Adkins Energy, in Stephenson County, Ill., has reached an agreement with local unions on the construction of a thermal oxidizer, a VOC abatement devise. The plant will utilize workers from the Northwestern Illinois Building Trades Council to install the device. EPM was unable to learn which vendor was supplying the technology. The proposal must be approved by the Illinois Environmental Protection Agency before construction can begin.

Adkins Energy plant to install oxidizer

Two scientists at the University of California-Riverside's College of Engineering Center for Environmental Research and Technology (CE-CERT) were awarded over $800,000 from the Coordinating Research Council Inc. to study the impact of fuel properties on emissions for gasoline blends containing ethanol. Drs. Tom Durbin and J. Wayne Miller will undertake the one-year study. The objective of the research project is to gain data that can be used to predict the effects of ethanol content and gasoline volatility on new vehicle models' exhaust emissions.

Scientists study effects of ethanol in automobile exhaust and emissions

Tom Andrews of Richfield, Minn., wanted to raise awareness for E85 fuel. Being an ultra-marathoner who runs 100 miles or more per week, he decided on a 500-mile run from Fargo, N.D., to St. Paul, Minn. Deemed the E85 Run for Clean Air, in conjunction with the Minnesota E85 Team, the event spread this message: E85 is good for cars and good for the environment.
 	
 The 48-year old started in Fargo on Sept. 13 and headed southeast through cities such as Breckenridge, Morris, Benson, Montevideo, Granite Falls, Willmar, New Ulm, Mankato, Lakeville, Apple Valley and Eagan. Andrews ended his run on Sept. 27 on the steps of the Minnesota Capitol building in St. Paul.
 	
 Along the way, Andrews spread the message about E85. The fuel blend can be used in flexible fuel car models, but many people aren't aware of the capability or simply have misconceptions about the fuel.
 	
 "I had people tell me things like, 'My (car) dealer told me it was a bad fuel,' and I said that's not true," Andrews said. "(Minnesota) has 100,000 flex fuel vehicles on the road and 85 E85 stations. They've never had any trouble."
 	
 When Andrews arrived in St. Paul, General Motors announced a marketing plan for six states where E85 is abundant. Flexible fuel vehicle owners near E85 stations will receive packages that include fuel cards worth a certain amount for refueling, a T-shirt, information about E85 and a list of station locations. The program, called "I Fuel Good," is one of the few programs sponsored by a car manufacturer.
 	
 For more information and a complete list of flexible fuel vehicles, visit www.cleanairchoice.org.
 		 ~EPM Staff Report

Tom Andrews runs for E85

The Prime Minister of Canada, Jean Chretien, attended a picnic at the Brant County farm home of the Honorable Jane Stewart, a member of Canada's House of Commons. While there Mr. Chretien spoke about ethanol, greeted guests and helped honor Jane Stewart's grandfather, who was the former Premier of Ontario and Finance Minister in the 1980s. 

 	
 Attending the function were several board members of the Integrated Grain Processors Cooperative (IGPC), a 125 million liter per year, corn-to-ethanol facility under development in Brantford, Ontario, about 50 miles southwest of Toronto. Tom Cox, chairman of the IGPC board, said, "The Prime Minister spoke quite a lot about ethanol while he was here and was very sincere in his comments that he believes ethanol is not only good for farmers, but for the environment as well."
 	
 Jane Stewart encouraged IGPC to erect a large sign that said "Ethanol Means Business" in her front yard to attract the attention of the Prime Minister. "We were successful in doing just that," said Barry Hill, another IGPC board member attending the function. "The message was delivered, and during this politically important time in Canada, we need to keep ethanol issues on the front burner."
 	
 The IGPC project is scheduled to begin construction in the late spring or early summer of 2004. Lurgi PSI has been selected as the engineering contractor utilizing an ICM process design.

Canada's Prime Minister talks about ethanol

A proposed $60 million, 40-mmgy ethanol plant in West Deptford Township, N.J., received a $1.5 million loan from the New Jersey Board of Public Utilities, project director Hank Capro told EPM. Garden State Ethanol, a group of farmers who are leading the plan, will use the state loan to cover operational expenses. In addition, a $1 million federal grant is also pending. Sen. John Corzine, D-N.J., has presented a bill but it has yet to be signed.

New Jersey ethanol plant receives state, federal funding

On Sept. 25, Monsanto announced that it is collaborating with General Motors and the National Ethanol Vehicle Coalition (NEVC) to offer the program "Fuel Your Profits" for the 2004-'05 season.
 	
 The two companies say they have partnered to make high fermentable corn varieties highly accessible to ethanol producers, drive up ethanol demand and support the expansion of ethanol - expressly E85 - refueling infrastructure. .
 	
 Ethanol plants can receive several benefits from participating in the program, such as access to Monsanto's propriety near-infrared measurement tools, substantial discounts off the negotiated purchase price of GM's flexible fuel vehicles (FFV) and the ability to receive an E85 fuel pump either on site or in its neighboring community.
 	
 Monsanto unveiled the program at the 50th annual Farm Progress Show in late September in Danville, Ill. Eighteen plants had signed up by Oct. 10.

Monsanto joins GM, NEVC

The explanation, criteria and nomination form for the 2004 International Fuel Ethanol Workshop Award of Excellence can be found at www.bbiethanol.com/few/award.
 
 Who the award is meant to honor: Individuals who, through their research and technical advisory activities, have made significant contributions to the fuel ethanol industry. The Award recipient is usually an individual, but joint awards are not prohibited.
 Possible candidates: Scientists, engineers and individuals from government, industry and universities.
 
 Description of the award: The recipient will receive a beautiful cut glass trophy from the International Fuel Ethanol Workshop, plus a cash award of $1,000 from BBI International. The "Award of Excellence" is presented on even years – 2004, 2006, etc. (The "Distinguished Service Award," determined by an industry-wide poll, is presented on uneven years – 2003, 2005, etc.)

 Previous recipients: The first Award of Excellence was presented to Dr. Raphael Katzen at the FEW in St. Paul, Minn., in 2000. Dr. Katzen is the founder of a process design firm and is well-respected for his technological contributions in the alcohol industry that covered many decades of service. In 2002 in Springfield, Ill., Dr. Rodney Bothast was the recipient of the award. Dr. Bothast led important ethanol-related research projects during his tenure at USDA-ARS (Agriculture Research Service) and now is the director of the National Corn-to-Ethanol Research Center at Southern Illinois University in Edwardsville.
 
 Procedure in brief: Two people must place each nomination. Each nomination should be backed up with papers and other relevant materials by the nominee. The review committee is made up of representatives from academia, government and private enterprise. The deadline for accepting nominations is May 14, 2004.

2004 FEW ‘Award of Excellence'

By the time this article is printed, we will have concluded the first annual National Ethanol Symposium for Lenders in Chicago. There perhaps is no more important issue facing this industry than money. Not federal legislation, not new technology and certainly not the number of people who want to build ethanol plants. 
 	

 There are only a handful of lenders who have financed 90 
 percent of the new plants being built today. Their portfolios are filling fast. The choice for lenders is no longer good projects vs. bad projects, but rather very good projects vs. excellent projects. Only those that are in the top two percent of the applicants are being considered for funding. The very good projects sit on the lenders desk waiting for new lenders to enter the picture. Funding for these very good projects was nearly a slam dunk two years ago. Now there's no such thing.
 	
 More lenders who understand the ethanol industry are needed very badly if we are to continue to grow. Lenders can take some of the "filled to the brim" portfolios of those who have financed the industry for the last 15 years. Unfortunately, many of the lenders who are being approached, both by other lenders or those seeking 
 financing for an ethanol plant, simply don't understand the industry and subsequently turn down loans because of the perceived risk.
 	
 We need to educate lenders about the benefits and the risks associated with ethanol production, so that when approached they can make a decision based on understanding and not fear of the unknown. Business plans need to address risk and lay it out on the table to be examined and dealt with. So many business plans skim over the risk and simply talk about the benefits. We can't be afraid to bring the risks to the forefront, because once understood, risk often becomes opportunity.
 	
 Money is what makes the world go 'round, and a lack of it has the potential to reduce growth in the ethanol industry. If we want to build new plants, we need to educate the people with the money. It's that simple. The National Ethanol Symposium for Lenders was one important step in that process.
 
 
 Mike Bryan
 President, BBI International
 mike@bbiethanol.com

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Ethanol industry needs more lenders, banks need more information

The Way I See IT

Cargill Dow LLC named Genencor International Inc. its development partner for a landmark biomass project expected to favorably impact the production of fuel ethanol. The project, supported by the U.S. Department of Energy (DOE), is focused on utilizing advanced enzymes to improve the feasibility of producing biomass derived fuels, power, chemicals and other products that will reduce dependence on fossil carbon energy, lower greenhouse gas emissions and stimulate rural economies. The partnership stems from a $17 million NREL project.

Cargill Dow, Genencor partner in biorefinery project

t was déjà vu all over again for Larry Johnson. 
 During his nine-day mission to Australia ending September 21, the Delta-T representative and long-time ethanol authority shared his knowledge of the American industry with Australian political and business leaders, including government ministers and about 30 Members of Parliament. He also reached the public by giving extensive interviews to journalists and commentators, appearing on five radio talk shows, at least nine newspaper stories, and six television broadcasts, including Australia's Today Show. 
 	
 Even as he painted a bright picture of ethanol's promise, Johnson couldn't help flashing back two decades. 
 	
 "I landed in Brisbane hoping I could help the Australians learn from America's successful model and avoid repeating our mistakes," he says. "I was amazed by all the similarities I saw between the current situation in Australia and the U.S. of 20 years ago. The opportunities–and the barricades–are nearly identical. What a terrible waste if they have to go through the years of frustration and wheel-spinning we did." 
 	
 Larry Johnson, whose immersion in the production, marketing and public policy aspects of ethanol began in the early 1980s, is well-known for his role in developing the breakthrough "Minnesota Model" of legislation. During his September trip, at the invitation of the newly-formed Australian Coalition for Ethanol (ACE), he had the chance to observe firsthand the potential for their country to grow its own industry and to compare the current circumstances with his pioneering days. Here are some of the parallels he found between America then and Australia now:
 -Ethanol is a highly charged political issue.

 -Greatly expanding production of ethanol as an automotive fuel additive would benefit farmers, producers, marketers, the government and the general public for a variety of economic, social, national security, environmental and health reasons.
 -The petroleum industry is understandably intent on killing any ethanol expansion because it's a threat to its total market dominance in petrol.
 
 A government-mandated 10-percent ethanol blend for all engines would take 10 percent of the fuel market away from the oil companies.
 -Some policy makers fear progressive ethanol legislation will be seen as serving wealthy special interests; there's a strong temptation to straddle the fence and have it both ways.
 -Major oil companies are using their market control to discourage independent gasoline marketers from blending ethanol, which discourages the development of the ethanol industry.
 -Misinformation abounds; the media feed on it and regurgitate it. 
 -Bogus studies–for example, citing harmful effects of ethanol on car engines-are scaring the petrol consumer.
 -There's little understanding of the value added through processing and how agricultural products can bolster local, state and national economies.
 -The nationwide auto club AAA is sewing confusion about whether using ethanol will harm engines or void warranties. 
 -Some engine manufacturers are reluctant to endorse ethanol for earlier models because they never tested engine performance or components with ethanol blends.
 -The U.S. was in need of octane enhancement to replace tetra-ethyl lead and Australia will require higher-octane petrol by 2006.
 -Under the pretense of the "consumer's right to know," another scare tactic is to label pumps to call special attention to ethanol (out of the hundreds of hydrocarbons in petrol), making it appear harmful or dangerous. 
 -For new dry-mill plants, it's hard to attract investors and debt financing despite eye-opening financial projections.
 -Both countries are largely dependent on foreign oil and will realize strategic gains from diversified, domestically-produced energy supplies.
 -Low agricultural prices continue to exacerbate the need for rural economic development.
 -Industry growth and prosperity hinges on a federal government incentive: a 10-year exemption from the fuel excise tax, an amount of money equivalent to the U.S. incentive. 

