When it comes to ethanol plant construction, Fagen Inc. is the name that comes to mind with ethanol industry veterans. Having built more than 50 percent of all ethanol capacity in the U.S., one can understand why Fagen’s name is entrenched within the ethanol plant construction business. At the peak of the construction boom 15 years ago, Fagen commissioned a new ethanol plant nearly every week. Those days are gone, but a new focus towards carbon capture and CHP now has the attention of many ethanol producers.&nbsp;&nbsp;&nbsp; The industry is changing. The new focus is on all areas of second-generation biofuels construction, and Fagen Inc. is currently building carbon capture systems (CCS) and combined heat and power (CHP) projects for new and past clients. With the Inflation Reduction Act tax incentives and net-zero carbon fuels legislation, we are gearing up for the next boom in ethanol plant construction. We have aligned ourselves with industry expert I.C. Thomasson (ICT) for CHP projects. The future is bright for the ethanol industry and we are poised to meet the demands of being the leader in all areas of the next-generation ethanol plant construction business. When I entered this industry 25 years ago as an intern for an industrial contractor building first-generation ethanol plants, we were trying to overcome the growing pains of a booming industry. It is amazing to see where we are today, with another wave of construction activity—much of it centered around CCS and CHP—sweeping through the industry.&nbsp;&nbsp; Modeling of CHP Plants: Is It Right for Your Facility? Fagen’s reputation for building highly successful projects that are profitable, resilient and sustainable has been key to its success. Thus, partnering with ICT has been crucial to the implementation or, in some cases, non-implementation of CHP. Not all ethanol plants should put in CHP; it must make sense for their financial model. Fagen Inc. partners with ICT to provide the plants with a detailed computational analysis to determine the proper size and capacity of the CHP system and predict the energy and operational cost of CHP versus current operations. If the savings from implementing CHP are favorable, Fagen Inc. and ICT collaborate to develop an engineer, procure, construct (EPC) estimate to identify the total capital cost of implementing CHP.&nbsp; ICT incorporates this capital estimate into a financial model to provide the client with the financial metrics resulting from the investment in CHP. If these metrics meet the client’s thresholds for capital investment, the Fagen/ICT team is set to move forward to the implementation phase of the project.&nbsp; Sizing Your CHP System&nbsp; The proper sizing of the equipment and systems is critical to the success of the project. It is desirable to maintain on-site electrical generation below the site demand and prevent exporting power due to the low rates utilities are willing to pay for excess power—and exporting the power is not always allowed. Furthermore, if the electric generating assets are oversized and operated at less than full load, there is a loss in efficiency that results in a higher cost per kilowatt-hour (kwh) than operating under full load. The sizing of the electrical generating capacity must be carefully analyzed to optimize the financial incentives of installing a CHP system. Similarly, the thermal energy generated from waste heat from the prime mover must be less than the minimum thermal demand for the site. Otherwise, the excess thermal energy from waste heat must be exhausted to the environment. When evaluating these systems, it is important to understand the client’s current energy demands, as well as future energy demands based on planned growth. In today’s market, many clients are considering the addition of CCS systems, which can add substantial electrical demand. Fully identifying the current loads and potential growth at the site helps the client make informed decisions. CHP is not the answer for all sites. There are a variety of factors that affect the economic and technical feasibility of CHP for a particular site, and these can only be vetted through detailed analysis by competent firms with significant experience. To date, Fagen Inc. and ICT have completed two CHP projects together. The team completed their first CHP facility in Nebraska in 2020 and are nearing completion of the second in North Dakota. For both projects, Fagen Inc. and Fagen Engineering LLC worked seamlessly with ICT to deliver successful operating facilities within budget and schedule. Fagen’s history in the market and extensive knowledge of ethanol production, coupled with ICT’s long history of implementing CHP at industrial facilities, have made this team a perfect pairing. Currently Fagen and ICT are assisting multiple clients that are considering the implementation of CHP. With the tax and production incentives of the IRA, many facilities are considering the addition of CHP to lower their overall energy costs and their CI score, both of which will result in major benefits for the plants.&nbsp;&nbsp; Similarly, a lowering in CI score can increase the production credits as well. The Fagen/ICT team is in construction of their first CCS, and in the design phase of their second. There are many more plants they are working with to utilize the proven design and performance of these facilities. The team partners with technology companies to provide the process design and equipment for the CCS system, which is a complete turn-key approach. “We are very excited about the future of second-generation biofuels and the goal of getting to a net-zero carbon fuel. We have partnered with industry leading engineering firms Fagen Engineering LLC and ICT, and proven technology partners, so we can offer the same great turnkey solution we have provided for so many years in the ethanol business,” said Chris Howard, President and CEO of Fagen Inc. “With our clients, employees and industry partnerships, our experienced team is providing unmatched results in terms of schedule and performance of our facilities.” Author: Will Stark Vice President of Business Development Fagen Inc.&nbsp; <a href="mailto:WStark@fageninc.com">WStark@fageninc.com</a> 320-564-5284Printed in the 2023 June issue of Ethanol Producer MagazineCONTRIBUTION: The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Ethanol Producer Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).

2023-05-11 - CHP and Carbon Capture: Keys to Unlocking Part of the Net-Zero Fuels Equation (Ethanol Producer Magazine)

Before a combined heat and power installation like the one pictured here commences, Fagen Inc. and its CHP project partner, I.C. Thomasson (ICT), provide a detailed computational analysis of an ethanol plant to determine the proper size and capacity 

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Working with technology partners, the Fagen Inc./ICT team offers turn-key carbon capture systems for ethanol plants. The team is building its first CCS now, and in the design phase of a second project.   

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The industry is changing. The new focus is on all areas of second-generation biofuels construction, and Fagen Inc. is currently building carbon capture systems and combined heat and power projects for new and past clients. 

CHP and Carbon Capture: Keys to Unlocking Part of the Net-Zero Fuels Equation

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