge.

For Moyer, the Valero purchase makes good sense in the short-term, and in the long-term, when cellulosic etha-nol is likely to be the dominant form of fuel in the industry. “At some point in the future, cellulosic ethanol will be out there…. These plants will [use] corn, but someday, all ethanol refi neries will be cellulosic running on waste.” This not only improves the environmental benefi ts, but removes ethanol producers from arguments over food versus fuel.

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Hardly a day passes in the U.S. without an announcement of a new bioenergy facility or expansion of an exist-

ing one. This list of projects includes, but is not limited to, wood pellet, cellulosic ethanol, biodiesel, co-generation and bio-mass combustion. A number of these fa-cilities are running at capacity with plans to expand. Others are in the permitting or early construction phase with plans to go live in the coming years.

The U.S. forest products industry is already the nation’s largest producer of

renewable energy and the southern re-gion is no exception. For many decades, the forest products industry has been utilizing, harvesting and manufacturing residues in boilers and kilns for on-site energy usage as well as selling excess en-ergy into the grid. This trend is increasing in light of the recent and expected future volatility in other energy sources such as coal and natural gas.

Against this backdrop are a number of published studies on logging residuals available for bioenergy. What is increas-ingly obvious is that the amount of truly

available logging residues will be nowhere near enough to supply the current and announced bioenergy processors in the Southern U.S. This indicates that appro-priate technology for short-rotation bio-energy plantations must be rapidly devel-oped to fi ll this growing need.

Forest Plantation ConceptForest plantations have been sus-

tainably grown in many parts of the world. While exact records do not exist, it is commonly understood that the Japa-nese have been planting forests since the

Filling a Need: Forest Plantations for Bioenergy in the SouthThe growing number of renewable energy projects in the Southern U.S. utilizing woody biomass will require the development of short-rotation bioenergy plantations.

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

WOODY BIOMASS. BY RONALDS GONZALEZ, JEFF WRIGHT AND DANIEL SALONI

Contribution


10th century. Forest yields continue to increase on these sustainably managed acres.

In the Southern U.S., the history of forest products and forest planta-tions is long and successful. It is pro-jected that more than one-half of the wood harvested for processing will be obtained from planted forests in this region. This could not have been pos-sible without the utilization of out-reach, education and research from land grant universities, the U.S. Forest Service, state forestry services, private and state forestry associations and the participation of literally millions of private landowners as well as large tim-ber land companies.

The typical forest plantation today in the Southern U.S. is planted to lob-lolly pine (Pinus taeda L.) on average at 600 seedlings per acre, on a 25-year ro-tation with a thinning at the age of 15 years. The thinning typically removes trees for pulpwood while the final har-vest is for saw timber and pulpwood. This management scheme has been de-rived to fill the wood needs of current pulp and lumber processors. In addi-tion, plantation acres have been estab-lished for other conifer or hardwood species in the Southern U.S.

This work is supported by highly trained forestry and logging profession-als and land grant universities, among others, that yearly yield more than 100 masters and doctoral students.

Novel, But Not New IdeaBioenergy forest plantations have

been practiced in the Southern U.S. since the oil embargoes in the 1970s. In countries such as Brazil and South Africa, eucalyptus plantations have been managed for bioenergy produc-tion for decades. What makes the cur-rent Southern U.S. situation novel is the short timetable given to develop existing genetic improvement pro-grams and their required silvicultural

systems for widespread early adapta-tion. A forest bioenergy plantation can take 18 months to eight years to reach financial maturity, and the sooner it is planted the sooner it will be ready for commercial harvest.

The tried and tested forest planta-tion concept in the Southern U.S. pro-duces conifer wood because it is the

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backbone of the forest products indus-try for both pulp and lumber. The bio-energy plantation, however, will be more complex and many questions need to be addressed. Does the bioenergy stream allow bark, branches, leaves and wood or is only wood preferred? Does the bioen-ergy stream need higher lignin content typical for certain species and tree ages? What will be the usage of the ash in co-generation or single-source biomass combustion? How will the development of enzymes change the tree species or rotation age? What are the logistics of harvesting and transporting feedstock cost effectively?

At this time, a number of landown-ers, research institutions and government entities are researching forest bioenergy plantation management schemes. Early phase testing is also underway on feed-stock suitability for wood pellets, cellu-losic ethanol and combustion. These re-search efforts are rapidly expanding due to both funding, and private company interests.

