The RFA announced the domestic ethanol industry set an annual production record of 2.81 billion gallons in 2003, an increase of more than 32 percent from 2.13 billion gallons in 2002.
 	
 "The record production in 2003 highlights that ethanol is a reliable and highly-valued gasoline component from coast to coast," RFA President Bob Dinneen said. "The new markets in California, New York and Connecticut added last year helped boost demand but won't be fully felt until this year. Clearly, 2004 will be even bigger for ethanol than 2003."

January 22 Annual ethanol production record set

In a report released by David Morris, vice president of the Institute for Local Self-Reliance (ILSR), he concluded hydrogen is too expensive to use in Calif. Gov. Arnold Schwarzenegger's proposed "hydrogen highway" plan, which explores the use of hydrogen-fueled hybrid electric vehicles (HEVs). Morris recommended ethanol as a more affordable fuel and published his report entitled, "A Better Way of Getting From Here to There: A commentary on the hydrogen economy and a proposal for an alternative strategy."
 	
 
 The report notes hydrogen's major flaws, such as high costs, low overall energy efficiency and a reliance on nonrenewable fuels. Morris concluded that hydrogen would reduce oil consumption much less and more slowly than ethanol-fueled HEVs.

 	
 The report can be found at www.ilsr.org. EP

January 20 Report says ethanol cheaper than hydrogen proposal

Every four years, candidates for president begin trekking to the great state of Iowa, home of the nation's first caucuses, to begin campaigning.
 	
 As part of that ritual, the candidates are asked if they support ethanol. Not surprisingly, most candidates do. This support elicits howls from the Ivory Towers in Washington and New York that house the media elite. They find a simple explanation: Ethanol is important to Iowa's farmers and all presidential candidates check their integrity at the door in pursuit of votes.
 	
 While that may be the easy East Coast explanation, the truth is quite another story and requires a little bit of legwork to uncover.
 	
 While the media elite are busy tracking "big money" campaign donations from their comfy offices, candidates for president are traveling Iowa visiting small towns and talking with real people. Sadly, as candidates drive around too many town squares, they see boarded up storefront windows and "for sale" signs.
 	
 But in some towns, they see fresh coats of paint. In those towns, they can feel the energy from a vibrant rural economy on the move. What's the difference? Often, it's the presence of an ethanol plant.
 	
 A typical 40-mmgy ethanol plant can be a tremendous rural economic engine, expanding the local economic base by over $110 million each year, creating dozens of full-time jobs and increasing the local price of corn by an average of five to 10 cents a bushel.
 	
 But those are just numbers. The statistics don't tell the human story. At town hall meetings or agriculture forums, candidates hear the real success of the expanding ethanol industry—–a success that can't be measured in dollars and cents.
 	
 They hear of the young man, now in his early 30s, who left his family farm for college and got a degree. With no job opportunity near home, he found himself working in Chicago or Denver. Married now and with a child on the way, he longed to return home—–to the small-town, Midwest values familiar to him.
 	

 He hears of an ethanol plant opening near his hometown. The plant provides several good paying jobs for people with engineering and chemistry degrees. Now the young man is working in the ethanol industry, raising his family and relishing the opportunity to "go back home" that didn't seem possible coming out of college.
 	
 I often find myself following in the footsteps of the candidates as I attend groundbreakings and ribbon-cuttings for the ever growing number of ethanol plants. These are the stories I hear. These are the stories presidential candidates hear.
 	
 The media never hear these stories. By the time the media elite drag themselves out to Iowa in the days before the vote, candidates are busy barnstorming to and from the "big" Iowa cities in airplanes or buses. The small town visits are a thing of the past. The media mostly hang out at the 801 Grand Ave. steakhouse in Des Moines and look for anyone dressed in overalls to use as a backdrop for their next broadcast.
 	
 To the media elite, ethanol is political. To the people who have visited the small towns and heard the stories, ethanol is about revitalizing rural America; ethanol is about providing a cleaner, more secure future; ethanol is about the people.
 
 
 Bob Dinneen
 President and CEO,
 Renewable Fuels Association

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With Ethanol Plants, You Can Go Home Again

A View form the Hill

The Renewable Fuels Association (RFA) is pleased to add two associations to its list of members. Astle Corporation of Deer Creek, Minn., is a general contractor specializing in industrial and commercial concrete projects. U.S. Development Group of Pasadena, Texas, develops and operates rail logistics facilities nationwide, including unit train facilities for ethanol in major markets.

January 26 RFA welcomes new members

The U.S. Senate has followed the House of Representatives in passing the omnibus appropriations bill for fiscal year 2004. President George Bush signed the legislation into law.
 	
 Funding for the USDA Commodity Credit Corporation (CCC) Bioenergy Program was included in the final catch-all spending bill. The program was given $150 million for the fiscal year. Payments for first quarter applications should start on Feb. 12.

January 26 CCC Bioenergy Program funding passed

The RFA Technical Committee recently updated the "Fuel Ethanol Industry Guidelines, Specifications and Procedures" manual. The document includes key technical aspects of fuel grade ethanol use based on the experience of RFA member companies. This document can serve as a condensed technical reference for ethanol producers, blenders and other interested parties. To view the manual, visit www.ethanolrfa.org
 /pdf/RFA960501.pdf.

January 26 Updated ethanol guideline manual available

Break ground. Move dirt. Lay foundations. 
 	
 But seasoned contractors will say ethanol plant construction is not truly under way until those familiar steel tanks start going up. The onset of tank fabrication tells investors that their "sweat and equity" is creating something truly worthwhile. For many shareholders, tank construction is the first tangible sign of progress on a dream that's been years in the making. 
 	
 WINBCO Tank Company, trusted among contractors and engineers since the inception of the modern day ethanol industry, helps usher in those value-added dreams with the construction of process and storage tanks, columns and pressure vessels. 
 	
 Based in Ottumwa, Iowa, located about 90 miles southeast of Des Moines, the company has been fabricating tanks for the ethanol industry since the late 1970s, beginning with construction of continuous steep tanks for America's first commercial anhydrous ethanol plant, an Archer Daniels Midland Co. wet mill. Since then, the company has participated in dozens of green field ethanol plant construction and expansion projects. Today, WINBCO is arguably the leading tank fabricator in the business, having recently completed work at VeraSun Energy LLC in Aurora, S.D., the ethanol industry's largest new generation dry mill, while simultaneously engaging mobile crews at four ethanol plants currently under construction.
 	
 "For us, handling four ethanol projects at once is really not a big issue," said a WINBCO spokesperson. "We're involved with 10 to 14 projects at any given time throughout the year, so we've learned how to manage the workload."
 	
 WINBCO is currently building fermentation, process and ethanol storage tanks at Midwest Renewables in Iowa Falls, Iowa, Golden Grain Energy LLC in Mason City, Iowa, Mid-Missouri Energy in Malta Bend, Mo., and United Wisconsin Grain Producers LLC in Friesland, Wis. The company is in varying stages of construction at each site, precisely monitoring, and meeting, the scheduled timelines of each project. 
 	