 	
 In contrast to these similarities stand two significant differences between Australia's present and America's past. 
 	
 First is the awareness of air quality of an important issue. Americans made it a priority by passing the federal Clean Air Act and, in 1990, its amendments. Australians still haven't mandated air quality standards. Although the government has issued reports supporting biofuels, including biodiesel, the enabling legislation, including a 10-percent ethanol requirement and a 10-year excise tax exemption, hasn't become law. Johnson believes that once the government acts by passing the necessary legislation, it will demonstrate that cutting urban air pollution is as important as boosting the rural grain and sugar cane economy. And the requirement for clearer air will drive demand for ethanol production. 
 	
 A second significant difference is today's process technology and construction standards. During the past 20 years, Johnson points out, Delta-T and other dry-mill ethanol plant process-design companies have made one technical breakthrough after another, continuously reducing the cost and increasing the efficiencies of making ethanol.
 	
 Australia can leapfrog twenty years of design and engineering development and land well into the 21st Century, immediately building large-scale plants with proven technology and known results. And when high environmental standards become part of public expectations, Australians won't have to worry. With today's technology they can build nearly emission-free ethanol plants, including zero process wastewater. 
 	
 But Larry Johnson wasn't in Australia to sell technology. He was there as an ethanol ambassador, to help birth an industry which, only in time, after the government acts, the oil industry cooperates and the public understands the advantages of ethanol and supports it, will Australia build its dry-mill ethanol plants. 
 	
 Johnson spent much of his time correcting misinformation, dispelling rumors and providing the basic facts about ethanol. Despite the distortions he continually encountered, the topic was surprisingly hot. 
 	
 "Just before I arrived, somebody leaked a report to the press–obviously bogus–alleging that ethanol blends would damage up to four million Australian cars. You can imagine what reporters wanted to talk about. As a result, those four million cars became a focal point of most of the media interviews. 
 	
 "Another report released a week prior revealed some rather large political contributions from Dick Honan of Manildra, the leading ethanol producer, to Prime Minister John Howard. As it would in America, a big campaign contribution can attract a lot of attention and speculation. So I even found taxi drivers and store clerks had heard of the ethanol issue."
 	

 Despite the blatant skepticism of Australian reporters, Johnson was pleased to find that the stories following his interviews cast ethanol in a mostly favorable light. 
 	
 In his meetings with government and industry leaders, Johnson had access to key decision-makers and was able to listen, learn and make substantive recommendations. He recognizes that although much was accomplished in his nine days, "one trip is just one more step in a long journey" to a successful and prosperous ethanol business in Australia. EP

Delta-T ethanol expert helps Australian leaders avoid America's mistakes

ROTARY DRUM DRYERS
 ICM rotary drum dryers are well recognized in the dry mill ethanol industry for dependability, ease of operation and the ability to produce high quality DDGS. 
 	
 John Caffrey, engineering manager of the ICM Dryer Group, told EPM there has been tremendous growth in the distillers grains drying industry. 
 	
 "We as a company, didn't walk into the position we are in now," he said. "With the remarkable leadership, philosophy and experience of Dave and Dennis Vander Griend and the good fortune of such quality customers as Fagen, Broin, Delta-T and others, we have experienced a very rapid and successful growth in this industry. I'm grateful to all of our customers, and I believe they would all agree that our group treats them that way every time they call with any type of a need."

 	
 According to Caffrey, ICM started supplying dryers in 1995 with a relatively slow start. "When I started at ICM, we were pretty much just a dryer manufacturing company. We had about 35 people, we had built and installed only three dryer systems and were working on three more installations. That was just six years ago. Now we've got 46 dryers installed in the ethanol industry at sites throughout the Midwest and into Canada."
 	
 For the most part, ICM dryers are included in the plants that are designed and built by the ICM-Fagen partnership. 
 	
 "Within that design come some very impressive guarantees that allow the ICM design to shine in the industry," Caffrey said. "The ICM efficiency guarantees for operating plants they design are always met." 
 	
 Some of the numbers that count to the people thinking of building plants are the gas and electrical utility usage guarantee rates, he told EPM. 
 	
 "We're currently demonstrating less than 32 cubic feet of natural gas per gallon of ethanol produced and less than 0.6 kilowatts (kW) of electricity per gallon of ethanol produced," he told EPM. "These numbers are for plant-wide use. The numbers include drying all of the wet cake and thermal oxidizer emission control. To take that one step further, our expectations of our new plants are to operate at even lower utility requirements – 5-6 percent less."
 	
 Caffrey told EPM that ICM dryers have consistently produced high quality DDGS in all locations of operation. 
 	
 Most agree that how a plant operates and what the plant puts into or takes out of the feed will cause the final product to fluctuate somewhat in consistency from plant to plant. Caffrey said ICM dryers have "operational flexibility" that gives the operator the options. 
 	
 Overall, ethanol producers have generally found ICM dryers to be extremely, reliable, safe and convenient to operate. Those characteristics have kept the company at the top of the business for years. 
 

 Ronning Engineering 
 Ronning Engineering Company of Overland Park, Kan., has installed nearly a dozen rotary drum dryers in the ethanol industry and, with 40 years of experience, is considered a competitive vendor in the distillers grains drying industry.
 	
 In fact, Ronning Engineering President Bob Kolb said the company will install a second rotary drum dryer at Ace Ethanol LLC in Stanley, Wis., which is currently expanding from 20 mmgy to 40 mmgy. Furthermore, Ronning Engineering has handshake agreements with several process design firms that have ethanol projects on deck worldwide. 
 	
 Kolb says Ronning's "single-pass rotary dryer" is unlike any other in the dehydration industry.
 	
 "While on the outside they are often physically smaller than other types of dryers, the primary difference is on the inside where three separate stages of patented components combine to produce a high-quality DDGS," Kolb said.
 	
 The key advantages to Ronning's technology, Kolb told EPM, are "lower drying temperatures and higher capacity performance. 
 	
 "Lower temperatures protect the valuable proteins and fat in the DDGS, reduce operating costs, and decrease the release of volatile organic compounds, and particulate emissions," he said. 
 	
 The initial capital costs of a plant are often reduced using the Ronning dryer, Kolb told EPM, because "the Ronning dryer operates at a higher capacity than similarly sized dryers." He said that's because the dryer has a longer product retention time and internal components that provide high-density heat transfer.
 	
 "The longer retention time allows for slower drying of the product, which is the key to uniform product quality," he said. "DDGS from a Ronning dryer is consistent in color, nutrient composition and moisture content. We design to improve our clients' bottom line, and they appreciate it. While they are attracted by a lower initial investment in equipment, they return to us for additional systems because of the profits they realize on an ongoing basis."

 
 RING DRYERS
 Barr-Rosin
 
 An increasing number of ethanol plants built and managed by Broin Companies, and at least one other producer, use ring dryers manufactured by Barr-Rosin, a GEA company that also manufactures rotary drum dryers and fluid bed dryers. Barr-Rosin is the only ethanol industry vendor that has installed ring dryers in dry mills, according to several EPM sources. 
 	
 The Barr-Rosin ring dryer is a pneumatic type system – a modified flash dryer. According to the company, the ring dryer was developed to increase the versatility of flash drying and to overcome its limitations. 
 	
 In both ring and flash dryers, the wet feed is dispersed into the high velocity "Venturi" section of the system. In this zone, the wet product first comes into contact with the hot drying air stream and the bulk of the evaporation occurs. The product is then dried as it is conveyed up through the drying column. 
 	
 The presence of a manifold – or internal classifier -– in the ring drying system is what differentiates it from the flash dryer. The manifold uses the centrifugal effect of an air stream passing around a curve to concentrate the product into a moving layer. The adjustable splitter blades are used to return the heavier, semi-dried material back to the dryer for another pass through the system while the lighter, drier product exits the dryer and gets conveyed to the product collection system. 
 	
 Chippewa Valley Ethanol Company (CVEC) recently invested in a Barr-Rosin flash ring dryer. The plant now has the largest dryer of its type in the ethanol industry, and the management team is pleased with the system's performance. 
 	
 "It allows us to dry at lower temperatures, which gives us flexibility and, we expect, energy efficiencies, too," Mitch Miller told EPM. 

 	
 Miller said that CVEC, which just expanded from 21 mmgy to 45 mmgy, is still using its original ICM rotary drum dryer to dehydrate about 30 percent of the plant's distiller grains. That means the ring dryer handles the remaining 70 percent. 
 	
 "We've been [on line with this dryer setup] nearly four months and our customers are very satisfied with the product," Miller said. "We're getting into premium markets with it and fulfilling customer-specific requests."
 	
 But CVEC's creative use of the drying process is not the only reason its DDGS is earning top dollar on the market. The plant's lower-stress fermentation process leads to DDGS with relatively low levels of glycerol, Miller explained, which is one of several factors known to naturally improve product flowability.
 	
 Miller's enthusiasm for CVEC's new dryer has not depreciated his respect for the plant's old rotary drum. 
 	
 "Rotary drums will have a place in this industry for a long time, because they offer a proven technology at the least capital cost," he said. 
 
 EMERGING TECHNOLOGIES
 GulfTex Environmental Services 
 	
 Makers of the patented "Pulverizer Air Dryer" (PAD) claim the system is able to take wet distillers grains and dry it to 10 percent moisture with no use of heat. 

 	
 "Natural gas costs of $8 to $12 per wet ton using thermal dryers can be replaced by the PAD electrical power requirements of $2.00 per wet ton," said John Teague of GulfTex Environmental Services LLC, holders of the patented system. 
 	
 GulfTex has installed a PAD system at Heartland Grain Fuels in Huron, S.D., and has recently offered public demonstrations of the technoogy. 
 	
 In addition to avoiding high natural gas costs, Teague told EPM his company believes, "the absence of heat creates a high quality DDGS with 30 percent higher protein, 50 percent higher fat content and the ability to be palletized – or briquetted – to a density of 40 to 50 pounds per cubic foot, versus a thermally dried product. 
 	
 "This saves 30 percent to 50 percent on transportation costs," he said. 
 	
 The absence of heat also means the PAD does not create VOCs and odors in the range that a thermal dryer creates, Teague claims. 
 "In a recent emissions test, the VOCs from a PAD were 70 percent under the allowed VOCs coming from a thermal oxidizer," he said. 
 	
 The PAD, in contrast to thermal dryers, brings with it the ability to expand into other classification functions in the ethanol industry. 
 	
 "Two joint technologies with the PAD present the opportunity to get away from the glutted livestock feed application of the DDGS and recover the full organics in the centrate water in a powder form, thereby potentially doubling the yield from the same bushel of corn," Teague proposed. "As the ethanol industry matures and grows toward producing a product competitive with gasoline without the need for subsidies, the PAD will be an integral part of that future technology package."
 
 Ventilex USA 

 Ventilex, a large international corporation with U.S. sales offices in Cincinnati is beginning to aggressively market its fluid bed dryer as an effective method to dry distillers grains on its own. Currently, many ethanol plants employ fluid bed dryers – or fluid bed coolers – for supplementary dehydration and cooling at the end of the process, but not as the lead dryer. 
 	
 Ventilex thinks that will change. 
 	
 The company's Fluid Bed Dryers are used in several industries for drying and cooling. Ventilex has thousands of successful installations worldwide on all types of granular, powdered, fibrous and flaked products. 
 	
 The company suggests that the key to all the ethanol industry's drying challenges is to dry distillers grains at the highest temperature possible without releasing long-chained oils into the air. 
 	
 "This is a difficult tightrope to walk," the company's Web site states. "In a typical rotary drum dryer, whether co-current or counter-current configuration, the product must 'fall' through the air stream for evaporation to occur. This is accomplished by rotating the drum at a set speed. You might think of your clothes dryer at home as a good example. When the material is laying against the wall of the dryer – as it does more than half the time in the dryer – it can burn. Most rotary dryers use high temperature to evaporate the moisture. … Without getting into too much discussion on rotary versus fluid bed dryer efficiency, it is clear that in a fluid bed, the product is fluidized by [hot air] and totally envelopes the discrete particles. This allows for efficient evaporation of the moisture. Thus with a certain amount of air, and the right low temperature, you can efficiently evaporate the water to the desired level without creating emissions." EP

Established Technology & Confident Newcomers: A Profile of Five Distillers Grains Dryer Vendors

Distiller Grains Dryer Review

TWIN FALLS, Idaho – With all the talk about the possibility of an ethanol plant in Idaho, questions have been raised about how well ethanol performs and what must be done to use it.
 	