The forest bioenergy plantation will have more trees per acre, possibly 1,000 to 2,000, and shorter rotations. In fact, for hardwood species that re-sprout (cop-pice) after harvest, the rotation lengths can be 18 to 36 months. New harvest-ing systems are being developed for this

smaller material and most of these have an on-site chipping or grinding capacity so that the delivered feedstock is ready to be processed directly into bioenergy.

One type of forest plantation takes both traditional and bioenergy concepts to a nonconventional system. This utiliz-es one row of widely spaced, high-value

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This six-year-old stand of sweetgum trees is being grown in South Carolina as future bioenergy feedstock.

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genetics for saw timber (lumber) while the adjoining row is tightly spaced for bioenergy. This system will work with loblolly pine with a bioenergy harvest at six to eight years and a saw timber final harvest at 18 to 22 years, allowing farm-ers and forest landowners to increase the possibility of positive cash flow in the first years, capturing new markets for bioenergy and retaining existing markets for saw timber.

Findings, Finances NeededThe authors believe that the re-

gion’s seedling nursery capacity, genetic improvement programs and land man-agement technologies (silviculture) are robust and more than adequate for devel-oping highly productive forest bioenergy plantations. Two areas are in need of continued investment. First, the organi-zations involved in bioenergy processing need to share their findings on what is and will be the desired biomass process-ing characteristics, such as whether soft-wood or hardwood is preferred, as well as the most suitable species for biofuels. Sharing this with landowners is crucial to their forest management decisions. Second, additional effort is needed to conduct financial modeling of the vari-ous forest bioenergy plantation systems

with regard to species, trees per acre, ro-tation lengths and harvesting systems.

North Carolina State University, in partnership with state and federal in-stitutions, private companies and other universities, is actively working to iden-tify the most promising biomass and the most profitable pathways for biofuel production. The NCSU wood and paper science department is performing com-plete analysis of the supply chain with strong technical basis in process design while also accurately measuring the fi-nancial impact. From current research, the major features identified for ideal biomass for biofuel are:

Maximum delivered cost of $62 per bone dry tone of biomass

Carbohydrate content of 65 per-cent to 70 percent on dry mass basis (mostly true for chemical pathways for biofuel production)

A crop that may be harvested and supplied year-round (instead of three-to five-month harvesting windows for switchgrass and sweet sorghum, requir-ing further logistics and storage)

Fast-growing, short-rotation forest plantations can fulfill these requirements and be used for bioenergy including but not limited to electricity generation, wood pellets and biofuels.

The increasing scale of forestry bio-mass for bioenergy will only be possible with developments in forest bioenergy plantations as there will be insufficient feedstock from logging residuals for all announced and planned facilities. Ex-isting technologies can be utilized to rapidly establish forest bioenergy plan-tations and research is underway to ex-pand these possibilities. Bioenergy pro-cessors and forest plantation managers must continue to interact to ensure that woody feedstock demand does not ex-ceed supply. EP

Ronalds Gonzalez is a doctoral student at North Carolina State University in Ra-leigh working on cellulosic ethanol from various feedstocks. Jeff Wright is an adjunct professor at NCSU. Daniel Sa-loni is an assistant professor at NCSU working on supply chain and life-cycle analysis of woody biomass and biofu-els. Reach them at [email protected]; [email protected], and [email protected].

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Algae: cleaning up biofuelsThe role of algae as a component of a successful carbon sequestration program is gaining interest in the biofuels industry.


FEEDSTOCK. BY SAM A. RUSHING

Contribution

New methods of carbon seques-tration are essential to meet the changing political and environ-mental tone set by the U.S. House

of Representatives and the U.S. EPA. Algae can be a partial solution for greenhouse gas reduc-tion as CO2 is an important ingredient used by algae for normal growth, during photosynthesis. A range of 1.5 pounds to 3.0 pounds of CO2 is required for every pound of algae cultivated. There is also strong interest in using algae as a source of feedstock material for biodiesel, and perhaps fermentation. Algae cultivation as a carbon sink is fast becoming a popular consid-eration among those in the power generating business.

The call for a meaningful reduction of at-mospheric CO2 content creates a constructive opportunity for carbon-emitting power genera-tors. Power plant projects, with their higher-than-average emissions of CO2, are under the greatest pressure to reduce emissions.

