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Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
Energy Sources from Biofuels Co-Products
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Energy Sources from Biofuels Co-Products

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Review of various animal feed and biofuels feedstock sources resulting from ethanol production. A look at availability, price and quality.

Review of various animal feed and biofuels feedstock sources resulting from ethanol production. A look at availability, price and quality.

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  • FEC SolutionsStarted 2006 to add value to the ethanol industry through corn oilSpun out of Feed Energy Company a 26 yr old premium feed fat business located in IowaTeam of Chemical Engineers working on value added processing R&D focused on Oleo Chem and fats and oilsMarketer of Corn OilFind and build new markets for corn oil
  • Some standardization across the industryICM Plants are more similar than differentPOET plants are more similar to each other than differentThe balance are all over the board
  • Growth Curve has stopped
  • Source: Ethanol Producer Magazine
  • Source: Ethanol Producer Magazine
  • Source: Ethanol Producer Magazine
  • Per gallon of ethanol produced@ 0.02 additional revenue a 50mm etoh plant will make an additional $1m in revenue
  • What you don’t see is wide acceptance of the technology in the KS, OK, TX plants…..yet
  • Correlation is very high with Yellow Grease.You can see the pricing change dramatically in regards to congressional action
  • Proliferation of an enzyme cocktail that effects oil liberationAdditional value added processing techWhat’s next?
  • What challenges do we face today in achieving this with corn oil? First, there are only two fundamental markets today for corn oil, feed and fuel. There is some export of corn oil taking place but the majority of the exported corn oil is being used for feed or fuel as well, maybe a small part of it going into food. Let’s first look at biodiesel.
  • Biodiesel has certainly come a long way in the past few years. Advanced Biofuel Status has led to a sustainable business model. Corn oil as a feedstock has not been successfully adopted across the entire industry. Very few plants can consistently handle the high waxes and high free fatty acids in corn oil. Some have made significant capital investments to remove those constituents on the front end.
  • So now we turn to the other market today for distiller’s corn oil….feed.
  • Research has proven that there are right and wrong fats and oils for species segments. For monogastrics it is important to look at the proper unsaturated to saturated mix, the level of free fatty acids, total fatty acids and MIUs (moisture, insolubles and unsaponifiables) as well as the fatty acid profile, and for swine the iodine values. For ruminants the biggest concern in feeding corn oil is acidosis and bloat which has been shown to increase in cattle with the addition of corn oil to the diet. These attributes can be offset by blending the corn oil with animal fats to hit the appropriate levels specific to the species segment. So the concern exists that corn oil is finding its way into species diets due to its robust demand, potentially at the cost to animal production and detriment to the value back to ethanol producers.
  • Biodiesel has certainly come a long way in the past few years. Advanced Biofuel Status has led to a sustainable business model. Corn oil as a feedstock has not been successfully adopted across the entire industry. Very few plants can consistently handle the high waxes and high free fatty acids in corn oil. Some have made significant capital investments to remove those constituents on the front end.
  • the upper limit of nationwide production is about 720 million gallons in 2020
  • The three constituents holding corn oil back from increased demand into biofuels are free fatty acids, waxes and moisture. Distiller’s corn oil contains around 15% free fatty acids. This high amount of free fatty acids reduces the amount of corn oil a plant can use to produce biodiesel. It takes up capacity space. High amounts of wax also can limit the capacity of a plant while gumming up systems and causing costly down time. Most distillers corn oil contains around 50 parts per million of waxes. These waxes are insoluble material that can build up on pipes and clog the transfer of material in the plant. Color can also be a limiting factor for biodiesel companies who need a specific color specification for their feedstock to hit color expectations of their biodiesel.
