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Department of Economics
Examining the Product Streams & Costs of Corn Fractionation Systems
2009 AACC International Annual MeetingBaltimore, MarylandSeptember 14, 2009
Chad HartAssistant Professor/Grain Markets Specialist
Department of Economics
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Bill
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gallo
nsEthanol Production
Based on the pace over the 1st 5 months of 2009
Sources: Renewable Fuels Association, Energy Information Administration
Department of Economics
Ethanol Margins
Source: ISU -- CARD
Department of Economics
Corn Composition
Source: 2009 FEW Conference presentation by Reg Ankrom (CPT)
Looking for:Improved efficiencyReduced energy usageReduced water usageDiversified product stream
Why Fractionate?
Department of EconomicsSource: Dave Elsenbast, REG
Information from Reg Ankrom’s ppt at the FEW conference
Department of Economics
Relative Prices (Jan. 2007 = 1)
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Ethanol DDG Corn Oil
Department of Economics
Fractionation Technologies MOR Technologies Corn Value Products Langhauser Associates FC Stone Carbon LLC and Maize Processing
Innovations Buhler Inc. Cereal Process Technologies FWS Technologies American Milling Group ICM Inc. POET Renessen LLC Delta-T Corporation
Department of Economics
MOR Technologies Combines wet and dry milling techniques Outputs:
EthanolHigh protein distillers grainsHigh oil germ (food use, 42% oil content)Bran (60% for food and 40% for feed)
Offers oil extraction technology as well Claims a 2% starch loss from process
Department of Economics
Langhauser Associates A wet fractionation approach Outputs:
EthanolHigh protein distillers grainsHigh oil germ (food use, 48-50% oil content)Bran (80% for food and 20% for feed)
Includes oil extraction technology Operating costs roughly 10% higher than traditional plant
Department of Economics
FC Stone Carbon & Maize Processing A wet fractionation approach Outputs:
EthanolHigh protein distillers grains (47% protein)High oil germ (food use, 42% oil content)Bran
Includes oil extraction technology
Department of Economics
ICM A dry fractionation technology Outputs:
EthanolHigh protein distillers grainsHigh oil germ (food use, 26% oil content)BranSnack gritsCorn meal
Can include oil and protein extraction technologies
Department of Economics
Capital Costs Range from $10 million to $40 million for a 50 million
gallon ethanol plant The inclusion of corn oil extraction technologies moves
costs to the higher end of the spectrum Most vendors point to a payback period of under 3 years
Variable Costs Decreased energy needs per gallon for:
Liquidification and cookingDistillationDrying of distillers grains and solubles
Possible energy generation from bran Could reduce energy demand by nearly 50%
Department of Economics
Product StreamsCorn costs: $3.14 per bushel, Illinois ethanol plant report
(USDA-AMS, as of early Sept. 2009)
Traditional ethanol plant:2.8 gallons of ethanol @ $1.60/gallon = $4.4817.75 lbs. of DDGS @ $92/ton = $0.82Revenues per bushel = $5.30
Ethanol plant w/ fractionation:2.72 gallons of ethanol @ $1.60/gallon = $4.3513.5 lbs. of high protein DG @ $102/ton = $0.695 lbs. of germ @ $115/ton = $0.293 lbs. of bran @ $65/ton = $0.10Revenues per bushel = $5.42
Department of Economics
Tapping into Many MarketsBiorefinery
Process Corn DST™
ProcessBiofuels
Germ Bran Wet Cake
Syrup
Starch
Animal Feed
Animal Feed
Solvent ExtractSolvent Extract
Corn Oil
Corn Meal
Burn CHPBurn CHP
Animal Feed
Animal Feed
WCGFWCGF
Cellulose Ethanol
Cellulose Ethanol
Cellulose Ethanol
Cellulose Ethanol
A.D.A.D.
Combine all – DDGSCombine
all – DDGSProtein IsolatesProtein Isolates
Burn CHPBurn CHP
Animal Feed
Animal Feed
Zein Protein
Zein Protein
Other Fermentation
Other Fermentation
FoodFood
Source: 2009 FEW Conference presentation by Neal Jakel (Delta-T)
Department of Economics
Ethanol Margins
Source: ISU -- CARD
Department of Economics
Thank you for your time!
Any questions?
Iowa Grain Quality Initiative:http://www.iowagrain.org/
My web site:http://www.econ.iastate.edu/faculty/hart/