Most of the testing for CO2 fi xation by al-gae has been via the coal-fi red power plant, which produces lean CO2 compared to a fermentation

project. The difference in CO2 content can make for a broad range in capital expenses and produc-tion costs. Also, while particular algae strains will accept the use of a raw fl ue gas, selecting a viable algae strain to use depends on raw gas specifi ca-tions for nitrogen oxides and sulfur oxides.

In addition, larger fermentation projects and chemical manufacturing plants are also viable CO2 source targets. The U.S. DOE or industry sponsored demo projects have produced most of the headlines in this area recently. Typically, the algae project is located around or near the power facility, chemical manufacturer, or other projects that have a signifi cant CO2 output.

In algae fuel, this can represent up to 30 times more energy value per acre than a crop such as soybeans. Given the high oil yield from algae, it is estimated that approximately 1 percent of today’s 1 billion acres used in the United States for farming and grazing would be suffi cient (as land, pond, or ocean space) to produce enough algae to replace all petroleum-based diesel fuel used in the U.S. today. That is a signifi cant num-ber, and algae should be utilized and developed to take advantage of opportunities such as this.

Sources of CO2, Direct Source Application

Coal-fi red electricity generating plants ac-count for about 40 percent of current CO2 emis-sions and reductions in this sector would have a substantial impact on greenhouse gases (GHG). When considering relatively large CO2 emitters, the ethanol industry has been in the spotlight due to a substantial amount of CO2 emitted in a concentrated form as a direct byproduct of fer-mentation. As to fermentation, anhydrous am-monia and certain hydrogen by-products, CO2 raw gas content generally falls around 97 percent to 99 percent by volume, often in a water-satu-rated state.

In the United States, CO2 is now being re-covered from the fl ue gas produced from coal-fi red cogeneration plants. The economic model works due to a prior energy law which fosters the use of cogenerated steam which is used in an mono-ethanol amine (MEA) solvent recovery process—a method of concentrating the CO2 from a lean content in the fl ue gas.

When comparing with emissions from fos-sil fuel combustion, CO2 levels range within the


12 percent to 15 percent by volume, though volume increases by orders of magnitude.

Gas-fi red turbine exhaust in cogeneration can be below 3 percent CO2 by volume; and heavier hydrocarbons have higher concentra-tions of CO2 accordingly. Some consider the need to concentrate the CO2 via traditional processes, such as MEA, which is quite expen-sive. If using MEA, this would represent be-tween three and fi ve times the cost of applying CO2 from a concentrated source, such as those named above. Other novel or test applications are underway with so-called proprietary pro-cesses, including membrane and refrigeration systems.

The economics behind what type of CO2 source is used is driven by the raw CO2 content in the gas source type, as well as the impurities found in this CO2 source. If the source is rela-tively clean, and well-concentrated, direct appli-cation for CO2 fi xation by certain algae strains is entirely feasible. Separately, when concentrat-ing a fl ue gas versus using a highly concentrated source (chemical manufacturing byproduct for example), the economics are highly disparate.

On the other hand, if these projects are DOE sponsored, or within the forthcoming GHG laws and CO2 emissions regulations per-haps the need for concentrating or refi ning is a viable possibility.

CO2 Transportation, Algae Cultivation Sites

Traditionally, CO2 has been transported via pipeline, truck and rail in a liquid form—al-ways purifi ed when used in the merchant mar-kets. The exception to much or any purifi cation has been for enhanced oil recovery (EOR). It is important to remember that liquid CO2 would represent a great deal more CO2 presence ver-sus trying to transport a gaseous, dilute, power plant product. The construction of a liquid car-bon dioxide pipeline can easily cost $1 million per mile; and when transported as a liquid via pipeline, this distance can be substantial. Pipe-lines which transport liquid CO2 to EOR sites are often long distance lines, up to one hundred, and even hundreds of miles, requiring suffi cient compression on the front end and compression sub-stations in route.

When considering algae fi xation as a means of sequestering CO2, and a further means of producing a substantial raw material for the manufacture of biodiesel, it is technically feasible to transport CO2 via pipeline. Consideration has been given to projects which use high pressure from enriched sources of CO2, such as fermen-tation for various destinations such as EOR.

In the end, CO2 from fossil fuel combustion in the U.S. power sector can amount to 20 million tons daily on a global scale. Total world output is on the order of 75 million tons of CO2 daily emitted by all sources. When taking this into con-sideration, all means of containing, sequestering, or fi xing CO2 via an environmentally friendly and extremely useful product such as algae is an extraordinary opportunity. The end result is twofold—the production of an extremely useful and energy-rich value versus grain and other or-ganic matter feedstock materials such as soy and palm oil.