  • Added 2013 projection
  • Rule making for volume happens ever year and is subject to EPA appointee by administration
  • Special processes are required if the oil or fat contains significant amounts of free fatty acids (FFAs). Used cooking oils typically contain 2 percent to 7 percent FFAs, and animal fats contain from 5 percent to 30 percent FFAs. When an alkali catalyst is added to these feedstocks, the free fatty acid reacts with the catalyst to form soap and water, as shown in the reaction below.With up to about 5 percent FFAs, the reaction can still be catalyzed with an alkali catalyst, but additional catalyst must be added to compensate for the catalyst lost to soap. The soap that is created during the reaction is washed out after the reaction with the water wash.When the FFA level is above 5 percent, the soap inhibits separation of the methyl esters and glycerol and contributes to emulsion formation during the water wash. In these cases, an acid catalyst such as sulfuric acid can be used to esterify the free fatty acids to methyl esters as shown in the following reaction.This process can be used as a pretreatment to convert the FFAs in high FFA feedstocks to methyl esters, and thereby reduce the FFA level. Then, the low FFA pretreated oil can be transesterified with an alkali catalyst to convert the triglycerides to methyl esters. As shown in the reaction, water is formed, and if it accumulates it can stop the reaction well before completion.
  • Innovative Uses of Glycerol from Biodiesel Plants
  • 10.5 lbs per gallon
  • Special processes are required if the oil or fat contains significant amounts of free fatty acids (FFAs). Used cooking oils typically contain 2 percent to 7 percent FFAs, and animal fats contain from 5 percent to 30 percent FFAs. When an alkali catalyst is added to these feedstocks, the free fatty acid reacts with the catalyst to form soap and water, as shown in the reaction below.With up to about 5 percent FFAs, the reaction can still be catalyzed with an alkali catalyst, but additional catalyst must be added to compensate for the catalyst lost to soap. The soap that is created during the reaction is washed out after the reaction with the water wash.When the FFA level is above 5 percent, the soap inhibits separation of the methyl esters and glycerol and contributes to emulsion formation during the water wash. In these cases, an acid catalyst such as sulfuric acid can be used to esterify the free fatty acids to methyl esters as shown in the following reaction.This process can be used as a pretreatment to convert the FFAs in high FFA feedstocks to methyl esters, and thereby reduce the FFA level. Then, the low FFA pretreated oil can be transesterified with an alkali catalyst to convert the triglycerides to methyl esters. As shown in the reaction, water is formed, and if it accumulates it can stop the reaction well before completion.
  • Special processes are required if the oil or fat contains significant amounts of free fatty acids (FFAs). Used cooking oils typically contain 2 percent to 7 percent FFAs, and animal fats contain from 5 percent to 30 percent FFAs. When an alkali catalyst is added to these feedstocks, the free fatty acid reacts with the catalyst to form soap and water, as shown in the reaction below.With up to about 5 percent FFAs, the reaction can still be catalyzed with an alkali catalyst, but additional catalyst must be added to compensate for the catalyst lost to soap. The soap that is created during the reaction is washed out after the reaction with the water wash.When the FFA level is above 5 percent, the soap inhibits separation of the methyl esters and glycerol and contributes to emulsion formation during the water wash. In these cases, an acid catalyst such as sulfuric acid can be used to esterify the free fatty acids to methyl esters as shown in the following reaction.This process can be used as a pretreatment to convert the FFAs in high FFA feedstocks to methyl esters, and thereby reduce the FFA level. Then, the low FFA pretreated oil can be transesterified with an alkali catalyst to convert the triglycerides to methyl esters. As shown in the reaction, water is formed, and if it accumulates it can stop the reaction well before completion.
