Part 24 - cd3wd424.zip - Offline

Part 24 - cd3wd424.zip - Offline
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Center
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NOTICE
This guide was prepared as a result of work sponsored by the United States Govert.:,icnt. Neither the United
States nor the United States Department of Energy, nor any of their employees, nor any of their contractors,
subcontractors, or their employees, makes any warranty, express or implied, or assumes any legal liability or
responsibility for the accuracy, completeness or usefulness of any information, apparatus, product or process
disclosed, or represents that its use would not infringe privately owned rights.
A limited number of copies are available at no charge from:
Technical Information Center
U.S. Department of Energy
Post Office Box 62
Oak Ridge, Tennessee 37830
Attn: Fuel from Farms
After this supply is exhausted, copies may be purchased from the following sources:
The National Technical Information
U.S. Department of Commerce
5285 Port Royal Road
Springfield, Virginia 22161.
Service
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Price $4.50.
This is the first edition of Fuel from Farms-A Guide to Small-ScaleEthanol Production; your comments,
additions, or corrections would be appreciated for future revisions of this handbook.
FUEL FRO
FARMS
A Guide to Small-Scale
Ethanol Production
A Product of the
Solar Energy Information Data Bank
Solar Energy ResearchInstitute
Operated for the U.S. Department of Energy by the
Midwest ResearchInstitute
Under Contract No. EG-77-C-01-4042
February 1980
Department
WEsnington.
of Energy
D.C. 20545
Farms and businesses all across the nation can take part in one of the most exciting endeavors of this new decade. We are in the midst of a transition from
an economy that is dependent on oil to alternative sources of fuels. Ethanol
and blends of ethanol and gs.soline, such as gasohol, offer a near-term alternative. The Administration’s recently announced gasohol program will spur the
investments that we together must make for a more secure energy future. We
will create new markets for our farmers. We will no longer have to throw away
waste materials which can be turned into profitable essential fuels.
A part of our effort to increase the production of ethanol will stress dissemination of technically-sound information on the production and use of ethanol. The
Department of Energy and the Solar Energy Research Institute is providing current information on ethanol production and uses in the future. This guide to
small-scale ethanol production is the beginning of a series of publications for
alcohol production.
You can obtain additional copies of “Fuel From Farms” from:
Technical Information Center
U.S. DEPARTMENT OF ENERGY
Post Office Box 62
Oak Ridge, Tennessee 37830
Att: Fuel From Farms
Approximately 100,000 free copies will be available through the Technical
Information Center.
T. E. Stelson,
Assistant Secretary
Conservation and Solar Energy
TES/dje
TABLE OF CONTENTS
Page
1
2
2
3
5
.....................................................................
I. Introduction..
Objective ......................................................................
. .............................................
Perspective ......................
Issues..
.....................................................................
Guideto~heDocumen?
il.
..........................................................
7
8
8
i!
11
11
13
13
Decision to Produce ................................................................
Benefits .......................................................................
MarketsandUses ...............................................................
Market Assessment .............................................................
Production Potential ............................................................
Equipment Selection.. ..........................................................
FinanciaiRequirements .........................................................
Decision and Planning Worksheets ................................................
111. Basic Ethauol Production ............................................................
Preparation of Feedstocks.. .....................................................
Fermentation ..................................................................
Distillation ....................................................................
31
32
34
35
IV. Feedstocks ........................................................................
TypesofFeedstocks .............................................................
Coproduct Yields ...............................................................
Agronomic Considerations .......................................................
Feedstock Considerations ........................................................
39
40
42
45
45
V. Plant Design .......................................................................
Overall Plant Considerations .....................................................
Individual System Considerations .................................................
Process Control ................................................................
Representative Ethanol Plant ......................................................
i.!aintenance Checklist ..........................................................
47
48
50
58
61
70
VI. Business Plan ......................................................................
Analysis of Financial Requirements ...............................................
............................................................
OrganizationalForm
Financing .....................................................................
Case Study ....................................................................
73
74
75
75
75
Appendix
Appendix
Appendix
Appendix
Appeadix
Appendix
Appendix
A
B
C
D
E
F
G
Summary of Legislation .............................................
Bureau of Alcohol, Tobacco, and Firearms Permit Information ...................
Environmental Considerations ................................................
Reference Information . , ....................................................
Resource People and Organizations ............................................
Bibliography ...............................................................
Glossary ..................................................................
For More Information
TABLE OF CONTENTS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..*......
.......
A-l
B-l
C-l
D-l
E-l
F-l
G-l
Inside Rear Cover
LIST OF TABLES AND FIGURES
Tables
IV-1
IV-2
V-l
V-2
V-3
V-4
V-5
VI-I
A-l
E-l
Summary of Feedstock Characteristics .................................................
Representative Yields of Some Major Domestic Feedstocks ................................
Heat Source Selection Considerations ..................................................
Ethanol Plant Hazards.. ............................................................
Equipment For Representative Plant ...................................................
Features of Major Plant Components ..................................................
Maintenance Checklist ..............................................................
CaseStudyAssumptions .............................................................
Summary of State Alcohol Fuel Exemptions ............................................
Sources of Public Financing ..........................................................
Figures
III-l Ethanol Production Flow Diagram ....................................................
III-2 Basic Process of Successive Distillation to Increase Concentration of Ethanol ................
III-3 Schematic Diagram of Sieve Tray Distillation of Ethanol ..................................
III-4 Enlarged Illustration of Sieve Tray ....................................................
V-l Anhydrous Ethanol Production Flow Chart ............................................
V-2 Generic Anhydrous Ethanol Plant .....................................................
V-3 Cooker/Fermenter ..................................................................
V-4 Beer/Stiilage Heat Exchanger ........................................................
V-5 Beer Pump ........................................................................
V-6 Beer Still ..........................................................................
V-7 Rectifying Column Rotameter ........................................................
V-8 Rectifying Column Sight-Glass .......................................................
V-9 Molecular Sieves ...................................................................
D-l Ethanol Production System Block Diagram .............................................
iv
Page
43
45
50
52
63
64
71
76
A-7
E-9
33
36
37
38
54
60
65
66
66
66
67
67
67
D-6
FUEL FROM FARMS
ACKNOWLEDGMENTS
Mr. Ted D. Tart, of the U.S. Department of Energy’s Division of Distributed Solar Technology, has provided
overall policy guidance and direction in the development of Fuelfrom Farms - A Guide to Small-ScaleEthanol
Production.
The Solar Energy Research Institute’s Solar Energy Information Data Bank (SEIDB) staff was requested to
prepare on a quick-return basis this guide on the small-scale production and use of fermentation ethanol. The
effort at SEIDB was directed by Mr. Paul Motari and coordinated by Mr. Stephen Rubin of the Information
Dissemination Branch.
The team created by SEIDB represented a cross-section of knowledgeable individuals and consultants familiar
with small-scale fermentation ethanol techniques. The team consisted of the following individualc.:
Project Manager
Project Technical Director
Mr. V. Daniel Hunt
TRW Energy Systems Group
Mr. Steven J. Winston
Energy Incorporated
Consultants
Dr. Billy R. Allen
Battelle Columbus Laboratories
Mr. Pincas Jawetz
Consultant on Energy Policy
Ml-. .lerry Allsup
Bartlesville Ericrgy Technology Center
Mr. Donald M. LaRue
EG & G Idaho, Inc.
Dr. Mani Bal;-.,%rmaniam
TRW Energy Systems Group
Mr. Robert A. Meskunas
Environmental Group
Mr. William P. Corcoran
Solar Energy Research Institute
Dr. Thomas Reed
Solar Energy Research Institute
Mr. David Freedma?
Center for the Biology of Natural Systems
Mr. Jim Smrcka
Galusha, Higgins and Galusha
Mr. William S. Hedrick
Consulting Engineer
Dr. Ruxton Villet
Solar Energy Research Institute
Mr. Jack Hershey
Environmental Group
Dr. Harlan L. Watson
TRW Energy Systems Group
Editorial and Production Support
Our appreciation is extended lo
l
production editor Doann Houghton-Alice
book;
for her careful attention to detail and in-depth editing of t,his
l
Rick Adcock, special editor, at& r,.;&..ant editors Elzeso Sloss, Holly Wilson, and Diane Schilly;
l
graphic designers Raymond David, Lianne Mehlbach, and Laura Ehrlich;
l
l
the production staffi Linda Arnold, Angela Bagley, Linda Baldwin, Delores Barrier, Pat Bledsoe, Donna
Clausen, Elaine Davis, Judy Davis, Penelope Eads, Donna Esile, Pat Haefele, Meribah Henry, Diane
Howard, Francis Langford, Agnes Mdala, Nghia Pham, Marylee Phillips, Walt Shipman, Kathy Sutton,
Susie Van Horn, and Ruth Yeaman;
the printing staff: Vicki Doren, Mike Linenberger, and Donna Miller.
ACKNOWLEDGMENTS
V
Photographs
The agricultural photographs are reprinted through the courtesy of Grant Heiiman
photograph on page 9 appears courtesy of the Iowa Development Commission.
Photography.
The
Reviewers
We acknowledge the following individuals for their helpful reviews of the draft of Fuelfrom Farms - A Guide
to Small-Scale Ethunoi Production. These individuals do not necessarily approve, disapprove, or endorse the
report for which SEIDB assumes responsibility.
Ms. Daryl Bladen
U.S. Department of Commerce
Dr. Leslie S. Levine
U.S. Department of Energy
Mr. Ken Bogar
Montana Farmer
Dr. Edward S. Lipinsky
Battelle Columbus Laboratories
Mr. Robert E. Brown
Ohio Farm Bureau Federation
Mr. Irving Margeloff
Publicker Industries
Mr. David L. Feasby
Solar Energy Research Institute
Dr. Paul Middaugh
South Dakota State University
Mr. Charlie Garlow
Public Interest Research Group
Mr. Strud Nash
E. F. Hut!.xi & Company
Mr. Denis Hayes
Solar Energy Research Institute
Mr. Michael H. Pete
Consultant
U.S. Department of Energy
Mr. Jack Hill
Ohio Farm Bureau Federation
Mr. William C. Holmberg
U.S. Department of Energy
Dr. T. Q. Hutchinson
U.S. Department of Agriculture
Mr. Edward A. Kirchner
Davy McKee Corp., Chicago
Dr. Michael R. Ladisch
Purdue University
Dr. Bruce L. Peterson
American Petroleum Institute
Mr. E. Stephen Potts
U.S. Department of Energy
Mr. Myron Reamon
National Gasohol Commission
Dr. Clayton Smith
Solar Energy Research Institute
Dr. Jon M. Veigel
Solar Energy Research Institute
Mr. Herbert Landau
Solar Energy Research Institute
This document greatly benefited from the many previous efforts in alcohol fuels including working groups at
universities and colleges (such as Colby Community College), private marketing efforts, private research and
development projects, and individual efforts to collect and organize information pertinent to alcohol fuels.
Vi
FUEL FROM FARMS
CHAPTER !
INTRODUCTION
I
CHAPTER I
Introduction
OBJECTIVE
The expanding support for gasohol in this country over
the last several years provides an opportunity to directly
reduce U.S. oil imports in the very near future. Interest
is evident by the many requests for information about
gasohol that are being received throughout the federal
government daily. This guide has been prepared to
meet the challenge of filling the information void on
fermentation ethanol in a balanced, reasoned way, with
emphasis on small-scale production of fermentation
ethanol using farm crops as the source of raw materials.
It is addressed not only to those in the U.S. farming
community who may wish to consider the production of
ethanol as part of their normal farming operations,
but aIso to owners of small businesses, investors, and
entrepreneurs.
This guide presents the current status of on-farm
fermentation ethanol production as we11as an overview
of some of the technical and economic factors. Tools
such as decision and planning worksheets and a sample
business plan for use in exploring whether or not to
go into ethanol production are given. Specifics in
production including information on the raw materials,
system components, and operational requirements are
also provided. Recommendation of any particular process is deliberately avoided because the choice must be
tailored to the needs and resources of each individual
producer. The emphasis is on providing the facts
necessary to make informed judgments.
PERSPECTIVE
Foreign crude oil imports currently provide the raw
material for production of half of the liquid fuels
consumed in the United States and represent a cash
outflow of aImost $8 million per hour. Recent events
have dramatically illustrated the substantial economic
cost, instability, and economic vulnerability of such
imports. Ethanol is a liquid fuel that can substitute
domestic renewable resources for petroleum products
now and increasingly in the next few years.
Fermentation ethanol is becoming the first nonpetroleum fuel to attain widespread use in the United States.
This trend is apparent from the rapid increase in the
sale of gasohol, a blend of 10% agriculturally derived
2
anhydrous ethanol and 9O%‘ounleaded gasoline. As
of late 1979, the market had expanded to more than
2,000 outlets in 35 states. Gasohol can be readily
substituted for unleaded gasoline in current vehicles
with no engine adjustments and little or no change in
engine performance.
The petrochemical market for fermentation ethanol,
while considerably smaller than the automotive fuel
market, is also substantial. Thirty percent of the bulk of
industrial-grade ethanol is produced from a petroleum
derivative and hence is also a potential candidate for
displacement by fermentation ethanol.
The production of ethanol from grain leaves behind a
protein-rich stillage. This stillage, used in conjunction
with straw, permits reduction in the use of hay and
grain, and becomes an excellent, nutritive source of
animal feed. Dried stillage, in turn, can also be exported
as feed with practically no loss in commercial value.
The supply of ethanol is still limited. Essentially, all
of the ethanol used in gasohol is currently obtained
from a few producers, in spite of the expanding market.
However, the production intended for automotive uses
is increasing. In early 1979, production of ethanol for
gasohol was at a rate of 30 million gallons annually. It is
expected that by the end of 1980 this will increase quite
significantly.
Existing and proposed federal and state incentives
for fermentation ethanol production and use have
contributed to the rapid expansion of the gasohol
market. In addition, a broad spectrum of options is
currently being pursued at the federal level to help
accelerate the commercialization of gasohol by stimulating both its production and uses. Maximizing ethanol
production will require a mix of various sized ethanol
plants. Because of the lag time involved in building and
operating larger facilities, it is critical to provide basic
information to individuals interested in constructing
small-scale facilities-since
they can be built most
quickly.
The production of fermentation ethanol is based on
established technology, and a variety of raw materials
is available from the agricultural sector to more than
meet projected demands. Fermentation ethanol can be
produced from such crops as corn, wheat, sugarcane,
FUEL FROM FARMS
Small-Scale
Ethanol Production
can be Readily Incorporated
potatoes, cassava, beets, and Jerusalem artichokes;
from agricultural byproducts and wastes; and from
cellulose. In short, whatever can be broken down to
sugars can become a primary material for fermentation.
Thus, the variety of raw materials is quite large. These
crops as we11 as distressed grains are ideal for the
production of fermentation ethanol and do not affect
the availability of food supplies.
The United States has the potential for growing grains
and other crops well in excess of the requirements for
domestic and export markets. Economic factors have
consequently played a major role in the institution of
“set-aside land” and “land diversion” programs by the
U.S. Department of Agriculture (USDA). However,
growing grain or other crops on this land for fuel
production would not detract from the production of
food. Rather, if properly utilized, it would constitute
a resource that would otherwise have been left idle.
Furthermore, the crops grown on this land can still be
held in reserve for emergency food, should that become
necessary. In 1978, for example, the USDA has certified
that the amount of cropland left fallow was 13.4 million
acres under the set-aside program and an additional 5.3
million acres under the diversion program. If this
acreage had been cultivated with corn for ethanol production, nearly 3.03 billion gallons of ethanol and 10
million tons of distillers’ dried grains (DDG) could have
been produced. (This assumes a modest average yield of
65 bushels of corn per acre per year with an average production of 2.5 gallons of 200-proof ethanol and 17
pounds of DDG per bushel of corn.) This is only
ethanol produced from land left idle through two
specific farm programs. The production of fermentation ethanol is not limited by the extent of this land, and
additional unused land as well as some land currently
under cultivation can be used for crops for production
INTRODUCTION
into Farm Operations
of fermentation ethanol. All this makes the production
of ethanol even more promising, and a conservative
estimate for the potential displacement of petroleum is
at least several billion gallons per year in the near term.
Belt tightening alone will not help the United States
solve the present economic difficulties.
Farmers,
like everyone else, do not like austerity programs and
would rather increase our national wealth. This can be
achieved by increasing productivity-the
production of
more goodstand services from every barrel of oil we use
and develoqment of new sources of energy.
Clearly, the agricultural sector has a role whose full
potential is just beginning to be realized. A farm-based
fermentation ethanol industry can provide a dccentralized system of fuel production and a measure of energy
self-sufficiency for the farm community. This can be
accomplished as an integral part of normal farming
operations following
sound agricultural practices.
The technology for ethanol production has existed for
centuries. In the early 1900’s, Henry Ford and others in
the U.S. auto industry used ethanol as the fuel for
automobiles. Ultimately, it was replaced by gasoline,
which was much cheaper. Today, the tables appear
to be turning once again, this time in favor of fuel
derived from renewable domestic resources. There are,
however, several underlying issues related to fermentation ethanol production that must be examined.
ISSUES
In addition to the need to increase the number of
ethanol production facilities, there is the concern about
the impact of ethanol production on agriculture. The
3
production of more ethanoi than is obtainable from
surplus and distressed crops will require culti\&ion of
land that is currently fallow and shifts to specialized
high-yield crops. The switch to such crops may allow a
decrease in use of fertilizers, pesticides, and herbicides,
whose production and transport require petroleum fuels
and natural gas. This diversification of crops itself
offers specific advantages to the farmer, not least of
which may be modifications of agricultural practice and
new patterns of crop rotation to improve soil fertiiity.
Nongrain forage crops need less fertilizer, herbicides,
and pesticides than high-yield grain crops. As commercial processes become available for the small-scale
conversion of these crops to ethancl, the opportunity
will exist to decrease demands on the soil to achieve
prodt..,tion of equivalent value to current crops.
productitin and use is a
The enengy balance of eLeLld
controversial subject. Whether one achieves a net
energy gain or loss in ethanol production depends upon
where the energy boundaries are dtawn and the assumptions used. Examples of alternative means of
determining the energy balance in ethanol production
are given in Appendix D.
Conversion of crops with significant human food value
to fuel is not desirable. Fortunately, production of
fermentation ethanol does not make this an “either-or”
consideration. Much of the cereal grain (including most
of the corn) currently produced in the United States
is used as animal feed. While fermentation of cereal
grains to produce ethanol uses most of the carbohydrates, almost all of the protein is recovered in the
There IS Sufficient
4
Land Avallable
to Produce the Quantity
stillage coproduct. This sti!lage can be fed directly to
animals as a high-protein source, and other nutritional
requirements can be filled using forages which have no
value as human food. This consideration, along with the
use of spoiled perishable crops, distressed crops, and
marginal crops, provides a feedstock base for ethanol
production that requires no displacement of crops for
human food.
Since stillage is considered an animal feed replacement
for soybean meal (on a protein equivalence basis), there
is legitimate concern about its impact on the soybean
meal market. However, this concern has to be viewed in
the proper perspective. First, the use of soybean meal
and cotton seed meal for animal feed was developed
after World War II. Their use changed the entire animal
feed pattern in the United States and, in the process,
displaced grains such as corn, oats, wheat, barley, and
high-quality hay. Second, from the general viewpoint of
the farm community, agricultural products must be able
to compete for markets on an equal footing. Consequently, if stillage proves to be economically and
nutritively more attractive than soybean meal, markets
for it must be allowed to develop normally. One can
thus predict a healthy readjustment of farm production
to a new set of conditions that will develop with the
introduction of fermentation ethanol.
Another issue is anhydrous ethanol versus hydrated
ethanol production. Anhydrous ethanol is more costly
and energy intensive to produce than lower proof
ethanol. However, if the ethanol is to be sold to
blenders for use in gasohol, the ability to produce
of Crops Needed to Achieve
Ethanol Production
Goals
FUEL FROM FARMS
1
be done IO participate in it profitahly. The sequential
steps involved in this process arc presented in planning
and decision worksheets.
Small-Scale Ethanol Production can Take Advantage of the
Types of Crop Storage and Handling Equipment Already in use
on the Farm
antydrous ethanol is mandatory. Hydrated ethanol may
be produced for on-farm use or for use in topping
cycles.
A final but important issue of concern is the economics
of small- and large-scale production of fermentation
ethanol. In most production processes, substantial
economies-of-scale are realized with higher plant
capacity. However, in the case of on-farm fermentation
ethanol production, certain economies-of-scale are
also present for small-scale production (e.g., lower
transportation and capital costs) which may balance the
economic advantages of large-scale plants. As a result,
small-scale production of ethanol may possibly be
achieved with product costs comparable to those from
larger plants. Thus, there appears to be a future role for
both small- and large-scale plants for the production of
fermentation ethanol.
GUIDE TO THE DOCUMENT
A detailed consideration of the several factors briefly
discussed above is presented in the six chapters and
appendices that follow.
A decision process to determine the feasibility of onfarm production of ethanol is developed in Chapter II,
with emphasis on the market for ethanol and what must
INTRODUCTION
Ethanol production operations are described in Chapter III to indicate how the convcr;io~~ of agricultural
products proceeds through th< ~~W.XLSstages. Feedstock considerations are discussed in Chapter IV with
particular attention to alternate crops, their ethanol
yield potentials, and overall implications of their
respective agricultural requirements. Ethanol plant
design considerations are treated in detail in Chapter V.
They include (1) farm-related objectives and integration
of ethanol production with normal farming operations;
(2) plant design criteria and functional specifications;
and (3) energy, labor needs, process control, and safety
aspects, and the inherent tradeoffs between them. The
information developed is then applied to the design
of a representative, small-scale fermentation ethanol
production plant, with an output of 25 gallons of
anhydrous ethanol per hour. All major operational
features are addressed, including the requirements for
system control, record keeping, and maintenance. This
representative plant is intended to serve as a model from
which an actual facility can be designed, built, and
operated.
Chapter VI follows with a detailed preparation of a
business plan for building the 25gallon-per-hour facility. The business plan draws on information developed
in Chapter V. Its purpose is to determine the financial
obligations of the farm owner and the profitability of
the enterprise, both >f which are essential to obtain
necessary financing for construction and operation.
Alternative sources of financing available to the
small-scale farmer are described and their specia!
requirements are identified. As in Chapter V, the
material in Chapter VI is intended to serve as a basis
from which an actual business plan can be prepared.
The appendices complete the handbook. They provide a
description of current regulations and legislation at the
federal and state levels concerning fermentation ethanol
production; information on plant licensing and bonding
requirements enforced by the Bureau of Alcohol,
Tobacco, and Firearms; discussion of the environmental considerations that apply to on-farm production of
ethanol; reference data and charts; lists of resources,
both people and information; a bibliography; and a
glossary.
5
- ~._
CHAPTER II
DECISION TO PRODUCE
7
CHAPTER
II
Expanding farm operations to include a fermentation
ethanol plant is ultimately a personal decision. Information can be collected and planning tools used to
provide a foundation for such a decision. Market uses
and assessment for fuel ethanol and stillage as
coproducts, production potential, equipment selection,
and financial requirements are the four major areas to
be considered in this chapter, which, with succeeding
chapters as building blocks, is intended to set up the
tools for the decision-making process.
Market values can be estimated for all the products and
used as a basis for evaluating the profit potential, which
can then be examined in relation to the complete farm
operation. Direct considerations affecting production
potential, such as how much feedstocks can be grown
and how much ethanol can be produced, are also examined. The decision and planning worksheets at the
end of this chapter can be used as a step-by-step tool for
reaching a decision on whether or not to develop a
small-scale, on-farm fermentation ethanol plant.
In addition to the direct factors examined in the
worksheets there will be intangible considerations, such
as a desire for onfarm fuel self-sufficiency.
With
BENEFITS
There are three areas in which there are benefits to
the farm economy from small-scale, on-farm, ethanol
production. These are direct sales, on-t’arm uses, and
indirect farm benefits,
Farm-produced ethanol sold for profit provides an
alternative market for farm commodities. It can provide
a “shock absorber” for excess production and a “fall
back position” if unforeseen events adversely affect
crop or yields.
Farming, perhaps more than any other single occupation, offers the opportunity for self-reliance. The onfarm production of ethanol expands this opportunity.
Ethanol can be used in farm equipment as a blend with
gasoline in spark ignition engines, as anhydrous or
hydrated ethanol fuels in modified spark ignition
engines, as a blend with diesel fuel in diesel engines,
and as a dual-carbureted mixture with water in diesel
turbochargers to enhance efficiency. Protein coproducts, such as stillage, can be fed to farm animals as
0
Proper Modification,
Straight Ethanol can be Used in
Either Gasoline- or Diesel-Powered
Farm Equipment
a replacement for other protein sources. CelluloGc
coproducts, if sufficiently dry, can be burned as fuiel.
Farm overproduction is generally planned to meet anticipated demand in the event of possible reductions in ,
crop yield. However, the cumulative result of consistent ’
overproduction in the absence of alternative markets
is depressed commodity prices. Consequently, the
financial health of many farms depends on the opening
of new markets. Fermentation ethanol production
provides several alternative markets for a broad variety
of farm commodities.
MARKETS AND USES
Ethanol
The use of ethanol for fuel in internal combustion
engines is not a new concept. Engines built around the
turn of the century used ethanol for fuel. Henry Ford
offered automobiles capable of operating on either
ethanol or gasoline [I]. With the development of equip-
FUEL FROM FARMS
ment capable of economically extracting and refining
petroleum early in this century, gasoline became the
more practical fuel and further development of fuelgrade ethanol was shelved. Now that the production
from domestic petroleum reserves is becoming more
costly and difficult to develop and foreign oil is at a
premium, the nation is looking for ethanol to displace
some petro!cum-based fuels and chemicals.