 Two men think they have some of the answers.
 	
 Ross Spackman, who teaches alternative energy classes at the College of Southern Idaho (CSI) in Twin Falls, wonders why folks haven't seen more ethanol at the gas station.
 	
 But Spackman, associate professor at the college's Agricultural, Consumer, and Environmental Sciences Department, isn't just all talk. He and Joel Hobbs, owner of Hobbs Equipment Service in Burley, Idaho, have been experimenting with running engines on E50 (50 percent ethanol and 50 percent gasoline).
 	
 Mechanical incompatibility is, of course, not the reason why there isn't more ethanol at gas stations. Spackman recently acquired a 1981 Jeep Wagoneer as a donation from Lilian Dupras, a former CSI student. Earlier this year, Hobbs and Spackman began modifications on the Jeep to run on E50. Spackman is the chemist, he said, but he gives all the mechanical credit to Hobbs.
 	
 Only minor modifications were required to make the vehicle run well on the mixture, Spackman said. Making the fuel-air mixture slightly richer by changing the jets in the carburetor was one adjustment. The only other change was to replace all of the fuel lines and the fuel pump, which had deteriorated, mainly due to the age of the vehicle.
 	
 The two energy enthusiasts also modified their motorcycles to run successfully on E50. Neither Hobbs' Yamaha or Spackman's Kawasaki required more than simple fuel-air mixture adjustments to the carburetor. 
 	
 Dick Larsen, Idaho Department of Water Resources Energy Division senior public information officer, learned of Spackman and Hobbs' experiment and commented.
 	
 "What he's doing is wonderful," Larsen said. "One of the most difficult things is to show people this really works."
 	
 Misconceptions about ethanol abound, particularly in Idaho, Larson said.

 	
 "Other states don't have the disbelief that we have," he said. "But it's not some devil's brew made up in a laboratory somewhere."
 	
 But Spackman and Hobbs' experiment speaks louder than Larsen can from his IDWR office.
 	
 "All the fancy words that government can put out will not have the power of Ross Spackman driving around on 50 percent alcohol," Larsen said. "When people look at that, they begin to open their minds."
 	
 Larsen is passionate about the idea of Idaho getting an ethanol plant. 
 	
 Often he speaks of his vision of Idaho. 
 	
 "I see Idaho farmers growing a crop that goes to an ethanol plant and ethanol that goes to service stations and into our fuel," he said. "The [coproduct] – distillers grains goes to feed dairy cattle. The waste – methane gas – from the cattle could go to run the plant. Right now we import most of our distillers grains from Minnesota. Think about that circle."
 	
 Spackman can see even more benefits of ethanol.
 	
 "Ethanol has recently been touted as one of the best solutions to reducing air emissions from tailpipes," he said. "Besides the environmental attributes, it can be made from excess farm crops."
 	

 Larsen agreed. "Three years ago they were dumping the spuds and letting them rot," he said. "You can make ethanol out of potatoes. It's part of the answer."
 	
 One Idaho group, known as Magic Valley Energy Company (MVEC), continues to look for ethanol answers. Winston Inouye, co-director of Magic Valley Energy Company, said the company is still working toward its goal of building an ethanol plant somewhere in Magic Valley, most likely in the area closest to the majority of the dairies.
 	
 BBI International, a biofuels industry consulting company, conducted a feasibility study for MVEC two years ago.
 	
 "The numbers show that it is feasible," Inouye said.
 	
 While MVEC continues to work toward building a plant, people like Spackman and Hobbs continue to demonstrate the ability of ethanol. "We have not attempted experimentation with E50 in a fuel-injected engine yet, but would expect it to work without modifications," Hobbs said.
 	
 The two are also planning to determine the upper limit of ethanol that can run in the fuel mix on the older, low compression Jeep engine. They will continue adding more ethanol to the gasoline until major modifications are required.
 	
 "Increasing the compression ratio is usually required for high ethanol blends," Spackman said.
 	
 Hobbs Equipment Service plans to continue work with ethanol and eventually modify a vehicle to run on E100 (100 percent alcohol).
 	
 Spackman has been operating a legal alcohol fuel still for about a year but so far Wyoming Ethanol and the JR Simplot company have provided the main supplies of fuel.

 	
 For more information about the Alternative Energy class at CSI or the mechanical aspects of the work, contact Ross Spackman, (208) 732-6405 or Joel Hobbs (208) 678-4249. EP

A chemist-mechanic duo in Idaho is proving that even older model vehicles can be easily modified to run on high percentage ethanol blends.

Old Jeep, New Fuel

EPM: Grain sorghum is the second most commonly used ethanol feedstock in the United States, with eight or more facilities utilizing the crop in varying amounts. Why has the success of this hardy grain been relatively "low key" in the ethanol industry? And when it comes to ethanol production, will grain sorghum always be a supplement to corn, or will it break out of its shell as a true stand-alone ethanol feedstock?
 
 Snyder: In 2002, about 12 percent of the U.S. grain sorghum crop went into ethanol. In addition to these eight facilities you mention, many other plants in the U.S. Sorghum Belt have used grain sorghum in the past and likely will return to it in the future. Two years ago, the National Grain Sorghum Producers (NGSP) launched an intensive effort to increase awareness of the benefits of grain sorghum's application in ethanol. This effort was built largely on a foundation established by the Kansas and Nebraska grain sorghum producer organizations. Another aspect of this effort was a push to increase NGSP's involvement in national and state energy policy. In many plants, sorghum is a stand-alone ethanol feedstock, especially in areas where grain sorghum is a dominant crop due to its suitability in more dry climates.
 
 EPM: Comparing corn distillers grains to grain sorghum distillers grains, what are the noticeable differences? In what areas does grain sorghum top corn? In what areas does corn surpass grain sorghum?
 
 Snyder: Both sorghum and corn, as distillers grains, offer significant feed advantages. Grain sorghum and its distillers grains both offer higher protein. Sorghum distillers grains is substantially similar to corn distillers grains in nutrient values and energy availability for beef, dairy, swine and poultry. 
 
 EPM: You believe corn and grain sorghum work well together, synergistically, as a team. Why? 

 
 Snyder: Working with the National Corn Growers Association (NCGA), we are increasing the understanding among lawmakers and their constituents that ethanol is not a partisan, corn-only or geographically-isolated issue. The ethanol industry and policymakers respect efforts that are conducted in the spirit of teamwork.
 EPM: Talk about the research NGSP is doing in conjunction with the NCGA. What is the goal of these studies? What other associations and/or companies are involved? 
 
 Snyder: About three years ago, NGSP observed that there was little or no research showing the true value of grain sorghum distillers grains. Not long after that, NGSP began a successful push for federally-funded research that would establish credible baseline information on grain sorghum distillers grains. As we all know, the appropriations process takes time, and the research has just begun. As a part of ensuring the credibility of the research, we chose to include corn in the study and consulted with Tracy Snider of NCGA on proper research protocols. It's worth noting that the industry is beginning to look at sorghum being added to corn in the ethanol process, resulting in a distillers grain with a demonstrated synergistic effect. This could add additional value in a market that is willing to reward such value. This research is based on multi-center trials in Kansas, Nebraska, New Mexico, Texas and Oklahoma. We believe it will set a standard for the ethanol industry, and we hope to make this federal funding permanent.
 
 EPM: In terms of overall ethanol production efficiencies (e.g., the energy balance debate, conservation and environmental issues, production efficiencies, grain price, etc.), how does grain sorghum make a good ethanol feedstock? 
 
 Snyder: From an ethanol production standpoint, grain sorghum is equal to corn as an input. One bushel of grain sorghum or corn produce the same amount of ethanol. With that in mind, ethanol producers can make grain sorghum part of a successful procurement strategy–especially in areas where there is a ready supply of grain sorghum. 

 
 EPM: Does grain sorghum look like a promising ethanol feedstock for future facilities outside the grain belt? Explain. 
 
 Snyder: This is perhaps one of the more exciting aspects of grain sorghum's potential in ethanol. We traditionally think of the U.S. Sorghum Belt as stretching from the Rockies to the Mississippi and from South Dakota to the Texas Rio Grande Valley, but in reality, grain sorghum is grown from California to the East Coast. In fact, several months ago, a press release from the Office of the Governor of New Jersey mentioned sorghum along with corn as a possible starch input to produce ethanol there.
 
 EPM: On the front end of the ethanol production process, does the producer have to make changes to the facility itself to receive and grind grain sorghum? Explain. 
 
 Snyder: No, and that's the beauty of the situation. Most major ethanol construction companies include grain sorghum along with corn in their models. As a matter of fact, there are a number of the new-generation ethanol plants that are set up to receive both sorghum and corn at the same time.
 
 EPM: Dairy producers are increasingly aware that distillers grains made partially from grain sorghum may have higher levels of protein. Does that add value to the feed?

 
 Snyder: It certainly does. In the developing dairy industry on the High Plains of Texas, demand for the high-protein wetcake, or wet distillers grain, has changed business models for both existing and prospective ethanol producers.
 
 EPM: There has been some indication that grain sorghum-based distillers grains results in lower "acidosis" in swine. Can you speak to that? 
 
 Snyder: There has been anecdotal evidence that acidosis has been reduced, but in order to put good science to work for our industry, we are going to look at this most promising advantage for distillers grains through the research project I mentioned earlier.
 
 EPM: How about poultry? Shouldn't the high protein benefit that species as well? 
 
 Snyder: Poultry producers in South Central Texas are already looking at replacing the very expensive soybean meal portion of their diets with high protein distillers grains, offering a significant price advantage for the distillers grains and cost savings for poultry producers.

 
 EPM: Make a prediction, please. Compared to the bushels of sorghum used for ethanol production today, how much will be used for ethanol production in five years? Briefly address the effect that will have on farmers who grow sorghum, and the communities around new ethanol plants that will use sorghum. 
 
 Snyder: If I had the good fortune to look into a crystal ball, I would hope to see production return to levels we enjoyed in the mid-80s, when 17 to 18 million acres were planted to sorghum in the U.S. This would effectively double sorghum production and would solve the greatest marketing challenge we have in our industry today–maintaining a reliable supply to match the demand we are seeing both domestically and for export. However, there are important farm policy issues and production issues that NGSP must help solve before we can get there. In the meantime, we are excited about the growth opportunities for grain sorghum in this most important ethanol industry, and we are eager to partner with ethanol to find win-win solutions and forge ahead with new innovations. EP

Grain Sorghum – a.k.a. milo – is America's second most utilized ethanol feedstock. It stands up to corn in DDGS feed trials and production tests, but trails enormously in terms of overall use. Find out what the National Sorghum Producers' Tim Snyder would like every future producer to know.

Sharing the Limelight

Today, most farmers around Mishawaka, Ind., are probably too young to remember the year Jon Laidig built his first bottom-unloading silo. 
 	
 It was 1961, and Jon, a recent graduate of Purdue University, was dividing his days between a job in town and raising beef cattle with his father and brother on the family farm. 
 	
 Time was money, and Jon knew a bottom-unloading silo would speed up operations on the farm. The only available system, manufactured by AO Smith Harvestore, was too expensive.
 	
 A self-taught inventor, Jon decided to design his own system. Within a few months, he had built what would become the first Laidig bottom unloader, otherwise known as a "reclaimer." The silo made news, and it wasn't long before Jon had several requests to build bottom-unloading silos for other farmers in the area.
 	
 It would become the biggest test of character he had ever faced. 
 	

 "He built five systems and not one of them worked perfectly," said Jon's first cousin Roger Laidig, now vice president of marketing and sales for Laidig Systems Inc. "So he had a choice: stay and fix the systems, or run from the problem." 
 	
