CPT Fractionation: The Power of Choice. Biofuels Journal Ethanol Technology and Research Workshop 2009

Transcription

1 1 CPT Fractionation: The Power of Choice Biofuels Journal Ethanol Technology and Research Workshop 2009

2 It s not about the corn you buy... 2

3 It s about the money you make. 3

4 It s not about losing starch... 4

5 It s about capturing its greatest value. 5

6 It s not about taking on risk. 6

7 It s about lessening the risks you take. 7

8 Flexibility. Profitability. Sustainability. 8

9 Precision Milling: Fractionation Proven by Performance Renew Energy, Jefferson, Wisconsin 9

10 CPT Precision Milling Produces: 20% more ethanol 35% less thermal energy 61% lower fermentation viscosity Faster fermentation cycles (for even more Ethanol) Improved risk management Gateway to GHG reductions 10

11 CPT Precision Milling Milling = clean separation of the corn kernel into its primary parts Degerming 1 st Debranning 2 nd 11

12 Elegant Simplicity Proven over 30 Years Sizing Aspiration Degerming Sifting 12

13 CPT Precision Milling The quality of separation of the components demonstrates the capability of a milling system and the expertise of the technology provider. Quality and Quantity 13

14 Understanding Mass Balance 14

15 Mass Balance Examples Dry components must add to 100% Weighted components must equal total in corn Consider: at 96% starch yield, above 2% oil in the endosperm means over half of the kernel s oil is in the starch % yield % starch, db % oil, db % crude fiber, db DDC starch yield, % Germ oil yield, % Bran sum Corn % yield % starch, db % oil, db % crude fiber, db DDC starch yield, % Germ oil yield, % Bran sum Corn % yield % starch, db % oil, db % crude fiber, db DDC starch yield, % Germ oil yield, % Bran sum Corn % yield % starch, db % oil, db % crude fiber, db DDC starch yield, % Germ oil yield, % Bran sum Corn

16 16

17 Guaranteed Performance Range Starch Oil Highest Oil 92% 70% Highest Starch 96% 53% 17

18 18

19 CPT Competitive Advantages Plant size: smaller footprint. Lower energy: half the horsepower. No drying of CPT outputs required Capital lowest in industry due to efficient process Ease of Operation 2 millers, 1 mechanic, 5 min start/stop, quick measurable adjustments Modular design 100% run ratio, high turn down ratio, common spare parts, easy expansion Commercial viability Largest dry corn mill in world at Renew Energy (4 th commercial installation of technology) Service Continuing Operations Oversight for 20 years Operations Management optional 19

20 It s not just about fractionation, it s about the right fractionation 20

21 CPT Corn Dry Fractionation DDGS Yield, Lb/Bushel Processed w.b. Hi-Pro DDG Yield, Lb/Bushel 82.5% 8.80 w.b. Hi-Pro DDG Yield, Lb/Bushel 89% w.b. Bran/Syrup Mix Yield, Lb/Bushel w.b. Bran/Syrup Mix Yield, Lb/Bushel 89% 4.50 w.b. Germ, Yield, Lb/Bushel 82.5% 7.00 w.b. Germ, Yield, Lb/Bushel 89% 5.00 w.b. Gallons Ethanol, Conventional Plant 2.70 Gallons Ethanol, 82.5% Endosperm 2.61 Conventional Dry-Grind Ethanol CPT Fractionation Financials More: Ethanol Co Products Revenue Ethanol, $/Gallon $ 1.57 Ethanol Value per Bushel Corn Processed $ 4.51 $ 4.36 DDGS Value/Ton $ DDGS Value per Bushel Corn Processed $ 0.81 Hi-Pro Value/Ton $ Hi-Pro Value per Bushel Corn Processed $ 0.92 Bran/Syrup Value/Ton $ Bran/Syrup Value per Bushel Corn Processed $ 0.02 Germ Value/ton $ Germ Value per Bushel Corn Processed $ 0.33 Corn Processed 37,037,037 45,915,439 Corn, $/Bushel $ 3.37 Total Cost of Corn $ 110,740,741 $ 137,287, Total Value per Bushel Corn Processed $ 5.32 $ 5.64 Revenue Summary Ethanol $ 167,000,000 $ 200,400,000 DDGS $ 29,907,407 Hi-Pro Meal $ 42,425,866 Bran/Syrup $ 1,082,824 Germ $ 15,148,348 Gross Revenues $ 196,907, $ 259,057, Fractionation Contribution $ 62,149,

