|
 |
|
|
BY
Linda Jarrett
In his State of the Union speech last month, President George
W. Bush upped the ante for alternative fuels by proposing to
set the amount of ethanol and other alternative fuels to be
blended into the fuel supply at 35 billion gallons by 2017,
which is almost five times the current target of 7.5 billion
gallons by 2012.
This would cut gasoline consumption by 20 percent in the next
ten years, and would result in slashing U.S. total imports by
the equivalent of three-quarters of all the oil now imported
from the Middle East.
The St. Louis region stands ready to meet this challenge.
Dr. Ganesh Kishore, vice president for science and technology
and chief biotechnical officer for DuPont Agriculture and Nutrition
is “excited and energized about the opportunity of increasing
growth potential in biofuel. I feel that the region can be a
very strong player in terms of creating technology to make this
an industry going forward.”
These biofuels are ethanol and biodiesel. Corn and soybeans.
Missouri ranks sixth in corn production and fifth in soybean
production. Becoming a major force in the alternative fuel,
or biofuel, field should be a logical step. Plus, shipping them
to other parts of the country would not be a problem with the
transportation capabilities of our region.
“This is not just extracting energy from crops,” says Dr. Roger
Beachy, executive director and chief operating officer of the
Donald Danforth Plant Science Center. “It’s making sure that
you have enough crops to do it all, which means higher yields,
less cost, less chemical insecticides and fertilizers. You realize
that you have a very big system to deal with. It is a very complex
set of challenges and we think St. Louis is rightly placed for
this.”
THE CENTER FOR EVERGREEN ENERGY
Last year, the RCGA and the Danforth Center commissioned bioenergy
expert Dr. Jim McLaren, president of StrathKirn Inc., to outline
a roadmap and recommendations to jumpstart this endeavor. As
a result, the Center for Evergreen Energy (CE2) was formed as
the first step in making St. Louis a regional hub for biofuel
technology.
“We asked Dr. McLaren to identify gaps in knowledge, gaps in
technology, gaps in the private sector, and gaps in funding
as a way to help us identify the role of the St. Louis region
and Missouri in the nation’s plan for energy independence,”
Beachy says.
“We did the study, and the executive summary for the Center
basically outlines the recommendations and where we felt we
needed to go,” McLaren says. “The point is given the fuel situation
we have today, biofuels can make a significant contribution
towards the total alternative fuels volume required. In fact,
ethanol itself is also a valuable additive to gasoline because
it acts as an oxygenate and provides octane value. That in itself
is valuable in addition to replacing some of the fossil fuel
used today. That is the key in driving the initial market, and
today we have about $5 billion gallons of ethanol used in the
United States.
The roadmap’s recommendations include concentrating on the potential
of biofuels, the role of biotechnology, and the regional role
of St. Louis.
“The goal is to constantly link technological development in
the region to the market place,” Kishore says. “And to make
sure there is a consistent policy in terms of developing new
businesses, supporting research in this area with the local,
state and federal government, and making sure we have an independent
think tank approach to highlight these issues and to keep this
on the minds of the people.”
The tools of the biofuel industry are here, all that was needed
was an “umbrella organization,” Beachy says. “The Center will
consolidate and hold information about what the expertise of
the St. Louis region is, and identify areas where the St. Louis
region can participate.”
THE ETHICS OF ETHANOL
Several years ago, the federal government passed an energy bill
authorizing a 51-cent tax credit as an incentive for blenders
to use more ethanol in gasoline. Ethanol producers currently
realize the full benefit from the tax credit.
The National Corn Growers Association has been instrumental
in creating the ethanol market as far as putting policies in
place and promoting the development of an ethanol industry.
Executive Director Rick Tolman says, “Our efforts led the way
to get the oxygenate standard that created the market, and we
were very influential in putting the renewable fuel standard
together a year ago.”
Tolman explained that ethanol is used in two ways, with one
as a blend. “All of the gas in St. Louis has a 10 percent blend
of ethanol put in for clean air reasons. The other way we use
ethanol is in vehicles called Flexible Fuel Vehicles that can
burn either gasoline or ethanol, and ethanol is allowed to be
used up to 85 percent with 15 percent gas, also called E-85.”
