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Industry Overview and Developments

Industry Overview and Developments. Ralph Groschen Senior Marketing Specialist Minnesota Department of Agriculture ralph.groschen@state.mn.us www.mda.state.mn.us. Riverland Community College December 6, 2006 Kasson, MN. Includes plants under construction as of September 2003.

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Industry Overview and Developments

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  1. Industry Overview and Developments • Ralph Groschen • Senior Marketing Specialist • Minnesota Department of Agriculture • ralph.groschen@state.mn.us • www.mda.state.mn.us Riverland Community College December 6, 2006 Kasson, MN

  2. Includes plants under construction as of September 2003

  3. New Projects HAWAII

  4. Minnesota Ethanol: Production, Producer Payments, and Economic Impacts (Fiscal Year: July 1-June 30)

  5. Minnesota’s Ethanol Plants Plant (Start date) Original capacity (millions) 2004 • Marshall (1987) 10 40 • Morris (1991) 3.5 22 • Corn Plus (1994) 15 40 • Heartland (1995) 10 37 • Al-Corn (1996) 10 34 • CVEC (1996) 15 42 • MN Energy (1997) 12 18 • Ethanol 2000 (1997) 12 30 • Pro-Corn (1998) 12 40 • Cornerstone (1998) 12 21 • CMEC (1999) 20 22 • Exol (1999) 13 40 • North Star 2005 50 50 • Total 210 454

  6. Yields Yields Return To Fossil Fuel Energy 100% more energy w/ Ethanol 1.67 Btu of fuel ethanol (USDA) 1 Btu of fossil energy Coal, oil, or gas 0.805 Btu of gasoline

  7. DDGs for 40 million gal. plant energy?

  8. Market Development • 5 billion gallons used today, mostly in E10. • E85 is future possibility for market expansion. (MN is way ahead nationally) • May also develop other markets: • 1. Aviation Fuel? • 2. Diesel Fuel (Sweden) • 3. E20 (Gov’s initiative) • 4. RFG area O2 caps may be lifted

  9. Where do we go from here? • Maintain existing industry through transition • “Cellulose” (biomass) to ethanol and other fuels. • Minnesota plants are taking the initiative. • Pathways • 1. Use biomass fuels for process energy. (MN) • 2. Enzyme/Fermentation DOE focus. • 2. Thermochemical • A. Various thermochemical reactions (Pyrolysis- Synthetics) • B. Gasification “Syngas” and “biorefinery process” (MN)

  10. What’s Possible? Source - Vinod Khosla 70% of today’s gasoline usage?

  11. Fossil Energy Ratio (FER) = energy in fuel/fossil energy input 10.31 Michael Wang, Center for Transportation Research, Energy Systems Division, Argonne National Laboratory

  12. Yields Yields Return To Fossil Fuel Energy 280% more energy w/ Biodiesel 3.2 Btu of Biodiesel (USDA & DOE) 1 Btu of fossil energy Coal, oil, or gas 0.843 Btu of Diesel Fuel

  13. Minnesota Biodiesel • 2% required in Minnesota since 9/29/05 • 3 plants, 63 million gallons production capacity • High blends & B100 used in summer by some • Filter problems in Winter ‘05 & ’06 blamed on biodiesel • Some “off-spec” biodiesel was shipped • Everybody used B2, most had no problem • Other potential causes of filter problems were not discussed

  14. Diesel Filter Problems • Jan. 2006 Cummins Diesel Bulletin • Diesel filter life has shortened steadily since Winter of 2004. • Major causes of plugging are: • “Asphaltine” polymers duel to high fuel temp • “Biological organism” growing in fuel • “Engine lubricating oil” mixed in fuel • Engine design, pipeline additives & used oil. • Biodiesel fuel mixed at “high levels” (B20) • “Solid Particle contaminants, (Dirt)”

  15. Questions?

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