Sunflower Integrated Bioenergy Center An Alliance between the Kansas Bioscience Authority, NISTAC, and Sunflower Electric Power Corporation SIBC.

Sunflower Integrated

Bioenergy CenterAn Alliance between the

Kansas Bioscience Authority, NISTAC, and

Sunflower Electric Power Corporation

SIBC

Kansas Bioscience AuthorityNISTAC

(National Institute for Strategic Technology Acquisition and

Commercialization)

A Touchstone Energy Cooperative

Sunflower Electric Power Corporation

NISTAC Founded in 1994 as a nonprofit under the

auspices of Kansas State University and the Kansas Technology Enterprise Corporation (KTEC)

Commercialization of intellectual property from:– Kansas State University– Corporate patent portfolio

Promote business development in Kansas and around the nation through the use of technology

SIBC

Kansas Bioscience Authority

Created in April 2004 under the Kansas Economic Growth Act

Independent entity of the state with the authority to invest $580 million in bioscience activities

Mission to make Kansas a national leader in bioscience development and commercialization

SIBC

Sunflower Electric Nonprofit corporation formed in 1957 by six

rural electric distribution cooperatives

Services 34 western Kansas counties with over 61,000 meter points

Actively engaged in rural development activities throughout western Kansas for many years

SIBC

Holcomb Station 2013

Artist’s Rendering

Holcomb Expansion Project

Total installed cost of the three plants is expected to be $3.6 billion

Over a 35-year period will exceed $8 billion

Construction Impact (6 year period) 3,600 jobs created (direct and induced) in Kansas Annual payroll of more than $116 million

Continuing Impact (35-year study period) More than 400 full-time jobs (direct and induced) created in Kansas Annual payroll of more than $24 million

Studies completed by Dr. Ralph Gamble, a noted Fort Hays State University Economics professor

Plant Design Features

Each unit built to provide minimum generation capacity of 700 MW

Environmental control systems will be Best Available Control Technology BACT is an emission limitation based on the best degree of reduction for

each regulated air pollutant emitted Results in the emission rates that are achievable and is determined on a

case-by-case basis, taking into account energy, environmental and economic impacts, and other costs.

Construction on eastern unit is expected to begin in mid-2007 Construction period for each plant is 42-48 months Total construction period of 63 months

Sunflower Integrated Bioenergy Center

Goal is to develop a bioenergy project that will integrate a number of commercial or near commercial renewable energy technologies with the coal-based power plant located at Holcomb Station

SIBC

Global Energy MarketsComparative Historic Prices of Fuel Alternatives

Historic Prices of Crude Oil

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Historic Prices of Gasoline

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Historic Prices of Natural Gas

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Historic Prices of Diesel

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SIBC

Dairy

Anaerobic Digester

Sunflower Holcomb

Power Plant

Biodiesel Plant

Ethanol Plant

Algae Reactor

Ethanol BiodieselElectricityMethane

Reduced Waste Streams = CO2, NOx, SOx, Nutrient Load (Nitrogen & Phosphorus), Heat, & Waste Water

Energy Products

Biogas

Nutrients (Nitrogen &

Phosphorus) & Water

Electricity

Flue GasWater

Algae Solids

Algae Oil

Biodiesel

Ethanol

Wet Distillers’ Grain

Waste Water

Corn/Grain Sorghum

Tallow

Livestock Processing

Manure

Other Oils (Soybean

etc)

Thin Stillage

Ammonia

Methanol (Converted from

Methane)

Glycerol

Extracted Corn Oil

CO2

Sunflower Integrated Bioenergy Center

2006 Alliance with NISTAC

SIBCPatent Pending

Anaerobic Digester

Biodiesel Plant

Ethanol Plant

MethaneEnergy Products

Biogas

Waste Water

Tallow

Livestock Processing

CO2

Livestock Processing Subsystem

Processor waste water and manure are converted to methane in the anaerobic digester.

Beef tallow is used as an oil source for the biodiesel plant.

CO2 from the ethanol plant can be converted to dry ice for refrigeration purposes.

