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

Energy and Operating Efficiencies In Dry-Mill Ethanol Production

Governors’ Ethanol Coalition February, 2007

Greg Krissek, Governmental Affairs Director

Modern Era of Dry Mill Ethanol Production has Multiple Focuses

● Ethanol historically has been a value-added product Distilleries and food-

grade markets 1980s

• Last time for extender market

1990s• Oxygenate

• Octane enhancer

• Education needed at the pump

2000s Era of Commodity Production and Fuel Extender

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80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

bil

lio

ns

of

gal

lon

sWill Only Continue with Projected Ethanol Production Growth in the U.S.

2006 = 18% US Corn Crop

Can replace ~4% gasoline

Average growth = 75 million gal/yr

Average growth = 720 million gal/yr

End of 2007 expect 8.2 Billion gallons capacity = 30% US corn crop

US Fuel Ethanol Capacity

CO2Alpha-Amylase and Glucoamylase

Fermenter

“Liquefaction”

Grain Kernels

Grind Grain

Distillation

DDGSOnly C6 Sugars

Ethanol

Grain Fermentation Today

● Well developed process● Over 25 years of history● High efficiency today, refined over time● Fermentation natural and easy C6 sugars

Historical Energy Usage

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40000

60000

80000

100000

120000

1975 1985 1995 2001 2002 2004

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Energy Use perGallon Dry-Mill

Gallons/bu.

Dry-Mill Thermal Energy Use per Gallon of Ethanol and Ethanol Yield per Bushel

Source: Clean Fuels Development Coalition

Dry-Mill Ethanol Plants

● Reuse of energy within plant Heat exchangers are now common Heat tolerant yeast

• Less energy loss to cooling tower; this energy makes it to beer column

Improved fermentation by control of lactic/acetic acid, methanator cushion

Fewer upsets – increased time efficiency Routing dryer particulate to thermal oxidizer

led to energy gain Increased number of plants equates to

increased learning opportunities

ICM Process Guarantees

● Ethanol – 2.80 denatured gallons per bushel #2 yellow dent corn

● Natural Gas – 34,000 BTU per denatured gallon of ethanol (24,000 with DWGS)

● Electrical Usage – 0.75 kW per denatured gallon per hour

● Emissions compliance – Guaranteed

United Wisconsin Grain Producers Friesland, WI

Efficiencies Gained

● Overall design and piping in the plant● Heat capture and recycling in equipment

Air-to-air heat exchanger● Water treatment and capture of methane as energy

source● Emissions containment and energy center

integration● Enzymes tolerate higher pH, reducing acid needs● Molecular sieves replaced:

Grit columns Azeotropic systems

• Eliminate benzene & isopropyl ether

Holistic View of the Process and Ethanol Plant

● Marketplace has reacted favorably to overall plant reliability and financial viability

● Every incremental energy savings and efficiency gain within each part of the production process becomes very important in a commodity business East Kansas Agri Energy

Garnett, KS

Energy Prices Lead Plant Designers to Evaluate Alternative Energy Sources

● Natural Gas● Coal● Biomass

Ag Residue Solid waste Wood chips

● Waste steam

… but reliability, consistent availability, conversion technology and cost are crucial

Energy Prices Lead Plant Owners and Operators to Optimize Use

● 30,000 BTU per gallon of ethanol achievable with good management

New Technologies for Energy are Coming Forward

● Integrating technologies in the process but understanding impacts Steam tube dryers

• Co-product needs Turbines

• Supply up to one-third electricity needs if generating needs and cost analysis (capital and operating) make sense

Gasifiers Corn fractionation Ultra-filtration of thin stillage/oil separation Reuse of local effluent water & RO/cooling tower blow

down

CO2

Cellulose Enzymes

Fermenter

Saccharification

Fibrous Crop

Pretreatment

Distillation

water

Lignin

C5 & C6 Sugars

Ethanol & other fermentation products

Thermal/Sugar Biorefinery

Gasifier

SyngasGas Cleaning Catalytic Reactor

Biobased fuels

Air

CO2

Lignin gasified to CO and H2

Heat

Financial Health of the Industry Attracts After-Market Services

● Banks today view little technology risk (vs. 1980s)

● Automation and optimization vendors

● Plant and company scale-up brings internal support and engineering resources

● Attractive to technology graduates

● Creates interest for applied research in academia

Creating optimism for the future!

Western Plains Energy Oakley, KS

For More InformationContact

Greg KrissekDirector of Governmental AffairsPhone: 316-977-6549

E-mail: [email protected]

icminc.com