Biofuels Presentation:

Biodiesel and Ethanol

Agricultural Utilization Research InstituteP.O. Box 188Morris, Minnesota 56267

Presented by: Michael Sparby

Mission

• Identification and expansion of markets for new or existing commodities, ingredients and products;

• The development of new uses or value improvements for Minnesota agricultural commodities

CENTER FOR CENTER FOR PRODUCERPRODUCER--OWNED OWNED ENERGYENERGY

• Establish an Agricultural Innovation Center focused on producer-owned energy

• Located in Marshall, Minnesota

What is Ethanol?

• Ethanol or Ethyl Alcohol– CH3 CH2 OH or simply alcohol

• Feedstock– Starch

• Most prevalent is corn due to price– Milo, Barley, Wheat, Whey and Potato

• Cellulose Conversion

Feedstocks• Ethanol Yield from Corn

– 2.65 Gallons per bushel (56 lbs per bushel)• Ethanol Yield from Barley

– 2.04 Gallons per bushel (48 lbs per bushel)• Ethanol Yield from Wheat

– 2.71 Gallons per bushel (60 lbs per bushel)

EthanolDry Mill Process

• Corn– 1/3rd DDGS (dried distillers grains with solubles – feed)– 1/3rd Starch (ethanol)– 1/3rd CO2

Starch

CO2

DDGS

Plant Costs (New Construction)

• 5 million gallon per year capacity – $11,000,000

• 15 million gallon per year capacity– $24,000,000

• 40 million gallon per year capacity– $60,000,000

• 15 million gallon Enzymatic Cellulose-Ethanol processing plant– $80,000,000

Current US Ethanol Capacity

• 3.3 Billion Gallons of Ethanol Per Year Capacity

• 500 Million Currently Under Construction

• 14 Dry Mill Plants in Minnesota

• 1 Wet Mill Plant

Energy Ratio

• 1.77 Energy Balance for Corn– For every one unit of energy put in to produce

ethanol you will receive 1.77 units out.

Current Ethanol Use

• E10 10% Ethanol Blend– Most common blend – Woks in all vehicles without modification

• E85 85% Ethanol Blend– Flex Fuel Vehicle

Source: M. Leduc, Biography of Rudolph Diesel

History of Biodiesel

Source: M. Leduc, Biography of Rudolph Diesel

• Rudolf Diesel’s invention in the late 1800’s.

• 1900 Paris Exposition• As fuels, vegetable oils never

gained wide spread attention.• OPEC Oil Embargo renewed

the interest in alternative fuels.

Biodiesel Raw MaterialsOil or Fat Alcohol

Soybean MethanolCorn EthanolCanolaCottonseed CatalystSunflower Sodium hydroxideBeef tallow Potassium hydroxidePork lardUsed cooking oils

]

The Biodiesel Reaction

100 lbsTriglyceride

10 lbsAlcohol

10 lbsGlycerin

100 lbsMono Alkyl-Esters

Soy Oil Methanol Glycerin Biodiesel

Catalyst

Biodiesel National Perspective

• Total annual US production of fats & oils– Total vegetable oil 23.659 Billion lbs./year– Total animal fat 11.638 Billion lbs./year

35.3 Billion lbs./year

35.3 Billion lbs. = 4.64 Billion Gallons of biodiesel

US Consumption of Diesel Fuel

• In 2000 the US consumed 33.13 Billion gallons of on-highway diesel fuel

• If all the vegetable oil and animal fat were used to produce biodiesel, we could only replace 15% of the current demand for on-highway diesel fuel

Favorable:Reduces carbon monoxide, unburned hydrocarbons, particulate matter, and smoke opacity.Safe handlingNon-toxicZero to low sulfur– Lubricity enhancer

Biodiesel Fuel CharacteristicsBiodiesel Fuel Characteristics

Biodiesel Fuel Characteristics

Concerns:Cold temperature propertiesHigher Cost8% Power Reductioat B100

Cost of Biodiesel

• Cost is very feedstock sensitive• Processing cost is estimated around $.20 to

$.50 per gallon• New plant cost is about $1 per gallon of

annual capacity• B100 price is about $1.30 to $2.50 per gallon

(without road tax)

Farm Bill– CCC Bioenergy Program

$204 million over 5 years

Biodiesel Fuel Education– “Biodiesel Benefits” education

$5 million in mandatory spending by 2007

Energy Bill- $.01 per percent up to 20% blend

Federal Legislation

Minnesota Legislation

March 2002 Legislative Mandate– Requires all diesel fuel sold in the state to

contain a minimum of 2% biodiesel fuel by volume starting July 1, 2005

– Stipulates that Minnesota must have a minimum of 8 million gallons of in-state production

Minnesota uses 800 million gallons of diesel annually– 550 mm gals. on-road– 250 mm gals. off-road

Equates to 16 million gallons of biodiesel consumption at 2% level

Minnesota Diesel Consumption

Current Biodiesel Activities in Minnesota

Plants Under Construction– MN SP, Brewster

– 30 Million Gallon Per Year

– SoyMor, Albert Lea– 30 Million Gallon Per

Year– FUMPA, Redwood Falls

– 3 Million Gallon Per Year

Questions?

Northern Office, Crookston

Southwest Office, Marshall

Southeast Office, Waseca

www.auri.org

AURI Offices