Corn Stalks As A Revenue Source Why and How? Don McCabe Ontario Federation of Agriculture Blue Water Corridor Conference A Bi-National Approach to Innovation and Collaboration Bi-National Clusters: Focus on Bio-industrial Innovation June 11, 2014 Sarnia
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Corn Stalks As A Revenue Source Why and How? Don McCabe Ontario Federation of Agriculture Blue Water Corridor Conference A Bi-National Approach to Innovation.
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Corn Stalks As A Revenue Source
Why and How?Don McCabe
Ontario Federation of AgricultureBlue Water Corridor Conference
A Bi-National Approach to Innovation and CollaborationBi-National Clusters: Focus on Bio-industrial Innovation
June 11, 2014Sarnia
Definition of a Farmer
• Cash crop• Corn, soybeans, wheat farmer• Beef farmer• Fruit and vegetable producer• Egg producer• Pineapple plantation• Or……..
Definition of a Farmer • Manager of carbon and nitrogen cycles with input
from the water cycle to produce starch, oil, protein, fuel, fiber and energy for world wide consumers at the highest quality.
The Canadian Biosphere
What Saved Mankind?
Introduction ofTechnology
Everything in thisslide has a pricepoint to market
Combine and Head (AGCO)
Corn (CBOT)
Stalks and Cobs (Valuechain cooperative orcommodity pricing?)
Top 4 highest supply chain cost influencer related to
baling operation
10 out of 15 top supply chain cost influencers related to feedstock supply operations
(i.e., Production-specific parameters)
decrease by ~$22/std. Mg
increase by ~$29/std. Mg
Bale density alone can decrease supply chain cost by~$8/std. Mg
Bale density alone can increase supply chain cost by ~$9/std. Mg
Effect of Harvest Activities on ROE and Cost of Stover in a Supply Co-op
Stover Supply Compared to a Bioprocessing Co-op
• The Bioprocessing Co-op now sets the ROI at 15%
• Calculations are done now to maintain producer/investor ROI
• The price paid for stover is now calculated out to meet the ROI
Financial Model for Bioprocessing Co-op General Parameters ValuePlant biomass capacity (tonnes/year) 250,000Unit capacity cost ($/tonne/year) $280.00Debt to equity ratio 1.00Interest rate (%) 5.00%Loan repayment period (years) 10.00Price of cellulosic sugar ($/tonne) $400.00
Price of lignin coproductsproducts ($/tonne) $40.00
• Air Products• BP Energy• CF Industries• DuPont• Ethyl Corporation• Exxon-Mobil• LANXESS• NOVA Chemicals• Ontario Power
Generation• Pembina• Praxair• Royal Dutch Shell• Styrolution• Suncor Energy• TransAlta Energy
24Sandy Marshall
"Based on the first term of funding it is evident that BIC is becoming an organization that will create a legacy for Canada in the bioindustrial and bioinnovation sectors."
Mayor Mike BradleySarnia, Ontario
•
Development of a Business Case for a Cornstalks to Bioprocessing Venture
• Agronomic benefits possible with corn stover removal
• Model of bioprocessing co-op helps to derisk project