  • FUD Volatile markets
  • Transcript

    • 1. Energy Sources From Biofuels Co-Products Joe Riley General Manager FEC Solutions
    • 2. Energy Sources from Biofuels CoProducts • Ethanol – Overview – Syrup – Corn Oil • Biodiesel – Overview – Glycerin – FFAs – Methyl Esters
    • 3. Triglyceride
    • 4. Triglyceride
    • 5. Overview of Ethanol Industry • • • • 209 – Ethanol Refineries ~50% Designed by ICM 27 POET Plants Balance are Wet Mills or handful of other design
    • 6. Overview of Ethanol Industry • Ethanol growth has stopped because of blend wall – Blend wall is the amount of ethanol allowed to be blended into the fuel supply – E15 is moving forward, limited – At best, idled plants will come on line
    • 7. Overview of Ethanol Industry • Brazilian Ethanol has added competitive pressure to the industry – Sugar Cain (“Rain forest”) ethanol is favored by CARB (California Air Resource Board) in California as a lower carbon ethanol over corn based ethanol
    • 8. Overview of the Ethanol Industry • Cellulosic Ethanol is gaining momentum but is still in the burgeoning phases – Still debate around feed stock and economics – Feed stock logistics a big hurdle – At least 3 major commercial scale operations moving forward, though not running, yet • Project Liberty in Emmetsburg, IA • DuPont in Nevada, IA • ICM in St. Joe, MO
    • 9. Growth? • Unlikely expansion of corn ethanol will ever be like the days of the early 2000’s • Focus will continue to be on Co-Product differentiation and value add • Bolt on technology • Co-Location with other companies for value added processing.
    • 10. Ethanol Diagram Source: Ethanol Producer Magazine
    • 11. Ethanol Diagram Source: Ethanol Producer Magazine
    • 12. Condensed Distillers Solubles (Syrup)
    • 13. Syrup Composition • 30-50% Dry Matter (High Variability) • 10-20% Fat on Dry Matter Basis • 20-30% Protein on Dry Matter Basis
    • 14. Syrup – Condensed Distillers Solubles • Not all co products are created equally • Reduced fat content – 1st phase was to remove oil – 2nd phase to remove more oil with surfactants – 3rd phase will be to remove even more with up stream biological agents like enzymes
    • 15. Syrup – Condensed Distillers Solubles • Natural gas prices effects production quantity • Seasonality-more demand in the winter than summer because of pasture availability • Higher amino acids because this is where dead yeast ends up • Some residual fat left in syrup • Enzyme work will effect syrup composition
    • 16. Ethanol Diagram Source: Ethanol Producer Magazine
    • 17. Why More Corn Oil Source: Christianson & Associates, January 2013
    • 18. Corn Oil Extracting Ethanol Plants
    • 19. Corn Oil Extraction Timeline • 2006 - First Plants – Innovators • 2008 – Full-scale Deployment in Early Adopters • 2009 - Majority Adoption • 2011 -Surfactant Introduction • 2012 - pH Adjustment • 2012 - Enzyme R&D Emerging for More Oil
    • 20. Two Fundamental Markets • Fuel • Feed
    • 21. Corn Oil Use Projections
    • 22. Corn Oil Use in Feed • ~11 billion pounds of inedible oils produced in U.S. • ~2.4 billion pounds of oils used in feed • ~1 billion pounds of corn oil going into feed • ~10% of total feed fat market
    • 23. Use of Oils in Feed • Monogastrics – Unsaturated to saturated mix – Free fatty acids – Total fatty acids – M.I.U.s – Fatty acid profile • Ruminants – Bloat – Acidosis
    • 24. Surfactant Considerations • “Revolution” of use of surfactants in corn oil may effect oil properties as it relates to diet • Surfactants are long chain carbons that act like a detergent in the ethanol plant process • Contribute to higher Unsap numbers • Unknow effects on diet
    • 25. Corn Oil Use in Fuel • Total fats and oils used in biodiesel 9.6 billion pounds • 571 million pounds corn oil used • Only 6% of total biodiesel production • Only 30% of total corn oil production going into fuel
    • 26. Biodiesel Plants
    • 27. Ethanol and Biodiesel
    • 28. Biodiesel Feedstock Usage Source: Jacobsen Biodiesel 5/3/13
    • 29. Price Comparison of Feedstock Sources $0.46 $0.44 $0.42 $0.40 $0.38 $0.36 $0.34 $0.32 $0.30 Yellow Grease Choice White Grease Distiller's Corn Oil Source: Informa, August 2013 Poultry Fat Inedible Tallow Soy Oil