 Jon stood firm. 
 	
 He quit his job in town and devoted himself full time to fixing the silos he had already sold and improving the design of the silos in production. For nearly a year he worked around the clock, often with little sleep. 
 	
 In the end, Jon's labor paid off. Requests for more reclaimers piled up, and the company that is now Laidig Systems was born. In the years that followed, Jon and his wife Sonja traveled across America to meet and work with new customers. Sonja's meticulous attention to detail is typical of the quality that Laidig still represents today. 
 	
 Under Jon's leadership, the team at Laidig Systems has now developed an entire line of bottom reclaim systems that can handle even the most difficult applications of hard-to-handle materials, which today includes distillers dried grains with solubles (DDGS) from the ethanol industry.
 	
 "The story of how all this began encapsulates Jon's commitment to customers that set Laidig apart from the very beginning," Roger Laidig told EPM. 
 
 New era beginsThe company reins are now in the hands of Dr. Wyn Laidig, Jon's oldest son, who returned to Mishawaka with his wife after a successful international career. Wyn holds a Ph.D. in physics and taught at North Carolina State University, before consulting high-tech companies and working in Asia for 15 years up until rejoining the family company in 2002.
 	
 Wyn Laidig's return was made comfortable by the fact that several employees, in the office and in the shop, have worked for the company for over 20 years. 
 	

 "Some of our best employees today started working here when I was in high school," he told EPM. 
 	
 The company's amazing employee retention is a direct reflection of the rewarding work environment Jon Laidig cultivated over the years. There are countless stories about Laidig's impeccable character and compassion for his employees. 
 	
 "Overall, I think Jon was always fair and honest with people and offered excellent fringe benefits," Wyn Laidig said. "There have been bonuses in the good years (Jon once chartered a plane to Disney World for his employees), and few – if any – company layoffs". 
 	 
 As president of Laidig Systems Inc., Wyn Laidig and his dedicated staff plan to take the company well into the 21st Century. Laidig is proud of its "combination of youth and experience," and plans to continue expanding its presence and capabilities in the industrial bulk material handling industries. 
 	
 The ethanol industry – DDGS storage specifically – is an attractive new growth area for Laidig. 
 
 DDGS offers new market opportunity
 As recently as five years ago, storing DDGS in silos was unheard of. Almost every ethanol plant in the Untied States was storing DDGS in flat storage – on the concrete floor of a steel building. 
 	
 Today, while most ethanol plants still utilize flat storage with relative success, a growing number of plants are investing in Laidig's automated reclaimer. 
 	
 "I like to ask potential customers, 'What would automating your DDGS load out be worth?'" said Mike Schuster, Laidig's Midwest sales manager. Schuster said if an analysis is done, the answer is usually "significant." 

 	
 While there are some additional up-front costs associated with the Laidig reclaimer, the benefits are undeniably attractive: push-button loading, "first-in, first-out" inventory control, product quality control, fewer personnel, less risk of injury (large piles of DDGS can be dangerous), less space requirements (vertical storage occupies less real estate) and the avoidance of potential air-quality issues. 
 	
 "A real advantage of Laidig's DDGS storage system is that your payback begins with startup and continues long into the future," Schuster told EPM. "Flat storage may require less investment but does not come with that claim."
 
 Model '698'
 While there are many systems that could be utilized for DDGS storage, the Laidig concrete "jump-form" – a monolithic pour – is the most common application in the ethanol industry. The jump-form concrete silo is designed to handle the unique loads created by the Laidig unloader. 
 	
 "While the bottom unloader is certainly the heart of the system," Schuster said, "we consider the concrete silo to be an important part of the package." 
 	
 The company's "698" model, available in a 48-foot diameter size (3,000 ton capacity) or a 55-foot diameter size (4,000 ton capacity), has been installed at 11 ethanol plants in the United States, with four more under construction. Both sizes tower 112 feet from the ground. 
 	
 The automated reclaimer features a huge sweep auger with a reinforced shield that's able to cut through heavy DDGS loads. The reclaim auger's shoe weldment grips a ductile iron track along the perimeter of the silo, keeping the auger firmly in place as it undercuts the stored material. Rotating 360 degrees around the structure, the auger conveys the material toward the center of the silo where it drops through the elevated silo floor into a metering hopper. From the hopper, the DDGS is routed to trucks and rail cars for transport.
 	 
 In addition to the benefits mentioned above – improved speed, safety and operational costs – one of the most appreciated qualities of a Laidig DDGS silo is what it brings to a facility in terms of aesthetic appeal. 
 	

 "The first thing most of our customers say about the system is 'It's just so nice to have all that DDGS up off the floor. It makes the plant look so much more orderly,'" Wyn Laidig told EPM.
 	
 Of course, the automation of the system is what probably matters most. 
 	
 "The strongest selling point of the whole system is the automation of DDGS loadout," Roger Laidig said. "The controls can be incorporated into a PLC or DCS system or through a Laidig-supplied control panel that can be installed at the location. Either way, our customers discover that they are able to load many more trucks in a day. The speed of load out greatly increases." 
 
 Solid company values 
 Laidig is a modern company with old-fashioned values. The company views each customer as a "long-term partner" and only feels successful when its customers feel the same way.
 	
 "When we make a commitment to a customer, we start what I call a 'lifetime partnership,'" Roger Laidig said. "We're with them all the way and we never hide from problems – no matter what."
 	
 The company prides itself on its experience and strides to remain an industry leader in the bulk handling and storage industry. Laidig has a proven track record with companies as large as Archer Daniels Midland (ADM) and Cargill, building storage systems for soybean meal, corn gluten, corn fiber, bran and other ag products. Recently, the company has completed major projects in China, Thailand, Vietnam, Egypt, Brazil, Mexico and Argentina.
 	
 The company's involvement in the forest products industry was a boon to its growth in the late 1970s and continues to be important today. Working with furniture companies, lumber mills and co-generation plants, Laidig has provided automated reclaimers for a variety of wood waste industries. In addition, the company has built reclaimers for the plastics industry. 
 	
 The company is dedicated to providing top-notch parts and service. Laidig carries a comprehensive parts inventory and has an experienced in-house engineering staff and seasoned service personnel that can quickly be dispatched to an ethanol plant to solve customer problems quickly with the latest available technology.

 	
 "In the ethanol industry, we virtually have someone in the field every week, whether it's a salesperson or a service technician," Roger Laidig said. "Sometimes that means they're just stopping in to say hello. It's part of our commitment to the customer." 
 Schuster said he spends about 45 percent of his time on the road. He calls on several industries, but ethanol plants are often his main focus. 
 	
 "Most of my time is definitely spent in Iowa, Minnesota and South Dakota," he told EPM. "With new customers, I spend a lot of time talking about the virtues of automation."
 
 New opportunities
 One of the most recent projects Laidig has completed was for VeraSun Energy, in Aurora, S.D. The massive 100-mmgy plant, still under construction, needed two 4,000-ton Laidig reclaimers. 
 	
 The project represented a "first" for Laidig, which until this year had only installed reclaimers at ethanol plants built and managed by Broin Companies, a company Laidig remains highly committed to.
 	
 The VeraSun plant, however, is being built by Fagen, utilizing an ICM Inc. process design. Fagen-ICM plants typically utilize flat storage, but VeraSun's chief investors researched the Laidig concept and ultimately committed to incorporating two Model 698 reclaimers into the design of the facility. 
 	
 "The VeraSun project showed us that other builders – Fagen and ICM primarily – are willing to incorporate our systems into their design when their customers show an interest in it," Roger Laidig said. "The most important outcome of this is that the end user now has an option to flat storage. That said, we will continue to work with Broin Companies and also develop alliances with other builders." 
 

 What's ahead for Laidig? 
 Laidig will soon complete an expansion of its office building and fabrication shop, which is one of several steps being taken to position the company for new growth. 
 	
 "Back in the early days of the company, people were making all kinds of predictions about where the business was headed," Wyn Laidig said. "A lot of what was predicted didn't happen. Growth came in unexpected areas – wood, plastics, soymeal, DDGS. So it's hard to make predictions. 
 	
 "We must remain flexible. As long as there is a market for hard-to-handle materials, we will be in business. That business might not always be DDGS or soybean meal, but I can say with certainty that it will involve the handling of bulk materials."
 	
 Schuster may have summed it up best when he told EPM, "What this company does is not easy, it never has been. There's a reason we don't have any direct competitors in the ethanol industry. We accomplish what others are unable, or unwilling, to do. That's why we've lasted." EP

Laidig Systems Inc. has applied 40 years of bulk material handling experience to DDGS storage and load-out systems. Having worked with two of the nation's leading dry-mill builders, the company is poised to change the way the ethanol industry thinks about DDGS reclaimation.

Never Bin Better

Selecting grain handling and storage for an ethanol plant is like shopping for a new truck. The price of a compact pickup is attractive, but a full-size model with more torque, horsepower and payload is what you want – and probably what you need. 
 	
 It's the same kind of decision ethanol investors face when they "supersize" a plant design and start considering component parts for the facility. 
 	
 "Bigger plants can definitely operate more efficiently and profitably," says Steve Schmitt, vice president of technical operations for T. E. Ibberson Company. "But that efficiency and profit come at a price upfront." 
 	
 What Steve Schmitt hates to see, he says, is a plant owner "giving in to the temptation" to upsize a design without upgrading components. 
 	
 His chief concerns are the front-end (grain handling and storage) and back-end (DDGS production) of an ethanol plant. Grain handling "typically feels the budget ax first because owners think of it not as a profit generator but as a necessary evil," Schmitt says. 
 	
 The old thinking for the front-end was modeled on the old grain elevator, familiar to most farmers. Turning the grain only a few times a year – maybe 10 at most – the grain elevator provided a high storage capacity per dollar, Schmitt says. And the emphasis was on building big silos where the grain would spend most of its time sitting idle. 

 	
 But in a modern high-capacity, high-efficiency ethanol plant, the grain will turn about 35 times a year, according to T.E. Ibberson. Such high throughput subjects the entire system to extra wear and tear. If the design and construction aren't robust, it leads to unscheduled downtime from breakdowns and repairs. Maintenance and operating costs, including mounting labor costs, quickly eat up any money saved by cutting corners on equipment and facilities. 
 
 The new 'grain terminal' model 
 The new thinking has resulted in companies like T.E. Ibberson utilizing the grain terminal approach. It's designed to meet the performance specs of the big new dry-mill ethanol plants, which are designed to run over 350 days a year. What distinguishes a terminal is heavier-duty, higher-capacity, slower-speed equipment that will have a longer life with less downtime, year after year. It's also important to design the facility with adequate room for maintenance and repair. 
 	
 Ibberson, for example, uses value engineering to determine the best balance between the capital costs of robust design and construction and the resultant savings in maintenance, operating and labor costs, Schmitt says. 
 	
 Ibberson's President and CEO Steve Kimes credits the company's success in agribusiness to "innovative problem-solving." 
 	
 Each grain terminal is distinct and built for the customer's needs. The grain terminal specs for a particular ethanol plant will depend on many variables. To understand the basics on a hypothetical project, follow the grain as it makes its way from plant entrance to hammermill. 
 
 Rail considerations 
 In the grain belts of Canada and the United States, an ethanol plant can be sited close enough to the grain crop (usually, but not always, corn) so that transporting by truck is the easiest, cheapest and most reliable mode. As plants are located farther from their feedstock source–for example, on the West Coast of the U.S.–trucking becomes too costly and rail is the primary means of assuring a continuous supply. Larger plants, with their higher grain demand, often tip the scale in favor of rail, especially if they're located near other high-demand plants or in areas where grain is not abundant. (Rail, of course, will also be used for transporting the finished ethanol.)
 	

 Another consideration is how fast the grain needs to be moved, which usually depends on the production capacity of the plant. A conventional system for unloading trucks will have a capacity of 10,000-20,000 bushels per hour. A system for unloading hopper cars can boost the conveyance rate to 40,000 bushels per hour or more. 
 	
 If rail is the choice, the next consideration depends on how much acreage the plant can set aside for the siding and how long the track should be. 
 	