 "Making sure our projects are 'on line, on time,' as we say, is primarily a scheduling function," continued the WINBCO spokesperson, who explained that time-specific schedules are submitted to a primary contractor, or design/build team, months ahead of construction. 

 
 Tanks built early in the process
 Tank fabrication is typically the third phase of construction, subsequent to site preparation and foundation work. For major work done so early in the construction process, meeting schedules is not an option. 
 	
 "WINBCO has contractors following right behind its tanks, so the work is performed without interference, guaranteeing the safety of all the employees," a company spokesperson said. "WINBCO's safety record is outstanding as confirmed by the the company's EMR of 0.64, which is extraordinary for this type of construction."
 	
 The company's operations are flexible and can be geared to fit any project requirement established by a customer, including greenfield construction, plant expansions, retrofits, upgrades and replacements. All WINBCO projects are coordinated through a project manager charged with establishing and monitoring various schedules for each operational phase of a given project, from engineering through final field erection.
 	
 WINBCO's technical services staff works closely with its customers, analyzing specific problems or developing basic ideas to devise what the company calls "the most advantageous system possible." Often, the company provides budgetary quotations for future producers long before a project is fully organized. 
 	
 Much of what WINBCO does is "behind the scenes" work at its Ottumwa headquarters, where the 65-year-old company utilizes four modern buildings in excess of 80,000 square feet, situated on a 15-acre tract of property. At the shop, as many as 70 skilled employees are available to engineer, quality check and fabricate steel materials and parts for both shop-built and field-erected tanks. The facility is totally equipped to perform all metalworking processes, including shearing, punching, press brake and roll forming, plasma and arc cutting, manual, semi-automatic and automatic welding along with functions performed using 20-foot long bed seam welders and automatic weld manipulators with integrated tank turning rolls. The company is also fully equipped with grinding and finishing equipment, forklifts, yard cranes and delivery equipment.
 
 'Mill-direct account'
 After providing price quotations and securing what is called a "tank package" contract with an ethanol plant builder, WINBCO will place an order through its "mill-direct account" for the stainless steel ("Type 304") and mild steel plate required for the project. Stainless steel, used for fermentation and process tanks, arrives in "coil form" at the company's headquarters, where it is unrolled and flattened before being formed to specifications. Less expensive mild steel, used to build ethanol storage tanks, arrives in individual plates. It can take up to six weeks to receive the steel from the manufacturer.
 	

 "WINBCO's established material sources enable us to balance the material requirement for 'zero scrap' and the most efficient construction methods possible," a company spokesperson said. "WINBCO's involvement begins with raw material acquisition and extends to coordination with the customer's general contractor to assure an expeditious and systematic execution of the entire project."
 	
 About two months before breaking ground, WINBCO's engineers and CAD operators begin collaborating with process design engineers on the physical sizes and specifications of all tanks being ordered. Engineering follows a two-phase program. Initially, WINBCO drafts preliminary drawings to assist its purchasing department in determining material requirements and establishing supplier and vendor contacts as well as delivery schedules. In the second phase of a project, the company's engineering staff establishes final configuration and fabrication criteria for the plant. WINBCO's manufacturing is supported by the latest software: AutoCad 2000, Compress Pressure Vessel, Primavera Scheduling, Data Pro Job Cost and other software.
 	
 Approval drawings are exchanged for several weeks before materials are fabricated in the shop. In the case of most ethanol plant tanks, WINBCO prefabricates steel and other materials in-house and ships the pieces to the plant site. Once at the site, the material is assembled by an on-site team of skilled workers. 
 	
 "WINBCO's on-site crews consist of up to 12 employees with multiple crews as the project dictates," a company spokesperson said. "Most have been in the company in excess of 15 years and all carry an OSHA 10-hour card. In the VeraSun Energy project [which was twice as large as most new generation dry mill ethanol plants], WINBCO had in excess of three crews on site." 
 	
 The company has a specialized truck and trailer fleet, which provides WINBCO with the capacity to transfer oversized loads up to 20 feet wide and up to 180 feet long, state laws permitting.
 	
 "The company delivers material on a 'just in time basis,' utilizing its equipment trailers, cranes and welding systems, which precede personnel and material on site," a company spokesperson said.
 	
 The company's services are "vertically integrated," from the time an order is placed to the completion of a contract. WINBCO prides itself on maintaining "totally self-sufficient field operations" that allow its customers to concentrate on other aspects of the project.
 	
 "The company maintains complete control of all production phases, from prefabrication and delivery of materials to on-site tank assembly," a company spokesperson said. "The company is vertically integrated, enabling it not to rely on third parties for project completion."
 	
 WINBCO has an excellent employee retention rate with an average management tenure in excess of 30 years and middle management and field supoervision in excess of 20 years. WINBCO promotes a strong "team atmosphere," the type of culture found in a small, family-owned business. Similarly, WINBCO prides itself on customer relationships, with as much as 80 percent of its work coming from repeat customers. 

 
 The history behind the name 
 Winger Manufacturing, as the company was originally called, was founded in 1939, as a "custom job shop" at the site of WINBCO's current campus. The company started manufacturing tanks in the mid-1960s and by the mid-1970s had become solely dedicated to tank fabrication. In 1978, the company combined the first part of its name, "Winger", with the name of its top equipment line, "Boss Equipment", to form WINBCO, an acronym for Winger-Boss Co. 
 	
 Since building tanks for ADM in the late 1970s, WINBCO has been continuously involved in the ethanol industry, "through its highs and lows." The company is well diversified, doing significant work in a number of mostly grain-based industries. However, a significant degree of its recent growth and success can be directly attributed to the progress of the ethanol industry. 
 	
 "At the present time, WINBCO has 30 active ethanol projects and 50 to 60 potential projects [that could lead to future contracts]," a company spokesperson said. "In the last six months, there have been numerous inquiries from groups that have never before been associated with the ethanol industry. So we are seeing a lot of new interest in the industry. That's a very positive sign." 
 	
 The combination of new and existing interest in ethanol plant construction means WINBCO is preparing for several years of steady growth in the corn-processing sector. Taking part in ethanol plant construction is a top priority for the company. 
 	
 "With California, New York and Connecticut now banning MTBE and moving to ethanol, the company believes there will be continued growth in the industry for years to come," a company spokesperson said. 
 	
 WINBCO's ongoing commitment to the industry, along with its credentials such as ISO 9002 certification, contractors licenses from coast to coast and its multitude of certificates of authorization, future ethanol plant shareholders will be inspired by the sight of new steel tanks silhouetted against the setting sun for years to come. EP
 	
 Interviews and quotes on the above article were supplied by WINBCO Facilities Manager David Hull, Operations Manager Kermit Knott and Sales Representative Michael Angstadt.