22 CPT Corn Dry Fractionation Conventional Dry-Grind Ethanol CPT Fractionation Ethanol, $/Gallon $ 1.67 Ethanol Value per Bushel Corn Processed $ 4.51 $

23 CPT Corn Dry Fractionation Conventional Dry-Grind Ethanol CPT Fractionation Ethanol, $/Gallon $ 1.67 Ethanol Value per Bushel Corn Processed $ 4.51 $ 4.36 DDGS Value/Ton $ DDGS Value per Bushel Corn Processed $

24 CPT Corn Dry Fractionation Conventional Dry-Grind Ethanol CPT Fractionation Ethanol, $/Gallon $ 1.67 Ethanol Value per Bushel Corn Processed $ 4.51 $ 4.36 DDGS Value/Ton $ DDGS Value per Bushel Corn Processed $ 0.81 Hi-Pro Value/Ton $ Hi-Pro Value per Bushel Corn Processed $ 0.92 Bran/Syrup Value/Ton $ Bran/Syrup Value per Bushel Corn Processed $ 0.02 Germ Value/ton $ Germ Value per Bushel Corn Processed $

25 CPT Corn Dry Fractionation Conventional Dry-Grind Ethanol CPT Fractionation Ethanol, $/Gallon $ 1.67 Ethanol Value per Bushel Corn Processed $ 4.51 $ 4.36 DDGS Value/Ton $ DDGS Value per Bushel Corn Processed $ 0.81 Hi-Pro Value/Ton $ Hi-Pro Value per Bushel Corn Processed $ 0.92 Bran/Syrup Value/Ton $ Bran/Syrup Value per Bushel Corn Processed $ 0.02 Germ Value/ton $ Germ Value per Bushel Corn Processed $ 0.33 Total Value per Bushel Corn Processed $ 5.32 $

26 CPT Corn Dry Fractionation Conventional Dry-Grind Ethanol CPT Fractionation Ethanol, $/Gallon $ 1.67 Ethanol Value per Bushel Corn Processed $ 4.51 $ 4.36 DDGS Value/Ton $ DDGS Value per Bushel Corn Processed $ 0.81 Hi-Pro Value/Ton $ Hi-Pro Value per Bushel Corn Processed $ 0.92 Bran/Syrup Value/Ton $ Bran/Syrup Value per Bushel Corn Processed $ 0.02 Germ Value/ton $ Germ Value per Bushel Corn Processed $ 0.33 Total Value per Bushel Corn Processed $ 5.32 $ 5.64 Corn Processed 37,037,037 45,915,439 Corn, $/Bushel $ 3.37 Total Cost of Corn $ 110,740,741 $ 137,287,163 Total Revenues from Corn Processed $ 196,907,407 $ 259,057,038 26

27 CPT Corn Dry Fractionation Conventional Dry-Grind Ethanol CPT Fractionation Revenue Summary Ethanol $ 167,000,000 $ 200,400,000 DDGS $ 29,907,407 Hi-Pro Meal $ 42,425,866 Bran/Syrup $ 1,082,824 Germ $ 15,148,348 Gross Revenues $ 196,907,407 $ 259,057,038 Fractionation Contribution $62,149,630 27