The greatest level of CO2 content would be found among select byproduct streams in the chemical manufacturing industry; and the larger scale plants are probably those to be targeted in the planned new legislation and EPA directives. The fi rst 25,000 tons per year are exempt from any cap and trade, or other mechanism proposed by the House of Representatives or the EPA; however, other mechanisms beyond cap and trade may take place with the new CO2 related directives. Sequestering CO2through algae is unique since it represents carbon fi xation in plant life, and is an ingredient essential for the growth of an energy rich product for the biofuels indus-try. EP

Sam A. Rushing is president of Advanced Cryogenics, Ltd, a carbon dioxide consult-ing fi rm based in Tavernier, Fla. Reach him at [email protected].

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Organic Acids Yield Advantages Organic acids and acidifi ers are powerful tools that can provide one more barrier to disease transmission in large feeding installations.


COPRODUCTS. BY RENATA URBAITYTE

Contribution

Prevention of dis-ease transmission and enhancement of growth and feed

effi ciency are critical factors in modern animal production. When pathogenic bacteria con-taminate feed, it becomes a po-tential route of transmission of disease to animal and human populations, and is consequently of great concern to producers and consumers. Food-producing animals (e.g., cattle, chickens, pigs, and turkeys) are the main reservoirs for many of these microorganisms, which include non-Typhi serotypes of Salmo-nella enterica, Campylobacter species, Shiga toxin producing strains of Escherichia coli, and Yersenia enterocolitica.

The microfl ora found in feed materials comes from a va-riety of ecological niches such as soil and the animals’ gastroin-testinal (GI) tract. The GI tract pathogens can be introduced into food chain by animals def-ecating in the farm environment or by fertilization of crops with manures, consequentially mak-ing feed a carrier for animal and human pathogens.

Feed materials may be in-oculated with microorganisms, mostly bacteria and fungi, at any time during growing, harvesting, processing and storage. Counts of microorganisms vary de-pending on the function of ma-terials, location of its origin and climatic conditions. It is known that microfl oral growth is de-

pendent on moisture, pH value, temperature and composition of feed materials. For example, the optimal temperature for E. coli O157:H7 is 37 degrees Celsius, with a minimum of 7-8 degrees C and a maximum of 46 degrees C. The optimal pH is between 6 and 7, however it might stand a pH range between 4.4 to 9.0. The E. coli O157:H7 doubles in number approximately every 24 minutes at the optimal tempera-ture and pH value.

Some microorganisms in-cluding, E. coli, may adapt to conditions without water and can actively grow in stored feed. Various authors have reported that grains and oilseed crops pos-sess a diverse microfl ora, with populations ranging from 5x103

to 1.6x108 colony-forming units (CFU)/g that are highly resistant to low moisture conditions.

Experimentally, very low doses of E. coli O157:H7 may result in colonization of some piglets. Once some piglets are colonized, they may amplify E. coli O157:H7 and transmit it to other piglets via contact. Entero-toxigenic E. coli strains are a ma-jor cause of diarrhea and death in neonatal and newly weaned pigs. Enterotoxigenic E. coli deliver toxins when it adheres to the small intestinal microvilli and produces enterotoxins that act locally on enterocytes. This action results in hypersecretion of water and electrolytes, and re-duced absorption.

Heat treatment, usually dur-


ing conditioning, pelleting or ex-trusion of feeds has been shown to be an effective way to reduce microbial loads in feed materi-als and compound feed. Reduc-tion of the bacterial contami-nation by heat is dependent on the temperature and treatment time. However, these methods do not prevent a recontamina-tion of feed materials and com-pound feed afterwards. Dietary acidifi cation with organic acids has been shown to contribute to environmental hygiene prevent-ing feed raw materials and com-pound feed from microbial and fungal deterioration. Moreover, constant treatment with organic acids has a residual protective ef-fect in feed, which helps to re-duce recontamination and also to reduce the contamination of milling and feeding equipment.

Supplementation of organ-ic acids in feed tends to decrease the feed pH, buffer capacity, and to prevent undesirable micro-bial growth. However, for each acid, its specifi c inhibiting effect on bacteria, yeast and mold has to be considered when recom-mendations for feed supplemen-tation are made. For example, some organic acids, such as for-mic and propionic have broader antimicrobial activities and can be effective against bacteria and fungi, including yeast.