Headquartered in Ottumwa, Iowa, the company has been building tanks for the ethanol industry since the late 1970s. From ADM to Verasun Energy, Winbco Tank Company has proven itself as a leading single source provider of shop-built and field-erected tanks, columns and pressure vessels.

WINBCO Delivers Proven Experience, Ability

For over a decade, Roger Conway has made sure his office has a full plate of projects on the table, ranging from ethanol to biomass.
 	

 The U.S. Department of Agriculture Office of Energy Policy and New Uses (OEPNU), under the Office of the Chief Economist, has been behind several studies of alternative energy. Conway, director of the OEPNU, leads a staff of five, who are responsible for providing economic analysis and policy advice for ethanol and other bio-based energy issues. They also coordinate energy issues within the department and serve as a liaison with Congress and other federal agencies, such as the Department of Energy (DOE), the Department of Agriculture (USDA) and the Office of Management and Budget.
 	
 Of any pending legislation that deals with alternative energy and agriculture, the chance that Conway's office supplied the facts is most likely.
 	
 Conway became director of the OEPNU in 1990. The previous director, Earl Gavett, had retired and Conway was selected to fill in until a permanent director was found. While Conway was working in the OEPNU, he decided he liked it and applied for the position himself. 
 	
 "I enjoyed the issues, the policy work and the economic analysis," said Conway, who has bachelor's, master's and doctorate degrees in Economics. He had spent 15 years with the USDA as an economic researcher before moving to the Department of Commerce and eventually the OEPNU.
 	
 After detailing how he arrived at his current position, Conway stopped referring to his own accomplishments and started talking about his staff's accomplishments, indicating the type of person he is. Although he directs the OEPNU, anything they do is a group effort. And what the OEPNU does is no small task.
 	
 For example, the OEPNU keeps tabs on the energy balance, technology opportunities and the cost of production estimates of ethanol, among other things. Conway's office analyzes the dollar value of ethanol's benefits, estimates how advancing ethanol reduces price volatility and evaluates the economic effect of legislative policies as well.
 	
 Conway's office completed an article entitled, "The Energy Balance of Corn Ethanol Revisited," written by OEPNU agricultural economists Hosein Shapouri and James Duffield, and Michael Wang, a vehicle and fuel systems analyst with the DOE. Although submitted to the American Society of Agricultural Engineers' Transactions Journal in March 2002, the journal finally approved it for publication in March 2003.
 	
 The article reported what most ethanol advocates already believed: The weighted energy ratio value per liter of ethanol was found to be 1.53 megajoules per liter (MJ/L), proving that ethanol provides more energy than is used to produce ethanol.
 	
 Conway explained to EPM the significance of being published in the referee journal. "There has been some misconception of the ethanol energy balance by [Cornell Professor of Ecology David] Pimentel and others, and we are providing better data in estimating energy balance," Conway said. "One of Pimentel's critiques [toward OEPNU information] is that we only publish in USDA journals. We can now use this article to show we are meeting scientific standards."

 	
 The OEPNU study contrasted heavily with Pimentel's 2001 study, which reported that ethanol had a net energy value of -9.35 MJ/L. In comparison, the OEPNU found ethanol held a 5.88 MJ/L net energy value.
 	
 "You have to take a study on its merits regardless of where it's published," Conway said.
 
 Advancing ethanol technology
 The OEPNU has also worked on updating technology opportunities with ethanol. For this research, the group has teamed up with Matt Rendleman, an associate professor of agriculture economics in the College of Agriculture at Southern Illinois University.
 	
 The research project basically reviews all aspects of ethanol production that could be improved with technology. Input improvements, process improvements, environmental technologies, coproduct technologies, niche markets and biomass or cellulosic conversion are all under investigation.
 	
 In terms of process improvements, Rendleman and the OEPNU are looking at the addition of sulfur dioxide to reduce the steep time of feedstock. They are exploring the addition of alkali to the wet milling of corn. They are investigating a continuous membrane reactor for starch hydrolysis and a high gravity alcohol fermentation process. They may improve enzymes for the liquefaction and saccharification processes by reducing steep time, raising starch and gluten yield, improving protein quality, and reducing water and energy use. They are working with genetically engineered yeast that has a high heat and ethanol tolerance. Separation technology is also being explored.
 	
 As for environmental technologies, odor reduction at the plant and phosphorus reduction in DDGS are being reviewed among other things.
 	
 The OEPNU is also exploring technologies involving coproducts. This includes a sequential extraction process for high value coproducts, corn germ recovery for the dry grind process, bio-conversion of carbon dioxide, stillage clarification with membranes, protein-based coproducts, corn fiber oil and the extraction of compounds from DDGS.
 	

 In regards to niche markets for ethanol, the OEPNU is determining the success of a dry mill when it is "co-located" with a feeding operation of a CO2 user. Tailor-made coproducts and multiple feedstocks may also have a beneficial impact on rural plants.
 
 Putting a dollar value on ethanol's benefits
 Another study Conway said could be of important is the analysis of the dollar value of ethanol's benefits, a study for which the OEPNU will collaborate with Iowa State University's Paul Gallagher, an associate professor of economics.
 	
 "By putting a dollar amount on the net benefits of ethanol, we think that can provide an even greater floor of support for helping to advance ethanol," Conway said.
 	
 The study would address three things: 1) the Clean Air Act and how ethanol affects how clean the air is, 2) ethanol in groundwater in response to the discovery that MTBE contaminates water supplies, and 3) global warming and how ethanol could reduce the cost of achieving global warming targets.
 	
 "Reducing the cost of global warming targets would be easier to do if you're using ethanol," Gallagher said.
 	
 The list of renewable energy projects Conway's office leads goes on and on. The OEPNU is hoping to estimate how advancing ethanol can reduce gasoline price volatility, enhance energy security and reduce price by increasing supply. They are working on a proposed regulation for a preferred federal procurement program for purchasing bio-based products. Ethanol as a fuel additive is included in the proposed regulation.
 	
 The OEPNU also responds to requests from members of the U.S. House and Senate to evaluate the economic effect of energy on agriculture in bills that those members want to introduce.
 	
 "They'll ask us to evaluate the economic impact on that policy, calculating farm income, balance of trade and employment, and federal spending," Shapouri told EPM.

 	
 The latest of those legislative requests came from Sen. Tom Harkin, D-Iowa, who asked for an analysis of the effects of the renewable fuels standard (RFS) on commodity markets, farm income and employment. Conway's office concluded the increased demand for ethanol and biodiesel could provide significant economic benefits to U.S. farmers. The increase in ethanol production would increase the demand for corn and sorghum in the next five years. On average, the price of corn and sorghum would increase by about 3 percent in five years and by 5 percent after that.
 
 Continuing support for renewable fuels
 With all the ethanol projects the OEPNU is supporting, it makes sense that Conway's office would fully support the energy bill now pending in Congress.
 	
 "This administration strongly supports passage of the energy bill," Conway told EPM. "We're supportive of the RFS, ethanol excise tax exemption and refinement of ethanol producer tax credit. We think passage will underline the advances we've made and increase the production of ethanol."
 	