Most of these “FFV’s” are domestic models, Tolman says. “They’re
usually SUV’s and pickups, and this year over a million were
sold. The dilemma is that there are not many places to fuel
up, and people don’t even know if they have these vehicles.”
The manufacturers, Ford, Chrysler and General Motors, are beginning
to install yellow gas caps on FFV’s so owners will know that
their vehicles can use the E85 blend.
“The majority of the new ethanol plants that have been built
across the country are owned by farmers,” Tolman says. “It’s
been a tremendous engine for rural economic development. You
have a lot of small rural communities without much industry,
now you can bring in a clean industry owned by farmers that
creates a new set of jobs and a new tax base.”
Missouri has four ethanol plants and all have at least 51 percent
farmer ownership.
• Mid Missouri Energy
Malta Bend, Mo.
90 million gallons annual production;
• Missouri Ethanol
Ladonia, Mo.
45 million gallons annual production;
• Northeast Missouri Grain
Macon, Mo.
48 million gallons annual production;
• Golden Triangle
Craig, Mo.
20 million gallons annual production.
BOON FOR BIODIESEL
While ethanol is used in place of gas, biodiesel is used to
replace regular diesel.
The National Biodiesel Board (NBB) set a national goal of “5
by 15,” says Joe Jobe, NBB CEO. That’s five percent penetration
of the diesel fuel market by 2015. “Some people hear that and
say, ‘Is that all?’ But that’s significant when you consider
the volume of diesel fuel that we use every year, onroad diesel
fuel amounts to about 40 billion gallons per year. If we could
achieve displacement of five percent of that, by 2015 that would
be two billion gallons and that’s an equivalent amount of diesel
fuel that we refine each year from Iraq and one-fourth of the
amount we import from the entire Persian Gulf region.”
Bob Callanan, communications director for the American Soybean
Association, says the biggest contribution and most critical
factor in the growth of the biodiesel industry was the passage
of federal legislation that created the tax incentives and support
programs to get biodiesel to the market place.
“If you look back at the history of biodiesel, it was going
very slowly until these tax incentives were put in place,” he
says.
Dale Ludwig, executive director and CEO for the Missouri Soybean
Association, says there is one biodiesel plant currently operating
in Missouri—Mid American Biofuels in Mexico, Mo. “This was a
joint venture with Archer Daniels Midland and a group of farmers
who have controlling interest in the plant.”
“This plant is currently putting out 30 million gallons a year,”
says Ludwig. “Another plant, the Paseo Cargill, in Kansas City
should come online in September or October.”
With Missouri being the fifth largest soybean producer to date,
the more biodiesel plants that can be built here, the better
it is economically.
“There is a direct relationship between having the source of
soy supply and the animal ag industry in close proximity because
of the efficiency,” Callanan says. “The meal is available to
local animal producers for feed and transportation costs are
lower. This is over a billion dollar crop in Missouri, and Missouri
is also a large hog producer. The relationship between the animal
ag industry and using the soy meal, with the soy oil being processed
to go into biodiesel production makes a good sustainable relationship
between the two.”
THE OTHER SIDE
Some think that putting all this corn into ethanol could destabilize
grain markets.
A report issued by the Earth Policy Institute said that the
“competition for grain between the world’s 800 million motorists
who want to maintain their mobility and the two billion poorest
people who are simply trying to survive is emerging as an epic
issue.”
Tolman says that thought is being forwarded by “a lot of people
who don’t know a lot about the corn or ethanol industry. They
are looking at figures and jumping to conclusions.”
He says that the market place is signaling more corn production
and that will happen “because we have a growing demand and the
price has gone up to reflect that. Guys making these statements
don’t understand that the transition to making ethanol from
cellulose has already begun. We’ve already started bringing
stover in and making ethanol out of the dried distillers grain.
On average, we’re getting 450 gallons of ethanol per acre right
now. With yield increase plus technology for ethanol extraction,
we can see getting 800 gallons per acre in the foreseeable future.”
For more information on the St. Louis BioBelt, please visit
the St. Louis RCGA website at www.stlouisbiobelt.org
|
WHERE
CORN IS KING
National Corn to Ethanol Center
|
Where
does a company, research or otherwise, go when they want
to test a product before going commercial?