The forms in which ethanol can be used for fuel are as
l
various ethanol-gasoline blends,
l
hydrated (lower proof) ethanol,
l
straight anhydrous ethanol, and
l
dual-carbureted diesel fuel supplement.
Ethanol-Gasoline Blends. The market for gasohol (a
blend of 90% unleaded gasoline and 10% agriculturally
derived anhydrous ethanol) is already well established in
many parts of the country. It is expected that by the
end of 1981 as much as 500 million gallons of ethanol
production capacity could be made available to make
gasohol, ant that within 5 years this quantity could increase three to ten times.
Anhydrous
Ethanol can be Blended With Gasoline
Use in Unmodified Vehicles
for Direct
find extensive use as motor fuel. Its primary use is likely
to be as an additive to gasoline to produce gasohol.
In the United States, gasohol usage has been demonstrated in a large number of tests to be a motor fuel
essentially equivalent to gasoline. Gasohol does have
less total thermal energy per unit volume than gasoline,
however, no significant decrease in terms of “miles per
gallon” results from the use of gasohol.
Hydrated Ethanol. Hydrated ethanol can be burned efficiently in spark-ignited internal combustion eugines
with minor alterations to the engine. Regular motor
vehicle engines have been successfully modified to run
on to ethanol. The jet size in the carburetor needs to be
enlarged slightly when converting from a gasoline to an
ethanol-powered engine because ethanol contains less
useful thermal energy per unit volume than gasoline.
Accordingly, more ethanol than gasoline must be introduced into an engine to generate the equivalent
amount of energy. With most engines, it is also necessary to modify the intake manifold to insure proper
vaporization of the ethanol so that all cylinders will be
operating with equal air-fuel mixtures. There are many
possible methods for doing this, such as installing
preheaters in the fuel system or enlarging the heat
stove on the exhaust manifold, with accompanying adjustment of the heat stove control gate for the higher
temperature requirement. However, none of these
systems are commercially available. However, problems
associated with the burning characteristics of the
ethanol-water mixture can complicate performance and
become a serious impairment as the concentration of
water increases.
The addition of ethanol to gasoline increases the octane
rating of the mixture because anhydrous ethanol is a
high-octane fuel. In the past, the octane of fuels was
increased by adding tetraethyllead. Because the lead
compounds have significant adverse impacts on the
environment, the conversion to unleadea gasoline was
mandated. The changes in refinery operations that are
required to produce fuel of the same octane without
lead reduce the quantity of fuel that can be produced
from a barrel of crude oil. This is because the chemical
constituency of the gasoline is altered by reforming
lower hydrocarbons to increase the percentage of octaneboosting aromatic compounds. This reforming process
consumes additional energy in the refining processenergy directly lost from every barrel processed. The
addition of ethanol to gasoline effectively gives the
required octane boost and the reforming requirement is
correspondingly reduced. This means that every barrel
of gasohol produced decreases crude oil demand not
only by the quantity of gasoline directly replaced by
ethanol, but also by the crude oil saved due to the value
of ethanol as an octane enhancer [2].
Anhydrous Ethanol. Anhydrous ethanol can be burned
directly in spark-ignition engines using essentially the
same engine modifications discussed above for the use
of hydrated ethanol. However, hydrated ethanol is less
costly and it is not likely that anhydrous ethanol would
The use of a mixture of hydrated ethanol and unleaded
gasoline can lead to complications. Mixtures of water,
ethanol, and gasoline can encounter problems when the
three components do not remain in solution. Depending
upon the amount of water, the characteristics of the
gasoline, and the temperature, two distinct phases can
DECISION TO PRODUCE
9
1:~ largest industrial chemical markets in the United
States are for acetic acid and ethylene because of their
.iide use in the production of polymers. Acetates (acetic
acid polymers) constitute the raw material for synthetic
fabrics, plastics, and an enormous variety of common
products. Ethanol can be fermented directly to acetic
acid (this is what happens when wine turns to vinegar).
Acetic acid is also a byproduct of ethanol fermentation.
Hence, consideration may be given to recovery of this
material.
The pharmaceutical industry also consumes large quantities of ethanol for use as solvent. The quality control
requirements for this market are extremely stringent
and the costs of producing a pure product (not just
anhydrous, but free of fuse1 oils and other contaminants) is quite high.
Corn Stover
can be Burned to Provide
Ethanol Production
the Heat Needed
for
separate out. When this separation occurs, the upper
phase (layer) is comprised of gasoline and the lower
phase (layer) is comprised of water and most of the
ethanol. Because the air-fuel requirements are different
for the ethanol and gasoline fuels, vehicle operations
will not be satisfactory if the fuels separate. Heating and
agitating these two phases will cause them to go back
into solution, but subsequent cooling will result in phase
separation again.
Data from tests on gasohol used in vehicles in Brazil and
domestically in Nebraska, Iowa, Indiana, and other
states indicate no adverse effects on engine life.
Dual-Carbureted
Diesel Fuel Supplement. Diesel
engines can operate on separately carbureted ethanol
and diesel fuel. When low-quality diesel fuel is used,
the amount of ethanol injected is generally less than
25%. When the intent is to reduce “diesel smoke” and
increase uower, the amrtmt of ethanol used can range as
high as 50% [3].
Industrial Chemical Feedstocks. The chemical industry
consumes large quantities of ethanol either as a basic
feedstock or for use as a solvent. Most of the ethanol
currently used by industry is produced from petroleumor natural gas-derived ethylene. Thus, the cost of
ethylene conversion to ethanol is a direct function of
petroleum and natural gas costs. As petroleum-derived
ethanol costs continue to increase, industrial consumers
will look for less expensive sources of ethanol. The current selling price of ethanol produced in this manner is
in excess of $1.50 per gallon [4]. These markets are
highly localized and generally far removed from rural
areas.
10
Fermentation ethanol has replaced a significant portion
of petroleum-derived ethanol in India and Brazil [j, 61.
In fact, ethylene is produced from fermentation ethanol
in these countries. Similar programs are being
developed in the Philippines, South Africa, Australia,
and other countries, and it is reasonable to assume that
such a development could also occur in the United
States.
Other Uses. Other possible uses of ethanol are as fuel
for
. crop drying,
0 general heating, and
. electricity generation with small generators.
Coproducts
Stillage can be fed to farm animals as a protein supplement either whole (as produced), wet, solid (screened),
or dry. The stillage from cereal grains ranges from 26%
to 32% protein on a dry basis. The basic limitation on
the amount that can be fed at any one time to an animal
is palatability (acid concentration caused by drying
makes the taste very acrid). Mature cattle can consume
about 7 pounds of dry stillage per day or, roughly, the
stillage resulting from the production of 1 gallon of
ethanol. The feeding of whole stillage is limited by the
normal daily water intake of the animal and the requirements for metabolizable energy and forage fiber.
The feeding value to swine and poultry is somewhat
limited. Wet stillage cannot be stored for long periods
of time, and the lack of locally available herds of
animals to consume it may lower its value. Stillage from
grains contaminated with aflatoxins cannot be used as
animal feed.
The cellulosic coproducts may be directly fermented to
produce methane gas or dried for use as boiler fuel.
FUEL FROM FARMS
Carbon dioxide (CO:) produced by fermentation can be
compressed and sold to users of refrigerants, soft drink
bottlers, and others. It also has many agricultural applications which are beyond the scope of this handbook.
MARKET ASSESSMENT
Before a decision to produce can be made, it is necessary
to accurately determine if markets for the ethanol and
coproducts exist close enough to a!low for economical
distribution. The size of the market is defined by the
quantities of ethanol and coproducts that can be used
directly on the farm and/or sold. The ethanol on-farm
use potential can be determined from the consumption
of gasoline and diesel fuel in current farming operations. Then, a decision must be made on the degree of
modification that is acceptable for farm equipment. If
none is acceptable, the on-farm use will range from 10%
to 2040 of the total gasoline consumption. If direct
modification to spark ignition equipment is acceptable,
the on-farm potential use can be 110% to 120% of current gasoline consumption. If the risks associated with
attempting undemonstrated technology are considered
acceptable, the ethanol replacement of diesel fuel will be
roughly 50% of current diesel fuel consumption [3].
The sale of ethanol off the farm will be dependent
upon local conditions and upon the type of Bureau
of Alcohol,Tobacco, and Firearms (BATF) license obtained. (Currently, a commercial license from BATF is
required for off-farm sale of ethanol.) Market estimates
should be based on actual letters of intent to purchase,
not an intuitive guess of local consumption.
The on-farm use of stillage must be calculated on the
basis of the number of animals that are normally kept
and the quantity of sti!!age they can consume.
The potential for sale of stillage must be computed on
the basis of letters of intent to purchase, not just on the
existence of a local feedlot. The value of stillage wit1
never exceed the directly corresponding cost of protein
from other sources.
Direct on-farm use of carbon dioxide is limited; its
principal value may come from sales. If Jerusalem artichokes, sorghum, or sugarcane are used, the bagasse
and fiber that remain after the sugar is removed may be
sufficient to supply the entire energy requirements of
the ethanol plant. This value should be calculated in
terms of the next less expensive source of fuel.
PRODUCTION POTENTIAL
Stillage
can be Used as a Protein jupplement
When Mlxed
With the Proper Quantities or Grain and Forage
combination. The guidance offered in that chapter will
help define the sizing of the plant from the viewpoint
of output, once the potential of the available feedstocks
is determined. Additional feedstocks may also be purchased and combined with products available on-site.
Water
Significant amounts of water are used in the ethanol
production process (about 16 gallons of water per gallon
of ethancl produced). This demand includes requirements for generating steam, cooling, and preparing
mashes. Also, it may be desirable to grow a crop not
normally produced in the area. If additional irrigation
water is necessary for this crop, the increment must be
included, but it is likely that stillage liquids can be
directly applied to fulfill this need.
Heat Sources
Heat is required in the conversion of feedstocks to
ethanol, primarily in cooking, distillation, and stillage
drying. An accurate assessment must be made to determine the type and quantity of available heat sources.
Waste materials can contribute as energy sources and,
from a national energy perspective, the use of petroleum
fuels is not desirable. In some cases, other renewable
sources of energy such as methane, solar, wind, and
geothermal may be used as supplements.
Feedstocks
The mix of feedstocks determine in part the actual production potential. Chapter IV discusses the use and
production of the various feedstocks individually and in
DECISION TO PRODUCE
EQUIPMENT SELECTION
The determination of the best equipment that can be obtained to fill the defined production needs is based on
11
the operation’s financial constraints and the labor
and/or product compromises that can be made. All the
options must be considered in relation to each other
rather than independently.
The following variables rehued to equipment selection
affect the decision to produce.
Labor Requirements
The availability of labor determines the schedule of
plant operations and the degree of automation required.
Labor availability is determined from normal farming
routine and the disruptions which are tolerable.
Investment/Financing
Financing is a pivotal factor in the decision to produce.
The options chosen depend initially upon capital and
operating costs (which are in turn dependent upon plant
size), and on individual financial situations. The potential income from the operation is the second line
of consideration. Though no less important than the
first, an inability to qualify for capital financing makes
consideration of succeeding concerns a futile exercise.
Ethanol
12
Feedstocks
Maintenance
Equipment maintenance varies in relation to the type of
component and its use. In general, it can be assumed
that the highest quality equipment will cost the most.
Critical components should be identified and investments concentrated there. Noncritical or easily
replaceable components can be less expensive. Routine
maintennr: I* should not interfere with production
scheduL
Regula;
ns
Stat (
mu
TlX
federal environmental protection standards
:served. In addition, the Bureau of Alcohol,
and Firearms (BATF) bonding requirements
!ations must be met. (See Appendix B for more
0riiidrion.)
,ntended Use
Equipment must be selected that is capable of producing
the quality, quantity, and form of coproducts dictated
by the intended market.
can be Stored in Conventional
Facilities
FUEL FROM FARMS
Form of Coproducts
The form and amounts of coproducts will dictate the
type and size of equipment. If stillage is to be sold in wet
form, the only required equipment may be a storage
tank. If stillage is to be dried, then screens, driers, and
additional dry storage space will be necessary. If carbon
dioxide is to be used or collected and sold, equipment
for this will be needed.
Safety
Ethanol is extremely flammable and must be handled
accordingly. Ignition sources must be isolated from all
possible ethanol leaks. This isolation requirement affects either plant layout or equipment selection. The
proper handling of acids and bases mandates particular
types of construction materials.
Heat Sources
The type or types of fuels available to the operation will
dictate the type of equipment necessary to convert this
fuel into the required heat source.
Feedstock Mix
The desired feedstock mix will define the feed preparation equipment necessary (e.g., the production of
ethanol from corn requires different front-end processing than sugar beets). Since it may be desirable to
process more than one feedstock concurrently, additional equipment may be required in ! is : processing step.
FINANCIAL REQUIREMENTS
Considerations to Proceed
Once the considerations for equipment selection are
completed, the capital and operating costs may be
roughly computed.
The capital cost considerations are:
Agricultural
Residue can be Collected
Storage
l
fuel,
l
feedstocks,
l
costs of delivery, and
in Large Round Bales for
l
bonds.
These considerations are then compared to the specific
financial situtation of the individual. If the results of
this comparison are not acceptable, then other options
in equipment specifications and plant size must be considered. If all possibilities result in an unfavorable position, the decision to produce is no. If a favorable set of
conditions and specifications can be devised, detailed
design considerations should be examined (see Chapter V, Plant Design) and an appropriate organization
and financial plan developed (see Chapter VI, Business
Plan).
l
equipment,
DECISION AND PLANNING WORKSHEETS
l
real estate and buildings,
l
permits and licenses, and
l
availability
The following questions are based on the considerations
involved in deciding to proceed with development of a
small-scale fermentation ethanol plant. Questions 1-28
are concerned with determining the potential market
and production capability; questions 9, 20, and 29-47
examine plant size by comparing proposed income and
savings with current earnings; questions 48-53 look
at plant costs; questions 54-69 relate to financial
and organizational requirements; and questions 71-85
examine financing options.
of financing.
The operating costs are:
. labor,
l
cost of money.
l
insurance,
l
chemicals, enzymes, additives,
DECISION TO PRODUCE
The final decision to produce ethanol is the result of examining all associated concerns at successively greater
levels of detail. Initially a basic determination of
feasibility must be made and its results are more a
13
“decision to proceed with further investigation” than
an ultimate choice to build a plant or not. This initial
evaluation of feasibility is performed by examining: (1)
the total market (including on-farm uses and benefits)
for the ethanol and coproducts; (2) the actual production potential: (3) the approximate costs for building
and operating a plant of the size that appropriately fits
the potential market and the production potential; (4)
the potential for revenues, savings, or indirect benefits;
and (5) personal financial position with respect to the
requirements for this plant. There are several points
during the course of this evaluation that result in
a negative answer. This does not necessarily mean that
all approaches are infeasible. Retracing a few steps
and adjusting conditions may establish favorable conditions; however, adjustments must be realistic, not
overly optimistic. Similarly, completion of the exercise
with a positive amswer is no guarantee of success, it is
merely a positive preliminary investigation. The real
work begins with specifics.
Market Assessment
1. List equipment that runs on gasoline and estimate annual consumption for each.
Equipment
Fuel Consumption
a.
gal/yr
b.
gal/yr
gal/yr
d.
gal/yr
e.
TOTAL
gal/yr
2. List the equipment from Question 1 that you intend to run on a lo%-EtOH/90%-gasoline
Equipment
gWr
blend.
Fuel Consumption
a.
gal/yr
b.
gal/yr
C.
gal/yr
d. -
gal/yr
e.
f3Wr
TOTAL
gal/yr
(Throughout these worksheets ethanol is abbreviated EtOH)
3. Take the total from Question 2 and multiply by 10% to obtain the quantity of EtOH to supply your own
gasohol needs.
~
14
x0.1=
FUEL FROM FARMS
4. List the equipment from Question 1 that you are willing to modify for straight EtOH fuel.
Equipment
Fuel Consumption
a.
gal/yr
b.
gal/yr
C.
gal/yr
d.
gal/yr
e.
gal/yr
TOTAL
gal/yr
5. Take the total from Question 4 and multiply by 120% to obtain the quantity of EtOH for use as straight
in spark-ignition engines.
gal/yr x 1.2 =
fuel
gal EtOH/yr
6. List your pieces of equipment that operate on diesel fuel.
Equipment
Diesel Fuel Consumption
a.
gWr
b.
gal/yr
C.
gal/yr
d.
gal/yr
e.
gal/yr
TOTAL
JTI
gal/yr
7. List the equipment from Question 6 that you will convert to dual-injection
diesel fuel blend.
system for 50% EtOH/SO%
Equipment
Diesel Fuel Consumption
a.
gal/yr
b.
gal/yr
C.
gal/yr
d.
gal/yr
e.
_--.
TOTAL
DECISION TO PRODUCE
-.
gal/yr
- ml/yr
15
8. Take the total from Question 7 and multiply by 0.5 to obtain the quantity of EtOH required for dualinjection system equipment.
gal/yr x0.5 =
gal EtOH/yr
9. Total the answers from Questions 3, 5, and 8 to determine your total annual on-farm EtOH consumption
potential.
gal EtOH/yr
+
gal EtOH/yr
+
gal EtOH/yr
=
gal EtOH/yr
10. List the number of cattle you own that you intend to feed stillage.
a.
Feeder Calves
Mature Cattle
A mature
sume the
0.7. Add
for which
b.
cow can consume the stillage from 1 gallon of ethanol production in 1 day. A feeder calf can constillage from 0.7 gallon of ethanol production in 1 day. Multiply the number of feeder calves by
this product to the number of mature cattle to obtain the daily maximum EtOH production rate
stillage can be consumed by cattle.
Mature Cattle =
Feeder Calves x 0.7 +
11. List the number of cattle that neighbors and/or
feed your stillage at full ration.
gal/day
neighboring feedlots own which they will commit to
Feeder Calves
Mature Cattle
Feeder Calves x 0.7 +
gal/day
Mature Catt!e =
12. Total the answers from Questions 10 and 11 to determine the equivalent daily EtOH production rate for
which the stillage can be consumed by cattle.
gal/day =
gal/day + _
gal/day
13. Determine the number of pigs you own that you can feed stillage.
a.
Pigs
Determine the number of pigs owned by neighbors or nearby pig feeders that can be committed to feeding
your stillage at full ration.
b.
Neighbor Pigs
Total the results from a and b.
a + b.
16
I
Total Pigs
FUEL FROM FARMS
14. Multiply total from Question 13 by 0.4 to obtain equivalent daily EtOH production for which stillage can be
consumed by pigs.
Pigs x 0.4 =
gal/day
15. Repeat the exercise in Question 13 for sheep.
a.
Sheep Owned
b.
Neighbors Sheep
Total Sheep
a + b.
16. Multiply total from Question 15 by the quantity of linseed meal normally fed every day to sheep in order to
obtain the equivalent daily EtOH production rate for which stillage can be consumed by sheep.
= gal/day
Sheep x
17. Repeat the excercise in Question 13 for poultry. Poultry can consume less than 0.05 lb of distillers’ dried
grains per day. This corresponds to about 0.07 gallons of whole stillage per day. Unless the poultry operation is very large, it is doubtful that this market can make any real contribution to consumption.
a.
Poultry Owned
b.
Neighbor’s Poultry
Total Poultry
a + b.
18. Take total from Question 17 and multiply by 0.05 to obtain the equivalent daily EtOH production rate for
which stillage can be consumed by poultry.
gal/day
Poultry x 0.05 gal/day = -
19. Total the answers from Questions 11, 12, 14, 16, and 18 to obtain the total equivalent daily EtOH production rate for which stillage can be consumed by local livestock.
gal/day + -gal/day
+ -
gal/day + -gal/day
+
gal/day = -
gal/day
20. Multiply the total from Question 19 by 365 to obtain the total annual EtOH production for which the
stillage will be consumed.
gal/day x 365 =
gal/yr
Compare the answer from Question 20 to the answer from Question 9. If the answer from
larger than the answer from Question 9, all of the stillage produced can be consumed by local
is the first production-limiting
consideration. If the answer to Question 20 is smaller than
Question 11, a choice must be made between limiting production to the number indicated by
I urchasing stillage processing equipment.
DECISION TO PRODUCE
Question 20 is
livestock. This
the answer for
Question 20 or
17
I
21. Survey the local EtOH purchase market to determine the quantity of EtOH that they will commit to purchase.
High Proof
a. Dealers
Anhydrous
gal/yr
~--
-
gal/yr
b. Local Dist.
gal/yr
gal/yr
c. Regional Dist.
gal/yr
gal/yr
d. Other Farmers
gal/yr
gal/yr
gal/yr
gal/yr
gal/yr
gal/yr
gal/yr
gal/yr
e. Trans. Fleets
-
f. Fuel Blenders
TOTAL
22. Combine the answers from Questions 9 and 21 to determine annual market for EtOH.
gal/yr +
gal/yr =
gal/yr
This is the ethanol market potential. It is not necessarily an appropriate plant size.
Production
Potential
23. Which of the following potential EtOH feedstocks do you now grow?
Annual
Acres
Yield/Acre
Production
a. Corn
bu/yr
b. Wheat
bu/yr
c. Rye
bu/yr
d. Barley
bu/yr
e. Rice
bu/yr
f. Potatoes
cwt/yr
g. Sugar Beets
tons/yr
h. Sugarcane
tons/yr
i. Sweet Sorghum
tons/yr
FUEL FROM FARMS
24.
Do you have additional uncultivated land on which to plant more of any of these crops?
Anticipated
Acres
Potential
Yield/Acre
Additional
Annual Production
a. Corn
bu/yr
b. Wheat
bu/yr
c. Rye
bu/yr
d. Barley
bu/yr
e. Rice
bu/yr
f. Potatoes
cwt/yr
g. Sugar Beets
tons/yr
h. Sugarcane
tons/yr
i. Sweet Sorghum
tons/yr
25. Can you shift land from production of any of the crops not mentioned in Question 24 to increase production
of one that is? If so, calculate the potential increase as in Question 24.
Anticipated
Acres
Crop
Potential
Yield/Acre
Additional
Annual Production
26. Add the annual production values separately for each crop from Questions 22, 23, and 24. (This procedure
can be used for other crops; however, reliable data for other crops are not available at this time.)
Cereal Grains
(combine totals)
bu/yr
Sugar Beets
ton/yr
Potatoes
cwt/yr
a.
b.
C.
TOTAL
Column I
Column III
Column II
19
DECISION TO PRODUCE
*
1
27. Multiply
a.
the Question 26 answers from:
Column I by 2.5 to obtain annual potential EtOH production from cereal grains;
bu/yr x 2.5 gal/bu =
b.
gal EtOH/yr
Column II by 1.4 gal/cwt to obtain annual potential EtOH production from potatoes;
cwt/yr x 1.4 gal./cwt =
c.
gal EtOH/yr
Column III by 20 gal/ton to obtain annual potential EtOH production for sugar beets.
ton/yr
x 20gal/ton
=
gal EtOH/yr
28. Total the answers from Question 27a, 27b, and 27c to determine total potential production capability. (This
is not necessarily the plant size to select, as the following series of questions demonstrates.)
gal/yr +
gal/yr +
gal/yr =
gal/yr
If the answer to Question 28 is greater than the answer to Question 22, the maximum size of the plant would be
the value from Question 22.
Plant Size
Neither the size of the market nor the production potential are sufficient to determine the appropriate plant
size although they do provide an upper limit. A good starting point is to fill your own fuel needs (answer to
Question 9) and not exceed local stillage consumption potential (answer to Question 20). Since the latter is
usually larger and the equipment for treatment of stillage introduces a significant additional cost, the value from
Question 20 is a good starting point. Now the approximate revenues and savings must be compared to current
earnings from the proposed ethanol feedstock to determine if there is any gain in value by building an ethanol
plant. Assume all feedstock costs are charged to production of EtOH.
Fuel Savings
29. Multiply the total of Questions 3 and 5 by the current price you pay for gasoline in $/gal.
gal/yr +
(
gal/yr) x
$/gal =
$/yr
This is the savings from replacing gasoline with EtOH.
30. Multiply the answer from Question 8 by the current price you pay for diesel fuel in $/gal.
$/yr =
gal/yr x
Wyr
This is the savings from replacing diesel fuel with EtOH.
20
FUEL FROM FARMS
,
.
31. Total Questions 29 and 30 to obtain the fuel savings.
$/yr =
$/yr +
$/yr
Feed Savings
32. Total the answers from Questions lob, 14, 16, and 18.
gal/day
1
gal/day
+
gal/day
+
gal/day
=
gal/day
1
gal/day
+
gal/day
=
gal/day
33. Total the ansve PSfrom Questions 11, 14, 16, and 18.
gal/day
+
gal/day
+
34. Multiply the answer to Question 32 by 6.8 to obtain the dry mass of high-protein material represented by the
whole stillage fed (if using cereal grain feedstock).
lb dry mass/day
gal/day x 6.8 !b dry mass/gal EtOH =
35. Multiply
the answer to Question 34 by the protein fraction (e.g., 0.28 for corn) of the stillage on a dry basis.
T.
lb protein/day
lb dry mass/day x
(protein fraction) =
36. a. Determine the cost (in $/lb protein) of the next less expensive protein supplement and multiply this
number by the answer to Question 35 (answer this question only if you buy protein supplement).
$/lb protein x
_ lb protein/day
=
$/day
b. Multiply the answer to Question 36a by 365 (or the number of days per year you keep animals on protein
supplement) to obtain annual savings in protein supplement.
-$/day
$/yr
x 365 days/yr =
Production Savings
37. a. Determine the cost of production of high-protein feeds on your farm in $/lb dry mass and multiply by the
protein fraction of each to obtain your actual cost of producing protein for feeding on-farm.
$/lb protein
$/lb dry mass x
(protein fraction)=
b. Multiply the answer to Question 37a by the answer to Question 35 (or by the amount of protein you
whichever is smaller) to obtain
quantity in lbs times protein fraction,
actually produce on-farm:
potential protein.