 It is clear Conway has dedicated most of his career to furthering the renewable fuels in the United States. In fact, Shapouri credits Conway with opening the door to bioenergy.
 	
 "All his life is about ethanol and bio-based products," Shapouri told EPM. "Roger continuously tries to improve or increase the expansion of ethanol and bio-based products, along with biodiesel and other biofuels."
 	
 Even Conway can see the difference he has made; only to him it was a total effort of the OEPNU. When asked to reflect, Conway has quite a list of accomplishments his office has done for the biofuels industry.
 	
 "We've provided analyses of the net energy balance and demonstrated why it's important to use a strong data set to support that information," Conway told EPM. "Our economic analysis shows the virtue of expanded ethanol use for rural and agricultural communities, as well as demonstrates what it means in terms of government budget too. People have talked about the excise tax exemption as a problem, but we've shown in the past that expanding ethanol has been a net budget winner by reducing farm program costs more. From a policy point of view, it helps provide support within administration and in Congress in advancing ethanol use." EP

Roger Conway's Office of Energy Policy and New Uses is involved in almost all government policies regarding renewable energy and agriculture.

BEHIND the SCENES

Accidental release of toxic or flammable chemicals has the potential to harm industrial facility employees, or even the public. Avoiding such incidents by prevention is, of course, crucial to ethanol plant safety. 
 	

 Ethanol plants invariably must store and use some toxic, and sometimes flammable, chemicals. Prevention of accidental releases has received additional regulatory attention in recent years and, as more and more ethanol plants are built, the chances for accidents will likely increase. 	
 	
 The U.S. Environmental Protection Agency (EPA) regulates air quality with rules referred to as the Clean Air Act Amendments. One provision of these air quality rules was established to prevent an accidental release of chemicals from storage tanks at industrial plants. This provision is the EPA's Risk Management Program and the details of this regulation can be found in 40 Code of Federal Regulations, Part 68, Section 112r. Essentially this program requires facilities to plan for the prevention of an accidental release of toxic or flammable substances that are included in this program. The Occupational Safety and Health Administration (OSHA) has a similar program called Process Safety Management. This regulation includes many of the same chemicals that are applicable to the EPA program.
 	
 Facilities, including ethanol production facilities, that store chemicals regulated by the Risk Management Program at or above specified quantities (known as threshold quantities) are then required to have a Risk Management Plan (RMP) and Program in place. Ethanol facilities typically become applicable to this regulation due to the storage of anhydrous or aqueous ammonia, pentane as a 30-percent to 50-percent component of denaturant, and sometimes chlorine for water treatment. Denaturant is used to render the final 200-proof ethanol product non-potable. Other chemicals stored on site may also be included in this regulation and it is important that each facility evaluate the chemicals and quantities of those chemicals to make a proper determination of RMP program applicability. 
 	
 The RMP program is similar to pollution prevention plans, safety and spill prevention programs that many facilities may already have in place. However, the RMP program requires a facility to conduct an analysis of the potential worst-case accidental event (assumes the most catastrophic situation possible) and an alternative case (a more realistic event) scenario if a release of those chemicals occurred. 
 	
 An example of an alternative case scenario at an ethanol facility may be a pipe break from an anhydrous ammonia tank due to a truck backing into it, allowing a release of ammonia for a limited period of time. The release time will depend on the size of the breech and the amount of ammonia available for release. This scenario may assume the shutoff valves in place and other safety equipment operated correctly and that the only release of the chemical was the contents of the pipe. This quantity would need to be calculated and then an analysis (most often using computer models) would be conducted to determine the radius of impact from a potential release of this type. Population estimates of neighboring residents are then evaluated to determine the effects of the release that may be possible, although remote. This is important for emergency response planning so that any potential harm to the employees or the public is minimized, if not negated. 
 	
 The initial implementation deadline for preparing RMPs was on June 21, 1999, or prior to a facility storing the RMP chemicals above its respective threshold quantities. This regulation has a five-year review and update requirement. Therefore, many facilities that met the initial deadline in 1999 will have to update their RMP programs by June 21, 2004. Ethanol facilities will want to review their program applicability and update existing RMPs in advance of the due date. 
 	
 The EPA has recently revised the RMP regulations to include some additional elements and items for the purpose of Homeland Security. The revisions also include additional provisions to track facility updates to the RMPs as operations and conditions change. To include these new items, the EPA is in the process of updating and creating a revised version of the RMPSubmit software program. RMPSubmit was the program that the EPA provided to create the initial RMPs. The majority of the facilities reporting under the RMP program used RMPSubmit in the past. The new revised version of RMPSubmit will include the additional required information and will allow for easier updating in the future. The EPA anticipates having the updated software available sometime in February 2004. This program will be available on the EPA Web site. 
 	
 The EPA also has another imminent deadline approaching in 2004. The Spill, Prevention, Control and Countermeasure (SPCC) rule amendments will go into effect August 2004. This regulation also requires a facility to create a SPCC plan and program to prevent a spill or release of chemicals, but also includes petroleum fuels, like fuel oil or gasoline. Some of the changes to this rule include use of 55 gallon containers, changing the review requirement to a five-year time frame, raising the threshold for single container criteria, limiting training to only oil-handling employees and allowing for alternative formats to be used for this planning effort. 
 	
 Industry has many regulations with which they are required to comply. These regulatory requirements include many aspects of environmental, health and safety concerns. Each regulatory requirement involves planning and implementation of a program. Because of this, an individual facility may end up with an overwhelming number of plans that end up sitting on a bookshelf collecting dust instead of being actively used as they are intended. The Integrated Contingency Plan (ICP) is an excellent way of combining the numerous plans required, reducing redundancy in implementation, and describing and tracking changes at facilities. The ICP, sometimes referred to as a "One Plan," is becoming more widely utilized and is fully accepted by the state and federal agencies. 

 	
 The ICP is useful from the standpoint of reducing redundancy; making changes and revisions easier to maintain (only changing one plan as opposed to each of the many plans that the revision may affect); making it easier for employee training (only have to familiarize employees with one plan); making employee response more effective and efficient (not having to decide which plan to grab as a reference when needing to respond to an incident); and is more cost effective (only have to maintain one plan so employees can have more time to concentrate on their other job tasks). This option also may allow the facility general and plant managers increased confidence that accident prevention is being efficiently and optimally preformed. EP
 
 	
 Therese Benkowski, a meteorologist and scientist, along with Todd Potas, PE, QEP, both of Environmental Resource Group (ERG), authored this article. ERG is based in Minneapolis, Minn.

Ethanol plants that store chemicals regulated by the EPA's Risk Management Program at threshold quantities are required to have a risk management plan and program in place.