SIBC

Livestock Processing

Holcomb station is in close proximity to several large processing facilities.

A significant quantity of beef tallow is produced – one processor can supply enough oil for a large biodiesel plant.

Access to tallow allows for the immediate construction of the biodiesel plant while other oil sources are scaled up. Tallow is also a low cost feedstock.

Waste water from the processing plant can create value in the form of methane, reusable water, and a nutrient source for the algae system.

Processors currently purchase CO2 (for dry ice refrigeration) which could be supplied from the ethanol plant.

SIBC

Dairy

Anaerobic Digester

Ethanol Plant

Algae Reactor

MethaneEnergy Products

Biogas

Algae Solids

Wet Distillers’ Grain

Manure

Dairy Subsystem

Dairy manure and waste water are converted to methane in the anaerobic digester.

Wet distillers grain from the ethanol process and algae solids (protein residue) are used for cattle feed.

SIBC

Dairy Southwest Kansas is home to a

growing number of large dairy operations.

Access to land, water, feed (including distillers grain), and suitable climate conditions are driving this growth. All of those conditions are present in Holcomb.

Dairies must construct manure and waste water management systems – an anaerobic digester offers additional value.

SIBC

Dairy

Anaerobic Digester

Sunflower Holcomb

Power Plant

Ethanol Plant

Algae Reactor

MethaneEnergy Products

Biogas

Nutrients (Nitrogen &

Phosphorus) & Water

Waste Water

Livestock Processing

Manure

Thin Stillage

Ammonia

Glycerol

Anaerobic Digester Subsystem

Biodiesel Plant

Digester processes waste water and manure from the livestock facilities and potentially glycerol from the biodiesel plant.

Bacteria in the digester produces methane which can be used by the ethanol and power plant.

Digester ammonia, nutrients (nitrogen and phosphorus), and water are used in the algae reactor and power plant.

SIBC

Anaerobic Digester Anaerobic digesters have been used

throughout the world for many decades to process waste water and provide biogas.

Recently digesters have gained popularity because of improved economics related to natural gas.

Several of the subsystems at the Holcomb site will require waste water management – the gas generated can supplement natural gas usage.

The digester also creates valuable products such as ammonia, nutrients for the algae (nitrogen and phosphorus) and eventually water for the power plant.

SIBC

MethaneMethane Digester Market and Process Data

Historic Prices of Natural Gas

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Simplified Model of Inputs and Outputs in Methane Production

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Input Output

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igh

t in

Po

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ds Solid

Waste100 lb.

CO232 lbs

CH458 lbs

(1298cuft)

Biomass 10 lbs

Estimated Cost of Inputs in Methane Production

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ce

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Co

st/T

on

$660

$12 -$13 -$1

Digester Btu's Produced from Various Waste Streams

05,000

10,00015,00020,00025,00030,00035,00040,00045,000

Dairy Ethanolthin stillage

Biodieselglycerol

Beefprocesswater

BT

U/g

allo

n o

f w

ast

e

135 Btu

SIBC

Anaerobic Digester

Sunflower Holcomb

Power Plant

Algae Reactor

ElectricityMethaneEnergy Products

Biogas Electricity

Flue GasWater

Ammonia

Coal-based Power Plant Subsystem Flue gas emissions from the power plant are

stripped as they flow through the algae reactor creating algae oil and solids.

Ammonia from the anaerobic digester can be used for the SCR in power plant and excess methane can replace some demand for natural gas.

Excess water from algae reactor can be cleaned for electricity production.

SIBC

Coal-based Power Plant Holcomb station offers several resources

for an integrated bioenergy facility including access to CO2 and NOx (flue gas), land, water, rail, natural gas, and economies of scale for other integrated systems.

The generation expansion at Holcomb is a tremendous regional economic opportunity and an integrated bioenergy facility affirms Sunflower’s commitment to community development and renewable energy.

Sunflower has negotiated large and complex power plant operation and integration agreements similar to the processes required for an integrated bioenergy facility.