Dietary acidifi cation is im-portant to create unfavorable conditions for microorganisms and for reduction of pH and stimulation of GI tract enzymes. Optimum pH is needed for en-zyme activation, for example, pepsinogens are rapidly activated at pH 2, but very slow at pH 4. Pepsin has its optimum between

pH 2 and 3.6, and remains in-active at pH 6. Due to insuf-fi cient production of HCl and pancreatic enzymes, and sudden changes in feed consistency and intake, piglets have limited diges-tive capacity and absorption at weaning.

Moreover, the stress associ-ated with weaning is known to disturb the intestinal microfl ora. Various studies show that acidifi -cation of the diets decreased pH-value in feed and consequentially reduced the coliform and E. coli counts along the intestinal tract, decreasing scouring and mortality of piglets. It has been shown that acid conditions favor the growth of lactobacilli in the stomach, which possibly inhibits the proliferation of E. coli and produces lactic acid and other metabolites which lower the pH and inhibit E. coli The reported pH levels of the swine diets in these studies range from 4.36 to 5.79. Dietary acidifi cation by a mixture of organic acids de-creased the pH value in swine diets by 0.15 to 0.98 pH units. The decrease in pH values was dependent on the inclusion lev-els of organic acids, which varied from 0.5 to 3 percent, and com-position of the diet. This was in agreement with a recent study, where a blend of formic and propionic acids at an inclusion level of 0.3 percent reduced the pH by 0.11 pH units in starter and grower diets. A higher in-clusion level of 0.5 percent of the same acid blend reduced pH of the diet by 0.23 and 0.21 pH units in the starter and grower diets, respectively.

Another factor affecting the response of acidifi ers would be

the buffering capacity of the di-ets. By defi nition, the buffering capacity (B-value) is the change in the pH value of a defi ned vol-ume or mass after the addition of a strong acid. A more practi-cal defi nition in the feed industry is that the B-value is the amount of 1 M hydrochloric acid (HCl) solution which needs to be add-ed to a 10 percent slurry of feed or a feed ingredient in 100 ml of water in order to obtain a pH-value of 5, in some cases a pH value of 4 or 3. This defi nition is the reason why we fi nd differ-ent values for the same expres-sion in practical applications. For example, various studies have reported B-values ranging from 380 to 700 mEq per kg feed.

Acid-buffering capacity is lowest in cereals and cereal by-products, intermediate or high in protein feedstuffs and very high in minerals. It might be reason-able to assume that the buffering capacity of pig feed can be con-siderably infl uenced by selection of feed ingredients, and it may in part result in differences in the effectiveness of acidifi ers. It is recommended that swine diets should not exceed 700 mEq/kg of feed B-value.

High protein and mineral content of feed ensures rapid an-imal growth, but generates high buffering capacity, thus reducing levels of HCl in the stomach. Results of some studies demon-strated that high B-value of the diet increased gastric pH and re-sulted in decreased amino acids digestibility.

Lowering dietary buffering capacity, via acidifi cation with organic acids, has been shown to inhibit luminal growth of

enterotoxigenic microfl ora and to enhance swine performance. The results of one in vitro study showed that an acidifi er consist-ing of a blend of formic and propionic acids at an inclusion level of 0.3 percent decreased B-value by 16 and 17 percent in starter and grower pig diets, respectively. Moreover, the in-clusion level of 0.5 percent of the same acid blend decreased B-value by 18 and 19 percent in starter and grower pig diets, respectively. The decrease in B-value was directly related to the inclusion level of acidifi er and the diet composition.

Acidifi ers are powerful tools to maintain animal health and improve their performance, as well as to control feed and en-vironmental hygiene. Consistent benefi cial effects on productiv-ity in weaned pigs have been reported in numerous scientifi c studies with results showing the decreased microbial counts in feed and improved animal growth performance, reduced diarrhoea, morbidity and mortal-ity rates. Furthermore, an over-whelming portion of livestock producers consider acidifi ers as an outstanding solution to en-hance performance and, there-fore, profi tability. EP

Renata Urbaityte is technical manager for Biomin. Reach her at [email protected]

E3: 2009November 17, 2009 St. Paul RiverCentreSt. Paul, Minn.Hosted by the University of Minnesota’s Initiative for Renewable Energy and the Environment, the conference will showcase current technologies, environmental benefi ts and market opportunities in renewable energy.