An Update on Accidental Release Planning

Industrial alcohol equipment maker Praj Industries Ltd. has finalized contracts for two greenfield fuel ethanol plants in Colombia, according to a company press release. Praj Industries signed the contracts, worth $15 million, with Groupo Ardila Lulle, one of the largest sugar conglomerates in the country. "These orders mark a major milestone in our global strategy and growth," Pramod Chaudhari, chairman and managing director, said in mid-January.

Praj Industries finalizes plant contracts

MTBE bans in the United States have sparked Brazilian ethanol export interest. Chemical trading company Vinmar, headquartered in Houston, has made plans to sell Brazilian ethanol to clients in the United States, according to Vinmar spokesman Cesar Canali. Meanwhile, a group of sugar millers plans to build an ethanol terminal in the port of Vitoria in the state of Espirito Santo to export the fuel additive produced in neighboring state Minas Gerais, according to Reuters News Service.

Brazil looks to expand ethanol export market

DDS Technologies USA Inc. has signed a memorandum with Colombia's second-largest sugar producer, Ingenio Riopaila, S.A., and Central Castilla, S.A. (IRCC), which could lead to ethanol production, according to DDS Technologies CEO and President Spencer Sterling. The two companies intend to start a pilot program in which DDS Technologies USA will provide and install one of its dry disaggregation processors to its partner's ethanol facility in Colombia. The DDS technology will use plant leaf waste from IRCC's sugar cane processing facility as feedstock.

DDS Technologies partners with Colombian sugar producer

Luciano Cantafio returned home inspired. After attending the BBI-hosted World Fuel Ethanol Conference in Beijing in October of 2001, he came back to Williamsburg, Va., more convinced than ever that China represented a huge potential market for ethanol—as much as 3.3 billion gallons a year by 2010. 
 	
 As director of worldwide marketing for Delta-T, Cantafio "didn't question whether we should compete for that business. The burning issue was how."
 	
 The management team at Delta-T understood the dilemma perfectly.
 	
 "Luciano speaks six languages, but Chinese isn't one. If we had acted alone, doing business in China would have been a thousand times more difficult than doing business in the United States," says Rob Swain, Delta-T executive vice president and chief finacial officer. "We knew how important it was to find the right partner, somebody who could understand, sell and execute leading-edge technology." 
 
 From Thailand to America to China: the Chemtex connection 
 After several years of searching, Delta-T didn't find Chemtex. Chemtex found Delta-T. A potential client in Thailand asked Chemtex if it had the technology for producing ethanol. Chemtex, looking to expand through diversification, did some research; the name that rose to the top of the list was Delta-T. 

 	
 So two companies with mutual interests, similar values and complementary strengths began to talk. And now Delta-T is announcing the signing of a collaboration agreement with Chemtex International, a well-established and respected player in the international chemical business.
 	
 "Chemtex may be new to the ethanol business, but they've got fifty years of international experience, engineering chemical process plants for world-class companies like DuPont, Black & Veatch and Praxair," Swain says. "Beyond the capabilities of their 450-person engineering unit, they've proven their procurement and construction management expertise over and over again—with more than 50 projects in China alone." 
 
 Why Chemtex had to choose Delta-T 
 If finding a partner who knows how to do business in China is the edge Delta-T was looking for, Chemtex likewise found its competitive edge in Delta-T's ethanol process technology, according to Mark Kennedy, Chemtex vice president and global business director of projects and engineering services. 
 	
 "Our ability to do ethanol business in China is worthless without world-class technology," Kennedy says. "That's what this generation of Chinese leadership is demanding. And that's why we couldn't choose anybody but Delta-T. You don't go to China with second-best. 
 	"There's a higher intelligence reflected in Delta-T's newest design that matches beautifully with the newest Chinese priorities."
 	
 For example, "the Chinese are sticklers for value. When they see the higher yields Delta-T ethanol plants deliver, they're bound to see higher value," Kennedy continues.
 	
 "China's growth is causing a real energy crunch. Delta-T's design takes fewer Btu's per gallon of ethanol. A critical savings.

 	
 "Delta-T has cut water use to under three gallons per gallon of ethanol. China can't afford to waste water. It's essential to demonstrate that a Delta-T plant will squeeze out every drop.
 	
 "Lower maintenance and operating costs, longer plant life, more added value. And don't forget zero process wastewater, which Delta-T has proven at every plant it's designed. The Chinese demand that you prove your claims.
 	
 "Delta-T's innovative technology is a win-win for China. And it's our job at Chemtex to demonstrate it," Kennedy adds.
 
 What Delta-T sees in Chemtex 
 Rob Swain looks at the collaboration from Delta-T's viewpoint. 
 	
 "On the other hand, you can have the best technology in the world and not be able to do business in China," he says, pointing out why Delta-T needs Chemtex. "They know how to get a deal done there." 
 	
 Although headquartered in Wilmington, N.C., most of the nearly 650 Chemtex people work outside the United States. Thomas McGannon, president and CEO, speaks proudly of the "talented staff" of his "thriving multicultural organization." 
 	
 Their diversity is clearly one of their strengths, and the Wilmington headquarters is the best example. "Our staff of 135 people includes those born in 18 different countries, and who are capable of communicating in 26 languages," McGannon says. 
 	

 Chemtex has 75 people in China, at its Beijing and Shanghai offices, headed and largely staffed by Chinese nationals, not expatriates. Everyone is fluent in both Chinese and English. This is a major advantage in overcoming language, cultural and political barriers. Chemtex says business negotiations take place in half the time. And when it's time for construction, there's no substitute for having Chemtex people interfacing with the builders, vendors and sub-contractors. 
 	
 Alan Belcher, project manager for Delta-T, supervised construction in China in the '90s. He says, "the indispensable thing Chemtex brings to Delta-T is relationships, what the Chinese call guanxi." 
 
 The Chemtex paradigm for technology transfer 
 What especially interested Swain was the unique Chemtex Asian model of technology transfer. 
 	
 Working with Delta-T designs for ethanol process technology, Chemtex will perform the engineering in its Indian offices, then do the procurement and construction management through its China offices in Beijing and Shanghai. 
 	
 The result, Swain believes, will be "a world-class ethanol plant delivered at a bedrock price on a fast-track schedule." 
 
 Cleaning the air in time for the 2008 Olympics 
 Official Chinese government sources tell Chemtex that fuel ethanol is viewed as a strategically important way for China to reduce dependency on imported oil, cut harmful air pollution, and stimulate its agricultural sector. Corn, China's second largest crop, will be the principal feedstock for ethanol plants. 
 	
 China watchers like BBI International have cited the clean up of Beijing in time for the 2008 Olympics as playing a major role in China's surging interest in ethanol as a fuel additive. 

 	
 With the world's largest population (estimated at 1.324 billion people by 2005), coupled with an economy whose GNP is growing at around 7 percent or more, China is "energy-starved," according to Kennedy. 
 	
 Since 1993, Chinese petroleum consumption has outstripped production. In 2003, China became the world's second-largest petroleum consumer, surpassing Japan and trailing only the United States. 
 	
