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Kansas

Kansas. Renewables Today. Current Ethanol Production Nine plants -- 270.5 million gallon capacity. They consume 96 million bushels of grain sorghum and corn. (About half our ethanol is made from sorghum). Ethanol Production Today. Five plants now under construction.

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Kansas

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  1. Kansas Renewables Today

  2. Current Ethanol Production • Nine plants -- 270.5 million gallon capacity. • They consume 96 million bushels of grain sorghum and corn. (About half our ethanol is made from sorghum)

  3. Ethanol Production Today • Five plants now under construction. • Will add 245 million gallons of production. • Combined Kansas sorghum and corn production around 640 million bushels. • Robust beef industry provides markets for distillers grains. Many buy the product wet.

  4. Ethanol Byproducts • Robust beef industry provides markets for distillers’ grains. • Many plants buy the product wet, saving energy costs. • Tensions between beef industry and ethanol can be worked out. • Coming—possible regulation of DDGs as a feed; consistency of product.

  5. Infrastructure • Need for more stations—currently 21 E85 fueling stations. • Now possible to cross Kansas east to west on E85 fuel. • Biodiesel readily available. • Questions about biodiesel testing and standards keep coming up.

  6. Other Renewables • The first small biodiesel plant began producing in June in Sedgwick, KS. • One sizeable plant under construction. • Three with permits pending. • Cellulosic plant soon to begin construction at Hugoton and another under consideration by ICM.

  7. DOE Grant Facility • Abengoa plans construction of a cellulosic and a conventional ethanol plant at Hugoton. Partial funding from a $76 million DOE grant.The traditional plant will produce 85 million gallons a year; the cellulosic, about 30 million gallons. • Fractionation and various treatments separate cellulose, hemicelluloses and lignin. The first two are destined to be fermented and lignin will be a coproduct. Biomass particles are “popped” by heat to let enzymes penetrate the molecule. Fermentation creates ethanol.

  8. ICM and Cellulosic Ethanol • Edenspace Systems Corporation and ICM have agreed to collaborate on variety development of corn, switchgrass and other crops optimized for the production of cellulosic ethanol. • Edenspace is a research company that recently moved part of its work to Kansas. • ICM is seeking a $30 million 10 percent DOE grant for a plant 10 percent the size of a commercial plant. • Their goal? Production-scale cellulosic ethanol process by 2012.

  9. Selected Kansas Energy Incentives • Alternative fuel tax credit provides a tax credit to purchasers of alternative fuel vehicles. • Biomass to energy plant income tax credit for construction of expansion of plants. • Ethyl Alcohol production incentive provides $0.05 per gallon on the first 15 million gallons produced per year. • Biodiesel Fuel production incentive provides a $0.30 per gallon incentive for producers. • Cellulosic alcohol income tax credit for investors.

  10. Kansas Incentives, cont. • Ag value added loans help fund feasibility studies. • Carbon dioxide reduction incentives for underground storage of carbon through property tax exemptions. • State agencies required to purchase E85 vehicles if cost is not excessive. • New law provides a monetary incentive (per gallon) for fuel dealers to sell renewable fuels based on a percentage of sales. • Income tax credit for installation of alternative fuel stations.

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