(612) 626-1202www1.umn.edu/iree/e3/index.html

Canadian Renewable Fuels Summit November 30-December 2, 2009 Westin Bayshore HotelVancouver, British Columbia, CanadaThis annual event, hosted by the Canadian Re-newable Fuels Association, will focus on topics including the new Canada-U.S. clean energy dia-logue, second-generation biofuels, low carbon fuel standards and the industry’s economic outlook.

(613) 594-5528 ext. 223www.crfs2009.com/

World Ethanol 2009November 2-5, 2009 Mexico City, MexicoLe Meridien Montparnasse HotelParisIndustry 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 ex-ecutives from all sectors in the value chain.

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

Pacifi c Rim Summit on Industrial Biotechnology & BioenergyNovember 8-11, 2009Hilton Hawaiian Village Beach Resort & SpaHonolulu, HawaiiHosted by the Biotechnology Industry Organiza-tion, the fourth annual summit will address the latest issues in industrial biotechnology including algae for fuels, marine bioresources, advanced biofuels and dedicated energy crops.

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

EVENTS CALENDAR

Cellulosic Biofuels Summit 2009November 16-19, 2009Almas Temple ClubWashington D.C.Members of the feedstock, industrial biotech, bio-fuel technology, plant development, fi nancial, and oil and transportation communities will gather to report on their activities, consider the next steps forward and share perspectives on reaching com-mercial-scale production of cellulosic biofuels.

(818) 888-4445http://guest.cvent.com/EVENTS/Info/Summary.aspx?i=a7845b8d-3f05-4b63-a9f2-ae191ddcb59c

Biofuels Environmental and Economical Sustainability SummitNovember 16-18, 2009 Washington D.C.Industry leaders and government offi cials will review and discuss the major economic and legislative re-straints and future strategies affected the biofuels in-dustry. Topics to be discussed will include increasing fi nancial stability, risk management, lowering carbon emissions and the commercial viability of cellulosic ethanol.

(800) 882-8684www.biofuelsindustrysummit.com/Event.aspx?id=209906

86 ETHANOL PRODUCER MAGAZINE November 2009

Nov

Dec


Introduction to BiofuelsNovember 30-December 1, 2009LondonThe conference will offer an overview of biofuels technologies and markets, including: the basics of how biofuels are derived, the factors and debates infl uencing the market and its competitive frame-work. Speakers will also review current and upcom-ing market activity, with a focus on transportation biofuels.

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

A Biofuels OverviewDecember 7-9, 2009Oxford, EnglandPresentations will include new process technolo-gies and feedstocks, specifi cations, performance, environmental aspects and second-generation bio-fuels. Current and future challenges faced by au-tomobile manufacturers, oil and additive industries will also be addressed. Emphasis will be placed on the practicalities of biofuels and their contribution to mitigating global warming.

www.oxfordprinceton.com/search/coursedetails.asp?ID=367&PLP=BF0

Cleantech Forum XXVDecember 2-3, 2009BeijingEntrepreneurs, investors, corporations, policy-makers and economic development agencies will gather to explore the latest developments in climate change, energy independence and resource scar-city driving markets for clean technologies.

http://cleantech.com/cleantechforum/beijing09/index.cfm


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Ag Products & ServicesEquipment

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Bio-Cide International.Inc405-329-5556 www.bio-cide.com

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Harris Group Inc.206-494-9422 www.harrisgroup.com

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Greenway Consulting,LLC320-589-3085 www.greenwayconsulting.net

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




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EducationIowa Lakes Community College800-242-5108 www.iowalakes.edu

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McDermott & Bull-Energy Practice415-722-8966 www.mbsearch.net

SearchPath of Chicago815-261-4403 www.searchpath.com/chicago

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Process Engineering Associates, LLC865-220-8722 www.processengr.com

Vogelbusch USA, Inc.713-461-7374 www.vogelbusch.com

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Ceco Abatement Systems, Inc.630-493-0624 www.cecoenviro.com/Abatement

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Gusmer Enterprises, Inc.847-277-9785 www.gusmerbiorefi ning.com

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Robinson Fans, Inc.724-452-6121 www.robinsonfans.com

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

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

Combustion Equipment

Eclipse.Inc.815-637-7213 www.eclipsenet.com

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Encore Business Solutions204-989-4330 www.encorebusiness.com

Alaqua Inc.Evaporators, Crystallizers, Distillation, Columns, Solvent

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www.alaquainc.com

EPM MARKETPLACE

With all contact information placed in one convenient location, Ethanol Producer Magazine not only con-tains top editorial content but also a useful directory in each publica-tion. Whether a fi rst-time adver-tiser wanting to raise awareness of your business or a frequent dis-play advertiser looking for added exposure, EPM Marketplace is the perfect solution.