    • 30. Biodiesel Feedstock Usage Source: Jacobsen Biodiesel 5/3/13
    • 31. Biodiesel Feedstock Usage Source: Jacobsen Biodiesel 5/3/13
    • 32. Biodiesel Feedstock Usage Source: California’s Low Carbon Fuel Standard: Compliance Outlook for 2020, June 2013, ICF International
    • 33. Holding Corn Oil Back from further adoption in Biodiesel • Free fatty acids • Waxes • Color
    • 34. Biodiesel Plants
    • 35. Overview of Industry • 192 Biodiesel Plants • Name plate capacity at 2.9B gallons of Biodiesel – 1.3m tons of Glycerin • No dominate designer of biodiesel plants (many varieties of processes) • Variety of feed stocks used • Variable co-products/byproducts
    • 36. Biodiesel Industry Overview • EPA continue to support biodiesel in form of rule making for RFS 2 • 25% Increase year over year of Obligated Parties to use Renewables or RINS – Big Oil need/demand for biodiesel or RINs continues to grow because of EPA rule making • 2013 Tax Credit has made biodiesel very attractive – talk of extended tax credit for 2014 (Political risk) budget hawks will be leery
    • 37. Growth of Industry has been challenged Gallons of Biodiesel 1,200,000,000 1,000,000,000 800,000,000 600,000,000 Gallons of Biodiesel 400,000,000 200,000,000 2005 2006 2007 2008 2009 2010 2011 2012
    • 38. Glycerin Production that follows.. Tons of Glycerin 700,000 600,000 500,000 400,000 Tons of Glycerin 300,000 200,000 100,000 2005 2006 2007 2008 2009 2010 2011 2012 2013
    • 39. Rebound has happened • Congress and EPA have set a goal of 21 billion gallons of Advanced biofuels by 2022* • Biodiesel is one of the few fuels that is commercially viable to achieve the “Advanced” status and is rewarded with a 1.5 RINs
    • 40. Biodiesel Diagram Source: Iowa State University Extension
    • 41. Biodiesel Diagram Source: Iowa State University Extension
    • 42. Source: Desmet Ballestra, Innovative Uses of Glycerol, Brussels, 2011
    • 43. Source: Desmet Ballestra, Innovative Uses of Glycerol, Brussels, 2011
    • 44. Glycerol Industry After Biodiesel Boom • Crude glycerol production more than doubled – More than 600k tons of crude glycerol from biodiesel industry • Very volatile market – Pricing strongly dependent on supply – Growing supply due to growing biodiesel demand
    • 45. Source: Desmet Ballestra, Innovative Uses of Glycerol, Brussels, 2011
    • 46. Glycerin • Glycerol is an interesting building block for many different applications. Current oversupply could be opportunity ($.05 $.15/lb) • Glycerin production will be largely dependent on biodiesel industry. (supply driven market) • Glycerin market will remain volatile
    • 47. Biodiesel Diagram Source: Iowa State University Extension
    • 48. Free Fatty Acids • Both vegetable and animal sources – Soybean oil, corn oil, canola oil – Choice white grease, Bleachable fancy tallow • Typical specs – Total fatty acids: 55% – Moisture: 35% – Higher Unsap (concentrated in the process)
    • 49. Free Fatty Acids • Can contain high amounts of Methanol • Sulfur can concentrate in this phase of the plant process • Highly variable product – Volume and consistency • Can contain glycerin
    • 50. Free Fatty Acids • Both vegetable and animal sources – Soybean oil, corn oil, canola oil – Choice white grease, Bleachable fancy tallow • Typical specs – Total fatty acids: 55% – Moisture: 35%
    • 51. Biodiesel Diagram Source: Iowa State University Extension
    • 52. Methyl Ester as Feed • 21 CFR 573.640 States the Methyl Esters are ok to use in feed. • Cannot exceed 150 ppm of Free Methanol • If offered this product, understand why it is not going into the fuel market • Mono and Di Glycerides have a lower concentration of energy than a triglyceride
    • 53. Potential Concerns With Co-Products
    • 54. 3 Key Takeaways • Biofuels have fundamentally changing the fats and oils industry and change will continue • Safety and consistency determine quality of co-product • Use of bio-fuels co-products as energy sources is increasing but comes with some risk factors
    • 55. Q&A Joe Riley General Manager jpriley@fecsolutions.com www.fecsolutions.com

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