 "China now imports about 100 million metric tons of crude oil," says Ian He, the Business Development Manager of Chemtex China. "China also burned about 50 million metric tons of gasoline last year." 
 	
 "Not surprisingly, the primary area of expected market growth for ethanol," according to Sean Ma, CEO of Chemtex China, "will be in the automotive sector for both private and industrial use." 
 	
 If an E10 policy were pursued by China, and 10 percent of its gasoline consumption replaced with ethanol, it would take about 16.7 billion gallons of ethanol just to meet today's requirements. 
 
 Producing a greener fuel with a greener plant 
 Of the 10 most polluted cities in the world, seven are in China. Changes in public policy and political leadership, while hardly downplaying economic growth, are tightening environmental regulations. The Chinese clearly want it both ways.
 	
 Burning ethanol will help clean the air. Using modern production technology to make the ethanol will help keep the air clean and reduce both water use and waste water discharge. 
 	

 With modern ethanol production technology the choice is no longer between what's good for the economy and what's good for the environment. Cleaner auto exhaust will come from cleaner-operating ethanol plants.
 	
 "I look forward to representing Delta-T in China," says He, Chemtex point man for the new business effort. "Their technology makes my job easier." 
 	
 The Chemtex parent company is Mitsubishi Corporation, headquartered in Tokyo. Mitsubishi has over 200 offices in over 100 countries. EP
 
 
 Roger Moore of Moore & Corle Advertising, is a freelance writer, who resides in Lancaster, Pa.

Technology designer unveils plans to tap enormous new ethanol market

Delta-T enters China via Chemtex alliance

When Spanish-based Abengoa S.A. acquired the three High Plains Corporation facilities in 2002, U.S. ethanol prices were less than exceptional. A lackluster harvest drove corn prices up while demand for ethanol shifted when California's MTBE phaseout was postponed. 
 	
 Grind margins became tight, but the company's newly acquired ethanol plants in Nebraska, Kansas and New Mexico performed above expectations and went a long way toward offsetting the adverse market.
 	
 For a company in the midst of a corporate transformation, it was an excellent display of operational efficiency. 
 	
 "I believe that our production efficiencies and the expertise of our personnel were invaluable assets during that period," said Tim Newkirk, the company's chief operating officer. "Simply stated, our plants are high-efficiency, low-cost, high-yield producers of ethanol."
 	
 The U.S. facilities, now collectively known as Abengoa Bioenergy Corporation, are mature by ethanol industry standards, coming on line between 1982 and 1994. The company has a 56-mmgy dry mill in York, Neb., which is the newest of the three facilities, along with a 25-mmgy dry mill in Colwich, Kan., and a 15-mmgy dry mill in Portales, N.M. The smaller plants utilize a combination of corn and milo as production feedstocks, while the Nebraska plant uses corn exclusively.
 	
 Internal expansion has been a constant goal for the company.
 	
 The Colwich plant has been expanded from an initial 8 mmgy to its current 25 mmgy capacity. The York plant has expanded from 25 mmgy to 55 mmgy, and the Portales facility, originally 10 mmgy, is now being expanded to 24 mmgy.
 	
 "Our U.S. facilities are older than average and operating better than most," Newkirk said. "Keep in mind, however, that none of our plants are in their initial configuration. We have worked with various technology providers over the years … but most of the unique changes that we have incorporated into our facilities have come from in-house innovations. We have long-time, dedicated employees—folks like Danny Allison, Gordon Working and our three plant managers combine for more than 80 years of ethanol industry experience. This company simply has great talent and most of our innovation has come from within."
 
 The Acquisition 

 Abengoa's acquisition of High Plains was finalized in early 2002, making the company part of a large international corporation under the wing of Abengoa Bioenergy, which holds the Spanish corporation's global bioenergy interests. Abengoa Bioenergy CEO and President Javier Salgado said that Abengoa's purchase of High Plains provided an entry into the American market and served as a springboard for the company's growth initiatives, both nationally and internationally. 
 	
 On April 15, 2003, High Plains officially changed its name to Abengoa Bioenergy Corporation after operating under the former name for more than a year following the acquisition. The name change signaled the company's intent to leverage its international reputation in order to "enhance its competitive position" in the United States. 
 	
 The name change was also reflected in the company's newly formed research and development subsidiary, Abengoa Bioenergy R&D Inc. The R&D arm of the corporation was initially formed to administer a cost-shared R&D project with the U.S. Department of Energy (DOE) carrying a price tag of over $36 million. 
 	
 The company established the Abengoa Bioenergy business unit on a global scale and located its headquarters in the St. Louis, Mo., suburb of Chesterfield, where 32 employees now work. In all, the company has about 180 employees in the United States, including its R&D subsidiary and ethanol plant personnel. 
 	
 "We chose St. Louis because the company was looking for a large city that was an international airline hub," said Chris Standlee, the company's executive vice president. "St. Louis is an ideal location for our headquarters because it is in the heart of Midwest ethanol country." 

 	
 Abengoa invested considerable time and effort into implanting its corporate culture in the former High Plains operations.
 	
 "It's about applying principles of big business, strategic planning, growth initiatives and top-notch risk management," Newkirk said. "It's no longer about 'How do we survive tomorrow,' but 'How do we prosper long-term-and with high growth.' The ethanol industry of the past was too focused on short-term success. Abengoa looks far beyond that."
 	
 The company's ethanol plants also gained drastic information technology improvements.
 	
 "Our IT gains were incredible," Standlee said. "We instantly had access to a global communication network. Part of Abengoa's focus—one of its 'big four' areas—is, in fact, information technology."
 	
 The ethanol plants also gained a high level of quality assurance. 
 	
 "We gained the recognition of being 'Abengoa,' a company with a worldwide presence," Standlee told EPM. "It's been a huge advantage. Abengoa is a major corporation with an internationally recognized name—owning more than 200 companies in 40 countries around the globe." 
 	
 Abengoa Bioenergy is focused on improving its own operations, but also contributing to the growth and improvement of the entire ethanol industry. 
 	
 Abengoa Bioenergy's tag line is "Science. Solutions. Service." 
 	

 "The Science part has to do with the company's constant push to improve itself through technological innovations. Solutions and Service are based upon our global resources, our international market presence and our dedication to being a great partner with our customers," Standlee said. 
 	
 The company is focused heavily on risk management operations, both in the United States and Europe. The objective of this strategy is to establish systematic actions in response to market trends. 
 	
 "The company's risk management has simply changed," Newkirk said. "With a larger company, risk management is much more methodical and technical—there's no gambling. One of the many benefits of being part of Abengoa is having the resources to take market positions when we see the opportunity." 
 	
 Expansions are part of the company's long term strategy for growth and success, and as Newkirk reminded EPM, "Gallons don't come free. It takes heavy investment." 
 	
 Late this year, Portales will be expanded from 15 mmgy to 24 mmgy. A $15 million industrial revenue bond has been initially approved by the community of Portales to finance the project. 
 	