28 Model, 82.5% Endosperm Prices Traditional Dry-Grind Plant Traditional w/fractionation Fractionation Retrofit 82.5% Ethanol $ 1.67 $ 167,000,000 $ 200,400,000 $ 33,400,000 DDG $ $ 29,907,407 $ (29,907,407) Germ $ $ 15,148,348 $ 15,148,348 Bran/Syrup $ $ 1,082,824 $ 1,082,824 High ProMeal $ $ 42,425,866 $ 42,425,866 Total Gross Revenue $ 196,907,407 $ 259,057,038 $ 62,149,630 Financials COST OF GOODS SOLD Corn $ 2.99 $ 110,740,741 $ 137,287,163 $ 26,546,422 Enzymes, Yeast, Chemicals $ 0.05 $ 5,000,000 $ 6,000,000 $ 1,000,000 Denaturant $ 2.00 $ 10,000,000 $ 12,000,000 $ 2,000,000 Water/Sewer $ 1.38 $ 481,950 $ 462,672 $ (19,278) Electrical $ 0.06 $ 4,896,000 $ 5,929,381 $ 1,033,381 Natural Gas $ 3.37 $ 10,447,000 $ 8,492,400 $ (1,954,600) Production Labor Burden $ 2,000,000 $ 2,600,000 $ 600,000 Total Cost of Goods Sold $ 143,565,691 $ 172,771,615 $ 29,205,925 GROSS INCOME $ 53,341,717 $ 86,285,422 $ 32,943,706 GENERAL & ADMINISTRATIVE Administrative Labor Burden $ 2,000,000 $ 2,400,000 $ 400,000 Supplies and Office $ 454,565 $ 545,478 $ 90,913 Repairs and Maintenance $ 2,000,000 $ 2,300,000 $ 300,000 Other Expenses $ 454,565 $ 545,478 $ 90,913 Insurance $ 454,565 $ 545,478 $ 90,913 Real Estate Taxes $ 1,363,695 $ 1,636,434 $ 272,739 Depreciation (10-year straight line) $ 20,000,000 $ 23,000,000 $ 3,000,000 Total General & Administrative $ 26,727,389 $ 30,972,867 $ 4,245,478 PRE-TAX, PRE-INTEREST NET INCOME $ 26,614,327 $ 55,312,555 $ 28,698,228 Interest Expense (50% debt, 10-yr, 10 % note) $ 10,000,000 $ 11,500,000 $ 1,500,000 Net Income Before Taxes, Interest $ 16,614,327 $ 43,812,555 $ 27,198,228 Pre-Tax Net Income $ 16,614,327 $ 43,812,555 $ 27,198,228 Payback Return on Investment 8% 19% 91% 28

29 Model, 82.5% Endosperm Traditional Traditional Fractionation Prices Dry Grind w/fractionation Retrofit 82.5% REVENUES Plant Ethanol $ 1.67 $ 167,000,000 $ 200,400,000 $ 33,400,000 DDG $ $ 29,907,407 $ (29,907,407) Germ $ $ 15,148,348 $ 15,148,348 Bran/Syrup $ $ 1,082,824 $ 1,082,824 High ProMeal $ $ 42,425,866 $ 42,425,866 Total Gross Revenue $ 196,907,407 $ 259,057,038 $ 62,149,630 32% Increase in Gross Revenue 29

30 Model, 82.5% Endosperm Prices Traditional Dry Grind Plant Traditional w/fractionation Fractionation Retrofit 82.5% COST OF GOODS SOLD Corn $ 2.99 $ 110,740,741 $ 137,287,163 $ 26,546,422 Enzymes, Yeast, Chemicals $ 0.05 $ 5,000,000 $ 6,000,000 $ 1,000,000 Denaturant $ 2.00 $ 10,000,000 $ 12,000,000 $ 2,000,000 Water/Sewer $ 1.38 $ 481,950 $ 462,672 $ (19,278) Electrical $ 0.06 $ 4,896,000 $ 5,929,381 $ 1,033,381 Natural Gas $ 3.37 $ 10,447,000 $ 8,492,400 $ (1,954,600) Production Labor Burden $ 2,000,000 $ 2,600,000 $ 600,000 Total Cost of Goods Sold $ 143,565,691 $ 172,771,615 $ 29,205,925 20% Increase in Cost of Goods Sold 30

31 Model, 82.5% Endosperm Prices Traditional Dry Grind Plant Traditional w/fractionation Fractionation Retrofit 82.5% Total Revenues $ 196,907,407 $ 259,057,038 $ 62,149,630 Total Cost of Goods Sold $ 143,565,691 $ 172,771,615 $ 29,205,925 GROSS INCOME $ 53,341,717 $ 86,285,422 $ 32,943,706 62% Increase in Gross Income 31

32 Model, 82.5% Endosperm Prices Traditional Dry Grind Plant Traditional w/fractionation Fractionation Retrofit 82.5% GENERAL & ADMINISTRATIVE Administrative Labor Burden $ 2,000,000 $ 2,400,000 $ 400,000 Supplies and Office $ 454,565 $ 545,478 $ 90,913 Repairs and Maintenance $ 2,000,000 $ 2,300,000 $ 300,000 Other Expenses $ 454,565 $ 545,478 $ 90,913 Insurance $ 454,565 $ 545,478 $ 90,913 Real Estate Taxes $ 1,363,695 $ 1,636,434 $ 272,739 Depreciation (10 year straight line) $ 20,000,000 $ 23,000,000 $ 3,000,000 Total General & Administrative $ 26,727,389 $ 30,972,867 $ 4,245,478 16% Increase in G&A 32