 High-speed unloading of large rail shipments has distinct advantages in terms of reduced freight rates. The less time you tie up the railroad's cars, the lower the rate. 
 	
 For example, rate-of-processing computations might reveal that your plant is best served by receiving shipments of grain in a shuttle train of 75 dedicated hopper cars. These 75 enclosed cars will need to pass over a stationary high-speed unloading pit in the middle of the siding where, one car at a time, the grain is discharged into a conveyor. You can quickly calculate that the track length of your siding needs to exceed 150 cars. When you're unloading the first car, you need tail track to accommodate the other 74. When you're unloading the last car, you need enough lead track to accommodate the 74 empty cars plus the switch engine.
 	
 The idea is to have a long enough track to eliminate the need to couple and uncouple cars, which wastes valuable time and increases operating costs. 
 
 High-speed unloading pit
 The speed of transmission is limited by the slowest link in the grain chain. The trick in unloading is to keep the grain flowing smoothly, without clogging. A powered rail car gate opener at the pit reduces labor and the unloading time required for each rail car. 
 
 The receiving conveyor 
 The gate at the pit funnels the grain onto a totally enclosed, dust-controlled conveyor. Depending on the design of the system, the options are either a belt conveyor with a maximum speed of 600 feet per minute or an en-masse drag conveyor running up to 100 feet per minute. 

 	
 High volume is achieved not by running the equipment fast, which would wear it out faster, but by using a large-size, heavy-duty receiving conveyor and operating at a slower speed. 
 	
 Again, it's a trade-off. Higher capital costs initially mean lower maintenance, operating and labor costs in the end, including far less unscheduled downtime.
 
 The bucket elevator 
 The grain is carried by the receiving conveyor and transferred directly to the enclosed bucket elevator, which is a series of buckets attached to a rubber belt in a continuous loop. The bucket elevator raises the grain to a height well above the storage bins.
 	
 If the storage bins rise 125 feet above the ground, the bucket elevator would be at least 150 feet tall. The difference in height allows the grain to travel down a sloping spout into the storage bins. Planning on assistance from gravity is another way of engineering cuts into operating costs. 
 
 The grain spouts 
 Depending on the plant design and capacity, the upper distribution system for grain consists of conveyors or spouting running from the bucket elevator to the storage bins. 
 	
 The spouting is square-metal, lined with a durable material (often ceramic or urethane) that protects it from the abrasion of the grain, which would wear out unlined metal spouting incredibly fast. 
 	

 The lining is usually bolted in place. Better linings last longer and don't need to be replaced as often. Eventually, though, even the best lining wears out. Removable lids, built into the top of the spouting, make this maintenance job a lot easier and faster. 
 	
 Should you anticipate using your ethanol plant to produce industrial or potable alcohol, make sure the lining is food grade. Most of the better materials are.
 
 The storage bins 
 How much grain storage is enough? 
 	
 It depends on three basic considerations: 1) the production capacity of your plant; 2) whether you'll need to segregate your grains by type or quality (for example, if you're running corn for ethanol and wheat for beverage alcohol); and 3) how much risk of running out of corn you're willing to take. 
 	
 A rule of thumb, for a large ethanol plant supplied by a grain terminal, is to have at least 10 days of grain on hand. Calculate the annual ethanol production capacity of your plant, divide by the anticipated yield rate, and that should give you the annual bushels of corn you'll need. For example, a 100-mmgy plant will consume about 35 million bushels of corn. From this you can estimate how many grain storage tanks of what size you'll need to maintain a 10-day supply.
 	
 Another decision is which tank material to use: concrete or corrugated steel. Each has its advantages.
 
 Steel versus concrete
 When you don't need to segregate your grains, steel gives you greater storage capacity per dollar. And it doesn't require the soil to be as firm in order to support the weight of the tank. Sometimes steel can be built on land that doesn't have the higher load-bearing capacity needed for concrete. 

 	
 Concrete storage, on the other hand, takes a smaller footprint than steel. And because of its greater structural integrity, concrete tanks can be built taller, like 120 feet of cylindrical storage. Concrete also lends itself to hopper-style bottoms underneath, which make complete clean-out possible. 
 	
 Ibberson, according to Schmitt, doesn't prefer one over the other but works with the owners to decide which is best, based on capital budgets and soil conditions and other variables. 
 
 Clean-out: putting safety first 
 Schmitt underscores the importance of safety at tank clean-out. 
 	
 To maintain sanitation and grain quality, all tanks need to be emptied and cleaned out once a quarter or, at the least, twice a year. This assures owners that the grain stays on spec. 
 	
 If steel is chosen, the tank will most likely have a flat bottom. Extra care needs to be taken in cleaning it. The design should incorporate cleaning by quality commercial-grade sweep augers so that nobody needs to enter the bins–a serious safety issue. 
 	 
 Entering a grain storage tank is one of the most dangerous parts of an ethanol plant operation and must be avoided. 
 
 The underground conveyorThrough a tunnel under the storage bins, either an enclosed belt or drag conveyor takes the grain into the main part of the plant for processing. Adequate room must be provided by regular preventative maintenance around reclaim conveyors.

 
 The hammermills
 The entry point at the main plant is the hammermill. Hammermills are compact rotary machines about five feet tall designed to reduce the grain into the proper size for processing. 
 	
 It's vital, in milling corn, that the kernel is broken into pieces of just the right size.
 	
 "Overgrinding can be as bad as undergrinding," says Schmitt. 
 	
 The right size grain, in the right amount, delivered at the right speed–that's the basic job of the hammermill.
 	
 A large plant, depending on its capacity, might be designed with two to three hammermills online and one offline. "The redundant mill keeps the plant from putting its production at risk; if one mill needs maintenance or repair, the off line mill goes on line," Schmitt explains. 
 	
 Where the milled grain enters the process, the grain storage and handling front-end ends. T.E. Ibberson, for example, has partnered with Delta-T Corporation of Williamsburg, Virg., for process technology, and TCI – The Industrial Company, headquartered in Steamboat Springs, Colo., for construction. Ibberson provides detail engineering and also designs and builds the front-end and back-end of the plant.
 	
 "We're confident we can meet the challenge of doing our part," says Schmitt. "As new plant owners look at upsizing operations, we can demonstrate the clear value of upgrading components. It does no good to choose a superb process design like Delta-T's and not choose a grain-moving system to match. Our goal isn't to build big grain terminals–it's to build profits for plant owners for years to come." EP

Upsizing without upgrading can lead to grain handling and storage challenges for new ethanol plants. Grain terminals are able to utilize high-capacity, slow-speed equipment for greater throughput and higher feedstock turn.

Elevating Standards

What is distillers dried grains with solubles (DDGS) and how is it used? These are two questions frequently asked by end users around the world and the U.S. Grains Council (USGC) is on a mission to answer them.
 	

 Educating the world community about the value and benefits of DDGS as a component in feed rations is essential to building export market potential for the ethanol industry coproduct. While there will be enough domestic demand to consume the potential seven million metric tons of DDGS that U.S. ethanol plants are anticipated to produce – 73 plants are currently in operation and 15 more are under construction – plenty of export opportunities exist beyond our borders. 
 	
 The USGC is making inroads into potential growth markets such as Asia, Mexico, Canada and the European Union through its education efforts. As an example, several of its overseas offices are conducting DDGS feed trials to demonstrate the quality and benefits of using DDGS as an ingredient in feed rations for swine, poultry and dairy diets. The USGC also focused on answering foreign customers' questions regarding DDGS at its Fourth International Grain Marketing Conference and Trade Show in Minneapolis in July. Since the conference, companies in Malaysia, Egypt and Ireland – all of whom had representatives at the conference – have made purchases of U.S. DDGS. Conference attendees from Australia also expressed interest in the coproduct.
 	
 Whether educating customers on the domestic front or through one of its 10 overseas offices, the Grains Council projects the same message – U.S. DDGS is a high quality, viable feed ration alternative. In particular, USGC promotes a more golden-colored DDGS made from corn that newer U.S. ethanol plants are producing. Researchers have suggested that this type of DDGS is higher in amino acid digestibility, particularly for swine and poultry. The USGC office in Taiwan recently conducted a nutritional analysis comparing golden-colored U.S. DDGS with a darker-colored DDGS sample from China and discovered that the U.S. sample was also significantly higher in crude fat (11 percent) compared to the Chinese DDGS (4.4 percent). Furthermore, the lysine content of the U.S. DDGS was approximately two times higher than the DDGS from China. 
 	
 There is great export potential in Asia since the ethanol industry is only just emerging, yet there is a sizable feed industry that can utilize DDGS. Asia also has a long history of importing U.S. grain because of its large population and limited space in which to grow crops. Japan, for example, is the top customer of U.S. corn. Three-fourths of its U.S. corn imports are utilized for feed.
 	
 As a result, USGC has been focusing much of its DDGS education efforts in Asia. DDGS feeding trials are currently being conducted in Japan, where USGC is also working with Japan's Ministry of Agriculture, Forestry & Fisheries (MAFF) to revise the official nutritional composition standard to reflect the increased values of the new style DDGS. 
 	
 USGC is also conducting DDGS feed trials in Taiwan where it is providing technical support and information to help this developing market. Because the golden-colored U.S. DDGS is new to the Taiwan market, there are many questions regarding dietary inclusion rates, nutrient specifications and diet formulation procedures. They are also looking for information on quality in such areas as the smell, color, mycotoxin risk and stability.
 	
 The Taiwan feeding trials involve Charoen Pokphand Enterprise Co., the largest feed company and livestock and poultry producer in Asia, which purchased 50 tons of U.S. DDGS to use in feeding trials for swine and poultry. The company is aggressively seeking "new" feed ingredients, such as DDGS, to use in its diet formulations and has indicated they will purchase 1,500 tons in the near future, depending on price, availability and quality. Preliminary results from its feeding trials for broilers and hogs indicate using DDGS as a protein source in Taiwan's hot and humid climate is workable.
 	
 Lin-Fen-Ying Dairy Farm in Taiwan is also currently conducting feeding trials for dairy cattle utilizing 3.5 tons of DDGS. The trial will utilize 25 mid-lactation or first-lactation Holstein dairy cows per dietary treatment. The cows will be fed either a controled total mix ration or a total mix ration containing DDGS at approximately 10 percent of dry matter intake.
 	

 Results from the feeding trial are expected in December. The Taiwanese have also expressed interest in conducting DDGS feeding trials for ducks and geese. 
 	
 Other potential markets for U.S. DDGS lie within the European Union, which is already a frequent buyer of co-products and has the appropriate systems to handle DDGS imports. The EU may also prove to be a strong market for DDGS because of the drought that hit Eastern and Western Europe this year and left countries scrambling to find feed grain.
 	
 Mexico and Canada are also strong potential markets for DDGS, due in part to growing swine industries that can benefit from the coproduct. Canada currently produces 200 million liters of ethanol annually, compared to the seven billion liters produced each year in the United States. These countries also face lower transportation costs because of their close proximity to the U.S. Corn Belt, where most of the world's DDGS is produced
 	
 USGC believes that its education efforts are having an impact in promoting DDGS abroad. The desire to use the coproduct is there, but achieving widespread acceptance and significant long-term use of the newer, golden U.S. DDGS will depend on the economic viability of the ration compared to other rations. Also, alternative transportation and logistical strategies, particularly for Asia, will have to be found in order to lower costs. EP

The U.S. Grains Council is identifying new and emerging opportunities for distillers grains exports.

DDGS Around the World

On Oct. 27, Ace Ethanol will break ground on a $20-million expansion project, general manager Terry Kulesa told EPM. The project would double the capacity of the plant to 30 mmgy and add extra emission-controlling equipment. The expansion was aided by a USDA Rural Development and Wisconsin Business Bank loan, which will also go towards the construction of Ace Biorefining LLC, which will break ground Oct. 24. Ace Biorefining is currently seeking investors.

