200 likes | 360 Views
BIOMAN 2009 Brian Roach Venture Manager. ETHANOL – FULTON, NY. July 27, 2009. Topics to Cover. A Developing Industry Northeast Biofuels – First in NY The Perfect Storm The Plant The Future. Bubble Growth 2005 - 2008. Unheard of profitability
E N D
BIOMAN 2009 Brian Roach Venture Manager ETHANOL – FULTON, NY July 27, 2009
Topics to Cover • A Developing Industry • Northeast Biofuels – First in NY • The Perfect Storm • The Plant • The Future
Bubble Growth 2005 - 2008 • Unheard of profitability • 3 year payback for new plants (1.80- 2.00/gal) • Construction Boom • Overcapacity built • Margins decline • Discretionary production disappears Bubble Bursts
2008 Stats • 9 Billion Gallons produced in 2008 • 170 operating bio-refineries in 26 States • Target 10.5 Billion Gallons in 2009 • Nearly 9% of Americas Gasoline Supply • Record Exports of Distillers • Per acre yield continues to improve
The Impact • Investment in technology • Collaboration Academia & Industry • Infrastructure capability and efficiency • Job growth in agribusiness • Awareness of complexities of energy • Momentum toward alternatives
Northeast Biofuels • Brownfield retrofit of Miller Brewery • Destination model – approx. 2.4 BGPY • Central to heart of NE agriculture • Access to transportation infrastructure • Solid employee base • Strong Academic resources
The Perfect Storm • EPC Contract signed May 2006 • Construction begins July 2006 • Design & construction delays • Testing begins August 2008 • Commodity market volatility • Testing indicates problems • Cash tightens – Chapter 11 January 14
New Opportunity • Sale to Sunoco Closes June 15 • ICM engaged to address design flaws • Mobilize reconstruction mid fall • Resume start up April 2010
Why Sunoco? A pioneer in evaluating and testing the commercial viability of alternative fuels. • Sunoco history - development of alternatives. • Recognized value of Fulton plant in market • Opportunity for future growth • Anchors Sunoco presence in Northeast
MASH PREPARATION FERMENTATION CO2 HAMMER MILLS YEAST PROPAGATION YEAST HYDRATION FERMENTATION MASH SLURRY JET COOKER LIQUEFACTION COOK WATER Enzymes Enzyme Backset Nutrients Ammonia Enzymes Corn Oil Extraction System (future) Whole Stillage DISTILLATION COLUMNS BEER WELL CENTRIFUGES ANAEROBIC TREATMENT MODULE EVAPORATORS Syrup Wet Distiller’s Grains MOLECULAR SIEVES DAY TANKS Syrup DRYERS DISTILLATION Dry Distiller’s Grains FINAL PRODUCT TANKS LIQUIDS AND SOLIDS SEPARATION Ethanol to Load-out Denaturant Ethanol Production Process Block Flow Diagram 4/9/2008
Production Numbers • Operating Cycle 353 days • Ethanol Production 100 MGPY • CO2 Production 807 Tons/day • DDGS Production 914 Tons/day • Corn Feed Rate 101,556 bu/day • Rail Load Rate 750 gpm
Project Plan • Complete Design Development • Mobilize Contractors • Complete Modifications • Flush / Hydro test • First Grind • Performance Testing • Steady State Operation
Keys to Success • Maximize Value of Existing Products • Improvements in Production Efficiency • Alternatives to Fossil Fuel for Production • Integrate GHG footprint to Strategic Planning • Integration of Cellulosic and Biomass • Advance Transportation Alternatives • Improve Risk Management Strategies • Academic Research Partnerships • Meaningful job creation / local economic impact
To survive, the ethanol industry must stand on its own merits, in the absence of subsidies, tariffs and other political support systems.