SIBC

Dairy

Anaerobic Digester

Sunflower Holcomb

Power Plant

Biodiesel Plant

Ethanol Plant

Algae Reactor

BiodieselEnergy Products

Nutrients (Nitrogen &

Phosphorus) & Water

Flue GasWater

Algae Solids

Algae Oil

Biodiesel

Algae SubsystemConverts C02 emissions into renewable

fuels

A significant portion of the Algae is harvested from the reactor daily and is separated into Algae oil, solids, and water.

Flue gas is introduced to the bioreactor, where algae utilize CO2, NOx and suspended nutrients from the anaerobic digester to optimize the growth.

Algae solids are used as animal feed, starch for the ethanol plant, or burned directly in the coal unit.

Algae oils are a feedstock for the biodiesel plant.

SIBC

Algae ReactorConverts C02 emissions into renewable

fuels Microalgae is the most primitive plant form - typically one or two cells.

This simple structure allows algae to be very efficient at converting sunlight, CO2, and nutrients into oil (for biodiesel) and starch (for ethanol).

The algae reactor is capable of utilizing the waste CO2 and NOx in flue gas and the nutrients from livestock/processing waste to create valuable energy products.

Algae systems have been research for decades including work by the National Renewable Energy Laboratory. Production was found to be viable but most work was done when fuel prices were half of what they are today.

No large scale algae reactor is in operation today but significant investment has been made recently in conjunction with higher global energy costs.

SIBC

Algae Reactor Flue gas is diverted from the power plant in

a manner that does not disrupt normal generation operations.

CO2 and NOx are consumed in the bioreactor by algae through photosynthesis and other biological processes. Algae are suspended in water with nutrients from the anaerobic digester.

Algae is harvested daily and is sent through a dewatering process which may utilize flue gas as a dryer.

Algae biomass is then separated into oil (60% by weight for some algae) and solids. Those solids can be fed to livestock, burned in the power plant, or the starch may be utilized by an ethanol plant.

SIBC

AlgaeAlgae Market and Process Data

U.S. Vegetable Oil and Fat Prices

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Soybean oil Cottonseed oilSunflower oil Peanuts oilCorn oil LardEdible tallow

Simplified Model of Inputs and Outputs in Algae Oil Production

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Input Output

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igh

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1 ton

O21050 lbs

Oil 350 lbs (45 gal)

Nitrogen & nutrients 100 lbs

Starch 350 lbs

Protein/Fiber 350 lbs

Resources Required to Supply Oil to a 30 MGY Biodiesel Plant

0

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Algae Canola Soybean Beef cattle

Oil source

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Head of cattle(tallow)

3000 acres

Algae Yield Comparison to Other Oilseed Crops

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Gal

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SIBC

Dairy

Anaerobic Digester

Biodiesel Plant

Ethanol Plant

Algae Reactor

EthanolMethaneEnergy Products

Algae Solids

Ethanol

Wet Distillers’ Grain Corn/Grain SorghumLivestock

Processing

Thin Stillage

Glycerol

Extracted Corn Oil

CO2

Ethanol Subsystem

Ethanol plant will consume methane gas, grain, glycerol, and algae solids.

Ethanol plant will produce ethanol, distillers grains used by the dairy, thin stillage for the anaerobic digester and extracted corn oil that will be used in the biodiesel plant.

SIBC

Ethanol Production Ethanol is produced by

converting carbohydrates found in grain into sugar which is then converted to ethanol through fermentation.

The ethanol industry has grown rapidly due to the renewable fuels standard, the ban on MTBE, and higher oil prices.

Ethanol plants require access to land, water, grain markets, and livestock facilities for use of distillers grain. All of these are key components of the Holcomb site.

Powering the ethanol plant on over 90% renewable fuels allows the facility to receive a substantially higher tax incentive.

SIBC

Ethanol

SIBC

Ethanol Market and Process Data

Historic and Future Forcasted U.S. Fuel Ethanol Production

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Historic Forecast

Historic Prices of Fuel Ethanol (Terminal Market Price)

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Simplified Model of Inputs and Outputs in Ethanol Production

0

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120

Input Output

Wei

ght

in P

oun

ds Corn/

Sorghum(100 lb.)