L
21
DECISION TO PRODUCE
.
.
lb protein/day
$/lb protein x
=
$/day
c. Multiply the answer to Question 37b by the number of days you keep animals on protein supplement
during the year up to 365.
$/day x
days/yr =
-
$/yr
38. Total the answers from Questions 36b and 37~.
$/yr =
$/yr +
$/yr
This is the total animal feed savings you will realize each year.
Revenues
39. a. Multiply
the answer from Question 28 by the reasonable market value of the stillage ye produce.
gal/day x
$/gal =
$/day
b. Multiply the answer obtained in Question 39a by the number of days during the year that this quantity of
stillage can be marketed, up to 365.
days/yr =
S/day x -
$/yr
This is the total stillage sales you will realize each year.
40. Total the answers from Questions 38 and 39b.
$/yr =
!§/yr +
$/yr
This is the total market value of the stillage you will produce.
41. Subtract the answer to Question 9 from the answer to Question 20 to obtain the EtOH production potential
that remains for sale.
gal/yr -
42. Multiply
gal/yr
gal/yr =
the answer from Question 41 by the current market value for ethanol.
gal/yr x
$/gal =
$/yr
This Is the annual ethanol sales potential.
43. Total the answers from Questions 31, 38, 40, and 42 to obtain the total revenues and savings fro.n this
production rate.
$/yr +
$/yr +
%/yr +
$/yr =
!?Yyr
44. Divide the answer to Question 20 by:
22
FUEL FROM FARMS
I
.
a. 2.5 gal/bu if the feedstock to be used is cereal grain.
gal/yr + 2.5 gal/bu =
bu/yr
b. 1.4 gal/cwt if the feedstock to be used is potatoes.
gal/yr t 1.4 gal/cwt =
cwt/yr
c. 20 gal/ton if the feedstock to be used is sugar beets.
gal/yr + 20gaVton =
tons/yr
45. Multiply:
a. The answer from Question 44a by the appropriate market value for cereal grains to obtain the potential
earnings for direct marketing with EtOH production;
bu/yr
$/bu =
x
$/yr
b. The answer from Question 44b by the appropriate market value for potatoes;
cwt/yr x
$/cwt =
$/yr
c. The answer from Question 44c by the appropriate market value for sugar beets.
tons/yr x
$/ton =
$/yr
46. Total the answers from Questions 45a, 45b, and 4Sc to obtain the potential earnings from directly marketing
crops without making EtOH.
Wyr +
Wyr =
$/yr +
$/yr
Compare the answers from Questions 46 and 43. If Question 46 is as large, or nearly as large as the answer from
Question 43, the construction of an ethanol plant of this size cannot be justified on a purely economic basis.
Consider scaling down to a size that fills your own fuel needs and recompute Questions 29 through 46. If Question 43 is considerably larger (2 to 3 times) than Question 46, you can consider increasing your plant size within
the bounds of the answers to Question 22 (market) and Question 28 (production potential). Care must be taken
to assesslocal competition and market share as you expand plant size.
If a market share exists or if there is good reason to believe that you can acquire a share by superior techniques,
the initial plant sizing must accurately reflect this realistic market share.
47. a. Multiply the initial plant production capacity (in gallons EtOH/hr)
EtOH production capacity.
gal EtOH/hr
by 16 gallons of water per gallon
gal H,O/hr.
x 16 gal HZO/gal EtOH =
b. Can the answer to Question 47 be realistically achieved in your area? If yes, no adjustment to chosen
size needs to be made to account for water availability. If no, reduce plant size to rea!istically
reflect available water.
piant
23
DECISION TO PRODUCE
.
l
Approximate Costs of Plant
The cost of the equipment you choose will be a function of the labor available, the maintenance required, the
heat source selected, and the type of operating mode.
Labor Requirements
I-Iow much time during the normal farming routine can you dedicate to running the ethanol plant?
48. a. Do you have any hired help or other adult family members, and if so, how much time can he/she dedicate
to running the ethanol plant?
b. Can you or your family or help dedicate time at periodic intervals to operating the ethanol plant?
If labor is limited, a high degree of automatic control is indicated.
Maintenance
49. What are your maintenance capabilities and equipment?
Heat Source
Determine the least expensive heat source available.
50. Select a plant design that accomplishes your determined production rate and fits your production schedule.
51. List all of the plant components and their costs
a) storage bins
$
b) grinding mill
$
c) meal hopper
%
d) cookers
$
e) fermenters
$
f) distillation
$
columns
g) storage tanks (product and coproduct)
$
h) pumps
$
i) controllers
$
j) pipes and valves
$
k) metering controls
$
1) microprocessors
$
$
m) safety valves
24
FUEL FROM FARMS
.
.
n) heat exchangers
0) instrumentation
p) insulation
q) boiler
$
r) fuel handling equipment
5-
s) feedstocks handling equipment
5
t) storage tanks (stillage)
$
u) stillage treatment equipment
(screen, dryers, etc.)
v) CO2 handling equipment
w) ethanol dehydration equipment
TOTAL
52. Determine operating requirements for cost.
gallons of anhydrous ethanol per hour.
Plant capacity =
Production
gal/yr.
gallons per hour x hours of operation per year =
=
Feed materials = Production
bu/yr.
gal/bu =
gal/yr f
$/yr
$/gal
a. Operating Costs
Feed materials
Grain ($/bu + gal
anhydrous ethanol/bu
= $/gal.)
or ($/bu x bu/yr
= %/yr.)
Supplies
Enzymes
Other
Fuel for plant operation
Waste disposal
Operating labor (operating crew
x hrs of operation per year
x $/hr = $/year)
Total Operating Costs
DECISION TO PRODUCE
25
b. Maintenance Costs
Routine scheduled maintenance
Labor (Maintenance crew staff
x hrs/yr x $/hr)
Supplies and replacement parts
Maintenance equipment rental
Unscheduled Maintenance (Estimated)
Labor
Supplies
Maintenance equipment
Total Maintenance Costs
c. Capital or Investment Costs
Plant equipment costs
Land
Inventory
Grain
Supplies
Ethanol
Spare parts
Total
Taxes
Insurance
Depreciation
Interest on loan or mortgage
Total Capital or Investment Costs
TOTAL
COSTS (Totals of a, b and c)
Financial Requirements
53. Capital Costs
Item
Cost Estimate
Considerations
Real estate
26
FUEL FROM FARMS
,
Item
Cost Estimate
Considerations
Cost Estimate
Considerations
Buildings
Equipment
Business formation
Equipment installation
Licensing costs
54. Operating Costs
Item
Labor
Maintenance
Taxes
Includes raw materials, additives,
enzymes, yeast, and water.
Supplies
Delivery
Includes electricity and fuel(s).
Expenses
Insurance
Interest on debt
-
Includes interest on long- and short-term loans.
Bonding
55. Start-Up Working Capital
Item
Considerations
Cost Estimate
Mortgage
Principle payments only, for first few months.
Cash to carry accounts
receivable for 60 days
-
Cash to carry a finished
goods inventory for 30 days
Cash to carry a raw material
inventory for 30 days
DECISION TO PRODUCE
27
56. Working Capital
Cost Estimate
Item
Considerations
Principle payments only.
Mortgage
Assets (Total Net Worth)
57. List all items owned by the business entity operating the ethanol plant.
Item
Value
-
Organizational Form
58. Are you willing to assume the costs and risks of running your own EtOH production
facility?
59. Are you capable of handling the additional taxes and debts for which you will be personally
liable as a single proprietor?
Includes interest on long- and short-term loans.
60. Is your farm operation large enough or are your potential markets solid enough to handle
an EtOH production facility as a single proprietor?
28
FUEL FROM FARMS
61. Is your credit alone sufficient to provide grounds for capitalizing a single proprietorship?
~___
62. Will a partner(s) enhance your financial position or supply needed additional skills?
63. a.
b.
Do you need a partner to get enough feedstock for your EtOH production facility?
__
Are you willing to assume IiabiLties for product and partner?
64. Is your intended production going to be of such a scale as to far exceed the needs for
your own farm or several neighboring farms?
65. Do you need to incorporate in order to obtain adequate funding?
66. Will incorporation reduce your personal tax burden?
67. Do you wish to assume product liability personally?
68. How many farmers in your area would want to join a cooperative?
69. Do you plan to operate in a centralized location to produce EtOH for all the members?
70. Is your main reason for producing EtOH to service the needs of the cooperative
members, others, or to realize a significant profit?
Financing
If you are considering borrowing money, you should have a clear idea of what your chances will be beforehand.
The following questions will tell you whether debt financing is a feasible approach to your funding problem.
71. a.
b.
How much money do you already owe?
What are your monthly payments?
72. How much capital will you have to come up with yourself in order to secure a loan?
73. Have you recently been refused credit?
74. a.
b.
-~
How high are the interest rates going to be?
Can you cover them with your projected cash flow?
75. If the loan must be secured or collateralized, do you have sufficient assets
to cover your debt?
If you are already carrying a heavy debt load and/or your credit rating is low, your chances of obtaining
additional debt financing is low and perhaps you should consider some other type of financing. Insufficient
collateral, exorbitant interest rates, and low projected cash flow are also negative indicators for debt financing.
The choice between debt and equity financing will be one of the most important decisions you will have to face
since it will affect how much control you will ultimately have over your operation. The following questions deal
with this issue, as well as the comparative cost of the two major types of financing.
76. How much equity do you already have?
77. Do you want to maintain complete ownership and control of your enterprise?
78. Are you willing to share ownership and/or control if it does not entail more than a minority
share?
DECISION TO P90DUCE
29
79. Will the cost of selling the stock (broker’s fee, bookkeeper, etc.) be more than the interest
you would have to pay on a loan?
If you are reluctant to relinquish any control over your operation, you would probably be better off seeking a
loan. On the other hand, if your chances of obtaining a loan are slim, you might have to trade off some personal
equity in return for a better borrowing position.
80. Do you have other funds or materials to match with federal funds? (It is usually helpful.)
81. DO you live in a geographical area that qualifies for special funds?
82. Will you need continued federal support at the end of your grant period?
83. Are you going to apply for grant funds as an individual,
or as a profit corporation?
as a nonprofit corporation,
-
84. Are you a private nonprofit corporation?
--
85. Is there something special about your alcohol facility that would make it attractive to
certain foundations?
You should now have a good idea as to where you are going to seek your initial funding. Remember that most
new businesses start up with a combination of funding sources. It is important to maintain a balance that will
give you not only sufficient funding when you need it, but also the amount of control over your operation that
you would like to have.
Completion of these worksheets can lead to an initial decision on the feasibility to proceed. However, this should
not be construed as a final decision, but rather a step in that process.
If the financial requirements are greater than the capability to obtain financing, it does not necessarily mean the
entire concept will not work. Rather, the organizational form can be reexamined and/or the production base
expanded in order to increase financing capability.
REFERENCES
1. Reed, Thomas. “Alcohol Fuels.” Special Hearing
of the U.S. Senate Committee on Appropriations;
Washington, D.C.: January 31, 1978; pp. 194-205.
U.S. Government Printing Office. Stock Number
052-070-04679-l.
2. Jawetz, Pincas. “Improving
Octane Values of
Unleaded Gasoline Via Gasohol.” Proceedings of
the 14th Intersociety Energy Conversion Engineering
Conference. Volume I, pp. 301-302; abstract
‘,
Volume II, p. 102; Boston, MA: August 5-10,
1979. Available from the American Chemical
Society, 1155 Sixteenth Street NW, Washington,
D.C. 20036.
3. Panchapakesan, M.R.; et al. “Factors That Improve
the Performance of an Ethanol Diesel Oil DualFuel Engine.”
International
Symposium on
Alcohol Fuel Technology-Methanol
and Ethanol.
Wolfsburg, Germany;
CONF-77 1175.
November
2 l-23,
1977.
4. Ethanol Chemicai and Engineering News. October
29, 1979; p. 12.
5. Sharma, K.D. “Present Status of Alcohol and
Alcohol-Based Chemical Industry in India.” Workshop on Fermentation Alcohol for Use as Fuel and
Chemical Feedstock in Developing Countries.
United
Nations
International
Development
Organization, Vienna, Austria; March 1979. Paper
no. ID/WG.293/14 UNIDO.
6. Ribeiro, Filho F. A. “The Ethanol-Based Chemical
Industry in Brazil.” Workshop on Fermentation
Alcohol for Use as Fuel and Chemical Feedstock in
Developing Countries. United Nations Industrial
Development
Organization,
Vienna, Austria;
March 1979. Paper no. ID/WG.293/4 UNIDO.
FUEL FROM FARMS
CHAPTER II I
BASIC ETHANOL
PRODUCTION
CHAPTER
III
”
Basic Ethanol Production
The production of ethanol is an established process. It
involves some of the knowledge and skill used in normal
farm operations, especially the cultivation of plants.
It is also a mix of technologies which includes
microbiology, chemistry, and engineering. Basically,
fermentation is a process in which microorganisms such
as yeasts convert simple sugars to ethanol and carbon
dioxide. Some plants directly yield simple sugars; others
produce starch or cellulose that must be converted to
sugar. The sugar obtained must be fermented and the
beer prod::ced must then be distilled to obtain fuelgrade ethanol. Each step is discussed individually. A
basic flow diagram of ethanol production is shown in
Figure III-I.
PREPARATION OF FEEDSTOCKS
Feedstocks can be selected from among many plants
that either produce simple sugars directly or produce
starch and cellulose. The broad category of plants which
this includes means there is considerable diversity in the
initial processing, but some features are universal:
l
l
l
simple sugars must be extracted from the plants
that directly produce them;
starch and cellulose must be reduced from their
complex form to basic glucose; and
stones and metallic particles must be removed.
The last feature must be taken care of first. Destoning
equipment and magnetic separators can be used to
remove stones and metallic particles. Root crops require
other approaches since mechanical harvesters don’t
differentiate between rocks and potatoes or beets of
the,same size. Water jets or flumes may be needed to
accomplish this.
The simple sugars from such plants as sugarcane,
sugar beets, or sorghum can be obtained by crushing or
pressing the material. The low sugar bagasse and pulp
which remain after pressing can be leached with water
to remove residual sugars. The fibrous cellulosic
material theoretically could be treated chemica!ly
or enzymatically to produce more sugar. However, no
commercially available process currently exists.
Commonly
32
used starchy feedstocks are grains and
potatoes. Starch is roughly 20% amylose (a watersoluble carbohydrate) and 80% amylopectin (which is
not soluble in water). These molecules are linked
together by means of a bond that can be broken with
relative ease. Cellulose, which is also made up of
glucose, differs from starch mainly in the bond between
glucose units.
Starch must be broken down because yeast can only act
on simple sugars to produce ethanol. This process
requires that the material be broken mechanically into
the smallest practical size by milling or grinding, thereby
breaking the starch walls to make all of the material
available to the water. From this mixture, a slurry can
be prepared and it can be heated to temperatures high
enough to break the cell walls of the starch. This produces complex sugars which can be further reduced by
enzymes to the desired sugar product.
Conversion of Starches by Enzymatic Hydrolysis
Consider the preparation of starch tmm grain as an
example of enzymatic hydrolysis. The intent is to produce a 14% to 20% sugar solution with water and whole
grain. Grain is a good source of carbohydrate, but to
gain access to the carbohydrate, the grain must be
ground. A rule of thumb is to operate grinders so that
the resulting meal can pass a 20-mesh screen. This
assures that the carbohydrate is accessible and the
solids can be removed with a finer screen if desired.
If the grain is not ground finely enough, the resultant
lumpy material is not readily accessible for enzymatic
conversion to sugar. The next step is to prepare a slurry
by mixing the meal directly with water. Stirring should
be adequate to prevent the formation of lumps and
enhance enzyme contact with the starch (thus speeding
liquefaction).
High-temperature and high-pressure processes may
require a full time operator, thus making it difficult to
integrate into farming operations. Therefore, when
deciding which enzyme to purchase, consideration
should be given to selecting one that is active at
moderate temperature, i.e., 200” F (93” C), nearambient pressure, and nearly neutral pH. The acidity of
the slurry can be adjusted by addition of dilute basic
solution (e.g., sodium hydroxide) if the pH is too low
and addition of concentrated sulfuric acid or lactic acid
if the pH is too high.
FUEL FROM FARMS
I
Feedstock
Storage
1
Figure Ill-l. Ethanol Production
Flow Diagram
The enzyme should be added to the slurry in the proper
proportion to the quantity of starch to be converted. If
not, liquefaction ends up incomplete or takes too long
to complete for practical operations. Enzymes vary in
activity but thermophyllic bacterial amylases, which are
commercially available, can be added at rates slightly
greater than %‘ounce per bushel of meal. Rapid dispersion of the dry enzyme is best accomplished by mixing a
premeasured quantity with a small volume of warm
water prior to addition to the slurry. Liquefaction
should be conducted,in the specific temperature range
and pH suggested by the supplier of the specific enzyme
used.
The temperature is then raised to the optimal functional
range for the enzyme and held for a period of time sufficient to completely convert the starch to soluble dextrins
(polymeric sugars). There are commercially available
enzymes that are most active around 200” F (93 O C)
and require a hold time of 2% hours if the proper proportion of enzyme is used. When this step is complete,
the slurry has been converted to an aqueous solution of
dextrins.
Care must be taken
to assure
that the starch conversion step is complete because
the conditions for the glucose-producing enzyme
(glucoamylase), which is introduced in the next step, are
significantly different from those for liquefaction.
After the enzyme is added, the gram mash is heated to
break the cell walls of the starch. However, the enzyme
must be added before the temperature is raised because
once the cell walls rupture, a gel forms and it becomes
almost impossible to accomplish good mixing of the
enzyme with the starch. The rupture of cell walls, which
is caused by heating in hot water, is called gelatinization
because the slurry (which is a suspension of basically
insoluble material in water) is converted to a highviscosity solution. Under slow cooking conditions and
normal atmospheric pressure, gelatinization can be
expected to occur around 140” F (60” C).
The next step, saccharification, is the conversion of
dextrins to simple sugars, i.e., glucose. The mash
temperature is dropped to the active range of the
glucoamylase, the enzyme used for saccharification,
and the pH of the solution is adjusted to optimize conversion activity. The pH is a critical factor because
the enzymatic activity virtually ceases when the pH
is above 6.5. Glucoamylase is added in the proportion
required to convert the amount of sugar available.
Again, depending upon the variety selected and its activity, the actual required quantity of enzyme varies.
BASIC ETHANOL
PRODUCTION
33
After the enzyme is added, the temperature of the mash
must neither exceed 140” F (60” C) nor drop below
122” F (50” C) during the saccharification step or
the enzyme activity is greatly reduced. The mash, as in
the prior step, must be stirred continuously to assure
intimate contact of enzyme and dextrin. The mash
should be held at the proper temperature and pH until
conversion of the dextrin to glucose is complete.
FERMENTATION
Fermentation is the conversion of an organic material
from one chemical form to another using enzymes produced by living microorganisms. In general, these
bacteria are classified according to their tolerance of
oxygen. Those that use oxygen are called aerobic and
those that do not are called anaerobic. Those that start
with oxygen but continue to thrive after all of the
available oxygen is consumed are called facultative
organisms. The yeast used to produce ethanol is an
example of this type of facultative anaerobe. The
breakdown of glucose to ethanol involves a complex sequence of chemical reactions which can be summarized
as:
most of the fermentation takes place. The top yeasts,
Saccharomycescerevisiae, produce carbon dioxide and
ethanol vigorously and tend to cluster on the surface of
the mash. Producers of distilled spirits generally use top
yeasts of high activity to maximize ethanol yield in the
shortest time; producers of beer tend to use bottom
yeasts which produce lower ethanol yields and require
longer times to complete fermentation. Under normal
brewing conditions, top yeasts tend to flocculate
(aggregate together into clusters) and to separate out
from the solution when fermentation is complete. The
various strains of yeast differ considerably in their
tendency to flocculate. Those strains with an excessive
tendency toward premature flocculation tend to cut
short fermentation and thus reduce ethanol yield. This
phenomenon, however, is not singularly a trait of the
yeast. Fermentation conditions can be an influencing
factor. The cause of premature flocculation seems to be
a function of the pH of the mash and the number of free
calcium ions in solution. Hydrated lime, which is
sometimes used to adjust pH, contains calcium and may
be a contributory factor.
Nutritional Requirements
C,H,20611)2CZH50H
+ 2C0, + heat
(elhanol)
(carbon
diaalde)
Actual yields of ethanol generally fall short of predicted
theoretical yields because about 5% of the sugar is used
by the yeast to produce new cells and minor products
such as glycerols, acetic acid, lactic acid, and fuse1 oils.
Yeasts are the microorganisms responsible for producing the enzymes which convert sugar to ethanol.
Yeasts are single-cell fungi widely distributed in nature,
commonly found in wood, dirt, plant matter, and on
the surface of fruits and flowers. They are spread by
wind and insects. Yeasts used in ethanol productions are
members of the genus Succharomyces. These yeasts are
sensitive to a wide variety of variables that potentially
affect ethanol production. However, pH and temperature are the most influential
of these variables.
Saccharomyces are most effective in pH ranges between
3.0 and 5.0 and temperatures between 80” F (27” C) and
90” F (35” C). The length of time required to convert a
mash to ethanol is dependent on the number of yeast
cells per quantity of sugar. The greater the number initially added, the faster the job is complete. However,
there is a point of diminishing returns.
Yeast strains, nutritional requirements, sugar concentration, temperature, infections, and pH influence
yeast efficiency. They are described as follows:
Yeast Strains
Yeasts are divided informally into top and bottom
yeasts according to the location in the mash in which
34
Yeasts are plants, despite the fact that they contain no
chlorophyll. As such, their nutritional requirements
must be met or they cannot produce ethanol as fast as
desired. Like the other living things that a farmer
cultivates and nurtures, an energy source such as
carbohydrate must be provided for metabolism. Amino
acids must be provided in the proper proportion and
major chemical elements such as carbon, nitrogen,
phosphorus, and others must be available to promote
cell growth. Some species flourish without vitamin supplements, but in most cases cell growth is enhanced
when B-vitamins are available. Carbon is provided by
the many carbonaceous substances in the mash.
The nitrogen requirement varies somewhat with the
strain of yeast used. In general, it should be supplied in
the form of ammonia, ammonium salts, amino acids,
peptides, or urea. Care should be taken to sterilize farm
sources of urea to prevent contamination of the mash
with undesired microbial strains. Since only a few
species of yeasts can assimilate nitrogen from nitrates,
this is not a recommended source of nitrogen. Ammonia
is usually the preferred nitrogen form, but in its
absence, the yeast can break up amino acids to obtain it.
The separation of solids from the solution prior to
fermentation removes the bulk of the protein and,
hence, the amine source would be removed also. If this
option is exercised, an ammonia supplement must be
provided or yeast populations will not propagate at the
desired rates and fermentation will take an excessive
amount of time to complete. However, excessive
amounts of ammonia in solution must be avoided
because it can be lethal to the yeast.
FUEL FROM FARMS
Although the exact mineral requirements of yeasts
cannot be specified because of their short-term evolutionary capability, phosphorus and potassium can be
identified as elements of prime importance. Care should
be taken not to introduce excessive trace minerals,
because those which the yeast cannot use increase the
osmotic pressure in the system. (Osmotic pressure is due
to the physical imbalance in concentration of chemicals
on either side of a membrane. Since yeasts are cellular
organisms, they are enclosed by a cell wall. An excessively high osmotic pressure can cause the rupture of
the cell wall which in turn kills the yeast.)
Sugar Concentration
There are two basic concerns that govern the sugar
concentration of the mash: (1) excessively high sugar
concentrations can inhibit the growth of yeast cells in
the initial stages of fermentation, and (2) high ethanol
concentrations are lethal to yeast. If the concentration
of ethanol in the solution reaches levels high enough to
kill yeast before all the sugar is consumed, the q;LaGty
of sugar that remains is wasted. The latter concern is the
governing control. Yeast growth problems can be overcome by using large inoculations to start fermentation.
Sfzccharomyces strains can utilize effectively all of
the sugar in solutions that are 16% to 22% sugar while
producing a beer that ranges from 8% to 12% ethanol
by volume.
Temperature
Fermentation is strongly influenced by temperature,
because the yeast performs best in a specific
temperature range. The rate of fermentation increases
with temperature in the temperature range between
80” F (27 0 C) and 95 a F (35 ’ C). Above 95 DF (35 ’ C),
the rate of fermentation gradually drops off, and ceases
altogether at temperatures above 109” F (43” C). The
actual temperature effects vary with different yeast
strains and typical operating conditions are generally
closer to 80” F (27’ C) than 95 ’ F (35 ’ C). This choice is
usually made to reduce ethanol losses by evaporation
from the beer. For every 9” F (5 a C) increase in
temperature, the ethanol evaporation rate increases 1.5
times. Since scrubbing equipment is required to recover
the ethanol lost by evaporation and the cost justification
is minimal on a small scale, the lower fermentation
temperature offers advantages of simplicity.
The fermentation reaction gives off energy as it proceeds (about 500 Btu per pound of ethanol produced).
There will be a normal heat loss from the fermentation
tank as long as the temperature outside the tank is less
than that inside. Depending upon the location of the
plant, this will depend on how much colder the outside
air is than the inside air and upon the design of the
fermenter. In general, this temperature difference will
not be sufficient to take away as much heat as is
generated by the reaction except during the colder times
BASIC ETHANOL
PRODUCTION
of the year. Thus, the fermenters must be equipped
with active cooling systems, such as cooling coils and
external jackets, to circulate air or water for convective
cooling.
