Christianson & Associates, PLLP

Ethanol Energy Efficiency Report

& Iowa Plants Analysis

Iowa Renewable Fuels Association Summit

John O. Christianson

Energy Efficiency Improvements Data gathered from 2004 – 2007

Submit accurate data to the EPA to determine the actual levels of energy usage within the ethanol production industry and evaluate greenhouse gas emissions.

Full copy of the report available at www.christiansoncpa.com

U.S. Ethanol Industry Efficiency Improvements 2004 through 2007

BTUs

Plants producing DDGSAverage of all plants used 29,231 BTUs/gal

2007

• Reduction of 4,700 BTUs / gal since 2004• Reduction of 13.84% BTUs used

Plants producing Wet distillersAverage of all plants used 19,901 BTUs/gal

2007

• Reduction of 5,430 BTUs/ gal since 2004

• Reduction of 21.45 % BTUs used

BTUs

Plants producing DDGS (Leaders)Used 26,693 BTUs / gal in 2007

• Reduction of 1,890 BTUs / gal since 2004

• Reduction of 6.6% BTUs used

Plants producing Wet distillers (Leaders)

Used 17,526 BTUs / gal in 2007

• Reduction of 5,209 BTUs / gal since 2004

• Reduction of 22.81% BTUs used

BTUs

kWh

kWh

Plants producing DDGSUsed .7412 kWh / gal in 2007• Reduction of.1264 kWh since 2004• Reduction of 14.57% kWh used

Plants producing Wet distillersUsed .5237 kWh / gal in 2007• Reduction of .1196 kWh since 2004• Reduction of 18.59%

Plants producing DDGS (Leaders)

Used .5734 kWh in 2007• Reduction of .0262 kWh since 2004• Reduction of 4.37% kWh used

Plants producing Wet distillersUsed .4769 kWh in 2007• Reduction of .0671 kWh since 2004• Reduction of 12.33% kWh used

kWh

Economics of being an Energy Efficiency Leader

Plants producing DDGS• Equates to over $1 Million saving for

BTUs• Equates to over $350,000 savings for

kWh

Plants producing Wet distillers• Equates to $950,000 savings for BTUs• Equates to $100,000 savings for kWh

Yellow ~ Iowa PlantsBlue ~ Feedlot PlantsGreen ~ All other Plants

Wet vs. DryIowa & East of Hwy

83Approx.70% dry

Feedlot countryLess than 5% is dry

Ethanol Netback PriceIowa lower by $0.09 to $0.15 / gal

• 2007 prices ranged from $1.81 - $1.90 / gal

• 2008 prices ranged from $2.04 - $2.19 / gal

Feedstock Costs

Iowa paid from $0.09 to $0.36 less / gal

•2007 prices ranged from $1.15 - $1.46 / gal

•2008 prices ranged from $1.76 - $2.12 / gal

Distiller RevenueWet distillers increased revenue by $0.15 - $0.23/ gal

BTUs Cost per Gallon

Wet Distillers save 30% of BTUs usage

Feedlot country saved• 2007 $0.15 / gal• 2008 $0.23 / gal

Grind Margin Calculation

Ethanol Netback*+ DDGS Netback*- Feedstock Cost*- Denaturant Cost- BTU Cost

Grind Margin

* Includes Realized Hedging

Grind Margin Analysis

Grind Margin2007Iowa led the country by $0.04 - $0.14 / gal

2008Iowa followed by $0.06 - $0.10 / gal

Iowa Corn cost benefit is NOT enough to offset

• Ethanol price disadvantage• Distillers revenue disadvantage

Biofuels Financial Benchmarking

This service provides the industry with valuable industry insights and information. According to industry experts, these can be the key to managing industry risks. Timely, accurate financial information is vital to your plant’s success.

Thank You

John O. Christianson, CPAChristianson & Associates, PLLP

320-235-5937www.christiansoncpa.com

For more information on Biofuels Financial Benchmarking ServicesPlease contact: Paula Emberland at (888) 852-5937

pemberland@christiansoncpa.com