Your Ad HERE

Your Solution. Advertise Today.

EPM MARKETPLACE

Reach your customers


EPM MARKETPLACE


EPM MARKETPLACE

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

Control Systems


Revere Control Systems800-536-2525 www.reverecontrol.com

Conveyors–Mechanical

Superior Industries320-589-2406 www.superior-ind.com

U.S. Tsubaki847-459-9500 www.ustsubaki.com

Conveyors–Pneumatic

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

Cooling Towers

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

Corn Oil Recovery


Distillation Equipment

SRS Engineering Corporation800-497-5841 www.srsbiodiesel.com

SRS Engineering Corpration951-526-2239 www.srsbiodiesel.com

Dryers-Fluid Bed

Aeroglide Corporation919-851-2000 www.aeroglide.com

Littleford Day, Inc.859-525-7600 www.littleford.com

Dryers-Ring

Barr-Rosin,Inc630-659-3980 www.barr-rosin.com

Dryers-Rotary Drum

Barr-Rosin,Inc.630-659-3980 www.barr-rosin.com


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

Dryers-Rotary Steam Tube


Ductwork


Dust Control Systems

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

Emission Monitoring Systems

MonitorTech Corp.866-682-6771 www.monitortechgrp.com

Fermentation Monitoring

ETS Laboratories707-963-4806 www.etslabs.com

Fermentors



Fire Suppression

FLAMEX Inc.336-299-2933 fl [email protected]

Fractionation-Corn

Buhler Inc.763-847-9900 www.buhlergroup.com/us

Cereal Process Technologies217-779-2595 www.cerealprocess.com

Crown Iron Works651-639-8900 www.crowniron.com


MOR Technology, LLC618-522-8324 www.mortechnology.com

Grain Handling & Storage


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

Heat Exchangers

Munters - Des Champs Products540-291-1111 www.deschamps.com

Instrumentation


Insulator

Industrial Construction & Engineering636-970-1650 www.ic-e.cc

Miller Insulation Co., INC701-297-8813 www.millerinsulation.com

Laboratory-Equipment


Laboratory-Outsourcing

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

Laboratory-Supplies

CHATA Biosystems877-246-2428 [email protected]

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

800.518.0472JohnDeereAgriServices.com

You produce fuel. We fuel your success.

© 2009 John Deere Agri Services, Inc.

Continuous Emissions Monitoring SystemsEasiest installation, operation and maintenance

Meet or exceeds EPA requirementsNOx, O2, CO, SO2 and others

Turnkey systems for under $100,000.00P.O. Box 9271, Columbus, Oh 43209

866-682-6771 [email protected]