Ace Ethanol plans expansion project

The fuel additive MTBE is under fire again. As the U.S. Congress worked out kinks in the energy bill, which originally included a call to ban MTBE, word got out that lawmakers were considering writing a provision protecting MTBE producers from liability lawsuits. The fuel additive has been found to contaminate drinking water supplies, a finding supported by the Environmental Working Group (EWG). In an attempt to beat out the altered legislation, three states filed lawsuits in one week against MTBE producers.
 	
 In New Hampshire, the state sued 22 major oil companies on the basis that the companies increased amounts of MTBE in gasoline even though they knew it would contaminate water. In California, the Sacramento County District Attorney's Office and 10 local water utilities sued major gasoline producers in order to claim damages for threatening drinking water wells. Seven suits were also filed against MTBE in New York.
 	
 In an EWG analysis of drinking water supplies nationwide, the organization found that over 15 million U.S. citizens drink contaminated water although it is in small supply. 
 	
 If the gasoline producers aren't held liable for MTBE, the cost of cleaning the additive out of drinking water supplies would shift to consumer and taxpayers. For large cities alone, EWG estimated cleanup costs to reach $29 billion.
 	
 For a complete public listing of 28 states where MTBE has been detected, visit www.ewg.org.

States rush to file lawsuits against MTBE

Within four days, two groundbreaking ceremonies officially welcomed the third and fourth ethanol plants to the state of Missouri
 	
 On Sept. 30 in Marshall, State Representative Jim Seigfreid, Marshal Mayor Connie Latimer and Paul Findlay with Robinson Construction joined plant general manager and owner Phil Danforth at the site of the $52 million, 30-mmgy Renewable Power of Missouri LLC. About 65 area citizens attended.
 	

 Danforth told EPM he has wanted to build an ethanol plant since 1979 during the nation's first energy crisis.
 	
 "I got bit by the ethanol bug," Danforth said.
 	
 Vogelbusch will design the plant.
 	
 Danforth, of Leawood, Kan., is also planning to build ethanol plants in Carbondale, Ill., and Cape Girardeau, Mo. Both projects are in the permitting st
 ages.
 	
 Eleven miles northwest of Marshall, Mid-Missouri Energy broke ground Oct. 4 in Malta Bend. Over 650 people attended the ceremony for the 100 percent farmer-owned, 40-mmgy ethanol plant, the largest in the state. The plant's president Ryland Utlaut said the weather was beautiful and the ceremony was successful.
 	
 "It couldn't have been any better than it was," Utlaut told EPM. "We had pork producers serving pork burgers. Both U.S. Senators (Kit Bond and Jim Talent) were here along with the state director of agriculture. The Union Pacific Railroad was running in the background. We had a contractor on site that was moving dirt. We're glad to see the plant moving forward."
 	
 Fagen Inc. is building the plant with ICM providing the process design for $60 million facility. Start-up is slated for March or April 2005.
 	
 Utlaut said he didn't think the proximity of the two ethanol plants would be a problem. Nine neighboring counties supply 70 million bushels of corn to the area.

Two ethanol plants open in Missouri

The National Corn-to-Ethanol Research Center accepted its first grain shipment in a dedication ceremony on Sept. 23, director Rodney Bothast told EPM. House Speaker Dennis Hastert, R-Ill., Sen. Dick Durbin, D-Ill., Reps. John Shimkus, R-Collinsville, and Jerry Costello, D-Belleville joined between 250 to 300 people at the event. Bothast said the finishing touches are being applied to the equipment in the facility and he estimated a start date for operation after Jan. 1, 2004.

NCERC holds dedication ceremony

Between 200 to 250 people attended the groundbreaking ceremony at Golden Grain Energy LLC near Mason City, Iowa, on Oct. 10. The fifth ethanol plant under construction in the state boosts Iowa to the top in U.S. ethanol production capacity.
 	

 The 40-mmgy plant will take in 15 million bushels of corn and produce 120,000 tons of dried distillers grains with solubles (DDGS) annually. Iowa has 12 ethanol plants currently on line.
 	
 "That's quite a step that Iowa has made in the last few years," Golden Grain Energy President Walter Wendland told EPM. "Outside of ADM (Archer Daniels Midland) and Cargill Dow, we really didn't have any ethanol production in the state three or four years ago."
 	
 Bob Dinneen, president of the Renewable Fuels Association, and Sen. Charles Grassley, R-Iowa, were among the speakers at the ceremony. Mason City Mayor Jean Marinos, Mason City Economic Development President Steve Gales and Pam Johnson of the Iowa Corn Promotion Board also participated.
 	
 About 500 farmers own shares in Golden Grain Energy, formed in March 2002. The $56.4 million facility will bring 32 new jobs to the area with a $1.7 million annual payroll.
 	
 The project should be completed by March 2005. Fagen Inc. will build the plant utilizing an ICM process design.
 		 ~EPM Staff Report

Golden Grain Energy begins construction of ethanol plant

The first annual BBI Golf Invitational was held on Sept. 8-9 at the Broadmoor Resort Hotel in Colorado Springs, Colo. Nearly 40 golfers from all walks of the industry played two of the toughest courses in the state.
 	
 "The golf was tough," said Maurie Beto of Novozymes, "but it was a great opportunity to network with others in the industry and to gain a better understanding of how the energy bill is moving through Congress."
 	
 Bob Dinneen, president of the Renewable Fuels Association spoke, at the evening dinner hosted by BBI. Dinneen talked about how the energy bill was advancing and the role that ethanol would likely play in final legislation. Dinneen was peppered with questions from the audience, hungry for information on the fate of the energy and ethanol legislation.
 	
 "It was an excellent venue and an opportunity to better understand the perspective and concerns of others in the industry," Dinneen said.

 	
 This was the first golf event sponsored by BBI and it may not be the last, according to BBI President Mike Bryan. "We just felt that so many of the meetings are pretty formal events and that it would be fun to get together in a less formal environment but still be able to talk business. This provided the perfect setting and we hope it is the first of many more to come."
 	
 Since it is an invitational, BBI hopes to limit it to no more than 75 golfers per year. That way, according to Bryan, "We can keep it intimate, yet have enough people to represent a good cross-section of the industry." EP

Ethanol industry links up in Colorado Springs

The Renewable Fuels Association (RFA) held its annual meeting Oct. 2 and elected Bill Lee of Chippewa Valley Ethanol Co. (CVEC) Chairman of the Board for the 2003-‘04 fiscal year.
 	
 The RFA board of directors, consisting of 30 representatives of member ethanol plants, voted on the position. In addition, Ron Miller of Aventine Renewable Energy Inc. was named vice chairman, Nate Kimpel of New Energy Corp. became treasurer and Jeff Broin of Broin Companies was named secretary. Bob Dinneen remains president.
 	
 "This is an exciting time in the industry," Lee told EPM. "We certainly see a lot of growth in the volume and diversity of our members."
 	
 Lee replaced Gary Smith of Abengoa Bioenergy Corp., who was elected chairman of the Renewable Fuels Foundation, the educational arm of the RFA.
 	
 For a complete list of board members, visit <a href="mailto:www.ethanolrfa.org/about.shtml">www.ethanolrfa.org/about.shtml</a>. EP

Bill Lee named chairman of RFA Board of Directors

The National Corn Growers Association (NCGA) celebrated the start of its 2004 fiscal year by electing Dee Vaughn of Dumas, Texas, president of the organization on Oct. 1.
 	
 Vaughn replaces Fred Yoder, who moved to the position of chairman. Leon Corzine of Assumption, Ill., will be first vice president.
 	

 A complete list of new Corn Board members is available a www.ncga.com/aboutus/leaders/leaders.html. For a list of NCGA action teams and committees, visit www.ncga.com/public_policy/PDF/2003_04ActionTeamCornBoardAppts.pdf. EP

Dee Vaughn named president of NCGA

Over the past spring and summer, the natural gas marketplace has moved from crisis ($10+/MMBtu gas prices in March) to concern ($6.00+/MMBtu gas prices in July) to contentment ($4.50/MMBtu gas prices in September). Market prices have moved down in lock step as the storage inventory "deficit" has been reduced. Last spring the expectation was that storage inventories going into this winter would be at record lows, creating supply challenges as cold weather sets in. 
 	
 The forecast now is for the inventory level to exceed the five-year average. At first glance, the conclusion is that an abundance of supply has resulted in a dramatic improvement in inventory levels. However, that may not be the case. A recent report by Lehman Brothers indicated that third quarter natural gas production volumes dropped by 1.6 percent compared to the second quarter and dropped 2.9 percent from the same quarter last year. How can we have robust storage injections and a drop in production levels? It must be demand! Summer temperatures were moderate throughout most of the U.S., reducing natural gas demand from electric generators to meet cooling demands. Second, with high natural gas prices and a slack economy, discretionary industrial demand has dropped off. Combined, these two factors reduced demand sufficiently to make it appear we have an adequate supply/demand balance. 
 	
 As we move into winter, if domestic production continues to drop off, the economy continues to grow and we have a normal to colder than normal winter, we may again have a supply/demand imbalance similar to that experienced last spring. To refresh your memory, we had $10+/MMBtu natural gas prices last spring. In light of this reality, we recommend that end users take a hard look at their exposure to natural gas prices and update their plan to manage the volatility. EP

Natural gas prices near normal moving into late fall

The corn market took a lower stance after the USDA increased the 2003-'04 U.S. corn production figure, showing the making's for a potential new record crop. The USDA placed the new figure at 10.207 billion bushels versus its previous estimate of 9.944 and the 10.062 trade estimate. 
 
 Harvested acres were left unchanged at 71.8 million acres with an average national yield of 142.2 bushels per acre, an increase of 12.2 bushels from last year. With a carry-in of 1.086 billion bushels and production of 10.207 billion bushels, this places the U.S. corn supply at 11.303 billion bushels. U.S. total demand was placed at 9.95 million bushels, resulting in a 2003-'04 carryout of 1.353 billion bushels. 
 
 Corn for feed increased by 75 million bushels while the feed, seed and industrial sector (including ethanol) demand decreased by 25 million bushels because of a proposed reduction in corn syrup demand. On a global perspective, China corn production was placed at 114 million metric tons versus the previous USDA estimate of 118 million metric tons. However, there was no reduction to China's corn export figure. Prior to the report, the U.S. Grains Council estimated China's corn crop at 115 million metric tons. Argentina corn production was placed at 15.5 million metric tons versus 16.0 million metric tons estimated in September. Brazil corn production was unchanged from 37.5 million metric tons estimated in September; however, lower than the 2002-'03 figure of 45 million metric tons. 
 The attached graph illustrates corn distribution in the food, seed and industrial sector. The bottom of the graph illustrates ethanol corn usage growth since 1980. In 1980 the ethanol market consumed a mere 35 million bushels versus the USDA September 2003-'04 figure of 1.125 billion bushels. The other graphical indications include high fructose corn syrup, glucose, starch, cereals and seed. EP

High yields push crop estimates up

Dried distillers grains prices have been very strong lately, with demand coming from dairy, hogs, and poultry. Soymeal futures prices in the low 200s are keeping the prices of all proteins firm and are affecting DDGS in the nearby and deferred markets. Offers for October shipment cars are hard to come by, and the buyers have been bidding up prices for Nov. '03/Sept. '04 cars. Export demand is still extremely strong and looks to continue through the winter. European buyers, who have been buying mainly corn gluten feed, have been turning to "golden" distillers grains for its quality and relative value. South American and Caribbean business has been brisk, and lower barge freights for the Nov./March time period is helping to create new export sales. Whole cottonseed prices in California are nearly $200 delivered to the dairy for new crop, which should help to keep distillers in high demand.
 	
 Going ahead, the biggest factor will be what direction the CBOT soy complex takes. If soymeal and whole cottonseed stay expensive, distillers grains will remain at these levels. Planting and crop conditions in South America should guide prices, and natural gas prices will determine the wet/dry mix determinations at the plants that have that flexibility. EP

Soymeal prices keep DDGS, other protein prices firm

The distillers grains industry seems to reinvent itself about every 18 months. Just as things start to settle down, a new idea emerges, paradigms shift, and doors to new markets swing wide open. 
 	
 It happens quietly, and unless you're a producer or marketer, it's difficult to keep pace with the changes. 
 	