Infections
Unwanted microbial contaminants can be a major cause
of reductions in ethanol yield. Contaminants consume
sugar that would otherwise be available for ethanol
production and produce enzymes that modify fermentation conditions, thus yielding a drastically different
set of products. Although infection must be high before
appreciable quantities of sugar are consumed, the rate
at which many bacteria multiply exceeds yeast propagation. Therefore, even low initial levels of infection
can greatly impair fermentation. In a sense, the start
of fermentation is a race among the microorganisms
present to see who can consume the most. The objective
is the selective culture tif a preferred organism. This
means providing the conditions that are most favorable
to the desired microorganism. As mentioned previously,
high initial sugar concentrations inhibit propagation of
Saccharornyces cerevisiae because it is not an
osmophylic yeast (i.e., it cannot stand the high osmotic
pressure caused by the high concentration of sugar in
the solution). This immediately gives an advantage to
any osmophylic bacteria present.
Unwanted microbes can be controlled by using commercially available antiseptics. These antiseptics are the
same as those used to control infections in humans, but
are less expensive because they are manufactured for
industrial use.
DISTILLATION
The purpose of the distillation process is to separate
ethanol from the ethanol-water mixture. There are
many means of separating liquids comprised of two or
more components in solution. In general, for solutions
comprised of components of significantly different boiling temperatures, distillation has proved to be the most
easily operated and thermally efficient separation
technique.
At atmospheric pressure, water boils around 212’ F
(1OO’C) and ethanol boils around 172°F (77.7’C). It is
this difference in boiling temperature that allows for
distillative separation of ethanol-water mixtures. If a
pan of an ethanol and water solution is heated on the
stove, more ethanol molecules leave the pan than water
molecules. If the vapor leaving the pan is caught and
condensed, the concentration of ethanol in the condensed liquid will be higher than in the original solution,
and the solution remaining in the pan will be lower
in ethanol concentration. If the condensate from this
step is again heated and the vapors condensed, the con-
35
96%
ETOH
Etc.
Figure 111-2.Basic Process of Successive
Distillation
centration of ethanol in the condensate will again be
higher. This process could be repeated until most of the
ethanol was concentrated in one phase. Unfortunately,
a constant boiling mixture (azeotrope) forms at about
96% ethanol. This means that when a pan containing a
96%-ethanol solution is heated, the ratio of ethanol
molecules to water molecules in the condensate remains
constant. Therefore, no concentration enhancement is
achieved beyond this point by the distillation method.
The system shown in Figure III-2 is capable of producing 96%-pure ethanol, but the amount of final
product will be quite small. At the same time there
will be a large number of products of intermediate
ethanol-water compositions that have not been brought
to the required product purity. If, instead of discarding
all the intermediate concentrations of ethanol and
water, they were recycled to a point in the system where
the concentration was the same, we could retain all
the ethanol in the system. Then, if all of these steps were
incorporated into one vessel, the result would be a
distillation column. The advantages of this system are
that no intermediate product is discarded and only one
external heating and one external cooling device are required. Condensation at one stage is affected when
vapors contact a cooler stage above it, and evaporation
is affected when liquid contacts a heating stage below.
36
to Increase Concentration
of Ethanol
Heat for the system is provided at the bottom of the
distillation column; cooling is provided by a condenser
at the top where the condensed product is returned in a
process called reflux. It is important to note that
without this reflux the system would return to a composition similar to the mixture in the first pan that was
heated on the stove.
The example distillation sieve tray column given in
Figure III-3 is the most common single-vessel device for
carrying out distillation. The liquid flows down the
tower under the force of gravity while the vapor flows
upward under the force of a slight pressure drop.
The portion of the column above the feed is called the
rectifying or enrichment section. The upper section
serves primarily to remove the component with the
lower vapor pressure (water) from the upflowing vapor,
thereby enriching the ethanol concentration. The portion of the column below the feed, called the stripping
section, serves primarily to remove or strip the ethanol
from the down-flowing liquid.
Figure III-4 is an enlarged illustration of a sieve tray.
In order to achieve good mixing between phases and to
provide the necessary disengagement of vapor and liquid between stages, the liquid is retained on each plate
FUEL FROM FARMS
Condenser
Noncondensibles
Stillage
to
Storage
Steam
Beer
Column
Rectifying
Column
Figure W-3. Schematic
BASIC ETHANOL
PRODUCTION
Diagram of Sieve Tray Distillation
of Ethanol
37
by a weir (a dam that regulates flow) over which the
solution flows. The effluent liquid then flows down the
downcomer to the next stage. The downcomer provides
sufficient volume and residence time to allow the vaporliquid separation.
It is possible to use several devices other than sieve
tray columns to achieve the counter-current flow required for ethanol-water distillation. A packed column
is frequently used to effect the necessary vapor-liquid
contacting. The packed column is filled with solid
material shaped to provide a large surface area for
contact. Counter-current liquid and vapor flows proceed in the same way described for the sieve tray column.
Figure 111-4.E;llarged Illustration
38
of Sieve Tray
Production of fuel-grade ethanol is a practical operation to include in farm activities. Texts in microbiology
and organic chemistry portray it as a complex procedure, but this is not necessarily true. Fermentation is
affected by a variety of conditions. The more care used
in producing optimum conditions, the greater the
ethanol yield. Distillation can range from the simple to
the complex. Fortunately, the middle line works quite
satisfactorily for on-farm ethanol production.
FUEL FROM FARMS
CHAPTER IV
FEEDSTOCKS
39
CHAPTER
IV
The previous chapter discl;,zed the basic process for
fermenting sugar into eth;,. 01. The purposes of this
chapter are (1) to describe tt _ rypes of agricultural crops
and crop residues that mab: up the feedstocks used in
the production of ethanol: (2) to provide data on the
yield of the three principzi coproducts derived from
fermentation of these fee2.tocks; and (3) to present
agronomic and feedstock considerations of ethanol
production.
TYPES OF FEEDSTOCK
Biological production of i:hanol is accompiished by
yeast through fermenratiou of six-carbon sugar units
(principally glucose). All agricultural crops and crop
residues contain six-carbon sugars, or compounds of
these sugars, and therefore can be used in the production of ethanol. Three dit’ferent arrangements of the
basic sugar units are possible, as seen in the three different types of agricultural feedstocks available for
fermentation: sugar crops, starch crops, and lignocellulosic residues. The starch crops and lignocellulosic
residues contain six-carbon sugar compounds which
must be broken down into simple six-carbon sugar units
before fermentation can take place.
The two sugar crops that have been cultivated in the
United States for many years at a commercial level of
production are sugarcane and sugar beets. Other alternative sugar crops that can be cultivated in the United
States include sweet sorghum, Jerusalem artichokes,
fodder beets. and fruits.
Sugarcane. Sugarcane is considered a favorable
feedstock because of its high yield of sugar per acre (as
high as 50 tons per acre per year) and a correspondingly
high yield of crop residue, known as bagasse, that can
be used as a fuel for production of process heat. The
major drawback with this feedstock is the limited
availability of land suitable for economical cultivation.
Presently, only four states (Florida, Louisiana, Texas.
and Hawaii) cultivate sugarcane.
Sugar Beets. Sugar beets are a much more versatile crop
than sugarcane. They are presently grown in 19 states,
and the potential for cultivation in other parts of the
coun:ry is high because sugar beets tolerate a wide range
of climatic and soil conditions. An important advantage
of sugar beets is the comparatively high yield of crop
coproducts: beet pulp and beet tops. Beet pulp, the por-
Sugar Crops
In sugar crops, the majority of the six-carbon sugar
units occur individually or in bonded pairs, Once a
sugar crop has been crushem’to remove the sugar, no additional processing is needr prior to fermentation since
the six-carbon sugar units Llre already in a form that the
yeast can use. This fact is both an advantage and a
disadvantage. Preparation of the feedstock for fermentation involves comparatively low equipment, labor,
and energy costs, since the only major steps involved are
milling and extraction of the sugar. However, sugar
crops tend to spoil easily. Numerous types of
microorganisms (including the type of yeast that produces ethanol) thrive on these crops during storage
because of their high moisture and sugar content.
Therefore, steps must be taken during storage to slow
the loss of sugar. The only proven storage method is
evaporation of water from the sugar solution-an effective, but costly method in terms of equipment
(evaporators) and energy. Sterilization of the juice by
use of heat, chemicals, or ultrafiltration
to remove
microbes is currently under investigation [l].
40
Sugar Beets are a Good Ethanol Feedstock
FUELFROMFARMS
The leaves and fibrous residue of sweet sorghum contain large quantities of protein, making the residue from
the extraction of juice or from fermentation a valuable
livestock feed. The fibrous residue can also be used as
boiler feed.
Sweet Sorghum
Yields Grain and Sugar, Both of Which can be
Used as Ethanol Feedstocks
tion of the root that remains after the sugar has been
removed, is bulky and palatable and may be fed in
either wet or dry form. Beet tops have alternative uses
that include leaving them on the field for organic
material (fertilizer) and as cover to lessen soil erosion.
Widespread expansion of sugar beet cultivation is
limited to some extent by the necessity to rotate with
nonroot crops, in order to lower losses caused by a
buildup of nematodes, a parasitic worm that attacks
root systems. A general guideline of one beet crop per
4-year period should be followed. None of the sugar
b&t crop coproducts are suitable for use as a boiler fuel.
Interest in ethanol production from agricultural crops
has prompted research on the development of sugar
crops that have not been cultivated on a widespread
commercial basis in this country. Three of the principal
crops now under investigation are sweet sorghum,
Jerusalem artichokes, and fodder beets.
Sweet Sorghum. Sweet sorghum is a name given to
varieties of a species of sorghum: Sorghum bicolor. This
crop has been cultivated on a small scale in the past for
production of table syrup, but other varieties can be
grown for production of sugar. The most common types
of sorghum species are those used for production of
grain.
There are two advantages of sweet sorghum over sugarcane: its great tolerance to a wide range of climatic and
soil conditions, and its relatively high yield of eihanol
per acre. In addition, the plant can be harvested in three
ways: (I) the whole plant can be harvested and stored in
its entirety; (2) it can be cut into short lengths (about 4
inches long) when juice extraction is carried out immediately; and (3) it can be harvested and chopped for
ensilage. Since many varieties of sweet sorghum bear
significant quantities of grain (milo), the harvesting procedure will have to take this fact into account.
FEEDSTOCKS
Jerusalem Artichokes. The Jerusalem
artichoke
has
shown excellent potential as an alternative sugar crop. A
member of the sunflower family, this crop is native to
North America and well-adapted to northern climates
[2]. Like the sugar beet, the Jerusalem artichoke produces suga; in the top growth and stores it in the roots
and tuber. It can grow in a variety of soils, and it is not
demanding of soil fertility. The Jerusalem artichoke is a
perennial; small tubers left in the field will produce the
next season’s crop, so no plowing or seeding is
necessary.
Although the Jerusalem artichoke traditionally has been
grown for the tuber, an alternative to harvesting the
tuber does exist. It has been noted that the majority of
the sugar produced in the leaves does not enter the tuber
until the plant has nearly reached the end of its productive life (31. Thus, it may be possible to harvest
the Jerusalem artichoke when the sugar content in the
stalk reaches a maximum, thereby avoiding harvesting
the tuber. In this case, the harvesting equipment and
procedures are essentially the same as for harvesting
sweet sorghum or corn for ensilage.
Fodder Beets. Another promising sugar crop which is
presently being developed in New Zealand is the fodder
beet. The fodder beet is a high yielding forage crop obtained by crossing two other beet species, sugar beets
and mangolds. It is similar in most agronomic respects
to sugar beets. The attraction of this crop lies in its
higher yield of fermentable sugars per acre relative to
sugar beets and its comparatively high resistance to loss
of fermentable sugars during storage [4]. Culture of
fodder beets is also less demanding than sugar beets.
Fruit Crops. Fruit crops (e.g., grapes, apricots, peaches,
and pears)
are another
type
of feedstock
in the sugar
crop category. Typically, fruit crops such as grapes are
used as the feedstock in wine production. These crops
are not likely to be used as feedstocks for production
of fuel-grade ethanol because of their high market
value for direct human consumption. However, the
coproducts of processing fruit crops are likely to be used
as feedstocks because fermentation is an economical
method for reducing the potential environmental impact
of untreated wastes containing fermentable sugars.
Starch Crops
In starch crops, most of the six-carbon sugar units are
linked together in long, branched chains (called starch).
Yeast cannot use these chains to produce ethanol. The
starch chains must be broken down into individual six-
41
agricultural crops is focused on unconventional sugar
crops such as sweet sorghum. However, opportunities
also exist for selecting new varieties of grains and tubers
that produce more ethanol per acre. For example, when
selecting a wheat variety, protein content is usually emphasized. However, for ethanol production, high starch
content is desired. It is well known that wheat varieties
with lower protein content and higher starch content
usually produce more grain per acre and, ccnsequently,
produce more ethanol per acre.
Crop Residue
Corn is one of the Most Popular Ethanol Feedstocks,
Due lo its Relatively Low Cost of Production
in Part
carbon units or groups of two units. The starch conversion process, described in the previous chapter, is
relatively simple because the bonds in the starch chain
can be broken in an inexpensive manner by the use of
heat and enzymes, or by a mild acid solution.
From the standpoint of ethanol production, the long,
branched chain arrangement of six-carbon sugar units
in starch crops has advantages and disadvantages. The
principal disadvantage is the additional equipment,
labor, and energy costs associated with breaking down
the chain so that the individual sugar units can be
used by the yeast. However, this cost is not very large in
relation to all of the other costs involved in ethanol production. The principal advantage in starch crops is the
relative ease with which these crops can be stored, with
minimal loss of rhe fermentable portion. Ease of storage
is related to the fact that a conversion step is needed
prior to fermentation: many microorganisms, including
yeast, can utilize individual or small groups of sugar
units, but not long chains. Some microorganisms present in the environment produce the enzymes needed to
break up the chains, but unless certain conditions (such
as moisture, temperature, and pH) are just right, the
rate of conversion is very slow. When crops and other
feeds are dried to about 12% moisture-the percentage
at which most microorganisms cannot survive-the
deterioration of starch and other valuable components
(for example, protein and fats) is minimal. There are
basically two subcategories of starch crops: grains
(e.g., corn, sorghum, wheat, and barley) and tubers
(e.g., potatoes and sweet potatoes). The production of
beverage-grade ethanol from both types of starch crops
is a well established practice.
Much of the current agronomic research on optimizing
the production of ethanol and livestock feed from
42
The “backbone” of sugar and starch crops-the stalks
and leaves-is composed mainly of cellulose. The individual six-carbon sugar units in cellulose are linked
together in extremely long chains by a stronger chemical
bond than exists in starch. As with starch, cellulose
must be broken down into sugar units before it can be
used by yeast to make ethanol. However, the breaking
of the cellulose bonds is much more complex and costly
than the breaking of the starch bonds. Breaking the
cellulose into individual sugar units is complicated by
the presence of lignin, a complex compound surrounding cellulose, which is even more resistant than
cellulose to enzymatic or acidic pretreatment. Because
of the high cost of converting liquefied cellulose into
fermentable sugars, agricultural residues (as well as
other crops having a high percentage of cellulose) are
not yet a practical feedstock source for small ethanol
plants. Current research may result in feasible cellulosic
conversion processes in the future.
Forage Crops
Forage crops (e.g., forage sorghum, Sudan grass) hold
promise for ethanol production because, in their early
stage of growth, there is very little lignin and the conversion of the cellulose to sugars is more efficient. In
addition, the proportion of carbohydrates in the form
of cellulose is less than in the mature plant. Since forage
crops achieve maximum growth in a relatively short
period, they can be harvested as many as four times in
one growing season [5]. For this reason, forage crops
cut as green chop may have the highest yield of dry
material of any storage crop. In addition to cellulose,
forage crops contain significant quantities of starch and
fermentable sugars which can also be converted to
ethanol. The residues from fermentation containing
nonfermentable sugars, protein, and other components
may be used for livestock feed.
The principal characteristics of the feedstock types
considered in this section ale summarized in Table IV-l.
COPRODUCT YIELDS
Ethanol
The yield of ethanol from agricultural
crops can be
FUEL FROM FARMS
TABLE IV-l. SUMMARY
Type of
Feedstock
Sugar Crops (e.g., sugar
beets, sweet sorghum,
sugarcane, fodder beet,
Jerusalem artichoke)
OF FEEDSTOCK
Processing
Needed
Prior to
Fermentation
Milling to extract sugar.
CHARACTERISTICS
Principal
Advantage(s)
Principal
Disadvantage(s)
1. Preparation is minimal.
2. High yields of ethanol
per acre.
3. Crop coproducts have
value as fuel, livestock
feed, or soil amendment.
Starch Crops:
Grains (e.g., corn,
wheat, sorghum, barley)
Milling,
liquefaction,
and saccharification.
1. Storage techniques
well developed.
are
2. Cultivation
practices
are widespread
with
grains.
Tubers (e.g., potatoes,
sweet potatoes)
3. Livestock coproduct is
relatively high in protein.
Cellulosic:
Crop Residues (e.g.,
wheat
corn stover,
straw)
Milling and hydrolysis of
the linkages.
Forages (e.g., alfalfa,
Sudan grass, forage
sorghum
estimated if the amount of fermentable componentssugar, starch, and cellulose-is known prior to fermentation. If the yield is predicted based on percentages at
the time of harvest, then the loss of fermentable solids
during storage must be taken into account. This factor
can be significant in the case of sugar crops, as discussed
earlier.
The potential yield of ethanol is roughly one-half pound
of ethanol for each pound of sugar. However, not all of
the carbohydrate is made available to the yeasts as
fermentable sugars, nor do the yeasts convert all of the
fermentable sugars to ethanol. Thus, for estimating purposes, the yield of ethanol is roughly one gallon for each
15 pounds of sugar or starch in the crop at the time the
material is actually fermented. Because of the many
variables in the conversion of liquefied cellulose to
fermentable sugar, it is difficult to estimate active
ethanol yields from cellulose.
FEEDSTOCKS
1. Use involves no integration with the livestock
feed market.
2. Availability
spread.
I. Storage may result in loss
of sugar.
2. Cultivation practices are
not wide-spread, especially with “nonconventional” crops.
1. Preparation involves additional eyuipment, labor, and energy costs.
2. DDG from aflatoxincontaminated grain is
not suitable as animal
feed.
I. No commercially costeffective process exists
for hydrolysis of the
linkages.
is wide-
Carbon Dioxide
The fermentation of six-carbon sugars by yeast results
in the formation of carbon dioxide as well as ethanol.
For every pound of ethanol produced, 0.957 pound of
carbon dioxide is formed; stated another way, for every
1 gallon of ethanol produced, 6.33 pounds of carbon
dioxide are formed. This ratio is fixed; it is derived from
the chemical equation:
CsH,20,
II)
(glucowJ
2CzH,0H
wham!)
+ 2C02 + heat
(carbon
dioxide)
Other Coproducts
The conversion and fermentation of agricultural crops
yield products in addition to ethanol and carbon dioxide. For example, even if pure glucose is fermented,
some yeast will be grown, and they would represent a
coproduct. These coproducts have considerable eco-
43
Wheat, Like the Other Cereal Grains, Produces High Ethanol
Yields and the Chaff can be Burned for Process Heat
Chopped Forage Crops May Represent Significant
Ethanol
Production Potential as Technology for Their Use Improves
nornic value. but, since they are excellent cultures for
microbial contaminants, they may represent a pollutant
if dumped onto the land. Therefore, it becomes doubly
important that these coproducts be put to good use.
In the case of grains, it is commonplace to cook, ferment, and distill a mash containing the whole grain. The
nonfermentable portion then appears in the stillage (the
liquid drawn off the bottom of the beer column after
stripping off the ethanol). About three-quarters of the
nonfermentable material is in suspension in the form of
solids ranging from very coarse to very fine texture, and
the remainder is in solution in the water. The suspended
material may be separated from the liquid and dried.
The coarser solids, in this case, are distillers’ light
grains. The soluble portion may be concentrated to a
syrup with from 25% to 45% solids, called distillers’
solubles. When dried together with the coarser material,
the product is called distillers’ dark grains. These
nonfermentable solids derived from grain are valuable
as high-protein supplements for ruminants in particular.
However, if very large quantities of grain are
fermented, the g~iu; quantity supplied may exceed the
demand and lower the prices. Fortunately, the potential
demand exceeds the present usage as a protein supplement, since feeding experience has shown that these
coproducts can substitute for a significant part of the
grain. When the liquid stillage is fed either as it comes
from the still or somewhat concentrated, it is especially
valuable, since it permits the substitution of straw for a
significant proportion of the hay (e.g., alfalfa) normally
fed to ruminants.
Sugar crops, after the sugar has been extracted, yield
plant residues which consist mostly of cellulose, unextracted sugar, and protein. Some of this material can
be used as livestock feed, although the quantity and
quality will vary widely with the particular crop. If the
crop is of low feeding value, it may be used as fuel for
the ethanol plant. This is commonplace when sugarcane
is the feedstock.
Sweet sorghum may yield significant quantities of grain
(mile), and the plant residue is suitable for silage, which
is comparable to corn or sorghum silage except that it
has a lower energy value for feeding. Sugar beet pulp
from the production of sugar has always been used for
livestock feed, as have the tops. Jerusalem artichokes,
grown in the Soviet Union on a very large scale, are ensiled and fed to cattle, so the plant residue in this case
would be suitable for silage. All of these residues can
supply significant amounts of protein and roughage to
ruminants.
it is evident that all silage production has the potential
for the production of significant quantities of ethanol
without affecting the present uses or agricultural
markets. By planting silage crops of high sugar content
and extracting a part of the sugar for the production of
ethanol, the ensiled residue satisfies the existing demand
for silage.
Starch feedstock consists mostly of grains and, to a
smaller extent, root crops such as potatoes (white or
sweet). The production of nonfermentable material in
these root crops is much less than in grains, and the use
of the residue is similar.
44
The nonfermcntabie portion of the grain can also be
used as human food. In the wet millir:g industry, the
grain components are normally separated and the oil is
extracted. The starch may be processed for a number of
uses, or it may be used as feedsLock for ethanol production. The gluten (the principal portion of the protein in
the grain) may be separated and processed for sale as,
for example, vital gluten (from wheat) or corn gluten.
As another option, the solids may be sent through the
fermenters and the beer still !o appear as distillers’
grains.
FUEL FROM FARMS
Grain processing as practiced in large plants is not
feasible for small plants. However, a simple form of
processing to produce human food may be feasible.
Wheat can be simply processed to separate the starch
from the combined germ, gluten, and fiber. They form
a cohesive, doughy mass which has long been used as a
base for meat-analogs. This material can also be incorporated into bread dough to enhance its nutritional
value by increasing the protein, fiber, and vitamin
(germ) content.
Work at the University of Wisconsin has resulted in the
development of a simple, practical processing machine
that extracts about 60% of the protein from forage
crops in the form of a leaf juice [6]. The protein in the
juice can be separated in a dry form to be used as a very
high quality human food. The fibrous residue is then in
good condition to be hydrolyzed to fermentable sugars.
Most of the plant sugars are in the leaf juice and, after
separation of the protein, are ready for fermentation.
Forage crops have the potential for producing large
amounts of ethanol per acre together with large
amounts of human-food-grade protein. The protein
production potential is conservatively 1,000 pounds per
acre, equivalent to 140 bushels per acre of 12%-protein
wheat 171.
Representative feedstock composition and coproduct
yields are given in Table IV-2. Appendix D provides additional information
in the table comparing raw
materials for ethanol production. As discussed earlier,
these data cannot be applied to specific analyses without
giving consideration to the variable nature of the composition of the feedstock and the yield per acre of the
crop.
TABLE W-2.
Ethanol Yield
Cereal grains
Potatoes
Sugar beets
2.5 gal/bu
1.4 gal/cwt
20 gal/ton
CONSIDERATIONS
A simple comparison of potential ethanol yield per acre
of various crops will not rank the crops in terms of
economic value for production of ethanol. The crops
vary considerably in their demands on the soil, demands
for water, need for fertilization, susceptibility to disease
or insect damage, etc. These factors critically influence
the economics of producing a crop. Fortunately, forage
crops which have the potential for producing large
amounts of ethanol per acre have specific agronomic
FEEDSTOCKS
The nonfruiting crops, including forage crops, some
varieties of high-sugar sorghum, and Jerusalem artichokes, are less susceptible to catastrophic loss (e.g.,
due to hail, frost, insects, disease, etc.), and, in fact, are
less likely to suffer significant loss of production due to
adverse circumstances of any sort than are fruiting
crops such as grains. Furthermore, forage crops and
Jerusalem artichokes are less demanding in their culture
than almost any grain. Their cost of culture is usually
lower than for grains on the same farm, and they have
great potential for planting on marginal land.
FEEDSTOCK CONSIDERATIONS
It is apparent from the foregoing discussion that the
selection of feedstocks for ethanol production will vary
from region to region, and even from farm to farm. The
results of development work now being carried out will
influence choices but, most significantly, the additional
choices open to farmers resulting from the opportunity
to produce feedstocks for ethanol production from a
large variety of crops will alter the patterns of farming.
It is not possible to predict what new patterns will
evolve. However, it is clear that there will be benefits
from the creation of choices in the form of new markets
for existing crops and alternative crops for existing
markets.
In the near future, ethanol is likely to be produced
primarily from grain. However, the development of
processes for the effective use of other crops should
yield results in the near term which could bring about a
rapid increase in the use of nongrain feedstocks.
REPRESENTATIVE YIELDS
OF SOME MAJOR
DOMESTIC FEEDSTOCKS
crop
AGRONOMIC
advantages relative to some of the principal grain crops
(e.g., corn).
REFERENCES
1. Nathan, R. A. Fuels from Sugar Crops. DOE
Critical Review Series. 1978. Available from NTIS,
#TID-2278 1.
2. Stauffer, M. D.; Chubey, B. B.; Dorrell, D. G.
Jerusalem Artichoke. A publication of Agriculture
Canada, Research Station, P. 0. Box 3001, Morden,
Manitoba, ROG 1JO, Canada. 1975.