EPM MARKETPLACE

Phenomenex310-212-0555 www.phenomenex.com

Laboratory-Testing Services

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

Trilogy Analytical Laboratory636-239-1521 www.trilogylab.com

Loading Equipment

Carbis, Inc.800-845-2387 www.carbis.net

SafeRack866-761-7225 www.saferack.com

Maintenance Services

Joule’ Industrial [email protected] www.jouleinc.com

Mechanical Solutions, LLC515-332-7035 www.mecsol.com

Maintenance Software


Mapcon Technologies, Inc.800-922-4336 www.mapcon.com

Mills-Hammer

CPM/Roskamp Champion800-366-2563 www.cpmroskamp.com

Millwright


Moisture Analyzers


Sartorius Mechatronies-Omnimark800-835-3211 www.sartorius-omnimark.com

Molecular Sieves


Vaperma, Inc.418-839-6989 www.vaperma.com

Motors

Trico TCWind, Incorporated320-693-6200 www.tricotcwind.com

Paint & Protective Coatings

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

Parts & Services


Pipe

ISCO Industries800-345-4726 www.isco-pipe.com

Robert-James Sales, Inc.800-666-0088 www.rjsales.com

Pipe-Fittings


Pipe-Flanges


Pressure Vessels


Process Control


VFTechnical Services, LLC423-794-6747 www.vftechserv.com

Pumps

PeopleFlo Manufacturing847-929-4774 www.peoplefl o.com

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

QA Test Products


Resource Recovery

Eco-Tec, Inc.905-427-0077 www.eco-tec.com

Scales-Software

John Deere Agri Services800-518-0472 www.johndeereagriservices.com

Scales-Truck

Weigh-Tec Inc.1-800-461-4153 www.truck-scales.com

Seals

Aesseal Inc.865-531-0192 www.aesseal.com

Separation Equipment

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

Size Reduction-Shredders

DuraTech Industries / Haybuster701-252-4601 www.haybuster.com

Storage-DDGS

Laidig Systems, Inc.574-256-0204 www.laidig.com

Structural Fabrication


Tanks



Brown Tank LLC651-747-0100 www.browntank-mn.com

Federal Equipment Company800-652-2466 www.fedequip.com

Paragon Trailer Sales800-471-8769 www.paragontrailer.com


Westmor Industries320-589-2100 ww.westmor.biz

EPM MARKETPLACE

With all contact information placed in one convenient location, Ethanol Producer Magazine not only con-tains top editorial content but also a useful directory in each publica-tion. Whether a fi rst-time adver-tiser wanting to raise awareness of your business or a frequent dis-play advertiser looking for added exposure, EPM Marketplace is the perfect solution.


EPM MARKETPLACE

Thermal Oxidizers

Pro-Environmental, Inc.909-989-3010 www.pro-env.com

Used Equipment

Valves

Check-All Valve Mfg. Co.515-224-2301 www.checkall.com

North American Safety Valve800-800-8882 www.nasvi.com

Wastewater Treatment Services

Biothane Corporation856-541-3500x501 www.biothane.com



UEM, Inc.561-385-7515 www.uemgroup.com

Water Treatment

Aquatech International Corporation724-746-5300 www.aquatech.com

Yield Enhancement

EdneiQ, Inc.310-592-4158 www.EdeniQ.com

Ethanol ProductionExisting Producers

Louis Dreyfus Commodities402-844-2680 LDCommodities.com

POET LLC605-965-2200 www.poetenergy.com

FinanceAccounting

Christianson & Associates PLLP320-235-5937 www.christiansoncpa.com

Eide Bailly LLC605-977-2703 www.eidebailly.com

Appraisals

Natwick Associates Appraisal Services800-279-4757 www.natwick.com

Due Diligence


Insurance

ERI Solutions, Inc.316-927-4294 erisolutions.com

Mergers & Acquisitions

Kent Group, Inc.715-358-7528 www.kentgroupinc.com

Risk Management

R.J. O’Brien800-621-0757 www.rjobrien.com

Software-Accounting

Encore Business Solutions204-989-4330 www.encorebusiness.com

Software-Commodity

John Deere Agri Services800-518-0472 www.johndeereagriservices.com

Legal ServicesAttorneys

BrownWinick Law Firm515-242-2400 www.biofuellawyers.com

Faegre & Benson, LLP612-766-6930 www.faegre.com

[email protected]

PROVENRELIABILITYfor VOC, CO & PM

ABATEMENT

EISENMANN CorporationCrystal Lake, Illinois

EPM MARKETPLACE

With all contact information placed

in one convenient location, Ethanol

Producer Magazine not only con-

tains top editorial content but also

a useful directory in each publica-

tion. Whether a fi rst-time adver-

tiser wanting to raise awareness

of your business or a frequent dis-

play advertiser looking for added

exposure, EPM Marketplace is the

perfect solution.


EPM MARKETPLACE

MarketingDistillers Grains

CGB Feed Ingredients985-867-3554 www.cgb.com

Fuel Ethanol

CHS Renewable Fuels651-355-6271 www.chsinc.com

Gavilon402-595-5678 www.gavilon.com

Miscellaneous

Nelson Ink Promotional Products218-222-3831 www.nelsonink.com

TransportationMarine

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

Railcar Parts

Salco Products, Inc.630-783-2570 www.salcoproducts.com

Terminals & DSP

ERS Rail Transload205-322-8312 www.ersrail.net

UtilitiesUtility

Integrys Energy Services608-235-2547 www.integrysenergy.com

Reach your customers


EPM MARKETPLACE

Your Ad HERE


EPM MARKETPLACE

www.ethanol-jobs.com www.ethanol-jobs.com www.ethanol-jobs.com www.ethanol-jobs.co

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November 2009 Ethanol Producer Magazine

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Transcript of November 2009 Ethanol Producer Magazine