University extension presentation2 april 2012

POET BIOREFININGLADDONIA, MO

Steve Murphy

PAGE 3CONFIDENTIAL

LADDONIA PLANT FACTS

• Began operation Sept. 26, 2006• We operate 24/7 and year round• Majority Missouri farmer-owned

through co-ops• Technology and management

support from POET Plant Management –

linked to other plants in the system

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2011 PLANT PRODUCTION

• 60 MGPY of ethanol / 170,000 per day– Ethanol is sold as E98– Most ethanol stays in MO

• 20+ M Bushels of Corn / 60,000 per day• Produce 160,000 tons of DDGS/year

– 460 tons/day of dry product– Wetcake– Corn oil – started in December 2011– Dry mill process– Other plants make other products (CO2, Inviz)

Corn Draw Area

Corn Draw Area

Corn Draw Area

POET WATER USE REDUCTION

PAGE 10CONFIDENTIAL

POET BIOREFINING – LADDONIA WATER USE

PAGE 11CONFIDENTIAL

WATER USE PARAMETERS

• Plant is supplied by two wells, potable water is from the city

• Main water users are fermentation, cooling towers, and boilers

• Incoming water quality determines treatment requirements and discharge rates

• Effluent is regulated by state permits• Total Water Recovery (TWR = ZLD) -

May 2011

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WATER USE PARAMETERS

• Water that has contacted corn or ethanol is considered “process water” and is 100% recycled

• Discharge water is primarily Reverse Osmosis (RO) reject water

• TWR installed in May 2011 recycles most of this RO reject water

POET Biorefining – Laddonia Water Use

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WATER CONSIDERATIONS

• Quantity of water needed– Potential to handle expansion/growth – Cellulosic?

• Quality of incoming water • Water discharge permit – cycle up

incoming water how many times?• Food Safety Modernization Act (FSMA) -

is water source compatible for animal feed products?

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CO-PRODUCTS

• Ethanol production uses only the starch from corn

• DDGS (wet and dry) contain the other parts of the kernel – protein, fiber, oil, minerals and vitamins – 460 tons per day

• Animal feed treated as part of the food chain and many food guidelines now apply as result of Food Safety Modernization Act (FSMA)

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CO-PRODUCTS - NEW

• Starting in December 2011, the Laddonia site also started separating corn oil from the syrup

• This oil is used for biodiesel or as an animal feed energy supplement

• Co-products are a key factor in energy intensity, carbon intensity, “food vs. fuel”, and plant profitability

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ENVIRONMENTAL INNOVATIONS

• 14MWH Heat Recovery Steam Generator (HRSG) turbine supplies steam to distillation and electricity to the grid

• In-line blending of denaturant• All process water has always been

recycled • Total Water Recovery – recycles RO reject

water• Corn Oil Separation for biodiesel

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LEGISLATIVE ISSUES

Changes already in effect•VEETC Blenders credit was allowed to expire on January 1, 2012•Tariff on imported (Brazilian) ethanol also expired on January 1, 2012•Small Producer Tax Credit expired 1/1/2012

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LEGISLATIVE ISSUES

Legislation/regulations in progress•Blend wall – E15 and blender pumps– US Market saturated at 10% ethanol– EPA moving forward with approval process– Ethanol is currently selling for $1/gallon

discount to gasoline

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LEGISLATIVE ISSUES

• “Indirect Land Use Change” – controversial theory that claims corn used for ethanol in America kicks off a chain reaction that leads to global deforestation. – Forecast models of this theory do not match

actual historical data

• CARB and LCFS – ethanol industry has won an injunction under interstate commerce clause– California ethanol was treated preferentially – State of California is appealing

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LEGISLATIVE ISSUES

• Corn ethanol and Advanced biofuels– Corn ethanol cannot be considered an

“advanced” biofuel regardless of carbon intensity under RFS2 rules

• RFS2 pathways available to show 20% GHG reduction for RINS

• 90% of steam from CHP• 90% raw starch hydrolysis• Corn oil extraction at 1.33 lbs/bu• Wet vs. dry distillers grains (50% or 65% +

1)

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LEGISLATIVE ISSSUES

• RFS2 – blending requirements for ethanol and other biofuels – 36B gallons by 2022– Being targeted for repeal by opponents– 15B cap for corn ethanol

• Special targets for advanced biofuels and cellulosic

• POET Biorefining – Emmetsburg has broken ground for 20MM gallon co-located cellulosic ethanol refinery using corn residue (Project LIBERTY)