33 Model, 82.5% Endosperm Traditional Traditional Fractionation Dry Grind w/fractionation Retrofit 82.5% Plant Total Revenues $ 196,907,407 $ 259,057,038 $ 62,149,630 Total Cost of Goods Sold $ 143,565,691 $ 172,771,615 $ 29,205,925 Total General & Administrative $ 26,727,389 $ 30,972,867 $ 4,245,478 PRE TAX, PRE INTEREST NET INCOME $ 26,614,327 $ 55,312,555 $ 28,698,228 Interest Expense (50% debt, 10 yr, 10 % note) $ 10,000,000 $ 11,500,000 $ 1,500,000 Pre Tax Net Income $ 16,614,327 $ 43,812,555 $ 27,198, % Increase in Pre Tax Net Income 33

34 Model, 82.5% Endosperm Traditional Dry Grind Plant Traditional w/fractionation Fractionation Retrofit 82.5% Total Revenues $ 196,907,407 $ 259,057,038 $ 62,149,630 Total Cost of Goods Sold $ 143,565,691 $ 172,771,615 $ 29,205,925 Total General & Administrative $ 26,727,389 $ 30,972,867 $ 4,245,478 PRE TAX, PRE INTEREST NET INCOME $ 26,614,327 $ 55,312,555 $ 28,698, % Increase in Pre Tax, Pre Interest Net Income 34

35 Model, 82.5% Endosperm Traditional Dry Grind Plant Traditional w/fractionation Fractionation Retrofit 82.5% Total Revenues $ 196,907,407 $ 259,057,038 $ 62,149,630 Total Cost of Goods Sold $ 143,565,691 $ 172,771,615 $ 29,205,925 Total General & Administrative $ 26,727,389 $ 30,972,867 $ 4,245,478 PRE TAX, PRE INTEREST NET INCOME $ 26,614,327 $ 55,312,555 $ 28,698,228 Interest Expense (50% debt, 10 yr, 10 % note) $ 10,000,000 $ 11,500,000 $ 1,500,000 Pre Tax Net Income $ 16,614,327 $ 43,812,555 $ 27,198,228 Payback Return on Investment 8% 19% 91% 35

36 Conventional Co Product Markets 36

37 Fractionation Co Product Markets 37

38 38

39 c 39

40 Ethanol Production GHG Comparison Total Emissions GHG Emissions [g CO2e/MJ] Electricity Fossil Fuel Agricultural 0 20 Gasoline Whole Corn Fractionation Frax w/ Bran Gasifier Frax w/ Gasifier/Anaerobic Digestor 40

41 Ethanol Production GHG Comparison Total Emissions RFS Standard GHG Emissions [g CO2e/MJ] Electricity Fossil Fuel Agricultural 0 20 Gasoline Whole Corn Fractionation Frax w/ Bran Gasifier Frax w/ Gasifier/Anaerobic Digestor 41

42 Ethanol Production GHG Comparison Total Emissions 100 GHG Emissions [g CO2e/MJ] RFS Standard EPA Authority Electricity Fossil Fuel Agricultural 0 20 Gasoline Whole Corn Fractionation Frax w/ Bran Gasifier Frax w/ Gasifier/Anaerobic Digestor 42

43 Ethanol Production GHG Comparison Total Emissions 100 GHG Emissions [g CO2e/MJ] RFS Standard Advanced Biofuels EPA Authority Electricity Fossil Fuel Agricultural 0 20 Gasoline Whole Corn Fractionation Frax w/ Bran Gasifier Frax w/ Gasifier/Anaerobic Digestor 43

44 Proven Performance Renew Energy Jefferson, Wisconsin 44

45 Proven Performance 49 mmbu corn 2700 hp Net 800 kw 35% less energy 33% less water 35% less drying 95% water reclaim 45

46 Proven Performance Process Efficiency: 21,000 Btu/Gal 46

47 Proven Performance Less: Capital Cost Operating Costs More: Ethanol Co Products Control Revenue 47

48 Thank you! Biofuels Journal Ethanol Technology and Research Workshop