3. Incoll, L. D.; Neales, T. F. “The Stem as a Temporary Sink before Tuberization.”
Helianthus
Tuberosus L. Journal of Experimental Botany 21.
(67); 1970; pp. 469-476.
4. Earl, W. B.; Brown, W. A. “Alcohol Fuels from
Biomass in New Zealand: The Energetics and
Economics of Production and Processing.” Third
on Alcohol Fuels
International Symposium
Technology. Vol. I, pp. l-l 1. Aeilomar, CA;
May 28-3 1, 1979.
4.5
5. Linden, J. D.; Hedrick, W. C.; Moreira, A. R.;
Smith, D. H.; Villet, R. H. Enzymatic Hydrolysis of
the Lignocellulosic Component from Vegetative
Forage Crops. Paper presented before the Second
Symposium on Biotechnology in Energy Production
and Conversion; October 3-5, 1979. Available from
James C. Linden, Department of Agricultural and
Chemical Engineering, Colorado State University,
Fort Collins, CO 80523.
46
6. Besken, K. E.; et al. “Reducing the Energy Requirements of Plant Juice Protein Production.“Paper
presented at the 1975 Annual Meeting of the
American Society of Agricultural Engineers; paper
no. 75-1056, 1975.
7. Mann, H. 0.; et al. “Yield and Quality-Sudan,
Sorghum-Sudan, and Pearl Millet Hybrids.” Progress Report, Colorado State University, Fort Collins,
co; 1975.
FUEL FROM FARMS
CHAPTER V
PLANT DESIGN
47
CHAPTER V
PLANT DESIGN
The criteria affecting the decision to produce ethanol
and establishing a production facility can be categorized
into two groups: fixed and variable. The fixed criteria
are basically how much ethanol and coproducts can be
produced and sold. These issues were discussed in
Chapter 11. This chapter is concerned with the second
set of criteria and their effect on plant design.
Plant design is delineated through established procedures which are complex and interrelated. The essential
elements, however, are described here.
The first step is to define a set of criteria which affect
plant design. These criteria (not necessarily in order of
importance) are:
l
amount of labor that can be dedicated to operating
a plant;
. size of initial investment and operating cost that
can be managed in relation to the specific financial
situation and/or business organization;
l
l
l
l
ability to maintain equipment both in terms of time
to do it and anticipated expense;
federal, state, and local regulations on environmental discharges, transportation
of product,
licensing, etc;
intended use (on-farm
chemicals;
use and/or
sales) of
desired form of coproducts;
l
availability
and expense of heat source; and
desired flexibility
in operation and feedstocks.
The second step is to relate these criteria to the plant as
a whole in order to set up a framework or context for
plant operations. The third step is complex and involves
relating the individual systems or components of
production to this framework and to other connected
systems within the plant, Finally, once the major
systems have been defined, process control systems can
be integrated where necessary. This design process leads
.
40
After the process is discussed from overall plant
considerations through individual system considerations
to process control, a representative ethanol plant
is described. It is an example to illustrate ethanol
production technology and not a state-of-the-art or
recommended design.
OVERALL PLANT CONSlDERATlONS
Before individual systems and
specifications are examined,
are examined in relation to
establishes a set of constraints
systems can be correlated.
their resulting equipment
the criteria listed above
the overall plant. This
against which individual
Required Labor
The expense the operation can bear for labor must be
considered. To some extent the latter concern is
modified by the size of plant seiected (the expense for
labor is less per gallon the more gallons produced). If it
is possible to accomplish the required tasks within the
context of daily farming activities, additional outside
labor will not be required. A plant operated primarily
by one person should, in general, require attention only
twice-or at most three times-a day. If possible, the
time required at each visit should not exceed 2 hours.
The labor availability directly affects the amount
and type of control and instrumentation that the plant
requires, but it is not the sole defining criteria for plant
specification.
Maintenance
The plant should be relatively easy to maintain and not
require extensive expertise or expensive equipment.
. safety factors;
l
to specifying equipment for the individual systems and
process control.
Feedstocks
The process should use crop material in the form in
which it is usually or most economically stored (e.g.,
forage crops should be stored as ensilage).
Use
The choice of whether to produce anhydrous or lowerproof ethanol depends upon the intended use or market
and may also have seasonal dependencies. Use of lowerproof ethanols in spark-ignition tractors and trucks
poses no major problems during summertime (or other
FUEL FROM FARMS
Labor Requirements
for Ethanol Production
periods of moderate ambient temperature). Any engine
equipped for dual injection does not require anhydrous
ethanol during moderate seasons (or in moderate
climates). If the ethanol is to be sold to blenders for use
as gasohol, the capability to produce anhydrous ethanol
may be mandatory.
Heat Source
Agricultural
residues, coal, waste wood, municipal
waste, producer gas, geothermal water, solar, and wind
are the preferred possibilities for heat sources. Examples of these considerations are shown in Table V-I.
Each poses separate requirements on the boiler selected,
the type and amount of instrumentation necessary to
fulfill tending (labor) criteria, and the cash flow
necessary to purchase the necessary quantity (if not produced on-farm). This last consideration is modified by
approaches that minimize the total plant energy demand.
can be a Part of the Normal Farm Work Routine
plants; in other areas, the local market may only be able
to absorb the coproducts from one plant. If the latter
situation occurs, this either depresses the local
coproduct market value or encourages the purchase of
equipment to modify coproduct form or type so that it
can be transported to different markets.
Flexibility
in Operation and Feedstocks
Plant profitability
should not hinge on the basis of
theoretical maximum capacity. Over a period of time,
any of a myriad of unforeseen possibilities can interrupt
operations and depress yields. Market (or redundant
commodity) variables or farm operation considerations
may indicate a need to switch feedstocks. Therefore, the
equipment for preparation and conversion should be
capable of handling cereal grain and at least one of the
following:
* ensiled forage materia!;
Safety
0 starchy roots and tubers; or
An ethanol plant poses several specific hazards. Some
of these are enumerated in Table V-2 along with options
for properly addressing them.
* sugar beets, or other
content plant parts.
Coproduct Form and Generation
Sale or use of the coproducts of ethanol production is
an important factor in overall profitability.
Markets
must be carefully weighed to assure that competitive
influences do not dimiuish the value of the coproduct
that resuits from the selected system. In some areas, it
is conceivable that the local demand can consume the
coproduct produced by many closely located small
PLANT DESIGN
storable,
high-sugar-
Compliance with Environmental Regulations and
Guidelines
Liquid and gaseous effluents should be handled in
compliance with appropriate regulations and standards.
Initial Investment and Operating Costs
All of the preceding criteria impact capital or operating
costs, Each criterion can influence production rates
49
---~-
TABLE V-l. HEAT SOURCE SELECTION
Heat
Source
Heating
Value
(dry basis)
.,.
CONSIDERATIONS
Special
Equipment
Form
Boiler
Types
Req’d
Source
Particular
Advantages
Particular
Disadvantages
Agriculture
Residuals
3 ,OOO8,000
Btu/lb
Solid
Handling and
Batch burnerfeeding eqpmt.; fire tube;
collection eqpmt. fluidized bed
Farm
Inexpensive;
produced onfarm
Low bulk
density; requires very
large storage
area
Coal
9,ooo12.ooo
Btu/lb
Solid
High sulfur
coal requires
stack scrubber
Conventional
gratefire tube;
fluidized bed
Mines
Widely available
demonstrated
technology
for combustion
Potentially
expensive;
no assured
availability;
pollution
problems
Waste
Wood
S,OOO12,000
Btu/lb
Solid
Chipper or
log feeder
Conventional
fluidized bed
Forests
Clean burning;
iilexpensive
where available
Not uniformly
available
Municipal
Solid
Waste
8,000
Btu/lb
Solid
Sorting eqpmt.
Fluidized bed Cities
or conventional
fire tube
Inexpensive
Not widely
available in
rural areas
Gas
Pyrolyzerfluidized bed
Conventional
gas-boiler
Can use conventional gas-fired
boilers
Requires additional piece of
equipment
Fuel cost is
zero
Capital costs
for well and
heat exchanger
can be extremely high
-
Pyrolysis
Gas
Steam/
Heat exchanger
hot water
Geothermal
N.A.
Solar
N.A.
Radiation
Wind
N.A.
Kinetic
energy
Heat exchanger Geothermal
water tube
source
Water tube
Collectors,
concentrators,
storage batteries,
or systems
Sun
Fuel cost is
zero
Capital costs
can be high
for required
equipment
Turbines,
Electric
storage batteries,
or systems
Indirect
solar
Fuel cost is
zero
Capital costs
can be high
for required
equipment
which, in turn, change the income potential of the
plant. An optimum investment situation is reached only
through repeated iterations to balance equipment
requirements against cost in order to achieve favorable
earnings.
INDIVIDUAL SYSTEM CONSIDERATIONS
Design considerations
50
Carbonaceous
materials
define separate specific jobs
which require different tools or equipment. Each step
depends upon the criteria involved and influences
related steps. Each of the components and systems
of the plant must be examined with respect to these
criteria Figure V-1 diagrams anhydrous ethanol production. The typical plant that produces anhydrous ethanol
contains the following systems and/or components:
feedstock handling and storage, conversion of car-
FUEL FROM FARMS
bohydrates to simple sugars, fermentation, distillation,
drying ethanol, and stillage processing.
Feedstock Handling and Storage
Grain. A small plant should be able to use cereal
grains. Since grains are commonly stored on farms in
large quantity, and since grain-growing farms have the
basic equipment for moving the grain out of storage,
handling should not be excessively time-consuming. The
increasing popularity of storing grain at high moisture
content provides advantages since harvesting can be
done earlier and grain drying can be avoided. When
stored as whole grain, the handling requirements are
identical to those of dry grain. If the grain is ground and
stored in a bunker, the handling involves additional
labor since it must be removed from the bunker and
loaded into a grainery from which it can be fed by an
auger into the cooker. This operation probably could be
performed once each week, so the grains need not be
ground daily as with whole grain.
Roots and tubers. Potatoes, sugar beets, fodder beets,
and Jerusalem artichokes are generally stored whole in
cool, dry locations to inhibit spontaneous fermentation
by the bacteria present. The juice from the last three can
be extracted but it can only be stored for long periods
of time at very high sugar concentrations. This requires
expensive evaporation equipment and large storage
tanks.
Equipment for Handling and Storage of Crop Residues is Currently Available from Farm Equipment
Manufacturers
PLANT DESIGN
51
TABLE V-2. ETHANOL
PLANT HAZARDS
Precautions
Hazards
1. Overpressurization;
explosion of boiler
.
Regularly maintained/checked
safety boiler
“pop” valves set to relieve when pressure exceeds the maximum safe pressure of the boiler or
delivery lines.
Strict adherence to
operating procedure.
boiler
manufacturer’s
If boiler pressure exceeds 20 psi, acquire ASME
boiler operator
certification.
Continuous
operator attendance required during boiler
operation.
Place baffles around flanges to direct steam jets
away from operating areas.
2. Scalding from steam gasket leaks
(Option) Use welded joints in all steam delivery
lines.
3. Contact burns from steam lines
Insulate all steam delivery lines.
4. Ignition of ethanol leaks/fumes or grain dust
If electric pump motors are used, use fully
enclosed explosion-proof motors.
(Option) Use hydraulic pump drives; main
hydraulic pump and reservoir should be physically isolated from ethanol tanks, dehydration section, distillation columns, condenser.
Fully ground all equipment to prevent static electricity build-up.
Never smoke or strike matches around ethanol
tanks, dehydration section, distillation columns,
condenser.
.
5. Handling acids/bases
Never use metal grinders, cutting torches,
welders, etc. around systems or equipment containing ethanol. Flush and vent all vessels prior
to performing any of these operations.
Never breathe the fumes of concentrated acids or
bases.
Never store concentrated acids in carbon steel
containers.
Mix or dilute acids and bases slowly-allow
of mixing to dissipate.
heat
Immediately flush skin exposed to acid or base
with copious quantities of water.
52
FUEL FROM FARMS
TABLE V-2. ETHANOL
PLANT HAZARDS-Continued
-__---.
Hazards
Precautions
* Wear goggles whenever handling concentrated
acids or bases; flush eyes with water and
immediately call physician if any gets in eyes.
.
Do not store acids or bases overhead work areas
or equipment.
*
Do not carry acids or bases in open buckets.
* Select proper materials of construction for all
acid or base storage containers, delivery aides.
valves, etc.
6. Suffocation
*
Belt conveyers will suffice for handling these root crops
and tubers. Cleaning equipment should be provided to
prevent dirt and rocks frcm building up in the fermentation plant.
Sugar Crops. Stalks from sugarcane, sweet sorghum,
and Jerusalem artichokes cannot be stored for long
periods of time at high moisture content. Drying
generally causes some loss of sugar. Fieid drying has
not been successful in warm climates for sugarcane and
sweet sorghum. Work is being conducted in field drying
for sweet sorghum in cooler climates; results are
encouraging though no conclusions can be drawn yet.
Never enter the fermenters, beer well, or stillage
tank unless they are properly vented.
Enzymatic versus acid hydrolysis. Enzymatic hydrolysis
of the starch to sugar is carried out while cooling the
cooked meal to fermentation temperature. The saccharifying enzyme is added at about 130” F, and this
temperature is maintained for about 30 minutes to allow
nearly complete hydrolysis following which the mash
is cooled to fermentation temperature. A high-activity
enzyme is added prior to cooking so that the starch
is quickly converted to soluble polymeric sugars.
The saccharifying enzyme reduces these sugars to
monomeric sugars. Temperature and pH must be controlled within specific limits or enzyme activity
decreases and cooking time is lengthened. Thus the
Canes or stalks are generally baled and the cut ends and
cuts from leaf stripping are seared to prevent loss of
juice.
A large volume of material is required to produce a
relatively small amount of sugar, thus a large amottnt of
storage space is necessary. Handling is accomplished
with loaders or bale movers.
Conversion of Carbohydrates to Simple Sugars
Processing options avaiiabie for converting
hydrates to simple sugars are:
carbo-
. enzymatic versus acid hydrolysis;
0 high-temperature versus low-temperature cooking;
* continuous versus batch processing; and
0 separation versus nonseparation
nonsolids.
PLANT DESIGN
of fermentable
Crops
for Ethanol
Production
fit Well into Normal
Practices
Rotation
Feedstock
Handling & Storage
.... .:.:.>..:.:...;.,,
“’.-: :+;::.:.x
,....._..,..
“+,
f
water
0
Conversion of
x Carbohydrates to
Simple Sugar
Distillation
Drying
Ethanol
C
Figure V-l. Anhydrous
54
Ethanol Production
Flow Chart
FUEL FROM
FARMS
equipment for heating and cooling and the addition of
acid or base are necessary.
Acid hydrolysis of starch is accomplished by directly
contacting starch with dilute acid to break the polymer
bonds. This process hydrolyzes the starch very rapidly
at cooking temperatures and reduces the time needed
for cooking. Since the resulting pH is lower than desired
for fermentation, it may be increased after fermentation
is complete by neutralizing some of the acid with
either powdered limestone or ammonium hydroxide. It
also may be desirable to add a small amount of glucoamylase enzyme after pH correction in order to convert
the remaining dextrins.
High-temperature
versus low-temperature cooking.
Grain must be cooked to rupture the starch granules and
to make the starch accessible to the hydrolysis agent.
Cooking time and temperature are related in an inverse
ratio; high temperatures shorten cooking time. Industry
practice is to heat the meal-water mixture by injecting
steam directly rather than by heat transfer through the
wall of the vessel. The latter procedure runs the risk of
causing the meal to stick to the wall; the subsequent
scorching or burning would necessitate a shutdown to
clean the surface.
High-temperature
cooking implies a high-pressure
boiler. Because regulations may require an operator in
constant attendance for a high-pressure boiler operation, the actual production gain attributable to the high
temperature must be weighed against the cost of the
operator. If there are other supporting rationale for
havirrg the operator, the entire cost does not have to be
offset by the production gain.
Continuous versus hatch processes. Cooking can be
accomplished with continuous or batch processes. Batch
cooking can be done in the fermenter itself or in a separate vessel. When cooking is done in the fermenter, less
pumping is needed and the fermenter is automatically
sterilized before fermenting each batch. There is one less
vessel, but the fermenters are slightly larger than those
used when cooking is done in a separate vessel. It is
necessary to have cooling coils and an agitator in each
fermenter. If cooking is done in a separate vessel, there
are advantages to selecting a continuous cooker. The
continuous cooker is smaller than the fermenter, and
continuous cooking and hydrolysis lend themselves very
well to automatic, unattended operation. Energy consumption is less because it is easier to use counterflow
heat exchangers to heat the water for mixing the meal
while cooling the cooked meal. The load on the boiler
with a continuous cooker is constant. Constant boiler
load can be achieved with a batch cooker by having a
separate vessel for preheating the water, but this increases the cost when using enzymes.
PLANTDESIGN
Continuous cooking offers a high-speed, high-yield
choice that does not require constant attention.
Cooking at atmospheric pressure with a temperature a
little over 200” F yields a good conversion ratio of
starch to sugar, and no high-pressure piping or pumps
are required.
Separation versus nonseparation of nonfermentable
solids. The hydrolyzed, mash contains solids and
dissolved proteins as well as sugar. There are some
advantages to separating the solids before fermenting
the mash, and such a step is necessary for continuous
fermentation. Batch fermentation requires separation
of the solids if the yeast is to be recycled. If the solids
are separated at this point, the beer column will require
cleaning much less frequently, thus increasing the
feasibility of a packed beer column rather than plates.
The sugars that cling to the solids are removed with the
solids. If not recovered, the sugar contained on the
solids would represent a loss of 20% of the ethanol.
Washing the solids with the mash water is a way of
recovering most of the sugar.
Fermentation
Continuous fermentation. The advantage of continuous
fermentation of clarified beer is the ability to use
high concentrations of yeast (this is possible because
the yeast does not leave the fermenter). The high concentration of yeast results in rapid fermentation and,
correspondingly, a smaller fermenter can be used.
However, infection with undesired microorganisms can
be troublesome because large volumes of mash can be
ruined before the problem becomes apparent.
Batch fermentation. Fermentation time periods similar
to those possible with continuous processes can be attained by using high concentrations of yeast in batch
fermentation.
The high yeast concentrations are
economically feasible when the yeast is recycled. Batch
fermentations of unclarified mash are routinely accomplished in less than 30 hours. High conversion efficiency is attained as sugar is converted to IO%-alcohol
beer without yeast recycle. Further reductions in
fermentation require very large quantities of yeast. The
increases attained in ethanol production must be weighed against the additional costs of the equipment and
time to culture large yeast populations for inoculation.
Specifications of the fermentation tank. The configuration of the fermentation tank has very little influence
on system performance. In generai, the proportions of
the tank should not be extreme. Commonly, tanks are
upright cylinders with the height somewhat greater than
the diameter. The bottom may be flat (but sloped for
drainage) or conical. The construction materials may be
carbon steel (commonplace), stainless steel, copper,
wood, fiberglass, reinforced plastic, or concrete coated
on the inside with sprayed-on vinyl. Usually, the
55
tanks are covered to permit collection of the CO,
evolved during fermentation so that the ethanol which
evaporates with it can be recovered.
Many potential feedstocks are characterized by relatively large amount, c nf
-. fibrous material. Fermentation
of sugar-rich material such as sugar beets, sweet
sorghum, Jerusalem artichokes, and sugarcane as
chips is not a demonstrated technology and it has many
inherent problems. Typically,
the weight of the
nonfermentable solids is equal or somewhat greater
than the weight of fermentable material. This is in
contrast to grain mashers which contain roughly twice
as much fermentable material as nonfermentable
material in the mash. The volume occupied by the
nonfermentable solids reduces the effective capacity
of the fermenter. This means fhat larger fermenters
must be constructed to equal the production rates from
grain fermenters. Furthermore, the high volume of
nonfermentable material limits sugar ccnccntrations
and, hence, the beer produced is generally lower in
concentration (6% versus 10%) than that obtained from
grain mashes. This fact increases the energy spent in
distillation.
Since the nonfermentable solid chips are of larger size, it
is unlikely that the beer containing the solids could be
run through the beer column. It may be necessary to
separate the solids from the beer after fermentation
because of the potential for plugging the still. The
separation can be easily accomplished, but a significant
proportion of the ethanol (about 20%) would be carried
away by the dewatering solids. If recovery is attempted
by “washing out,” the ethanol will be much more dilute
than the beer. Since much less water is added to these
feedstocks than to grain (the feedstock contains large
amounts of water), only part of the dilute ethanol solution from the washing out can be recycled through the
fermenter. The rest would be mixed with the beer,
reducing the concentration of ethanol in the beer which,
in turn, increases the energy required for distillation.
Another approach is to evaporate the ethanol from the
residue. By indirectly heating the residue, the resulting
ethanol-water vapor mixture can be introduced into the
beer column at the appropriate point. This results in a
slight increase in energy consumption for distillation.
The fermenter for high-bulk
feedstocks differs
somewhat from that used for mash. The large volume of
insoluble residue increases the demands on the removal
pump and pipe plugging is more probable. Agitators
must be sized to be self-cleaning and must prevent
massive settling. High-speed and high-power agitators
must be used to accomplish this.
The equipment for separating the fibrous residue from
the beer when fermenting sugar crops could be used also
to clarify the grain mash prior to fermentation. This
56
would make possible yeast recyle in batch fermentation
of grain.
Temperature control. Since there is some heat generated
during fermentation, care must be taken to ensure that
the temperature does not rise too high and kill the yeast.
In fermenters the size of those for on-farm plants, the
heat loss through the metal fermenter walls is sufficient
to keep the temperature from rising too high when
the outside air is cooler than the fermenter. Active
cooling must be provided during the periods when the
temperature differential cannot remove the heat that is
generated. The maximum heat generation and heat loss
must be estimated for the particular fermenter to assure
that water cooling provisions are adequate.
Distillation
Preheater. The beer is preheated by the hot stillage from
the bottom of the beer column before being introduced
into the top of the beer column. This requires a heat exchanger. The stillage is acidic and hot so copper or
stainless steel tubing should be used to minimize corrosion to ensure a reasonable life. Because the solids
are proteinaceous, the same protein build-up that plugs
the beer still over a period of time can be expected on
the stillage side of the heat exchanger. This mandates
accessibility for cleaning.
Beer column requirements. The beer column must
accept a beer with a high solids content if the beer is
not clarified. Not only are there solids in suspension,
but also some of the protein tends to build up a rather
rubbery coating on all internal surfaces. Plate columns
offer the advantage of relatively greater cleaning ease
when compared to packed columns. Even if the beer is
clarified, there will be a gradual build-up of protein on
the inner surfaces. This coating must be removed
periodically. If the plates can be removed easily, this
cleaning may be done outside of the column. Otherwise,
a caustic solution run through the column will clean it.
The relatively low pH and high temperature of the beer
column will corrode mild steel internals, and the use of
stainless steel or copper will greatly prolong the life expectancy of the plates in particular. Nevertheless, many
on-farm plants are being constructed with mild steel
plates and columns in the interest of low first cost and
ease of fabrication with limited shop equipment. Only
experience will indicate the life expectancy of mild steel
beer columns.
Introducing steam into the bottom of the beer column
rather than condensing steam in an indirect heat exchanger in the base of the column is a common practice.
The latter procedure is inherently less efficient but does
not increase the total volume of water in the stillage
as does the former. Indirect heating coils also tend to
suffer from scale buildup.
FUELFROMFARMS
Rectifying column. The rectifying column does not
have to handle liquids with high solids content and there
is no protein buildup, thus a packed column suffers no
inherent disadvantage and enjoys the advantage in
operating stability. The packing can be a noncorroding
material such as ceramic or glass.
General considerations. Plate spacing in the large
columns of commercial distilleries is large enough to
permit access to clean the column. The small columns of
on-farm plants do not require such large spacing. The
shorter columns can be installed in farm buildings of
standard eave height and are much easier to work on.
All items of equipment and lines which are at a
significantly higher temperature than ambient should
be insulated, including the preheated beer line, the
columns, the stillage line, etc. Such insulation is more
significant for energy conservation in small plants than
for large plants.
other column. The total energy requirement for
regeneration may be significant (the heat of absorption
for some synthetic zeolites is as high as 2,500 Btu/lb).
Sieve material is available from the molecular sieve
manufacturers listed in Appendix E, but columns of the
size required must be fabricated. The molecular sieve
material will probably serve for 2,000 cycles or more
before significant deterioration occurs,
Selective absorption. Another very promising (though
undemonstrated) approach to dehydration of ethanol
has been suggested by Ladisch [l]. Various forms of
starch (including cracked corn) and cellulose selectively
absorb water from ethanol-water vapor. In the case of
grains, this opens the possibility that the feedstock
could be used to dehydrate the ethanol and, consequently, regeneration would not be required. More investigation and development of this approach is needed.
Stillage Processing
Drying Ethanol
Addition of a third liquid to the azeotrope. Ethanol can
be dehydrated by adding a third liquid such as gasoline
to the 190-proof constant boiling azeotrope. This liquid
changes the boiling characteristics of the mixture and
further separation to anhydrous ethanol can be accomplished in a reflux still. Benzene is used in industry
as a third liquid, but it is very hazardous for on-farm
use. Gasoline is a suitable alternative liquid and does
not pose the same health hazards as benzene, but it fractionates in a distillation column because gasoline is a
mixture of many organic substances. This is potentially
an expensive way co break the azeotrope unless the
internal reflux is very high, thereby minimizing the loss
of gasoline from the column. Whatever is choosen for
the third liquid, it is basically recirculated continually in
the reflux section of the drying column, and thus only
very small fractions of makeup are required. The additional expense for equipment and energy must be weighed carefully against alternative drying methods or product value in uses that do not require anhydrous
ethanol .