The $20 million National Corn to Ethanol Research Center,
located at Southern Illinois University Edwardsville, provides
a one-of-its-kind facility for testing of such products.
Director John Caupert explains, “What we do, primarily,
is take near-term industrial technology, meaning within
six months to a year, that someone wants to take to market
to commercialize.
NCERC’s one building contains an analytical laboratory,
fermentation research laboratory, full-scale ethanol pilot
plant and a work force development program.
“This means,” Caulpert says, “that this is the only place
on the planet where you can go and, in one building, receive
classroom instruction, training center instruction and hands-on
ethanol experience.”
While pilot plants are not new, this is the only one where
everything can be accomplished under one roof.
“This facility was designed to be a ‘grain-based ethanol
facility for corn or other grain-based feedstocks,” he says.
“Corn is king in the ethanol industry. Corn built this industry,
and nearly 100 percent of the ethanol being produced in
this country is from corn.”
The NCERC, however, is jumping out ahead of the technology
curve in the ethanol industry with forays into cellulose.
“Cellulose is anything not grain-based,” Caulpert says.
“Examples would be corn fiber, corn stover, switch grass,
wood chips, and wheat straw. These are all examples of cellulose
that can be converted to ethanol. It’s the next wave of
the ethanol industry and will get us to true energy independence.
“Getting us to 60 billion gallons of ethanol by the year
2030 isn’t a choice,” he says, “but a requirement.
Culvert says the success of the center is due to the Illinois
Corn Growers Association, the Renewable Fuels Association,
“and all our elected officials who have helped tremendously.”
|
|
MORE
THAN A PIPE DREAM
|
With
the proliferation of ethanol plants on the horizon, Local
#562 United Association of Journeymen Apprentices have seen
their work accelerate.
Scott Ramshaw, union lobbyist, says that the union has been
networking with the Center for Evergreen Energy. “We were
interested in the topic of ethanol and biodiesel and in
the plant and science part of the RCGA effort.
“Recently, we’ve been attending meetings with them and networking
with the different groups such as the corn growers association
and different research facilities in St. Louis. We’re just
letting them know that our contractors and craftsmen could
build these facilities.”
The union worked on Missouri Ethanol in Ladonia, and Northeast
Missouri Grain in Macon, Mo.
“We’re also working on a new one, Boot Hill Agri-Energy
in Sikeston,” Ramshaw says. “This could be the largest in
Missouri with a 100 million gallon capacity.”
Michael O’Connell, union business manager, says they have
been involved in fabricating modular installations for ethanol
and biodiesel plants around the country. “One of the things
that’s different today is that people are going more and
more to the modular concept. A lot of work is done in shops,
being built on platforms and then shipped to a spot ready
to go.”
“We’re trying to show the world that the eastern part of
Missouri is the right place to bring a plant,” says John
Siscel, executive vice-president of the Mechanical Contractors
Asso-ciation. “The thing is not only are we interested in
this as a potential market, but we are interested in showing
the community that we’re working to build a better environment.”
|
|
ETHANOL
ON THE EAST SIDE
|
In the
farm fields surrounding Sauget, Ill., the closest ethanol
plant to St. Louis will be firing up this December. On 57
acres purchased from Solutia, Center Ethanol LLC broke ground
last October on its $100 million plant. The new facility
is expected to produce 54 million gallons of ethanol per
year with the use of 19.2 billion bushes of corn. When it
reaches its peak, approximately 108 million gallons will
be coming out of this plant.
President Barry Frazier says the facility is a “dry mill
ethanol plant which means it will take corn and convert
it into ethanol, and a byproduct called distilled grain
which is used for livestock feed.”
Approximately 35 employees will operate the plant 365 days-a-year
once it is fully functional. When that happens, the plant
is expected to produce an annual revenue of $125 million.
Most of the ethanol plants in the Midwest are located in
Iowa, Illinois, Nebraska and South Dakota, which are, according
to the Renewable Fuels Association, the top ethanol producing
states.
“The access to corn is more readily available in this section
of the country,” Frazier says. “Plus, there is an expectation
that more corn will be produced because the price is higher,
giving farmers the incentive to produce more.”
Besides Center Ethanol, Illinois has six ethanol facilities
operating with three more under construction. |
|
|
|
|
|
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
|