Ethanol (33.3 lb.)

CO2(33.3 lb.)

DDGS(33.3

U.S. Corn and Sorghum Prices

$-$1.00$2.00$3.00$4.00$5.00$6.00

1980

1984

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1992

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2000

2004

Pri

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in U

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oll

ars

Corn ($/bu)

Sorghum ($/ctw )

Anaerobic Digester

Biodiesel Plant

Ethanol Plant

Algae Reactor

BiodieselEnergy Products

Algae Oil

Biodiesel

Ethanol

Tallow

Livestock Processing

Other Oils (Soybean

etc)

Methanol (Converted from

Methane)

Glycerol

Extracted Corn Oil

Biodiesel Subsystem The biodiesel plant can utilize a

number of oil sources including algae oil, tallow, recovered corn oil, and other vegetable oils such as soybean.

The biodiesel plant will produce Glycerol as a by-product which can be sold (ingredient in soap and cosmetics) or processed in the anaerobic digester.

SIBC

Biodiesel Plant Biodiesel is a fuel that has many of the

same characteristics as normal petroleum diesel including similar energy content, improved lubricity and higher flash and cloud points.

Biodiesel is derived from “cutting” triglycerides found in vegetable oils and animal fat using simple alcohol in the presence of an alkali catalyst (transesterification).

The first diesel engines were designed to run on peanut oil so that developing countries could rely on agriculture infrastructure.

Growth in the biodiesel industry will be limited by the access/cost of oil sources. Many of the vegetable oils (soy, canola, etc.) used today take many acres to grow and have food value. Algae oil may offer improved yields.

Crude Glycerol and catalyst Biodiesel

Reclaimed Methanol

Methanol

Alkali Base (NaOH)

Oils/Fats

Methoxide

Water

Dry Oils/Fats

Crude Biodiesel

Separation Vessel

Reaction Vessel

Flash Boiler

Pre-mix Vessel

Flash Boiler

Fig. BD-2: Simplified Production Process Schematic

SIBC

BiodieselBiodiesel Market and Process Data

U.S. Biodiesel Production

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50.0

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250.0

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2000

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Mill

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s

Historic Prices of Diesel

020406080

100120140160180200

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Simplified Model of Inputs and Outputs in Biodiesel Production

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Inputs Outputs

Wei

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in P

oun

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Vegetable Oil or

Animal Fat(100 lb.)

Biodiesel(100 lb.)

Methanol (10 lb.) Glycerine (10 lb.)

In the presence of catalyst

U.S. Vegetable Oil and Fat Prices

010203040506070

1996

/97

1998

/99

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/01

2002

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2004

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/07

High

U.S

. C

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Po

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Soybean oil Cottonseed oilSunflower oil Peanuts oilCorn oil LardEdible tallow

SIBC

Expected Benefits Efficiencies of integration

– Improved economics over stand-alone system– Water re-use– Value from waste streams– Flue gas utilization

New job creation Additional regional economic activity Shared human resources

SIBC

Current Status Formation of founding partners company

Final technology and financial partner selection

Enhanced subsystem feasibility studies– Economic– Engineering for integration– Environmental / water

Ethanol plant construction 2007

SIBC

Dairy

Anaerobic Digester

Sunflower Holcomb

Power Plant

Biodiesel Plant

Ethanol Plant

Algae Reactor

Ethanol BiodieselElectricityMethane

Reduced Waste Streams = CO2, NOx, SOx, Nutrient Load (Nitrogen & Phosphorus), Heat, & Waste Water

Energy Products

Biogas

Nutrients (Nitrogen &

Phosphorus) & Water

Electricity

Flue GasWater

Algae Solids

Algae Oil

Biodiesel

Ethanol

Wet Distillers’ Grain

Waste Water

Corn/Grain Sorghum

Tallow

Livestock Processing

Manure

Other Oils (Soybean

etc)

Thin Stillage

Ammonia

Methanol (Converted from

Methane)

Glycerol

Extracted Corn Oil

CO2

Sunflower Integrated Bioenergy Center

2006 Alliance with NISTAC

SIBCPatent Pending