Molecular sieve. The removal of the final 4% to 6%
water has also been accomplished on a limited basis
using a desiccant (such as synthetic zeolite) commonly
known as a molecular sieve. A molecular sieve selectively absorbs water because the pores of the material
are smaller than the ethanol molecules but larger than
the water molecules. The sieve material is packed into
two columns. The ethanol-in
either vapor or liquid
form-is passed through one column until the material
in that column can no longer absorb water. Then the
flow is switched to the second column, while hot
(450” F) and preferably nonoxidizing gas is passed
through the first column to evaporate the water. Carbon
dioxide from the fermenters would be suitable for this.
Then the flow is automatically switched back to the
PLANTDESIGN
The stillage can be a valuable coproduct of ethanol production. The stillagc from cereal grains can be used
as a high-protein component in animal feed rations,
particularly for ruminants such as steers or dairy cows.
Small on-farm plants may be able to directly use the
whole stillage as it is produced since the number of
cattle needed to consume the stillage is not large (about
one head per gallon of ethanol production per day).
Solids separation. The solids can be separated from the
water to reduce volume (and hence shipping charge;)
and to increase storage life. Because the solids contain
residual sugars, microbial contaminants rapidly spoil
stillage if it is stored wet in warm surroundings. The
separation of the solids can be done easily by flowing
the stillage over an inclined, curved screen consisting of
a number of closely-spaced transverse bars. The solids
slide down the surface of the screen, and the liquid
flows through the spaces between the bars. The solids
come off the screen with about 85% water content,
dripping wet. They can drop off the screen into the
hopper of a dewatering press which they leave at about
65% water content. Although the solids are still damp,
no more water can be easily extracted. The liquid from
the screen and dewatering press contains a significant
proportion of dissolved proteins and carbohydrates.
Transporting solids. The liquid from the screen and
dewatering press still contains a significant proportion
of dissolved proteins and carbohydrates. If these damp
solids are packed in airtight containers in CO, atmosphere, they may be shipped moderate distances and
stored for a short time before microbes cause major
spoilage. This treatment would enable the solids from
most small plants to reach an adequate market. While
the solids may easily be separated and dewatered, concentrating the liquid (thin stillage) is not simple. It can
be concentrated by evaporation, but the energy con-
!j7
-
sumptim is high unless multiple-effect evaporators are
used. These evaporators are large and expensive, and
may need careful management with such proteinaceous
liquids as thin stillage.
Stillage from aflatoxin-contaminated
grains or those
treated with antibiotics are prohibited from use as
animal feed.
Distillers’ solubles, which is the low-concentration
(3% to 4% solids) solution remaining after the solids are
dewatered, must be concentrated to a syrup of about
25% solids before it can be economically shipped moderate distances or stored for short times. In this form it
can be sold as a liquid protein to be used in mixed feed
or it can be dried along with the damp distillers’ grains.
Disposing of thin stillage. If the distance from markets
for the ethanol coproduct necessitates separating and
dewatering the stillage from an on-farm plant, and if the
concentration of the stillage for shipment is not feasible,
then the thin stillage must be processed so that it will
not be a pollutant when discharged. Thin stillage can be
anaerobically fermented to produce methane. Conventional flow-through type digesters are dependent upon
so many variables that they cannot be considered commercially feasible for on-farm use. Experimental work
with packed-bed digesters is encouraging because of the
inherent stability observed [I].
Another way to dispose of the thin stillage is to apply it
to the soil with a sprinkler irrigation system. Trials are
necessary to evaluate the various processes for handling
the thin stillage, Because the stillage is acidic, care
must be taken to assure that soil acidity is not adversely
affected by this procedure.
PROCESS CONTROL
Smooth, stable, and trouble-free operation of the whole
plant is essential to efficient conversion of the crop
material. Such operation is, perhaps, more important to
the small ethanol plant than to a Iarger plant, because
the latter can achieve efficiency by dependence on
powerful control systems and constant attention from
skihed operators. Process control begins with equipment characteristics and the integration of equipment.
There is an effect on every part of the process if the
conditions are‘changed at any point. A good design will
minimize negative effects of such interactions and will
prevent any negative disturbance in the system from
growing. Noncontinuous processes (e.g.,batch fermentation) tend to minimize interactions and to block such
disturbances. The basic components requiring process
control in a small-scale ethanol plant are cooking and
hydrolysis, fermentation, distillation, ethanol drying
system pumps and drives, and heat source.
58
Control of Cooking and Hydrolysis
Input control. All inputs to the process must be controlled closely enough so that the departures from the
desired values have inconsequential effects. The batch
process has inherently wider tolerances than the continuous process. Tolerances on the grain-water ratio can
be fairly loose. A variation of %% in ethanol content
will not seriously disturb the system. This corresponds
to about a 3% tolerance on weight or volume measure.
Meal measurement should be made by weight, since the
weight of meal filling a measured volume will be sensitive to many things, such as grain moisture content, atmospheric humidity, etc. Volmme measurement of water
is quite accurate and easier than weighing. Similarly,
volume measurement of enzymes in liquid form is
within system tolerances. Powdered enzymes ideally
should be measured by weight but, in fact, the tolerance
on the proportion of the enzymes is broad enough so
that volume measure also is adequate.
Temperature, pH, and enzyme control. The temperature, pH, and enzyme addition must also be controlled. The allowed variation of several degrees
means that measurement of temperature to a more than
adequate precision can be easily accomplished with
calibrated, fast-response indicators and read-outs. The
time dependence brings in other factors for volume and
mass. A temperature measurement shouid be representative of the whole volume of the cooker; however, this
may not be possible because, as the whole mass is
heating, not all parts are receiving the same heat input at
a given moment since some parts are physically far
removed from the heat source. This affects not only the
accuracy of the temperature reading but also the cooking time and the action of the enzyme. Uniformity of
temperature and of enzyme concentration throughout
the mass of cooking mash is desired and may be attained
by mixing the mass at a high rate. Thus, agitation is
needed for the cooker. The temperature during the
specific phases of cooking and hydrolysis must be controlled by regulating steam and cooling water flow-rates
based on temperature set-points.
Automatic controls. An automatic controller could be
used to turn steam and cooiing water on and off. The
flow of meal, water, enzymes, and yeast could be turned
on and off by the same device. Therefore, the loading
and preparation of a batch cooker or fermenter could
easily be carried out automatically. Safety can be
ensured by measuring limiting values of such quantities
as temperature, water level, pH, etc., and shutting down
the process if these were not satisfied. Any commercial
boiler used in a small plant would be equipped with
simple, automatic controls including automatic shutdown in case certain conditions are not met. There is a
need for an operator to check on the system to assure
that nothing goes wrong. For example, the mash can set
FUELFROMFARMS
up during cooking, and it is better to have an operator
exercise judgment in this case than to leave it entirely to
the controls. Since cooking is the step in which there is
the greatest probability of something going wrong, an
operator should be present during the early, critical
stages of batch cooking. If continuous cooking is used,
unattended operation requires that the process be well
enough controlled so that there is a small probability of
problems arising.
Control of Fermentation
Temperature and pH control. Batch fermentation does
not need direct feedback control except to maintain
temperature as long as the initial conditions are within
acceptable limits. For the small plant, these limits are
not very tight. The most significant factors are pH and
temperature. Of the two, temperature is most critical. It
is very unlikely that the change in pH will be great
enough to seriously affect the capacity of the yeast to
convert the sugar. Fermentation generates some heat, so
the temperature of the fermenter tends to rise. Active
cooling must be available to assure that summertime
operations are not drastically slowed because of hightemperature yeast retardation.
The temperature of the fermenter can be measured and,
if the upper limit is exceeded, cooling can be initiated.
It is possible to achieve continuous control of the
fermenter temperature through modulation of the
cooling rate of the contents. Such a provision may be
necessary for very fast fermentation.
Automatic control. Continuous fermentation, like continuous cooking, should have continuous, automatic
control if constant attendance by an operator is to be
avoided.
The feasibility of continuous, unattended fermentation
in on-farm plants has not been demonstrated, although
it is a real possibility.
Control with attention at intervals only. The feasibility
of batch fermentation with attention at intervals
has been established. After initiating the cooking
and hydrolysis steps, the operator could evaluate the
progress of fermentation at the end of the primary
phase and make any adjustments necessary to assure
successful completion of the fermentation. This interval
between the points requiring operator attention can vary
widely, but is usually from 8 to 12 hours. Fermentation
can be very fast-as short as 6 hours-but the conditions and procedures for reliably carrying out such fast
fermentations have not yet been completely identified
and demonstrated. The schedule for attending the plant
should allow about 15% additional time over that expected for completion of the fermentation process. This
permits the operator to maintain a routine in spite of inevitable variations in fermentation time.
PLANTDESIGN
Controls for Distillation
The distillation process lends itself well to unattended
operation. Continuous control is not mandatory
because the inputs to the columns can easily be established and maintained essentially constant. These inputs
include the flow rate of beer, the flow rate of steam, and
the reflux flow rate. These are the only independent
variables. Many other factors influence column operation, but they are fixed by geometry or are effectively
constant. Once the distillation system is stabilized,
only changes in ambient temperature might affect the
flow balance as long as the beer is of constant ethanol
content. Sensitivity to ambient temperature can be
minimized by the use of insulation on all elements of the
distillation equipment, and by installing the equipment
in an insulated building. Occasional operator attention
will suffice to correct the inevitable slow drift away
from set values. The system also must be adjusted for
changes in ethanol content from batch to batch.
Distillation column design can aid in achieving stable
operation. Packed columns are somewhat more stable
than plate columns, particularly as compared to simple
sieve plates.
Starting up the distillation system after shutdown
is not difficult and can be accomplished either manually or automatically. An actual sequence of events is
portrayed in the representative plant described at the
end of this chapter. The process is quite insensitive to
the rate of change of inputs, so the demands made on
the operator are not great. It is important that the
proper sequence be followed and that the operator
know what settings are desired for steady-state operation.
Control of Ethanol Drying System
Operation of a molecular sieve is a batch process.
As such, it depends on the capacity of the desiccant to
ensure completion of drying. No control is necessary
except to switch ethanol flow to a regenerated column
when the active column becomes water-saturated.
Water saturation of the sieve can be detected by a rise
in temperature at the discharge of the column. This
temperature rise signals the switching of flow to the
other column, and regeneration of the inactive column
is started immediately. The regeneration gas, probably
CO, from the fermenter, is heated by flue gas from the
boiler. The control consists of initiating flow and
setting the temperature. The controller performs two
functions: it indicates the flow and sets the temperature
of the gas. Two levels of temperature are necessary: the
first (about 250 o F) is necessary while alcohol clinging to
the molecular sieve material is being evaporated; the second (about 450” F) is necessary to evaporate the adsorbed water. Here again, the completion of each phase
of the regeneration cycle is signaled by a temperature
change at the outlet from the column. Finally, the col-
59
Cooker/Fermenter
(3 Places)
Figure V-2. Generic
umn is cooled by passing cool CO, through it until
another outlet temperature change indicates completion
of the regeneration cycle. The controls required for a
dehydration distillation column are essentially the same
as those required for the rectification column.
Controls for Pumps and Drives
The pumps used in this plant can be either centrifugal or
any one of a number of forms of positive displacement
pumps. The selection of the pump for mash or beer
needs to take into account the heavy solids loading
(nearly 25% for mash), the low pH (down to 3.5 for
the beer), and the mild abrasive action of the mash.
The pumps might be powered by any of a number of
different motors. The most probable would be either
electric or hydraulic. If electric motors are used,
they should be explosion-proof. Constant speed electric motors and pumps are much less expensive than
variable-speed motors. Control of the volume flow
for the beer pump, the two reflux pumps, and the
product pump would involve either throttling with a
valve, recirculation of part of the flow through a valve,
60
or variable-speed pumps. Hydraulic drive permits the
installation of the one motor driving the pumps to be
located in another part of the building, thereby
eliminating a potential ignition source. It also provides
inexpensive, reliable, infinitely variable speed control
for each motor. Hydraulic drives could also be used for
the augers, and the agitators for the cookers and
fermenters. Since hydraulics are used universally in
farm equipment, their management and maintenance is
familar to farmers.
Heat Source Controls
There are basically two processes within the ethanol
production system that require heat: the cooking and
the distillation steps. Fortunately, this energy can be
supplied in low-grade heat (less than 250” F). Potential sources of heat include coal, agriculture residues,
solar, wood wastes, municipal wastes, and others.
Their physical properties, bulk density, calorific
value, moisture content, and chemical constituency vary
widely. This, in turn, requires a greater diversity in
equipment for handling the fuel and controls for
operating the boilers. Agriculture residues vary in bulk
FUEL FROM FARMS
Ethanol Storage Tank
\
Output Valve
Stiilage T
Pump
Column
#2 Reflux Pump
Anhydrous
Ethanol
Plant
density from 15 to 30 pounds per cubic foot and the
calorific value of oven-dry material is generally around
8,000 Btu per pound. This means that a large volume of
fuel must be fed to the boiler continuously. For
example, a burner has been developed that accepts
large, round bales of stover or straw. The boiler feed
rate will vary in direct proportion to the demand for
steam. This in turn is a function of the distillation
rate, the demand for heat for cooking (which varies in
relation to the type of cooker and fermenter
used-batch or continuous).
Emissions. Emissions controls on the boiler stack are
probably minimal, relying instead upon efficient burner
operation to minimize particulate emissions. If exhaust
gas scrubbers or filters are required equipment, they in
turn require feedback control. Filters must be changed
on the basis of pressure drop across them which indicates the degree of loading (plugging). Scrubbers require control of liquid flow rate and control of critical
chemical parameters.
Boiler safety features. Safety features associated with
PLANT DESIGN
the boiler are often connected to the control scheme to
protect the boiler from high-pressure rupture and to
prevent burnout of the heat expander tubes. Alarm
systems can be automated and have devices to alert an
operator that attention is needed. For instance, critical
control alarms can activate a radio transmitter, or
“beeper,” that can be worn by the farmer while performing other normal work routine.
REPRESENTATIVE ETHANOL PLANT
General descriptions of major components serve only
to define possibilities. In the previous section, considerations for specifying the appropriate equipment to
accomplish desired objectives were examined. The
following is a description of a specific representative
ethanol plant producing ethanol and wet stillage. This
representative plant normally produces 25 gallons of
anhydrous ethanol per hour. The distillation section
can be operated continuously with shutdown as required
to remove protein buildup in the beer column. Heat is
provided by a boiler that uses agricultural residue as
fuel. The plant is designed for maximum flexibility, but
61
its principal feedstocks are cereal grain, with specific
emphasis on corn.
This representative plant should not be construed as a
best design or the recommended approach. Its primary
purpose is to illustrate ethanol production technology.
Overview of the Plant
As shown in Figure V-2, the representative plant has
seven main systems: (1) feed preparation and storage,
(2) cooker/fermenter,
(3) distillation,
(4) stillage
storage, (5) dehydration, (6) product storage, (7) and
boiler. Grain from storage is milled once a week to fill
the meal bin. Meal from the bin is mixed to make mash
in one of three cooker/fermenters. The three cooker/fermenters operate on a staggered schedu!e-one
starting, one fermenting, and one pumping out-to
maintain a full beer well so the distillation section can be
run continuously. The beer well provides surge capacity
so that the fermenters can be emptied, cleaned, and
restarted without having to wait until the still can drain
them down. Beer is fed from the beer well to the beer
still through a heat exchanger that passes the cool beer
counter-current to the hot stillage from the bottom of
the beer still. This heats up the beer and recovers some
of the heat from the stillage.
The beer still is a sieve-plate column. The feed is
introduced at the top of the stripping section. Vapors
from the beer column flow into the bottom of the rectifying column where the ethanol fraction is enriched to
95%. The product is condensed and part of u is recycled
(refluxed) to the top of the column a?d il‘ ethanol
is being dried at the time, part of it is pumped to the
dehydration section. If the ethanol is not being dried, it
flows directly to a storage tank for 190-proof ethanol (a
separate tank must be used for the anhydrous ethanol).
The stillage that is removed from the bottom of the beer
column is pumped through the previously mentioned
heat exchanger and is stored in a “whole stillage”
tank. This tank provides surge capacity when a truck is
unavailable to haul the stillhge to the feeder operation.
The distillation columns are designed for inherent
stability once flow conditions are established so a
minimum of automatic feedback control and insirumentation is required. This not only saves money for
this equipment but it reduces instrument and/or
controller-related
malfunctions. Material flows for
cooling and fermentation are initiated manually but
proceed automatically. A sequencer microprocessor (a
miniature computer) controls temperature and pH in
the cooker/fermenters. It also activates addition of
e.lzymes and yeast iu the proper amounts at the proper
times. At any point, the automatic sequence can be
manually overridden.
62
The period of operation is quite flexible, and allows for
interruptions of operation during planting or harvest
time. The 25 gallons per hour production is a nominal
capacity, not a maximum. All support equipment is
similarly sized so that slightly higher production rates
can be achieved if desired.
The control and operating logic for the plant is based on
minimal requirements for operator attention. Critical
activities are performed on a routine periodic basis so
that other farming operations can be handled during the
bulk of the day. All routines are timed to integrate with
normal chore activities without significant disruption.
A complete equipment list is given in Table V-3. The
major components are descrrbed in Table V-4.
Start-Up and Shutdown
The following is a sequence for starting-up or shutting
down the plant.
Preliminaries. For the initial start-up, a yeast culture
must be prepared or purchased. The initial yeast culture
can use a material such as molasses; later cultures can be
grown on recycled stillage. Yeast, molasses, and some
water should be added to the yeast culture tank to make
the culture. Although yeasts function anaerobically,
they propagate aerobically, so some oxygen should be
introduced by bubbling a small amount of air through
the culture tank. The initial yeast culture will take about
24 hours to mature.
At this time, the boiler can be started. Instructions
packaged with the specific boiler will detail necessary
steps to bring the unit on-line (essentially the boiler
is filled with water and the heat source started). These
instructions should be carefully followed, otherwise
there is the possibility of explosion.
The next step is the milling of grain for the cooker/
fermenter. Enough grain should be milled for two
fermentation batches (about 160 bushels).
Prior to loading the fermenter, it should be cleaned well
with a strong detergent, rinsed, decontaminated with a
strong disinfectant, and then rinsed with cold water to
flush out the disinfectant.
Mash Preparation. The amount of meal put in the
cooker/fermenter depends upon the size of batch
desired. For the first batch it is advisable to be conservative and start small. If the batch is ruined, not
as much material is wasted. A 2,000-gallon batch would
be a good size for this representative plant. This will
require mixing 80 bushels of ground meal with about
500 gallons of water to form a slurry that is about 4007~
starch.
FUEL FROM FARMS
TABLE V-3. EQUIPMENT
Equipment
Grain Bin
l
FOR REPRESENTATIVE
Description
Equipment
ground carbon steel
Heat Exchanger
PLANT
Description
l
.
l
360 bu with auger for measuring
and loading cooker/fermenter
Back-Pressure
Regulators
. O-50 in. of water
Back-Pressure
Regulator
.
Beer Storage
Tank
Condenser,
Distiller
6,000-gal
9 carbon steel
l
l
Condenser
l
l
l
Cooker,
Fermenter
l
Beer Still
l
.
l
l
225 ft’, tube and shell
copper coil (single tube, 1%-ft
diameter)
steel shell cooled
Hydraulic
System for
Pumps
.
. 300 bu/hr
. roller type
Beer Pump
. positive displacement
. hydraulic drive
. variable speed
. carbon steel, 50 gal/min
Yeast Pump
. positive displacement
. hydraulic drive
. variable speed
. carbon steel, 10 gal/min
to control heat for cooking,
cooling water during
fermentation, and addition of
enzymes
Feed Pump
.
.
.
.
.
300 gal/hr
variable speed
positive displacement
hydraulic drive
carbon steel
18-ft height
1-ft diameter
sieve trays
carbon steel
Stillage Pump
.
.
.
.
.
300 gal/hr
variable speed
positive displacement
hydraulic drive
carbon steel
50 ft2
copper coil (single tube)
steel shell
l
Compressor
l
1,500 ft’/hr,
Frangibles
l
l
l
l
Column 2
Bottoms Pump
co,
l
l
PLANT DESIGN
with shut-off valves tied to
microprocessor monitoring pump
pressures and frangible vent
temperature
Grain Mill
24-ft height
I-ft diameter
sieve trays
carbon steel
Alcohol Still
l
0 4,500-gal
l
hydraulic agitator
l
carbon steel
Microprocessor
100 ft*
. stack gas
. carbon steel
Heat Exchanger
100-200 psig
l
l
.
150 ft’, tube and shell
copper coil (single tube, 2-in.)
diameter)
steel shell
200 psig
4-5 psig burst
alarm system
high and low pressure
Column 2
Product and
Reflux Pump
. 250 gal/hr
. open impeller
. centrifugal hydraulic drive
. carbon steel
. 200 gal/hr
63
TABLE V-3. EQUIPMENT
open impeller
centrifugal hydraulic drive
carbon steel
l
l
l
centrifugal
explosion-proof
50 gal/min
l
l
l
Water Pump
Rotameter
Pressure
Transducers
l
Ethanol Drying
Co!amns
l
Condensate
Receiver
l
water fluid
glass
25 gal/min
l
. glass
l
O-250 gal/hr
glass
. O-150 gal/hr
Rotameter
l
Rotameter
l
glass
O-50 gal/hr
l
l
l
l
glass
200 psig
100 actual ft”/hr
Ethanol Storage
Tank
carbon steel
9,000-gal
CO, Storage
l
lOO-gal, 200 psig
Stillage Storage
Tank
l
Thermocouples
l
Multichannel
Digital
Temperature
Readout
l
15 channels
Water Softener
l
300 gal/hr
Yeast Culture
Tank
l
4,500-gal
. carbon steel
type K, stainless sheath
Metering
Valve-6
Stillage Pump
. electric motor
l
positive displacement
l
600 gal/hr
Snap Valve
6, O-100 psig
1, O-200 psig
l
Ball Valve-65
Three-Way
Valve-4
l
30-gal, horizontal
carbon steel
l
. 500 hp, with sillage burning
system
l
includes molecular sieve packing
3-angstrom synthetic zeolite
l
Boiler
Pressure Gauges
4, O-100 psig
motor
electric
l
open impeller
l
centrifugal
0 300 gal/mm
l
Rotameter-CO1
Description
l
l
Rotameter
PLANT-Continued
Equipment
Description
Equipment
Ethanol
Transfer Pump
FOR REPRESENTATIVE
l
carbon steel
200-gal
TABLE V-4. FEATURES OF MAJOR PLANT COMPONENTS
Components
Features
Features
I Components
Feedstock Storage and Prepsration
Grain Mill
64
l
roller mill that grinds product to
pass a 20-mesh screen
Meal Bin
l
corrugated, rolled galvanized steel
with 360-bu capacity
FUELFROMFARfvd
TABLE V-4. FEATURES OF MAJOR PLANT COMPONENTS-Continued
Features
Components
Auger
l
Trip buckets
l
Components
Features
top-mounted feed port
used for feeding meal to
cooker/fermenter
hydraulic agitator
used to automatically measure
meal in proper quantity; as
buckets fill. they become
unbalanced and tip over into the
cooker/fermenter; each time a
bucket tips over, it trips a
counter; after the desired number
of buckets are dumped, the
counter automatically shuts off
the auger and resets itself to zero
cooling coils
pH meter
sodium hydroxide tank
dilute sulfuric acid tank
temperature-sensing control,
preset by sequences
Cooker/Fermenter
3 Cookers
. 4,500-gal right cylinder made of
cold-rolled, welded carbon steel
.
Glucoamylase
Enzyme
.
Tanks
.
steam injection
5-gal capacity
fitted with stirrer
. ball-valve port to
cooker/fermenter triggered by
sequencer
Sequencer
l
.
controls cooking fermentation
sequences
actuates ball-valve to add
glucoamylase enzyme after
temperature drops from
liquefaction step
. sequences temperature conti oiler
for cooker/fermenter
. sets pH reading for pH controller
according to step
6,OWgal capacity
cold-rolled, welded carbon steel
flat top
Figure V-3. Cooker/Fermenter
* flat top
PLANT DESIGN
l
conical bottom
l
ball-valve drain port
conical bottom
ball-valve port at bottom
man-way on top, normally kept
closed (used for cleaning access
only)
TABLE
OF MAJOR
PLANT
COMPONENTS-Continued
Components
Features
Components
Beer/Stillage
Heat
Exchanger
V-4. FEATURES
Features
steam introduced at bottom
through a throttle valve
l
2-ft diameter, 3-ft tall-beer
flows through coil, stillage flows
through tank
l
. pump at the bottom to pump
stillage out, hydraulic motor on
pump
input and output flows are
controlled through manually
ad.ilrsted throttle valves
l
sal’ety relief valves prevent excess
pressure in column
l
instrumentation includes
temperature indication on feed
line and at the bottom of the still,
sight-glass on bottom to maintain
liquid level, pressure indicators
on the outlet of the stillage pump
l
Figure
Beer Pump
V-4. BeerlStillage
pump from any of the three
cooker/fermenters to beer well,
hydraulic motor on pump
l
Figure
Feed Pump
Heat Exchanger
l
V-5. Beer Pump
pump beer to distillation system,
hydraulic motor on pump
Figure
Rectifying
Column
Distillation
l
l
Beer Still
l
l
66
20-ft tall
I-ft diameter
I-ft diameter
l
l
V-6. Beer Still
20-ft tall coated carbon steel pipe
with flanged top and bottom
fitted with a rack of sieve trays
that can be removed either
through the top or bottom
l
coated carbon steel pipe with
flanged top, welded bottom to
prevent ethanol leaks
fitted with rack of sieve-plates
which can be removed through
the top
FUEL FROM FARMS
TABLE
Components
l
V-4. FEATURES
OF MAJOR
PLANT
COMPONENTS-Continued
Features
Components
pump at bottom of column
refluxes ethanol at set rate back
to beer still, rate is set with
throttle valve and rotameter,
hydraulic motor on pump
Dehydration
Features
Secton
2 Molecular
Sieves
packed bed
l
synthetic zeolite, type
3A-molecular sieve material
l
automatic regeneration
l
automatic temperature control
during regeneration
l
0 throttle flow control to sieves
adjusted manually
Figure
V-7. Rectifying
l
Column Rotameter
instrumentation consists of
temperature indication at top
and bottom of column and level
indication at bottom by sightglass, pressure is indicated on the
outlet of the recirculation pump
Figure
V-9. Molecular
Sieves
co*
Compressor
Denaturing
Tank
Ethanol
Rectifying
Condenser
l
l
PLANT DESIGN
Column Sight-Glass
ethanol condenses (in copper
coil), water flows through tank
cooling water flow-rate is
manually adjusted
l
meets Bureau of Alcohol,
Tobacco, and Firearms
specifications (See Appendix B)
Storage
2 Ethanol
Storage Tanks
FigureV-8.