 "We are in the detailed engineering phase of the project," said Newkirk, who added that the people of Portales have been supportive of the plant over the years. 
 	
 The Portales facility, according to Newkirk, could be one of the "lowest cost" producers in the nation. According to Newkirk, the plant is one of the most energy efficient ethanol production facilities in the United States. 
 	
 "It is certainly the most energy efficient plant in our family, and possibly one of the best in the nation," he said, not elaborating on the plant's efficiency secrets aside from saying, "It achieves efficiencies through operational practices."
 	
 Portales is also well located to supply the burgeoning California ethanol market, being the furthest Western (large-scale dry mill ethanol plant) facility in the United States. 

 	
 Aside from existing production and planned expansions, Abengoa Bioenergy is also pursuing greenfield construction of new facilities. The company openly expresses a willingness to invest or partner in greenfield ethanol plant construction, should the right opportunity present itself. 
 	
 "Absolutely we would consider building a new plant," Newkirk said. "In fact, we get approached with potential projects on a regular basis. Abengoa wants to double its production capacity in two to three years. To get there, we are looking at all types of investments, from internal expansions, to partnerships to share our operational management and marketing expertise, to new greenfield projects." 
 	
 If Abengoa Bioenergy does build a new ethanol plant, Newkirk said the company would likely seek outside help on project development, engineering and construction. However, he said, the company would not purchase "off the shelf" process technology. 
 	
 "We would likely take a dry mill process technology and adapt it to our own unique modifications," he said. "A plant built for Abengoa will incorporate the expertise that we have in this company. We have seen every technology—and every approach—over the years, and adding our own touch certainly gives us a leg up in terms of building the most efficient ethanol plant possible."
 	
 Two large-scale ethanol plants in Spain belong to the Abengoa Business Unit family, and a third plant is under construction. Abengoa was the first fuel ethanol producer in Europe and with the new facility on line in 2005 will have a combined capacity of 140 mmgy in Spain alone, reported Salgado. The company is focusing on Germany for future growth and should establish a physical presence there soon to supplement the ethanol that Abengoa currently exports from Spain. "We have a strategy of active presence and promotion in new emerging markets, and are committed today to the German market, stated Salgado."
 	
 The European Union's recently passed Biofuels Directive, which calls for 5.75 percent of all EU fuel to be represented by biofuels by 2010, will create significant opportunities for growth, Salgado said. "The EU biofuel market, currently at 800 million liters (211 million gallons) a year has the potential to reach 15 billion liters a year by 2010," he explained. "That's a huge amount of growth, and it will take a tremendous push."
 
 Research and development
 Abengoa Bioenergy R&D Inc. (ABRD) is a subsidiary of Abengoa Bioenergy Corporation and serves as the U.S. arm of Abengoa Bioenergia's global R&D operations. Gerson Santos, director of ABRD, said the company's "2003-2006 R&D Plan" is aimed at enhancing the economics of ethanol production and it is focused on both cereal grains and biomass. 

 	
 The Residual Starch Conversion Pilot Plant, currently being completed at the site of the York ethanol plant, is the company's primary R&D focus in the United States this year. The pilot plant is due to go operational early this spring, according to Santos. 
 	
 "We already have every day of operations scheduled," Newkirk added. 
 	
 The stated goal of the project is to improve ethanol production yields from grain by 10 percent and significantly improve the process economics and competitiveness of the the ethanol production process. The R&D project falls under Abengoa's R&D Strategic Actions defined by the 2003-2006 R&D Plan. The project is entitled "Advanced Biorefining of Distillers Grains and Corn Stover Blends: Pre-commercialization of a Biomass-derived Process Technology."
 	
 The project has a $36.4 million budget and is supported by a cost-shared grant for 50 percent of those funds from the DOE. In addition, the pilot plant will also be financed by the "Biomass to Bioethanol via Enzymatic Hydrolysis R&D Project," which will reportedly share more than 40 percent of the budget. This is possible due to commonalities of both projects, according to a recent company report. 

 	
 "Our goal is to achieve 95 percent of the maximum theoretical yield," Newkirk said. "We want to make the process as efficient as it can be." 
 	
 The company had invested in U.S. ethanol R&D projects in the past. Even before buying High Plains, Abengoa invested in BCI, a cellulose-to-ethanol project, and ethanol industry startup Pure Energy. 
 	
 Abengoa Bioenergy R&D is partnering with the National Renewable Energy Laboratory, as well as the ethanol industry's leading enzyme suppliers, as the project is carried out in three phases. 
 	
 "We will develop some proprietary technology from the research," Santos said. "Our goal is to help the entire industry become even more competitive by increasing yields and capturing the value of coproducts. Eventually that could mean offering licensing agreements for the technology." 
 	
 The company's long-term strategic plan includes continued research and development, increased production capacity and developing emerging technologies like fuel cells. In Europe, the company has already begun to develop a fuel cell, through its Greencell subsidiary, which utilizes a proprietary ethanol reformer to produce clean power. 
 	
 "Abengoa's focus is to be a green company," Newkirk said. "Abengoa Bioenergy is a company that is focused on renewable fuel sources to improve the environment and enhance the quality of life." 
 

 Marketing
 Last year, Abengoa Bioenergy decided to start marketing its own distillers grains for each of its ethanol plants (the Portales site had always marketed its own coproduct), and it chose Rick Emery as its feed merchandising manager to lead this effort. 
 	
 "Colwich and York feed production joined with Portales in September 2003,when we ended our contract with our contract marketer," Emery said. "It was a natural outgrowth of our business strategy and the right time to make the change." 
 	
 For years, the Colwich and Portales plants have been trailblazers in marketing milo and corn-based distillers grains throughout the lower Midwest. 
 	
 "Milo has always been a great feedstock for production, as research has proven," Standlee told EPM. "In fact, the production process—and quality control—have a greater impact on distillers grains quality than the feedstock itself."
 	
 Emery added, "Down around the Texas Panhandle, they want distillers grains made from milo. Up north, everybody wants corn-based distillers grains. The industry is divided by what nutritionists in different parts of the country tell them. We are a nutritionist-polarized industry. But the truth is, there should be more focus on the process than the feedstock." 
 	
 Distillers grains research and development is a high priority for Abengoa Bioenergy. 
 	
 "The same attention that we have given to R&D will go into coproduct development," Newkirk said. "We see as much, if not more, fertile ground in that area of the business. In fact, Abengoa Bioenergy will be rolling out some new ideas—and possibly new capabilities—in the near future. The third phase of our pilot plant R&D project is focused on just that." 

 	
 Abengoa Bioenergy markets its own ethanol and has expanded its reach since the High Plains era. David Weber is the company's ethanol sales director.
 	
 "High Plains was a strong regional player," Weber said. "But now we are part of a company with global assets. The gears have shifted. We have a focus on the overall market now. We are supplying fuel ethanol to all of the major petroleum companies in the United States and Europe." 
 	