 There are 73 ethanol plants in the United States, about 50 of which are producing distillers grains and, of those, roughly 35 producing the light, golden variety feed nutritionists most recommend. 
 	
 While the product is best known for its feed value in beef and dairy rations, it's also gaining a reputation as an "excellent addition to swine", poultry and fish rations.
 	
 But that's only the half of it. 
 	
 An industry-wide push for more consistent color, palatability, nutrient content, particle size and flowability of the product has opened doors to markets previously unimagined. Today, distillers grains is being used in innovative new applications ranging from environmentally-friendly lawn fertilizer to all-natural cat litter. Meanwhile, scientists, producers and marketers are collaborating on multiple fronts to strengthen mainstream markets and uncover additional uses. 
 	
 This month, EPM specifically sought out stories of growth and innovation in the distillers grains industry. We looked for new and emerging product applications, intriguing examples of product development and inspiring reports of industry-wide colaboration. Here's what we found. 
 
 JUST GETTING TOGETHER
 NCGA, RFA assemble 'Coproducts Working Group'
 	
 The National Corn Growers Association (NCGA) and the Renewable Fuels Association (RFA) have joined forces to form the Coproducts Working Group. Over 30 members who represent ethanol producers, distillers grains marketers and others in the feed industry will meet twice a year to discuss the future of ethanol coproducts.
 	

 The group's first meeting took place in June in Sioux Falls, S.D. They focused on four topics: research, promotion and education, regulation, and funding. Through conference calls, they began working on requests for proposals to land-grant universities for research in the areas of phosphorous management and distillers grains feed values. They are accepting proposals until December.
 	
 "We're looking for research proposals that focus on improving distillers grains, and specifically with a focus on phosphorus," NCGA's Tracy Snider told EPM. "If researchers are working in these areas, we want them to send their proposals to the group for review and potential funding. It's a way for the industry to work together on beneficial research initiatives."
 	
 The next Coproducts Working Group meeting is set for February 2004 after the National Ethanol Conference in Miami.
 
 STAYING POWER
 Product extends shelf life of DWG
 	
 Kemin Industries Inc. has operated as a feed supply company for 42 years, but it recently began exploring a product that preserves distillers wet grains. Kemin Americas Key Account Manager Carol Myers discovered a combination of ingredients that inhibited the growth of yeast and mold, spurring the company to seek a patent for the product ZeniPRO brand preservative last summer.
 	
 ZeniPRO is a liquid blend of organic acids and antioxidants, which can be added to both wet and dry distillers grains. Immediacy is key to preventing spoilage; the product is applied on site at the ethanol plants by adding it to the solubles that is put back into the distillers grains coproduct or by spraying it directly on the coproduct. The additive doesn't inhibit palatability and is approved by the Association of American Feed Control Officials (AAFCO).
 
 EARTH-FRIENDLY PET PRODUCTS 

 A base for all-natural, biodegradable cat litter
 	
 EPM learned this month that at least one distillers grains marketer is selling DDGS to a company that manufacturers all-natural cat litter. The product is called OurCat's Choice, and is made by Cleveland-based OurPets.
 	
 According to OurPets President Dr. Steve Tsengas, the alternative cat litter business is the fastest growing segment of the $1.25 billion worldwide cat litter industry. 
 	
 "We expect to use large amounts of distillers dried grains in 2004," he said. 
 	
 The cat litter is made up primarily of DDGS, Yucca Shidigera (part of the cactus family), and Zeolite (a natural mineral). According to Tsengas, DDGS makes up about 70 percent of the mix. The company adds modified starch back into the DDGS to produce a product that has adequate absorbsion qualities. 
 	
 "DDGS alone does not absorb, or clump up, good enough, so we have added ingredients to make up for that," Tsengas said. 
 	
 The Yucca Shidegra helps prevent chemicals that produce ammonia from forming in the litter box, and Zeolite also attracts and traps ammonia before it is released. 
 	
 The product has an "earthy aroma," and a natural feel to the cat's feet. It is also flushable and environmentally friendly. OurCat's Choice is available at PETsMart, Pet Supply Plus and Stop & Go. A retail deal is pending with PetCo. 

 
 'LICKING' THE LIVESTOCK MARKET
 DDGS lick barrels provide feeding convenience 
 	
 In an effort to find additional markets for dry distillers grains, Golden Lyk LLC, a subsidiary of DENCO LLC, in Morris, Minn., began production of "lick barrels" as nutritional sources for cattle and livestock.
 	
 "It's a convenient way of supplying additional protein supplementation to cattle and livestock along with vitamins and minerals," Golden Lyk Manager Dan Anderson told EPM. "It doesn't require additional equipment to disperse. You don't have to worry about spreading it out. You just drop it off."
 	
 Golden Lyk makes different lick barrels with various nutrient compositions. The tubs contain anywhere from 20 percent to 30 percent protein, according to Anderson, and also include percentages of calcium, fat, fiber, phosphorus, salt, magnesium, potassium, copper, selenium, zinc, cobalt, iodine, iron, manganese and vitamins.
 	
 Anderson said the price is very competitive with other forms of distillers grains. He said feeding Golden Lyk Tubs to cattle costs around 22 cents per head of cattle per day.
 
 IT'S FINE DINING FOR WORMS 
 DDGS is being used at an Illinois worm farm

 	
 One of the more unique uses for DDGS comes from Durand, Ill., the home of Wormart.
 	
 Wormart sells different kinds of worms, including red worms used for package waste remediation and composting in landfills. Wormart owner Craig Roberts told EPM he purchases about 10 to 12 tons of DDGS per year and sprinkles some on the ground every day for the worms to eat. He also uses corn silage and ground up newspaper, but the DDGS is high in protein and the worms seem to like it.	
 	
 "It's like their dessert," Roberts said.
 	
 Wormart, servicing 100 locations weekly, sells the worms for package waste remediation, including swine manure. The worms get rid of the manure by eating it, and the castings from those worms is collected and used as a type of fertilizer. Wormart sells the castings commercially, and Roberts told EPM the fertilizer is one of the best and lesser-known fertilizers available.
 	
 "It's a tremendous source of nitrogen," Roberts said. "But it's such a new market that people aren't sure about it. They're still into the chemical phase of fertilizer. It's definitely an industry in its infancy, but it makes our tomato plants look really really good."
 
 MORE DIGESTABILITY, MORE VALUE
 Lysine digestibility in poultry better than previously thought 
 	
 Dr. Sally Noll, a professor and researcher at the University of Minnesota, recently completed studies that demonstrate the nutrient value of DDGS in the diet of chickens and turkeys. 

 	
 Noll collected samples of DDGS from poultry producers, who obtained the product from various Minnesota ethanol plants. The nutritional value was assessed by feeding the product to poultry and analyzing the bird's manure. The result: poultry derive more energy from DDGS than originally published.
 	
 "Books give a metabolizable energy value of 2,400 kilocalories per kilogram (kcal/kg) for distillers," Noll told EPM. "We think it's more like 2,800 kilocalories."
 	
 Noll said improved drying methods at ethanol plants have likely caused an increase in amino acid digestibility. Lysine, a valuable amino acid, is susceptible to heat damage during processing. Noll estimated that lysine digestibility ranges between 60 and 80 percent, compared to previous reports of 50 percent or less.
 
 GO WITH THE FLOW
 Partnership seeks to eliminate flowability problems
 	
 Flowability, the action of DDGS leaving a transport vehicle, has been a tough issue to fully resolve. High temperatures and humidity, common during summer months, can sometimes cause DDGS to stick together and harden. Several preventative products are on the market, but companies are still searching for a better solution to the problem.
 	
 A company that EPM agreed not to name, in conjunction with a major ethanol producer, is currently conducting tests on a product that could improve the flowability of DDGS. Experiments have been underway since January, but an associate of the company involved said the results were confidential until the tests proved successful.
 
 RECIPE FOR ONE-FIFTH DWG

 Finding the optimal DWG feed ration in dairy cattle
 	
 The South Dakota State University Dairy Science Department recently finished a study that determined the optimal inclusion rate of distillers wet grains (DWG) into diets of lactating dairy cattle. 
 	
 Dr. Aaron Hippen told EPM that DWG was added at intervals of 10 percent, 20 percent, 30 percent and 40 percent of diet dry matter to a regular diet of corn silage, grass hay, alfalfa hay, vitamins and minerals. The DWG replaced the portion of diet made up of soybean meal. The group measured milk production, food intake and milk composition of the cows to determine the effects.
 	
 Hippen found the ideal mixture to be 20 percent of the diet as DWG on a dry matter basis. The next highest interval, 30 percent, was found to be too high and the cows didn't eat as much of it, resulting in decreased milk production. 
 
 TAIWAN BUYS FROM U.S.
 Promising new DDGS export market 
 	
 Distillers Dried grains have this year been shipped to a new destination – Taiwan. The small island of 21 million people consumes and/or exports almost seven million pounds of pork per year, and DDGS has been working its way into the feed rations. 
 	
 A lot of the credit goes to the research done by University of Minnesota researcher Dr. Jerry Shurson, who has demonstrated the viability of distillers grains in hog formulas, which can be viewed on online at www.ddgs.umn.edu. 

 	
 There are two companies that have been importing containers on a regular basis, and a recent visit to Minneapolis by a contingent of dignitaries from Taiwan, which included an ethanol plant tour, has generated added interest. As demand increases for "golden" DDGS, quantities that are exported to Taiwan will begin to be measured in the thousands of tons.
 	
 FEED FOR PLANTS, TOO DDGS as a lawn fertilizer
 	
 Lawns can look vibrantly green and healthy with the help of DDGS and its high nitrogen content, according to makers of Al-Corn Lawn Fuel, a fertilizer made from distillers grains.
 	
 Al-Corn Clean Fuel, producing 30 mmgy of ethanol, markets part of its DDGS with Al-Corn Lawn Fuel, a safe fertilizer for grass, trees, shrubs and flowers.
 	
 "We really have just started playing around with it," Al-Corn CEO Randy Doyal told EPM. "It doesn't bring in a huge amount of money, but it's just a fun thing."
 	
 Doyal pointed out that Lawn Fuel is the purest form of DDGS, as opposed to some DDGS fertilizers that contain additives.
 	
 Al-Corn recommends consumers apply Lawn Fuel to their lawns twice a year. Because the product is so high in nitrogen, it has a slow release, is non-burning and is water insoluble. The nitrogen is released within four to six weeks and continues throughout the growing season as long as microbial action takes place within the soil.
 
 ADMIRABLE EFFORTS IN MINNESOTA

 Attempt to establish state certification process shows dedication 
 	
 In response to calls from end-users for an even more standardized DDGS, a group of feed nutritionists, producers and marketers organized to investigate the possibilities of starting a state DDGS certification process in Minnesota. 
 	
 "Potential DDGS customers in the U.S. and in the export market are asking for more guarantees or assurances than the traditional guarantees for moisture, protein, fat and fiber," Dr. Jerry Shurson, of the University of Minnesota, told EPM. 
 	
 For example, Shurson explained, when feed companies select a feed ingredient supplier, they want to know the complete nutrient profile of the ingredient and the variability of these nutrients over time. Many ethanol plants do not have this type of information available. Furthermore, he said, some potential DDGS buyers want monitoring systems in place to check incoming corn for mycotoxins.
 	
 The discussions for developing this program began two years ago and involved a group of five Minnesota ethanol plant managers, the Minnesota Department of Agriculture, Minnesota Corn Growers Association and the University of Minnesota. The Minnesota Department of Agriculture was given the responsibility and authority to implement a "third party" certification program to certify agricultural production processes to meet the demands of customers in differentiated markets by the Minnesota legislature in 2001. 
 	
 "The program is based upon the principles of ISO and HAACP, which fits well with many of the feed manufacturers in the United States that are ISO and/or HAACP certified," Shurson told EPM. 
 	
 The Minnesota Certified DDGS program has not been implemented, but it serves as an example of the intense cooperation that is necessary to bring about meaningful change in the distillers grains industry. 
 	