. 2-stage air compressor with
reservoir (conventional)
Stillage
Storage
Tank
l
3 ,OOO-galcapacity each
l
same as gasoline storage tanks
l
cold-rolled, welded carbon steel
l
6,000-gal capacity
l
cold-rolled, welded carbon steel
67
Cooking. The water and meal are blended together as
they are added to the cooker/fermenter. It is crucial
to use rates that promote mixing and produce no lumps
(the agitator should be running). The alpha-amylase
enzyme can be blended-in during the mixing (the enzyme must be present and well mixed before the
temperature is raised because it is very difficult
to disperse the enzyme after gelatinization occurs).
Since cooking in this representative plant is initiated by
steam injection during slurry-mixing, the enzyme must
be blended in simultaneously. (Dry enzymes should be
dispersed in a solution of warm water before mixing is
started. This only takes a small amount of water, and
the directions come on the package. Liquid enzymes can
be added directly.) If the pH is lower than 5.5, it should
be adjusted by addition of a calculated amount of
sodium hydroxide. If the pH is higher than 7.0, a
calculated amount of sulfuric acid should be added.
Steam is added at a constant rate to achieve uniform
heating. When .ne temperature reaches 140” F (60” C),
the physical characteristics of the mash change
noticeably as the slurry of starch becomes a solution of
sugar. If there is insufficient enzyme present or if
heating is too rapid, a gel will result that is too thick to
stir or add additional enzyme to. If a gel does form,
more water and enyzme can be added (if there is room in
the tank) and the cook can start over.
Once liquefaction occurs, the temperature is uniformly
raised to the range for optimum enzyme activity (about
200’ F) and held for about half an hour. At the end of
this time, a check is made to determine if all of the
starch has been converted to sugar. A visual inspection
usually is sufficient; incomplete conversion will be indicated by white specks of starch or lumps; a thin, fluid
mash indicates good conversion. The mash is held at
this temperature until most of the starch is converted to
dextrin.
Saccharification. Once the mash is converted to dextrin,
the microprocessor is manually started and (1) reduces
the temperature of the mash to about 135 ’ F (57 ’ C) by
circulating cooling water through the coils; and (2) ar’ds
dilute sulfuric acid (H,SO,) until the pH drops to between 3.7 and 4.5 (H2SOd addition is controlled by a pH
meter and a valve on the H,SO, tank). Once the pH and
temperature are within specified ranges, the microprocessor triggers the release of liquid glucoamylase
(which must be premixed if dry enzyme is used) from its
storage tank. Either sodium hydroxide or sulfuric acid is
added automatically as required to maintain proper pH
during conversion. The microprocessor also holds the
mash at a constant temperature by regulating steam
and/or cooling water flow for a preset period of time.
The sequencer can be overridden if the conversion is not
complete.
68
Fermentation. After hydrolysis is complete, the sequencer lowers the temperature of the mash to about
85 o F by adding the remaining 1,500 gallons of water
(and by circulating
cooling water thereafter as
necessary). The water addition will raise the pH of
the solution so the sequencer automatically adjusts the
pH to between 4.5 and 5.0. Next, the sequencer adds a
premeasured quantity of dispersed distillers’ yeast
from the yeast tank. (Note that the yeast tank is not
on top of the cooker/fermenter as high temperatures
during cooking would kill the culture.) Thereafter, the
sequencer maintains the temperature between 80 o F and
85” F and the pH between 3.0 and 5.0. The agitator
speed is reduced from that required during cooking to a
rate which prevents solids from settling, but does not
disturb the yeast. The batch is then allowed to ferment
for 30 to 36 hours.
Pump-Out and Cleanup. After a batch is complete, it is
pumped to the beer well and the fermenter is hosed out
to remove any remaining solids.
Distillation. Once the beer well is full, the distillation
system can be started up. This process involves the
following steps.
1. Turn on the condenser cooling water.
2. Purge the still with steam. This removes oxygen
from the system by venting at the top of the second column. When steam is seen coming out of
the vent, the steam can be temporarily shut off
and the vent closed. Purging the still with steam
not only removes oxygen, but also helps to preheat
the still.
3. Pump beer into the still. The beer is pumped in until it is visible at the top of the sight-glass.
4. Turn steam on and add beer. This process of adding beer and watching the liquid level movement
to adjust the steam level will be repeated several
times as the columns are loaded. Initially, steam
flows should be set at a low level to prevent
overloading the trays which might require shutdown and restart. During this period the valves in
the reflux line are fully opened but the reflux
pump is left off until enough liquid has built up in
the condensate receiver. This prevents excessive
wear on the pump. The reflux line between the two
columns should also be opened and that reflux
pump should be left off. The liquid level in the
bottom of the beer still should be monitored and
when it drops to half way, beer should be fed back
into the column to refill the bottom of the still.
The liquid level should continue to drop; if it does
not, additional steam should be fed into the still
bottom.
FUELFROM FARMS
5. Start reflux pump between the beer still and rectifying column. When liquid starts to accumulate
in the bottom of the rectifying column, the reflux
pump between this still and the beer still is started,
Flow in this line should be slow at first and then
increase as more and more material reaches the
rectifying column. When reflux is started to the
beer still, the steam feed-rate will have to be slightly increased, because reflux tends to cool down a
column.
6. Start pump for reflux from the condensate
receiver to rectifying column. Eventually, enough
vapor will have been condensed to fill the condensate receiver. Then, the pump for the reflux to
the rectifying column can be started. Flow for this
reflux line should be slow at first and then increased as more and more material distills. It should be
noted that temperatures in the columns will be increasing as this process takes place. When the top
temperature of the rectifying column is no longer
increasing, the liquid levels in the bottom of the
two columns are changing, and the condensate
receiver level is no longer changing. Then, the
reflux flow rates are at their designed flow and the
column has reached equilibrium.
7. Set beer feed pump, stillage pump, and product
take-off at their designed flow. Initially, the beer
feed entering the beer still will be cooler than normal; the heat exchanger has not heated up yet. For
this reason the steam to the beer still will need to
be slightly increased. The thermocouple at the
feed point will indicate when the feed is being
heated to its designed temperature. At this time,
the steam rate can be slightly lowered. Some
minor adjustments will probably be needed. It
must be kept in mind that this is a large system,
and it takes some time for all points to react to a
change in still conditions. All adjustments should
be made, and then a period of time should be
allowed before any additional adjustments are
made.
8. Check product quality. Product quality at this
time should be checked to insure that ethanol concentration is at the designed level. If it is lower
than anticipated, the reflux ratio should be increased slightly. An increase in reflux cools the
columns and additional heat must be applied to
compensate for this. Also, the product flow-rate
will be slightly decreased; therefore, flow rate to
the still should also be varied. The ethanol concentration in the stillage should be checked to ensure
that it does not exceed design concentration
significantly.
9. Dry ethanol. After the ethanol leaves the distil-
PLANTDESIGN
lation column, it must be further dried by passing
through the molecular sieve drying columns and
then stored in the ethanol storage tank. Literature
from the vendor of the molecular sieve material
will indicate at what temperature that flow must
be switched to the other unit.
10. Regenerate spent sieve material. Carbon dioxide
(CO,) is used to regenerate the molecular sieve
material. The CO1 is collected from the fermentation system and compressed-CO, storage tank. To
regenerate the molecular sieve material, the lines
for regeneration are opened. Next, the CO2 line is
opened to allow flow to the stack heat exchanger
and then on to the sieve columns. A rotameter in
the CO, line is set to control the CO, flow-rate to
the desired level. The molecular sieve columns are
heated to about 450” F during regeneration. After
regeneration is complete, the column is cooled
down by CO, which bypasses the stack heat exchanger.
This essentially covers all the steps involved in the
start-up of the plant. It should again be emphasized that
caution must be exercised when operating any system of
this complexity. If proper care is taken, and changes
to the system operation are thought out sufficiently,
successful plant operation will be achieved.
Shutdown. The second period of operation which differs significantly from normal operation is that period
when the plant is being shut down. Proper care must be
taken during shutdown to ensure both minimal losses of
product and ease of restarting the process.
As the fermenters are individually shut down, they
should be cleaned well to inhibit any unwanted
microbial growth. The initial rinse from the fermenters
can be pumped to the beer storage tank. Subsequent
rinses should be discarded. The processing of this rinse
material through the stills can continue until the top
temperature of the beer column reaches 200” F. At this
time, the unit should be put on total reflux.
During this shutdown period, the product quality will
have degraded slightly, but the molecular sieve column
will remove any additional water in the ethanol product.
The stillage from the distillation system can be sent to
the stillage storage system until the stillage is essentially
clean. At this point, the steam to the column should
be shut off and the column should be allowed to cool.
During cooling, the column should be vented to prevent
system damage. The pressure inside the column will be
reduced as it cools. The air which enters the column
at this time can be purged with steam prior to the
next period of operation. The molecular sieve drying
columns can be regenerated if necessary. The boiler
should be shut down. If the shutdown period is of any
69
A
significant duration, the boiler should be drained. If the
plant is to be shut down for a short term, the fermenters
should not require any additional cleaning. After an
extended shutdown period, it is advisable to clean the
fermenters in a manner similar to that performed at the
initial start-up.
Shutdown periods are the best time to perform preventive maintenance. The column trays can be cleaned,
pump seals replaced, etc. The important thing to
remember is that safety must not be overlooked at this
time. Process lines should be opened carefully because,
even after extended periods of shutdown, lines cdn still
be pressurized. If it is necessary to enter tanks, they
must be well vented. It is suggested that an air line
be placed in the tanks and that they be purged, with
air for several hours before they are entered. Also, a
tank should never be entered without another person
stationed outside the tank in case an emergency situation arises.
Daily Operation
The day-by-day operation of the representative on-farm
plant requires the attention of the operator for two
periods of about two hours each every day.
Each morning, the operator begins by checking the condition of the plant. Ali systems are operative because the
operator would have been alerted by the alarm if there
had been a shutdown during the night. A quick check
will confirm that the beer flow and reflux flows are near
desired values. The temperature
of the top
plate of the rectifying column and the proof of the
product before drying should be checked. Even if the
proof is low, the final product should be dry because the
dryer removes essentially all of the water, regardless of
input proof. However, excessively low entering proof
could eventually overload the regeneration system. If
the proof before drying is low, reflux flow is adjusted to
correct it.
Next the fermenter that has completed fermentation is
checked. The concentration of ethanol is checked and
compared to the value indicated by the sugar content at
the beginning of fermentation. If the concentration is
suitable, the contents of the fermenter are dumped into
the beer well. The inside of the fermenter is washed
briefly with a high-pressure water stream. Then the
fermenter is filled with preheated water from the
holding tank.
The operator next checks the condition of the boiler and
bale burner. The bale burner is reloaded with two of the
large, round bales of corn stover from the row outside
of the building. A front-end loader is used for this.
70
The operator returns to the fermenter that is being
filled. It is probably half filled at this time, and the
flow of meal into the tank is begun from the overhead
meal bin. The flow rate is continuou4y measured and
indicated, and will cut off when the desired amount is
reached. The agitator in the tank is started. The liquefying enzyme is added at this time. The operator checks
the temperature. When the tank is nearly full, steam is
admitted to bring the temperature up to cooking value.
The operator checks the viscosity until it is clear that
liquefaction is taking place.
The operator now prepares for the automatically controlled sequence of the remaining steps of cooling and
fermenting. The microprocessor controls these steps,
and it will be activated at this time. However, the
operator must load the saccharifying enzy,me into its
container. The enzyme is dumped into the fermentation
tank on signal from the microprocessor. The yeast is
pumped into the fermenter from the yeast tub, also
on signal from the microprocessor. After cooking is
complete, the microprocessor initiates the flow of cold
water into coils in the vessel which cools the mash to the
temperature corresponding to saccharification. When
the appropriate temperature is reached, the enzyme is
introduced. After a predetermined time, the converted
mash is cooled to fermentation temperature, again by
circulating cold water through the coils. When fermentation temperature is reached, the yeast is pumped into
the fermenter. All of these operations are controlled by
the microprocessor and do not require the operator’s
presence.
Once the fermentation is initiated, the operator can
check the condition of the distillation columns and turn
his/her attention to the products. The driver of the
truck which delivers the whole stillage to the dairies and
feeding operations will have finished filling the tank
truck. If it is time for the pick-up of the ethanol, the
operator will be joined by a field agent of the BATF
who supervises the denaturing operation and checks the
recorded flows of the plant to ensure that the product in
storage is all that hPs been produced since the last pickup. The distributions driver would then load the truck
and stert back to the bulk station.
In the evening the operator repeats the same operation
with the exception of grinding meal and delivering the
product.
MAINTENANCE CHECKLIST
Table V-5 provides a general timetable for proper
maintenance of a representative ethanol plant.
FUELFROMFARMS
TABLE
Bale Burner
Remove ash
Lubricate fans
Check fan belts
Water Softener
Regenerate and backwash
Check effectiveness
Boiler
Blow flues and CO, heater
Check tubes and remove scale
Roller Mill
Check for roller damage
Check driver belts
Elevator Leg to Meal Bin
Lubricate
Yeast Tubs
Change air filter
Fermenters
Sterilize
Wash down outside
V-5. MAINTENANCE
daily
monthly
monthly
weekly
yearly
monthly
monthly
weekly
monthly
monthly
monthly
every 3rd week
weekly
weekly
Beer Well
Sterilize and wash down
weekly
REFERENCES
I. Ladisch, Michael R.; Dyck, Karen. “Dehydration
DESIGN
Steam Lines
Blow condensate
daily
Beer Preheater
Clean both sides
weekly
Beer Column
Clean out
weekly
Sight Glasses
Clean out
weekly
Flow Meters
Clean out
Back Pressure Bubblers
Clean out
PLANT
CHECKLIST
as needed
Condenser
Descale water side
monthly
Stillage Tank
Clean and sterilize
monthly
Pumps
Check seals and end play
Lubricate
weekly
per manufacturer
Hydraulic System and Motors
Check for leaks
Change filter
Top-up
daily
per manufacturer
as necessary
:
of Ethanol: New Approach Gives Positive Energy
Balance.” Science, Vol. 205 (no. 4409): August
31, 1979; pp. 898-900.
71
CHAPTER VI
BUSINESS
PLAN
CHAPTER VI
BUSINESS PLAN
Preliminary planning is a prerequisite for the success of
any project. Development of an ethanol plant involves
planning not only the production process but also the
management form and financial base.
The first step is t:: determine the financial requirements
and relate that to the individual situation. From this the
optimal organizational form can be selected, and the
financing options can be examined.
The case study included in this chapter is an example of
how a business plan may be completed. Every situation
is different, however, and this can serve only as an
example. The decision and planning worksheets at the
end of Chapter II can be used in conjunction with the
information in this chapter as tools in the decisionmaking process. The worksheets assist in analyzing
financial requirements, choosing an organizational
form, and selecting potential financing sources.
l
labor,
l
maintenance,
l
taxes,
l
mongages,
l
supplies (raw materials, additives, enzymes, yeast,
water),
l
delivery expenses,
l
energy (electricity and fuels),
l
l
insurance and interest on short-term and long-term
financing, and
bonding.
ANALYSIS OF FINANCIAL REQUIREMENTS
Financial requirements are determined by delineating
capital costs, equity requirements, and operating
costs. These requirements are then compared to potential earnings. Capital requirements include the costs for:
l
real estate,
9 equipment,
l
business formation,
l
installing equipment, and
l
cost of licenses.
Although additional real estate may not be necessary,
transfer of real estate to the business entity may be a
consideration. Some of the equipment required for
ethanol production has other farm uses and need not be
charged totally to the ethanol production costs, e.g.,
grain bins and tractors with front-end loaders.
Equity
lending
can be
bonds,
clude:
74
requirements are established by the financial
institution if borrowed capital is used. Equity
in the form of money in savings, stocks and
equipment, real estate, etc. Operating costs in-
Potential earnings are determined by estimating the
sales price of ethanol per gallon and then multiplying by
the number of gallons that the facility can sell, as well as
income that may be derived from the sale of coproducts
(determined by the sales price times the quantity that
can actually be sold). Careful planning of markets for
coproducts can significantly affect the net income of an
ethanol production plant. In the case study projected
financial statement included in this chapter, note the
difference in net income based on different coproduct
prices. In addition to actual income derived from the
sale of ethanol and the coproducts, any savings realized
by using ethanol to replace other fuels for on-farm
use can be added to earnings. This is also true for
coproducts such as stillage that might replace purchased
feed.
Once the financial requirements and potential earnings
are determined, they can be related to the specific situation. Capital costs and equity requirements are related to
the individual capability to obtain financing. Operation
costs are compared to potential earnings LO illustrate cash
flow.
Once this information is acquired and analyzed in relation to the individual’s specific, situation, a decision
can be made about the organizational form for the
production business.
FUELFROMFARMS
ORGANIZATIONAL FORM
The organizational basis is the legal and business
framework for the ethanol production facility. Broadly
speaking, there are three principal kinds of business
structures: proprietorship, partnership, and corporation.
A proprietor is an individual who operates without
partners or other associates and consequently has total
control of the business. A proprietorship is the easiest
type of organization to begin and end, and has the most
flexibility in allocating funds. Business profits are
taxed as personal income and the owner/proprietor is
personally liable for all debts and taxes. The cost of
formation is low, especially in this case, since licensing
involves only the BATF permit to produce ethanol and
local building permits.
A partnership is two or more persons contractually
associated as joint principals in a business venture. This
is the simplest type of business arrangement for two or
more persons to begin and end and has good budgetary
flexibility (although not as good as a proprietorship).
The partners are taxed separately, with profits as personal income, and all partners are personally liable for
debts and taxes. A partnership can be established by
means of a contract between two or more individuals.
Written contractual
agreements are not legally
necessary, and therefore oral agreements will suffice. In
a general partnership, each partner is personally liable
for ali debts of the partnership, regardless of the
amount of equity which each partner has contributed.
A corporation is the most formalized business structure.
It operates under the laws of the state of incorporation;
it has a legal life all its own; it has its scope, activity, and
name restricted by a charter; it has its prcfits taxed
separately from the earnings of the executives or
managers, and makes only the company (not the owners
and managers) liable for debts and taxes. A Board of
Directors must be formed and the purposes of the
organization must be laid out in a document called
“The Articles of Incorporation.”
Initial taxes and certain filing fees must also be paid. Finaiiy, in order to
carry out the business for which the corporation was
formed, various official meetings must be held. Since a
corporation is far more complex in nature than either a
proprietorship or a partnership, it is wise to have the
benefit of legal counsel. A corporation has significant
advantages as far as debts and taxes are concerned.
Creditors can only claim payments to the extent of a
corporation’s assets; no shareholder can be forced to
pay off creditors out of his or her pocket, even if the
company’s assets are unequal to the amount of the debt.
There are often differences in the ease with which a
business may obtain start-up or operating capital. Sole
BUSINESSPLAN
proprietors stand or fall on their own merits and worth.
When a large amount of funding is needed, it may be
difficult for one person to have the collateral necessary
to secure a loan or to attract investors. Partnerships
have an advantage in that the pooled resources of all the
partners are used to back up the request for a loan and,
consequently, it is often easier to obtain a loan because
each and all of the partners are liable for all debts.
Corporations are usually in the best position to obtain both initial funding and operating capital as
the business expands. New shares may be issued; the
company’s assets may be pledged to secure additional
funding; and bonds may be issued, backed up by the
assets of the corporation.
A nonprofit cooperative is a special form of corporation. Such a cooperative can serve as a type of tax
shelter. While the cooperative benefits each of its
members, they are not held liable, either individually
or collectively, for taxes on the proceeoa from the sale
of their products.
After determining the organizational
options can be explored.
form, financing
FlNANCiNG
The specific methods of financing ethanol production
plants can be divided into three general classes: private
financing, public grants and loans, and foundations.
Private Financing
Private financing may be obtained from banks, savings
and loan associations, credit unions, finance corporations, venture capital corporations, corporation stock
issues, and franchise arrangements.
Foundations
Foundations provide funding either through grants or
through direct participation by gaining equity, usually
in the form of stocks in the production company. Often
the investment portfolios that are used to generate income for foundations are composed in part of stocks in
--*--.e..:“,^
ullnnrltt the il!?sCIIL~I
~JL
L;~L=they deem appropri,.-atI= to --l-l---sion of the foundation.
Public Financing
Grants or loans are available from several federal
agencies. See Table E-l, Sources of Public Financing
contacts, in Appendix E. Each of the agencies has
operating procedures and regulations that define appropriate use of their funding. The availability of funds
varies fro-n year to year.
CASE STUDY
The following case study of the Johnson family demonstrates the process for determining the feasibility of a
farm-sized fermentation ethanol plant by developing a
75
business plan. It is a realistic example, but the specific
factors are, of course, different for every situation.
This process may be used by anyone considering ethanol
plant development, but the numbers must be taken from
one’s own situation. Table VI-I delineates the assumptions used in the case study.
They have researched the issues and believe there are
five good reasons for developing a plan to build a
fermentation ethanol plant as an integral part of their
farm operation:
TABLE VI-I. CASESTUDYASSUMPTIONS
l
Corn is the basic feedstock.
l
2%gal EtOH/hr
l
Operate 24 hrs/day; 5 days/week; 50 weeks/yr.
l
Feed whole stillage to own and neighbors’ animals.
l
Sell ethanol to jobber for $1.74/gal.
l
Sell stillage for 3.9e/gal.
l
l
l
to create another market for their farm products,
l
to produce a liquid fuel from a renewable resource,
production rate.
Corn price is $2.30/bu
charge, no storage fees).
(on-farm,
Operating labor is 4 h&day
9 to gain some independence from traditional
sources and have an alternate fuel available,
fuel
9 to gain cost and fuel savings by using the farm
product on the farm rather than shipping it, and by
obtaining feed supplements as a coproduct of the
ethanol production process, and
no delivery
l
to increase profit potential by producing a finished
product instead of a raw material.
at $lO/hr.
They first analyzed the financial requirements in relation to their location, farm operations, and personal
financial situation.
* Corn stover cost is $20/tan.
l
The Johnsons are concerned about the future cost and
availability of fuel for their farm equipment. The
Johnsons have known about using crops to produce
ethanol for fuel for a long time, and recent publicity
about it has rekindled their interest.
Equity is $69,000.
Analysis of Financial Requirements
l
l
l
l
Debt is $163,040; at 15% per annum; paid semiannually.
Loan period is 15 yrs for plant; 8 yrs for operating
capital and tank truck.
Miscellaneous expenses estimated at I2e/gal EtOH
produced.
Electricity
duced.
costs estimated at 2Wgal EtOH pro-
Gasoline = 13,457 gals
Diesel = 9,241 gals
LP Gas = 11,487 gals
= Laii4inc.s estimated at 4Ugal EtOH produced.
-
Background Information
The Johnson family operates a 1,280-acre corn farm
which they have owned for 15 years. They feed 200
calves in their feedlot each year. The family consists of
Dave, Sue, and three children: Ted, 24 years old and
married, has been living and working at the farm for 2
years, and he and his wife have a strong commitment to
farming; Sara is 22 years old, married, and teaches in a
town about 250 miles away; Laura is 15 years old, goes
to high school in town 25 miles away, and also works on
the farm.
76
The local trade center is a town of 5,000 people, 35 miles
away. The county population is estimated at 20,000.
Last year 7,000,OOOgallons of gasoline were consumed
in the county according to the state gasoline tax department. A survey of the Johnsons’ energy consumption
on the farm for the last year shows:
They decided to locate the plant close to their feedlot
operation for ease in using the stillage for their cattie.
They expect the plant to operate 5 days a week, 24 hours
a day, 250 days a year. It is designed to produce 25
gallons of anhydrous ethanol per hour or 150,000
gallons in one year, using 60,000 bushels of corn per
year. In addition to ethanol, the plant will produce
stillage and carbon dioxide as coproducts at the rate of
3
230 gallons per hour.
After researching the question of fuel for the plant, this
family has decided to use agricultural residue as the fuel
source. This residue will be purchased from the family
farm. The cost of this fuel is figured at $20 per ton.
FUELFROMFARMS
They will have to purchase one year’s supply of fuel
since it is produced seasonally in the area. The tonnage
of residue per acre available is 6 tons per acre based on
measurements from the past growing season.
The water source is vitally important. They will need
about 400 gallons of water each hour. To meet this demand, a well was drilled and an adequate supply of
water was found. The water was tested for its suitability
for use in the boiler, and the test results were favorable.
The family has determined that they can operate both
the plant and the farm without additional outside labor.
The ethanol they produce will be picked up at the farm
as a return load by the jobbers making deliveries in the
rural area. The Johnsons will deliver stillage in a tank
truck to neighbors within 5 miles.
