Ethanol Plants What affect are they having on our existing infrastructure?

1. Ethanol Plants What affect are they having on our existing infrastructure?

2. Ethanol in the US today • Currently the Ethanol Producers of North America show the following information: • There are 139 Ethanol plants in production today • There are 11 plants non-producing • There are 62 under construction • 2- are expanding capacity

3. Ethanol requirements under 2007 Energy Bill • Total current capacity = 13.5 bgy • Energy bill signed into law on December 19, 2007 calls for the blending of 36 bgy by 2022 • Means deficit of 22.5 bgy • New growth expected to be in cellulosic technology, not corn

4. Ethanol Plant location map

5. What determines plant location? • Railroad access( unit train delivery) • Feed stock availability (year round) • Outlet for distiller’s grain/wet cake (If using earlier corn process technology) • Optimal ethanol market entry (Either unit train, or ready truck competitive delivery.)

6. What does a plant require?

7. Railroad access( unit train delivery) • Siding length allowing mainline clearance • Ability to access unloading facility with unit train: usually a loop track design • Ability by plant to unload within defined timeframe (usually 16-20 hours) • Capacity to load outbound on separate track ( defined by the FDA.)

8. Feed stock availability (year round) • Corn processing plants consume approximately 1-train (11,000tons) every 3 days (max design for most US plants) • This is equal to approximately 575 trucks • Site sizing may allow for large amounts of on-site storage

9. Outlet for distiller’s grain/wet cake (If using earlier corn process technology) • Close proximity to feed lots is desired • Almost 100% guarantee this by-product will be shipped via truck • Ensures there will be daily competition for roadway resources • Puts higher roadway ADT in an area where this is surely rail service

10. Process with Distiller’s grain by-product

11. Optimal ethanol market entry (Either unit train, or ready truck competitive delivery.) • Most plants require some if not all output to be trucked into regional market • If unit-rail delivery, additional rail ADT’s….most equate to 90 cars of output for each 110 cars feed stock

12. Process… • Railroad 10% submittal • Permitting requirements met • Local and regional services • (To often forgotten) DOT coordination

13. Summary • Ethanol plants will continue, but the expectation is existing plants will accommodate production • New feed stocks into existing facilities will affect ADT’s… • Additional ADT’s in areas of distribution a given