 "I think the ethanol plants like the general concept of the program, but implementing such a program requires additional time and cost that they don't think will be a reasonable return on their investment," Shurson said. "Furthermore, the market pressures are not great enough yet to interest ethanol plants to implement a program like this."
 

 CLEARING THE WAY FOR DDGS
 Improvements in VOC control keep market moving 
 	
 "Drying of distillers grains is a necessary evil," said Howard Hohl of Eisenmann Corporation. "If you want to provide the highest nutritional value product and maximize stakeholder return, drying distillers grains is a proven route." 
 	
 Drying distillers grains, versus producing wet cake, usually makes good economic sense. But the downside of producing DDGS is that drying technology brings about varying levels of odor and emissions – HAPs, VOCs, filterable particulate matter (PM) and visible plume (condensable PM and steam). 
 	
 Thermal oxidizers (TOs) and regenerative thermal oxidizers (RTOs) are thought to be the best available methods for dryer emissions abatement. These systems minimize HAPs, VOCs, and odors to the environment. They also reduce filterable PM and oils from the process. 
 	
 "Opacity drops considerably when using an RTO," Hohl told EPM. "Combustion efficiency including carbon monoxide (CO) and nitrogen oxides (NOx) are also usually very low in a properly designed system."
 	
 The use of RTOs has made a significant difference in the profitability of dry mills because ethanol plants are able to generate more high value DDGS for the marketplace and satisfy all environmental requirements that will insure future operations. 
 
 MILO EMERGING STRONG

 Grain sorghum innovations look promising 
 	
 Today's ethanol industry rewards innovation. 
 	
 With the inclusion of grain sorghum as a starch input, innovations in distillers grains can now forge new paths in the feeding industry. These new advances can bring greater rewards to this most important segment of ethanol production.
 	
 According to Tim Snyder, of the National Grain Sorghum Producers, sorghum offers slightly higher protein than its counterpart corn and may have nutraceutical benefits as well. These new innovations in sorghum distillers grains highlight the different types of proteins offered in the product. Research is also being conducted that will prove significant phytosterol benefits, or lowering of the LDL cholesterol, in humans. These innovations could be the beginning of a whole new value-added focus for sorghum-derived coproducts in the ethanol industry. 
 	
 See page 41 for Q&A with Tim Snyder for more information about grain sorhum use in the ethanol industry. EP
 
 Contributors to this article include: Tim Snyder, National Grain Sorghum Producers; Sean Broderick, Commodity Specialists Co. (CSC); Howard Hohl, Eisenmann Corp.; and Dr. Jerry Shurson, University of Minnesota.

New markets, new ideas and new forces of change in the distillers grains industry

Growth & Innovation

Citing delayed construction plans at a Belle Plaine ethanol plant, Saskatchewan's government put off its mandated ethanol-blending deadline of April 1, 2004. According to the Regina Leader-Post, the Industry and Resources department told refiners in December that the deadline for ethanol blending had been moved up from July 2004 to April 2004. However, delays in financing a $60-million, 80-million liter (21 million gallons) Broe Companies ethanol plant have affected the province's ethanol supply. Without enough ethanol, the mandatory blend was unobtainable, the Leader-Post reported Sept. 12.

Saskatchewan government postpones ethanol deadline

The government of New Zealand announced it wouldn't tax the fuel additive ethanol, which was recently approved for use in the country, for two years, according to the New Zealand Herald on Sept. 9. Oil companies said they didn't want to blend ethanol with gasoline until excise charges were dismissed. Ethanol is more expensive than the country's petrol, but with the tax break, the fuel blend should sell for around the same price, the New Zealand Herald said.

New Zealand gives ethanol two-year tax break

Brazil will export 24.8 percent more ethanol over the 2003-'04 crop year compared to last year, the Web site www.aebrazil.com reported Sept. 16. According to Plínio Nastari, president of Datagro, an agribusiness consulting firm in Brazil, the country will export 790 million liters (205 million gallons) of ethanol as opposed to the 633 million liters (165 million gallons) in 2002-'03. The reason for the rise in production was attributed to increased hydrous alcohol sales to the Caribbean. Hydrous alcohol is made into anhydrous alcohol and exported tax-free to the United States, the Web site said.

Brazil's ethanol exports projected to rise

By October 31, Australian motorists will be able to tell exactly how much ethanol is in their gasoline, the Age Melbourne reported Aug. 2. The federal fair trading and state consumer affairs ministers agreed to enforce national regulations on mandatory labeling at stations selling ethanol-blended fuel. Under the regulations, gasoline retailers would also have to provide information about the effect of ethanol in older cars, boats and aircrafts. A mandatory cap of 10 percent ethanol blending in fuel was imposed earlier this year, according to the Age Melbourne.

Australian ethanol to be labeled

Mitsui & Co. is preparing to mass-produce a nanoporous material that will help purify ethanol liquid produced from the fermentation of sugar cane, the Asia Pulse reported Aug. 26. The material is a zeolite film made of silicon oxide and aluminum oxide that is wrapped around the outside of an aluminum tube. The film is several millimeters thick and riddled with holes that are 0.4 nanometers wide. When ethanol is passed through the tubes, the water molecules pass through the pores, leaving the larger ethanol molecules behind in a more concentrated form, the Asia Pulse said. For more information on Mitsui & Co., visit www.mitsui.co.jp/tkabz/english/.    EP

Japan's Mitsui to make nanoporous tubes

The RFA announced the addition of Ag Processing Inc. (AGP) to its list of member producers. AGP is a 52-mmgy, farmer-owned ethanol plant located in Hastings, Neb., that began production in 1995.

October 3 Ag Processing Inc. joins RFA

The RFA joined numerous transportation and agricultural organizations to urge the Senate to include the Highway Trust Fund (HTF) in the energy bill currently being debated in Congress.
 	
 The organizations wrote a letter to U.S. Senators that said, "As Congress works to reconcile the House and Senate versions of national energy policy legislation, the undersigned organizations urge you to support inclusion of a proposal by Senators (Charles) Grassley and (Max) Baucus to reform the federal ethanol tax incentive in the final Energy Bill conference.
 	
 "Senators Grassley and Baucus have worked with tax and transportation fuel delivery specialists in the petroleum industry, and the transportation and renewable fuels industries to create an effective solution to a complicated fuel delivery and tax collection system. This proposal would create an atmosphere where sound energy policy, transportation fuels delivery, and tax and transportation investment policy need not be mutually exclusive."

October 3 RFA pushes Ethanol/Highway Trust Fund in Senate

Rep. Kenny Hulshof, R-Mo., Rep. Earl Pomeroy, D-N.D., and nine cosponsors introduced an Ethanol/Highway Trust Fund (HTF) fix to the House of Representatives, the Renewable Fuels Association (RFA) announced.
 	
 The bill includes a volumetric ethanol excise tax credit (VEETC) and new tax credits for biodiesel. By changing the way federal excise taxes are collected on ethanol-blended fuel, the Renewable Fuels & Transportation Infrastructure Enhancement Act of 2003 would generate more than $2 billion per year in additional HTF revenues while maintaining an important incentive for the use of domestic, renewable fuels.
 	
 Other cosponsors included: Reps. Jim Nussle, R-Iowa, Don Young, R-Ark., Jim Oberstar, D-Minn., Charles Stenholm, D-Texas, John Boehner, R-Ohio, Jo Ann Emerson, R-Mo., Sam Graves, R-Mo., Ike Skelton, D-Mo., and Todd Akin, R-Mo.

October 3 Ethanol/Highway Trust Fund Presented to Representatives

The RFA announced the members of Congress who received National Farmers Union (NFU) awards for exceptional rural leadership. Sen. Tom Daschle, D-S.D., Sen. Charles Grassley, R-Iowa, Sen. Tom Harkin, D-Iowa, Sen. Tim Johnson, D-S.D., Sen Ben Nelson, D-Neb., and Rep. Marcy Kaptur, D-Ohio received the NFU's Golden Triangle Award for their work on the renewable fuels standard currently being debated with the energy bill.
 	
 The NFU also awarded Sen. James Inhofe, R-Okla., with a Presidential Award for Leadership for his efforts to pass the renewable fuels standard. EP

September 10 National Farmers Union Gives Awards

The face of the ethanol industry has slowly been changing over the last several years. In the last three years, the pace of change has quickened with the addition of 20 new plants and more than a billion gallons of production capacity. Almost all of that growth has been in farmer-owned ethanol plants.

 	
 The year 2003 may be a watershed time for farmer-owned ethanol plants. For the first time, farmer-owned ethanol plants – taken as a whole – are the single largest producer in the ethanol industry. Plant locations, plant designs and sizes, and ownership structures have never been more diverse. This new reality is allowing the ethanol industry to supply markets that were only dreamed about a few short years ago.
 	
 On Oct. 1, Chippewa Valley Ethanol Co. General Manager Bill Lee was elected Chairman of the Renewable Fuels Association (RFA) – the first time a farmer-owned plant has chaired the association. I believe this is a watershed moment. Bill is a passionate, articulate and innovative advocate for ethanol. His election as RFA chairman is a reflection of the evolution of the ethanol industry. As the industry has grown and changed, so has the RFA. We are now a more diverse, dynamic and stronger association. 
 	
 The rapid expansion of ethanol production has opened eyes. It has opened eyes in Washington that ethanol can play a major role in our nation's energy policy. The current overwhelming support for a renewable fuels standard (RFS) would not have been possible just five years ago.
 	
 Ethanol's growth has opened eyes in the petroleum industry. Once viewed as just a niche fuel in the Midwest, major oil companies now talk about how ethanol will continue to be blended in states like California and New York regardless of federal laws like the oxygenate requirement, MTBE bans or the RFS. Obviously, our industry needs the certainty and growth provided by a federal energy policy, but it is also clear we have earned a spot in the gasoline market on our merits. Ethanol is the best available low-cost, clean source of octane on the market.
 	
 And the ethanol industry has opened the eyes of farmers across the county. Whether corn farmers in upstate New York or rice growers in southern California, ethanol is viewed as the poster boy for successful value-added agriculture. There is hardly a state in the Union that does not have a group of farmers working to build an ethanol plant.
 	
 With the eyes of the country on the ethanol industry, we must continue to meet and exceed expectations. I believe we can. However, as the ethanol industry continues to grow and diversify, it is important that we remain unified. I believe the RFA has helped accomplish that feat during the remarkable transformation of the ethanol industry over the last several years. But as that industry moves toward a five billion gallon horizon, we will need to maintain our course and momentum. Jump aboard the ethanol bandwagon and help steer the course toward the next watershed.
 
 
 Bob Dinneen
 President and CEO, 
 Renewable Fuels Association

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Every trend – no matter how gradual or sudden – can usually be defined by a watershed moment

A View from the Hill

On Oct. 2, Abengoa Bioenergy Corporation held a groundbreaking ceremony for a starch and biomass conversion technology pilot plant in York, Neb. Approximately 65 people, including representatives from the U.S. Department of Energy and the U.S. Department of Agriculture, attended the celebration to start the project. The facility will be located near the company's ethanol plant and will be built in two phases. The starch pilot plant construction should be finished March 2004. The biomass pilot plant should be running by spring of 2005.    EP

October 2003

Business Briefs

Ethanol industry links up in Colorado Springs

Bill Lee named chairman of RFA Board of Directors

Dee Vaughn named president of NCGA

Columns

The Way I See IT

A View from the Hill

Featured

Delta-T ethanol expert helps Australian leaders avoid America's mistakes

Distiller Grains Dryer Review

Old Jeep, New Fuel

Sharing the Limelight

Never Bin Better

Elevating Standards

DDGS Around the World

Growth & Innovation

October 2003.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Business Briefs

Ethanol industry links up in Colorado Springs

Bill Lee named chairman of RFA Board of Directors

Dee Vaughn named president of NCGA

Columns

The Way I See IT

A View from the Hill

Featured

Delta-T ethanol expert helps Australian leaders avoid America's mistakes

Distiller Grains Dryer Review

Old Jeep, New Fuel

Sharing the Limelight

Never Bin Better

Elevating Standards

DDGS Around the World

Growth & Innovation

October 2003