 Standlee agreed, saying, "The company is more methodical, more strategic, in our thinking and global in our reach. Those international relationships feed each other. What happens on the other side of the pond affects us here. It's a big advantage." EP
 
 Learn more about Abengoa Bioenergy through its new Web site at <a href="mailto:www.abengoabioenergy.com.">www.abengoabioenergy.com.</a>

Abengoa Bioenergy has established its global headquarters in Chesterfield, MO., invested millions in trailblazing new pilot plants and set its sights on opportunities to build new plants in the United States and abroad.

Abengoa Bioenergy's 'High Plains' Success

It's a common challenge for ethanol plants and livestock producers alike: How to utilize distillers wet grains (DWG) effectively before it starts to spoil?
 	
 George Drewry, the distillers marketing specialist for Badger State Ethanol near Monroe, Wis., was posed that very question when his plant started its 40-mmgy operation in October 2002.
 	
 Drewry knew producers liked wet distillers grains as an economical and palatable protein source for livestock. But the coproduct presented special storage and handling issues, because it often begins to mold in three to five days in warm weather. Thus, like most other ethanol plants, Badger State found that much of its market DWG was local, and producers had to feed the product quickly once delivered.
 	
 Based on those issues, from the time Badger State Ethanol began production, Drewry wanted to overcome the shelf-life concern associated DWG. "My expectation was to be able to apply a preservative that would extend the shelf life of wet distillers grains for three weeks or better in the summer," Drewry said. 
 	

 He believed extending the shelf life would help the plant expand its coproduct marketing options—and give producers access to a fresh and consistent feedstuff. 
 
 Making DWG better
 To find a preservative that met his needs, Drewry visited with several companies and shared his expectations of a three-week shelf life for DWG. He soon began working cooperatively with Kemin Americas to develop a product that met his goal. The result was ZeniPRO preservative, which Badger State Ethanol has been offering to customers since April 2003.
 	
 They've been the first ethanol plant in the nation to offer the ZeniPRO preservative from Kemin Americas to beef and dairy customers, and Drewry reports the response has been "phenomenal."
 	
 "It cooled the wet distillers grain coproduct down and preserved it, and that's what the customer wants," Drewry said. He added that wet distillers grain treated with ZeniPRO preservative can now have a shelf life up to 14 to 28 days, depending on the application rate of the preservative.
 	
 The liquid ZeniPRO preservative is a blend of organic acids and antioxidants that is applied to the distillers wet coproduct as it is transitioned to the wet pad. Kemin Americas has a patent pending on the product. The preservative does not change the odor or appearance of the coproduct. It is safe for use in livestock feed additives, and research has shown it does not have adverse effects on steer intake and performance.
 	
 Fred Clark, from Oregon, Wis., has fed distillers wet grains on his 130-head dairy operation since Badger State Ethanol began production. He now feeds a truckload about every 10 days and has found that the wet coproduct feedstuffs treated with the ZeniPRO preservative "cuts the spoilage out completely."
 	
 Clark has ZeniPRO applied to his batches of distillers wet grains during the summer months. At a cost of $4 per ton to have the preservative applied, he said, "It has been a good investment."
 	
 Waunakee, Wis., producer Tom Helt has also been pleased with the preservative. Helt likes to feed wet distillers grains in his 400-head dairy and 400- to 500-head finishing feedlot as a low-cost source of protein. But he added, "It was a challenge to feed when it began to spoil. For our dairy operation, we cannot have mold in the feed." 

 	
 However, since using distillers wet grains treated with ZeniPRO, mold hasn't been a concern.
 	
 "Wet distillers grains would not work for us in the warm months if it wasn't treated with a preservative," Helt said. "We now get 22 tons delivered at a time, feed it in eight to 10 days and have no trouble with spoilage."
 	
 Drewry said those responses are typical of nearly all his customers who have fed wet distillers grains treated with ZeniPRO preservative. Customers like the product so much that some are having it applied year round—even though spoilage is primarily only a concern during the warmer months.
 	
 "I'm still selling 100 tons per week with the preservative right now in January," Drewry said. "Producers see it as cheap insurance in case we get warm days. They want to maintain the quality of their feed."
 
 Marketing more DWG
 At Badger State Ethanol, the positive response to distillers wet grains treated with ZeniPRO is helping the plant expand its marketing options-just as Drewry had initially hoped.
 	
 "This preservative gives us the flexibility to produce more wet product when there is demand for it versus selling it as dried distillers grain," Drewry said.
 	
 As a result, the plant can lower its drying costs, which often average $10 per ton, and the emissions produced from that process.
 	

 "The more wet product we can make, the harder we can work the plant," Drewry said.
 	
 Because the preservative helps lengthen the coproducts' shelf life, Drewry said they've also been able to expand their market to include new customers in a delivery area beyond 100 miles from the plant. Smaller operators are now able to utilize the preserved product as well, because they can feed it over a longer time period.
 	
 Drewry reports that they sell 500 to 1,500 tons per week of wet coproduct depending on demand and added, "The bottom line is that without the ZeniPRO preservative we wouldn't be able to sell as much wet distillers grain as we do." 
 	
 While Badger State Ethanol has been the first to offer the ZeniPRO preservative from Kemin Americas, eight other ethanol facilities in the Midwest have shown interest in offering the product by this summer.
 	
 "There has been a lot of demand for ZeniPRO preservative," said Mark Martinez with Kemin Americas.
 	
 He explained that before they made the product fully available, they wanted to gain experience with it in several plants.
 	
 "We've worked closely with Badger State Ethanol and its customers and have tested it successfully in other plants," Martinez said.
 	
 He reported Kemin Americas has three years of research and field testing with the preservative and is now offering it in the marketplace to ethanol plants.
 	
 As more customers consider using the preservative, Martinez added, "It can offer a lot of value to both ethanol managers to market their coproducts and to producers to keep the quality of their feed consistent."

 	
 That said, it is likely that ZeniPRO will help boost demand for distillers wet grain in the near future. As one producer who has used the preservative said, "I hear a lot of producers who say they don't like feeding distillers wet grains until they find out that there's a preservative that can keep it from spoiling." EP
 
 Kindra Gordan is a freelance writer for Hansen Communications in Kankakee, Ill.

The new ZeniPRO brand preservative has helped a Wisconsin ethanol plant get more mileage out of its distillers wet grains.

February 2004

Columns

A View form the Hill

Featured

WINBCO Delivers Proven Experience, Ability

BEHIND the SCENES

An Update on Accidental Release Planning

Delta-T enters China via Chemtex alliance

Abengoa Bioenergy's 'High Plains' Success

Extended Shelf Life, Expanded Market

February 2004.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Columns

A View form the Hill

Featured

WINBCO Delivers Proven Experience, Ability

BEHIND the SCENES

An Update on Accidental Release Planning

Delta-T enters China via Chemtex alliance

Abengoa Bioenergy's 'High Plains' Success

Extended Shelf Life, Expanded Market

February 2004