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INTEGRATED BIOREFINERY COMPLEXES: ENERGY & FOOD SECURITY, & RURAL DEVELOPMENT. Presented by: David Hallberg, CEO, PRIME Technologies, LLC To the: GOVERNORS’ ETHANOL COALITION Sioux Falls, SD August 1, 2003. IBR COMPLEXES ARE A “FOUR-CORNERED BOX”. The Wall Street Journal.
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INTEGRATED BIOREFINERY COMPLEXES: ENERGY & FOOD SECURITY, & RURAL DEVELOPMENT Presented by: David Hallberg, CEO, PRIME Technologies, LLC To the: GOVERNORS’ ETHANOL COALITION Sioux Falls, SD August 1, 2003
The Wall Street Journal Friday, August 16, 2002 “…proven technologies…never before have they been so integrated – nor on such a scale. It is an immense circle of life…”
Homeland Security Issues • Dispersed & decentralized gaseous and liquid fuel production • No fossil fuel (foreign or domestic) needed to produce renewable ethanol • Integrated Bio-Refinery (IBR) sites chosen for grain and cattle availability – not natural gas • Source and management identified beef & food products • Source verified cattle (in beef units) & milk (in dairy units) • Management verified systems • Feed • Hormones • Antibiotics
The Patented PRIME Process…U.S. Patent # 6,355,456 Issued March 12, 2002 • A “modified” ethanol unit, with no feed product drying or loadout equipment… • …with boilers fueled by biogas generated from waste streams treated in the…
Anaerobic Digesters… • …kept at optimum temperatures by “waste heat” from the ethanol plant. Feedstock for the AD unit comes from the ethanol plant thin stillage and manure generated in the…
Beef cattle feed lot… • …where feed products from ethanol production are fed wet in enclosed, protected habitats to facilitate “clean manure” harvest, pollution control and supply “finished” cattle to the…
Beef packing facility… • …where all cattle harvested are of known origin and handling protocol - all monitored by a computerized management system.
10% Principle • If 10% of U.S. Beef production came from PRIME system it would take: • 45 IBR complexes • Produce 1.035 billion gallons of ethanol • If 10% of U.S. Milk (via dairies vs. feedlots) came from the PRIME system it would take: • 105 IBR complexes • Produce 1.155 billion gallons of ethanol • If 10% of BOTH beef and milk markets were accessed via PRIME IBR systems: • Nearly 10% of U.S. corn production would be involved
Ethanol Plant • Takes in grain (corn, milo, barley) • Produces • Wet distillers grains – fed directly to feedlot • Thin stillage – used as feedstock for AD unit • Carbon Dioxide – aids in nutrient removal, refrigerant in packing facility • Fueled by • Biogas from AD unit • No evaporator or dryer • No thermal oxidizer
AD Unit • Fed by • Manure from the feed lot • Thin stillage from the ethanol plant • Heated by • Waste heat from the ethanol plant (serves as cooling tower) • Produces • 100% of all gas needs • Facilitates • Economic removal of • Nitrogen • Phosphorus • Potassium
Feed Lot • Consumes all wet distillers grains produced • No drying • No hauling • Produces manure feedstock for AD unit • Supplies cattle to beef processing unit • Source verified • Management verified
Beef Processing • Small and specialized • Premium beef quality control in “advanced technology” micro-processing facilities • Paunch manure & offal to AD system for biogas maximization • Ethanol unit CO2 available for meat refrigeration & processing needs • Closes the loop on the “four-cornered box”
PRIME PATENT PRINCIPLES • “Closed loop” method technology utilizes residuals & wastes from one sub-system as feedstock for the others • Synergies & “economies of scope” result in lowest-cost, highly energy efficient, ethanol, & economically & environmentally sustainable approach to meeting strict new manure management standards (CAFO rules) • Sub-systems have all been commercially proven • Integration plan allows for straightforward operations, redundancy & contingencies in event of upsets
FINANCIAL POINTS • Lowest ethanol capital costs • Lowest ethanol natural gas/energy inputs • Lowest ethanol O & M costs • Highest ethanol net protein values (lowest “net starch” costs) • Substantially reduced transportation requirements • No rail access needed • Maximum value from biogas substitution (zero external natural gas requirement) • Greatest manure odor, pathogen, & water contamination control • Unique permitting capability
Energy Cost Savings • Eliminate: • Evaporator • Dryer • DDGS Transport • With natural gas at $6 to $8/mcf • 25 to 35 cents/gallon energy savings over “standard” ethanol production facilities
Environmental Implications • Ethanol • “Clean Air Fuel” • Feed lot • PRIME rations rich in distillers grains reduce enteric fermentation • Anaerobic Digestion • Manure treatment • Controlled odor • Nutrient recovery – enough for 40% of replacement crop • Nitrogen • Phosphorus • Potassium
Energy Points • Low energy needs • No feed dryer, no evaporator, no shipping • On-site energy source • Anaerobic Digestion • Feed lot manure • Ethanol plant thin stillage • Potentials • Solar (photovoltaic cells) • Wind (4 turbines per 320 acre site)
Tonnes CO2E GWP Tonnes CE Ethanol 11,015 1 3,005 Methane 5,195 21 29,745 Enteric Fermentation 965 21 5,520 TOTALS 38,270 Partial GHG Benefits 17,175
Issues • Where are the complexes? • Why not build hundreds of them? • Why so difficult to build the first complex?
PRIMARY BARRIERS • Anti-corporate farming laws restrict capital formation options (exceptions needed) • Commercial demonstration challenge for first facility poses technology risks to lender (government support needed to bridge gap) • Cultural differences b/ ethanol & beef – dairy operations must be managed • Competitive pressures • 80% of beef markets controlled by 3 entities • “Big 3” restrict mainstream marketing
GEC ACTION REQUESTS • Help to inform farmer & rancher constituents of technology’s potential application to their state • Urge Department of Homeland Security to actively support IBR’s as dispersed liquid- and gaseous-fuel production centers that are “off-grid” resources • Recognize IBR technology concept as cost-effective management tool for manure pollution control for beef and dairy operations
FEDERAL GOV’T REQUESTS • Enact RFS and renewable fuels tax code provisions in Senate energy bill • Establish favorable conditions for expanded ethanol uses, esp. ETBE & E-85 (ETBE instead of MTBE = 800+million GPY of new ethanol demand; E -85 provides “platform” to ethanol role in future hydrogen economy) • Incentivize IBR complexes by encouraging GHG credit trading