At the present there are no plans to capture the carbon
dioxide, since the capital cost of the equipment is too
high to give a good return on their investment. There is
no good local market for the carbon dioxide; but there
are many uses for carbon dioxide, and selling it as a
coproduct may prove to be profitable in other situations.
The family’s plans are to market their products locally.
They have contacted local jobbers who have given them
letters of intent to purchase the annual production of
ethanol. They plan to use the distillers grains in their own
feedlot and to sell the rest to their neighbors. The
neighbors have given them letters stating they would purchase the remainder of the distillers grains produced.
These letters are important in order to accurately assess
the market.
Organizational Form
The Johnsons chose to establish a closely held corporation for this business. Other possibilities they considered
included partnerships, sole proprietorships, and profit
and nonprofit corporations. If additional equity had
been needed, a broader corporation or a partnership
would have been selected. However, their financial status
was sufficient to allow them to handle the investment
themselves, as shown by their balance sheet which
follows
Dave
Balance
---
- .~-__---_---..
and Sue Johnson
Shea!
as of Jmuary
--.-._-.-
1979
,----
.L&&j:
Current i.,~rs:
Cash
Inventory
Total current assets
Equipment
Land and buildings
Total assets
BUSINESS
PLAN
%15,ooo
-$7O,Ooo
$85400
$125,000*
%512,000*
$722,000
Iiabilities and Capital:
Operating notes at local bank
Equipment loans at local bank
Federal Land Bank loan
Total Liabilities
Tota; capital
Total Liabilities and Capital
$20,000
$69,000
$350,000
$479,000
$283,000
--I$122 000
*These assets shown at fair market value.
The Johnsons formed a corporation because it afforded
the ability to protect themselves from product liability
and gave them the option to give stock to all family
members as an incentive compensation package. Also,
the use of a corporation avoids an additional burden on
their credit line at the bank for their farming operation
since they were able to negotiate a loan with no personal
guarantee of the corporate debt. In a partnership they
would have had personal liability for the product, the
debt, and the actions of the partners in the business. The
record-keeping requirements of the corporation and the
limited partnership were equal, and the former afforded
greater security. Co-ops and nonprofit corporations
were considered also, but these two options were
discarded because of operating restrictions.
After formation of the corporation, they transferred
(tax-free) half of a year’s supply of corn (30,000
bushels) in exchange for stock in the corporation. They
elected Subchapter S treatment upon incorporation and
had the first year of operation repofied on a short-period
return. Generally, Subchapter S k as many of the advantages of a partnership but not thL inabilities. (Consult an
accountant or lawyer for a detailed description of this.)
They could pass through the investment credit which is
proposed to be 20% of the capital cost, assuming that
the Internal Revenue Service would authorize a fuelgrade ethanol plant to qualify for the additional investment credit for being a producer of renewable energy.
After the first short-period return is filed, the
stockholders can then elect not to be a Subchapter S corporation. This plan helps the cash flow as they would
personally recover some tax dollars through the investment credit.
The corporation will lease from the family, on a longterm basis, 2 acres of land on which to locate the plant.
They considered transferring this land to the corporation, but the land is pledged as security for the Federal
Land Bank so it would be cumbersome to get the land
cleared of debt. Also, the 2 acres would require a survey
and legal description, thereby adding additional cost,
and there are no local surveyors who could do this
work.
The corporation will purchase corn and agricultural
residue from the family farm and damaged corn from
neighbors when there is a price advantage to do so. The
77
family will also purchase the distillers’ grains and
ethanol used on the farm from the corporation as would
any other customer. All transactions between the family
farm and the corporation will use current prices that
would be paid or received by third parties.
Conclusion
The initial visit with the bank was encouraging.
The local banker was well acquainted with ethanol
production through the publicity it had been receiving.
The bank was receptive to the financing, saying they
would consider it an equipment loan. The bank required
a schedule of production, funds-flow projections, projected income statements, and projected balance sheets
for the next 2 years. The bank was primarily concerned
that these statements demonstrate how the plant could
be paid for.
Before meeting with their accountant, the Johnsons
prepared decision and planning worksheets as described
in Chapter II. This work on their part saved them some
accountant’s fees and gave them an idea as to the
feasibility of such a plant. The projected financial
statements were then prepared with the assistance of
their accountant for the bank’s use.
78
,
The following projected financial statement is based on
decisions made about the operations and management
of the plant. It served the Johnsons as a tool in deciding
whether or not the plant would be a good investment for
them and also as a final presentation to the bank for
loan approval. The assumptions used in preparing these
financial statements are included with the financiai
statements and represent an integral part of the management plan.
After the financial projections were completed and the
bank had reviewed them, there was one more area of
concern. The bank wanted to know whether the system
as designed was workable and could produce what
it was projected to do from a technical feasibility
standpoint. The family furnished the bank with the
engineer’s report which documented systems that were
in operation and that were successfully using their
proposed technology. The bank contacted some of the
people operating these plants to verify their production.
The bank then completed their paperwork and made a
loan to the family’s corporation secured only by the
equipment. They also approved the line of credit for
the working capital required based on the projected
financial statements.
FUELFROMFARMS
GALUSHA
HIGGINS6
GALUSHA
GLASGOW,MONTANA
November 6, 1979
National Bank of Golden Rise
Golden, Colorado
We have assisted in the preparation of the accompanying projected balance sheet of
Johnson Processor, Inc. (a sample company), as of December 31, 1980 and 1981, and the
related projected statements of income and changes in financial position for the years
then ended. The projected statements are based solely on management’s assumptions and
estimates as described in the footnotes.
Our assistance did not include procedures that would allow us to develop a conclusion
concerning the reasonableness of the assumptions used as a basis for the projected
financial statements. Accordingly, we make no representation as to the reasonableness
of the assumptions.
Since the projected statements are based on assumptions about circumstances and events
that have not yet taken place, they are subject to the variations that will arise as future
operations actually occur. Accordingly, we make no representation as to the
achievability of the projected statements referred to above.
The terms of our engagement are such that we have no obligation or intention to revise
this report or the projected statements because of events and transactions occurring
after the date of the report unless we are subsequently engaged to do so.
rtified Public Accountants
t
BUSINESSPLAN
79
.
JOHNSON PROCESSORS, INC.
PROJECTEDBALANCESHEET
UNAUDITED
(NOTES
I THROUGH
4.4RE
AN INTEGRAL
EXPLAIVA
PART
TlOiV
OF THESE
PROJECTED
OF ASSl,:VPTlOXS
USED
FINANCIAL
STATEMENTS
.4h’D PRO1’7D1:‘
.4,~
IN TrHfS REsPDR T;
FOR YEAR ENDED
Assets
Current assets
Cash
Accounts receivable
Raw materials and supplies
Work in process inventory
Finished goods inventory
Marketable securities
Total current assets
Plant, equipment, and structures
Plant and equipment
Building
Total plant and equipment
Less accumulated depreciation
Net plant and equipment
Total assets
Capital
Total liabilities and capital
80
.
December 31,
1981
$24,617
55,350
22,214
1,362
18,765
30,000
$152,308
$18,452
55,350
26,785
1,601
22,041
30,000
$154,229
$107,000
17,280
$124,280
8,605
Liabilities and Capital
Current liabilities
Accounts payable
Current portion of loans
Total current liabilities
Long-term liabilities
Bank loan
Less current portion
Total long-term liabilities
Total liabilities
December 31,
1980
$107,000
17,280
$124,280
17,210
115,675
$267,983
107,070
$261,299
$3,800
2,997
$6,797
$4,130
3,500
$7,630
$156,043
2,997
$113,821
3,500
153,046
$159,843
110,321
$117,951
108,140
$267,983
143,348
$261,299
FUELFROMFARMS
JOHNSON PROCESSORS, INC.
PROJECTED INCOME STATEMENT
UNAUDITED
(NOTES
I THROUGH
4 ARE
AN INTEGRAL
E,WiANAiiOiv~
PART
OF THESE PROJECTED
FINANCIAL
STATEMENTS
-_^-.I
_.OF AS,$J^iiMPllu!v~
UJED iiv. THiSREPORT)
AND
PROVIDE
AN
FOR YEAR ENDED
December 31,
1980
December 31,
1981
Revenue
Alcohol
Stillage
Total sales
$229,680
55,525
$285,205
283,500
55,973
$339,473
Cost of goods sold
Beginning finished goods inventory
Cost of goods manufactured
Cost of goods available for sale
Ending finished goods inventory
Cost of goods sold
Gross profit
0
$225,634
$225,634
18,765
$206,869
$78,336
$18,765
266,634
$285,399
22,041
$263,358
$76,115
Selling expenses
Marketing and delivery expenses
(scheduled)
Total selling expenses
Net operating profit
Income taxes
Net income
BUSINESS
PLAN
$25,545
$29,074
$25,545
$52,791
13,651
$39,140
$29,074
$47,041
11,833
$35,208
81
JOHNSON PROCESSORS, INC.
PROJECTED STATEMENT OF CHANGES IN FINANCIAL POSITION (Cash Basis)
UNAUDITED
(NOTES
I THROUGH
4 ARE
AN INTEGRAL
EXPLANA
P.4RT
TiON
OF THESE PROJECTED
Fl‘I,VANCIAL
STATEME,YTS
-..-.,..l,.
.,
IVIY~ USED II\ THiS REP6RTj
AtVD
PROVIDE
AN
OF ASSUkrr
FOR YEAR ENDED
December 31,
1980
CASH GENERATED
Net income
Add (deduct) items not requiring or
generating cash during the period
Trade receivable increase
Trade payable increase
Inventory increase
Depreciation
Subtotal
Other sources
Contributed by shareholders
Bank loan
Total cash generated
December 3 1,
1981
$39,140
$35,208
(55,350)
3,800
(42,341)
8,605
$(46,146)
(0)
330
G3,ow
8,605
$36,057
69,000
163,040
$185,894
$36,057
CASH APPLIED
Additional loan repayment
Purchase of plant and equipment
Purchase of building
Reduction of bank loan
Total cash applied
Increase in cash
$4,000
107,000
17,280
2,997
$131,277
$54,617
$38,722
$3,500
$42,222
$(6,165)*
*Net decrease in cash is caused by an accelerated pay-off of the operating capital rate in the amount of $38,722.
82
c
FUEL
FROM
FARMS
JOHNSON
(NOTES
I THROUGH
4 ARE
AN INTEGRAL
EXPiANA
PART
PROCESSORS,
EXHIBIT I
UNAUDITED
OF THESE
PROJECTED
TiGN OF ASSUXPTIOI%‘S
L’SED
INC.
FINANCI.AL
ST.4 TEMENTS
AND
PROVIDE
AN
iI%’THiS REPORT)
FOR YEAR ENDED
December 31,
1980
December 31,
1981
ETHANOL
Projected
Production
Schedule
Projected gallons sold
Projected inventory requirements
Total gallons needed
Less inventory on hand
Projected production
Sales price per gallon
Projected
Total costs of production
Add beginning work-in-process inventory
Subtotal
Less ending work-in-process inventory
Projected cost of goods manufacnrred
PLAN
150,000
18,000
168,000
18,000
150,000
$1.74
$1.89
$20,805
138,000
3,000
10,7 14
18,000
6,730
23,747
64333
$20,328
180,000
3,300
11,785
19,800
6,730
18,330
6,600
$226,996
$266,873
1,362
$268,235
1,601
$266,634
COSI of Goods Manufactured
Projected production costs:
Labor
Corn
Electricity
Straw
Miscellaneous (scheduled)
Depreciation
Interest
Enzymes
BUSINESS
132,000
18,000
150,000
0
150,000
$226,996
1,362
$225,634
83
JOHNSON PROCESSORS, INC.
NOTES TO THE PROJECTED FINANCIAL STATEMENTS
UNAUDITED
1. SIGNIFICANT
ACCOUNTING
POLICIES
Following is a summary of the significant accounting policies used by Johnson Processors, Inc. in the projected
financial statements.
. Assets and liabilities, and revenues and expenses are recognized on the accrual basis of accounting.
. Inventory is recorded at the lower value (cost or market) on the first-in, first-out (FIFO) basis.
l
Accounts receivable are recorded net of bad debts.
l
Depreciation is calculated on the straight line basis.
2. ASSETS
Current Assets
. Accounts receivable are projected at each balance sheet date using 30 days of sales for ethanol and 90 days
of sales for stillage.
l
l
Inventory-raw
materials-is made up of corn and corn stover. Thirty days in inventory is used for corn
and one year’s supply is used for stover.
Inventory-work
in process-consists
of 1 r/z days’ production.
. Inventory of finished goods consists of raw materials and cost of production. Thirt’y days in inventory is
used for ethanol and 2 days is used for stillage.
The estimates of number of days in accounts receivable and finished goods inventory are higher than those
quoted in Robert Morris Associates averages for feed manufacturers and wholesale petroleum distributors.
Fixed Assets
Management anticipates purchasing the equipment for production of ethanol. Consulting engineers contacted
verified that the equipment and plant costs listed in Table VI-2 were reasonable,
REPRESENTATIVE
Equipment and Materials
Piping
Electrical
Excavation and Concrete
Total Equipment and Materials
10% Contingency
$71,730
4,000
1,500
zoo0
79,230
7,923
Total
87,153
Tank Truck
Erection Costs
14,847
5,000
Grand Total
84
PLANT COSTS
$107,000
FUEL
FROM
FARMS
Investments
Investments consist of the amount of excesscash accumulated from operation during the first and second year of
operation.
3. LIABILITIES
AND
CAPITAL
Management estimated accounts payable using 30 days in payables for conversion costs. It is anticipated that
corn will be paid for a month in advance.
Management estimates that a bank loan in the amount of $163,040 will be required, payable semiannually at
15% interest. Anticipated payback period for the portion of the loan covering plant and equipment is 15 years.
The payback period for the portion covering working capital is 8 years. The payback period for the truck is 8
years. An additional $4,000 the first year is projected to be paid on the equipment loans and to repay the
working capital loan in the second year. The loan will be used to finance plant and equipment and working
capital. The anticipated plant and equipment and working capital for the first year is estimated as follows.
Plant and equipment
Working capital
Total
$124,280
$107,760
$232,040
Cash could be very lean during the first year that the plant operates at capacity because of dramatic increases in
working capital resulting from accounts receivable and inventory requirements. Inadequate financing would
make maximum production impossible because of inability to fund working capital demands.
4. INCOME
STATEMENT
Sales
Sales volume was estimated at maximum production (150,000 gallons of ethanol and 1,380,OOOgallons stillage)
for the first year. Ethanol price was taken to be $1.74 per gallon (the actual delivered price at Council Bluffs,
Iowa on November 6, 1979). The price of ethanol is projected to increase by 9.1% for the entire period covered
by the projections. The increase of 9.1% is the projected price increase by a marketing firm from Louisiana.
It is conceivable that as the price of gasoline increases to a point greater than the price of ethanol, producers
could raise the price of ethanol to equalize the prices of the two liquid fuels. In order to be conservative, management did not consider this effect .
The stillage sales price was taken to be 3.9 cents per gallon for the 2 years. This sales price was based on the sales
price charged by Dan Weber in Weyburn, Saskatchewan, Canada. The local stillage market is, however, worthy
of a thorough study before a decision is made to enter the fermentation ethanol business. If a large brewery or
distillery is located in the area, the price of stillage can be severely depressed. For example, Jack Daniels and
Coors sell their stillage for 0.4 cents per gallon and 0.8 cents per gallon, respectively.
Cost of Sales
Management has projected cost of sales to include raw materials and production costs. The cost of corn is projected at $2.30 per bushel during the first year of operation (the price received by farmers in Iowa on November
6, 1979). Management has the total amount of corn available from the corporate shareholder. To demonstrate
the effect of substantial increases in corn prices on profitability and cash flow, management projected that the
cost of corn would rise to $3.00 per bushel for year two.
Management anticipates that depreciation will remain constant using the straight line method. A 15-year life for
the plant was used with a salvage value of $4,000, while an 8-year life and 20-year life were used for the truck and
building respectively. No other salvage values were taken into consideration.
Labor cost was computed allowing 4 hours per day for work necessary in the processing of the ethanol, based on
the engineer’s time requirement estimates. The labor was valued at $10 per hour, including a labor overhead
factor. Bookkeeping labor was computed at $6,OOGpc~ year, assuming this plant would only require part-time
services. It is anticipated that some additional time ma>- be required the first year. For this, $2,325 has been added to the labor cost as a contingency.
BUSINESS
PLAN
85
Enzyme cost was estimated at $6,ooO per year by the engineers working on the project. Electricity was estimated
at 2 cents per gallon of ethanol produced.
Stover cost was computed based on a cost of $20 per ton. A Btu value of 7,000 Btu per pound (as estimated by
the engineers) was used. An 80% efficiency for the boiler was assumed, so anticipated Btu values were 5,600 Btu
per pound of straw, and a total Btu requirement of 40,000 per gallon of ethanol produced.
Miscellaneous Expenses
Miscellaneous expenses were estimated at 12 cents per gallon. These expenses are shown in the detail schedule at
the end of this report. To be conservative, figures are included in the miscellaneous expenses for shrinkage due
to the grain handling and a contingency for any minor items that may have been overlooked.
Interest expense is for the bank loan. Interest expense is calculated at 15%. In year two of the operation, it is
projected that the working capital portion of the notes payable will be paid off.
Management projects that other projected costs wi!! increase lO?‘o per year because of inflation. To be conservative, management did not estimate the cost savings potential of improved technology. Research is currently being performed in crops that have the potential of producing several times the amount of ethanol as does corn.
Use of such crops could produce substantial cost savings in ethanol production. The process is very new in
design, so improvements in the production process are also probable. Such improvements could further reduce
the cost of producing ethanol.
Selfing and Administrative Expenses
To be conservative, management estimated marketing expenses at 5% of sales. It is anticipated that this expense
may not actually be necessary. Delivery expenses take into consideration the following items:
l
l
l
l
interest was ccmputed at 15% on the bank loan for the truck based on semi-annual payments;
the time necessary to deliver the stillage was estimated based on 10 hours per week at $10 per hour including
labor overhead;
maintenance for the truck was estimated at $1,000; and
fuel for the truck was computed based on 75 miles per week and a fuel consumption of 4 miles per gallon
and a fuel cost of $1.025 per gallon. The cost is estimated to increase 36.5% for the second year of
operation.
Income Taxes
The shareholders of Johnson Processors, Inc. plan to elect to have income taxed to the shareholder rather than
to the corporation, under Internal Revenue Code Section 1372(a). The shareholders anticipate changing the election after the first year of operation. Taxes have been estimated based on a 6% state tax rate and a 6.75% federal
tax rate in effect during iili3. For purposes of these projections, the projected financial statements (assuming a
conventional corporation and a full 12 months of operation in each period) have been shown to demonstrate the
projected results of operation that could be anticipated.
The shareholders of Johnson Processors, Inc. anticipate contributing $69,000 to the corporation. This amount is
30% of the total project. This will be contributed by transferring corn inventory equal to the. %-year supply
necessary for processing. For purposes of this illustration, the contribution of corn is treated as cash to
demonstrate to the bank the payback potential of the plant.
L
66
FUEL
FROM
FARMS
JOHNSON PROCESSORS,
DETAIL SCHEDULES
UNAUDITED
(NOTES
I THROUGH
4 ARE
AN INTEGRAL
EXPLANATION
PART
OF THESE
OF ASSUMPTIONS
PROJECTED
USED
INC.
FINANCIAL
IN THIS
STA TEME,YTS’
A,YD PHOVIDE
.I.\)
REPORT)
FOR YEAR ENDED
December 31,
1980
December 31,
1981
Schedule of Marketing and Delivery Expenses
Marketing 5% of sales
Interest on truck
Depreciation
Labor
Maintenance
Fuel
Total
$14,260
2,211
1,875
5,200
1,ooo
l,ooo
$25,546
$16,974
2,045
1,875
5,720
1,100
1,360
$29,074
$2,250
2,100
600
450
4,200
2,550
5,850
$18,000
$2,475
2,310
660
495
4,620
2,805
6,435
$19,800
Schedule of Miscellaneous Expenses
Property taxes
Insurance
Chemicals and supplies
Yeast
Shrinkage
Other
Contingencies
Total
-
BUSINESS
PLAN
87
I
APPENDICES
89
APPENDIX A
* National
Legislation
. State Legislation
SUMMARY
OF ETHANOL
LEGISLATION
A-l
NATIONAL LEGISLAT;ON
Authorizes $3 billion for the President to buy synfuels
and allows him to establish a federal synfuel corporation.
Farm Act of 1977
Senate-Passed Provisions
Provided $60 million in loan guarantees to build four
pilot alcoho! fue! plants in the United States.
l
National Energy Act of 1978
l-Title
i979
l
Provided motor fuel excise tax exemptions on
gasoline/alcohol blends worth 4 cents per gallon of
blend or 40 cents per gallon or $16.80 per barrel of
alcohol in 10 percent blends. Alcohol fuels are also eligible for Department of Energy entitlements, currently
worth approximately $2.10 per barrel of ethanol or five
cents per gallon.
l
l
Alcohol Fuels Production Incentive Act of 1979
(S. 906)
Proposes a 10 percent investment tax credit (in addition
to the current 10 percent credit) for alcohol fuels production equipment; provides a new 5 percent investment
tax credit for buildings used in alcohol fuel production;
authorizes the Department of Treasury to make up to
$250 million in loan guarantees to cover up to 50 percent
of the cost (up to $10 million per loan) of building or
refinancing alcohol fuel plants or equipment; amends
the Emergency Petroleum Mlocation Act to provide priority to producers and marketers of gasohol or gasoline
for use in gasohol when petroleum supplies are short.
Public Works and Economic Development Act of
1979 (S. 914)
Awaiting House-Senate Conference Committee consideration. The legislation proposes:
l
l
Funds for such grants are limited to 5 percent of funds
under Titles I & II of EDA Act, Under authorization
levels in S.914, funding would total $39.1 million annually.
l
Authorizes $100 million in FY80 & FY8l in EDA grants
and loans for construction and operation of facilities producing alcohol or methane from renewable
resources.
Energy Security Act (S. 932)
l
House-Passed Provisions
A-2
Authorizes corporations to provide price
guarantees,
purchase agreements,
loan
guarantees, loans, joint ventures, and direct
construction to secure synfuel production.
Forestry, and Rural
0 Establishes Agricultural, Forestry and Rural
Energy Board in USDA which will report to
Congress by 9-30-80 on agricultural, forestry,
and rural energy needs and resources; and will
provide a rural energy production, use, and
conserva.tion program by December 3 1, 1981.
l
Sets national goal for total synthetic fuel (including
gasohol) production of 500,000 barrels per day in 1985,
2 million barrels per day in 1990.
Establishes Synthetic Fuels Corporation with
authorization of $20 billion, with up to $1 billion eligible to aid projects that use biomass and
are basically large scale.
. Goal: achieve net energy independence for
agricultural and forest production, processing
and marketing; and 50 percent reduction in
petroleum and natural gas use by rural residents
and communities by the year 2000.
Authorizes EDA grants for facilities for production of
alcohol for use as motor fuel when such grants will
create or preserve jobs in small towns.
Awaiting action by the House-Senate Conference Committee. The legislation proposes:
Act of
Goal: production of synfuels equal to 1.5
million barrels of oil by 1995.
II-Title
II: Agricultural,
Energy Act of 1979
Senate-Passed Provisions
House-Passed Provisions
1: Synthetic Fuels Corporation
l
Authorizes $50 million annually for ~~rpl’~!
research on agriculture, forestry, 2nd XT al
energy production, use, and con;,ervation.
USDA to complete study by 1Z--JI - il.2 on 31~.
native crop-livestock
syste!?< tX: produce
foodstuffs and fiber,as well 2s bic~.~i.*:sfor use
in energy producticn.
Mandates !-our 10 t$ht !191)A Wood Eoer$;,
Centers, and four !o eight ! JSDA Agricultural
Biomass Energ? Centers, which will do
research, demon.-irarion projects, field tests,
; L rcshnical information. Authorizes
and prov,c.
$3 miliio!: a~,ir;ually for ‘&‘ood Centers, and
same amc‘:unt f:>r Biomass Centers.
State extension services tu hold agricultural
biomasy energy workshops with goal of’ 100
workshop- eai.11year.
Authorizes $2X million annual11 in USDA
loans for on-iarm or commercial hiomahs
energy projects. One-third must F.~ IO projects
FUEL FROM FARMS
l
l
which produce no more t!iar 2 million gallons
of alcohol per year.
of activities related tc the production of alcohol
for fuel.
Authorizes $500 million annually in USDA
loan guarantetq <or commercial or on-farm
bi-nlp:s energy pro.%ts, with one-third going
to projects that use wood, and one-fourth going
to small-scale projects :hat produce no more
than 2 million gallons of alcohol per year.
* Authorizes Presidential allocation of gasoline
to utilize alcohol &lot able to be blended into
gasohol due to a lack of gasoline.
l
IV-Title
l
Authorizes $100 million annually in IJSDA
grants for biomass energy demonstration projects.
l
Q Amends existing USDA programs to provide
$390 millicn in authorization for loans, loan
guarantees, Insured lo;ms, and makes eligible
loans for energy systzms using nonfossil fuels.
l
Authorizes $85 million over 4 years for rural
electric projects using alternative
energy
sources (biomass, wood, solar, etc.) ap.2 :ZPservation technologies.
P-110~sUSDA to permit acreage set aside to be
used to prodrlce commodities for use in making
alcohol for fu.21.
W-Title
III: Gasohol Motor Fuels Act of 1979
l
l
l
Goal: establishes national goals of 60,000 barrels per day of alcohol fuels in 1982, and a
volume of alcohol fuels from renewable
resources equal to 10 percent of estimated
domestic gasoiine consumption in [email protected]
Establishes procedure for setting and updating
sational Pnergy targets for imports and
domestic production, which includes energy
produced from renewable resources.
Requires an energy impact report on every bill,
rulemaking. or executive order in the federal
government.
STATE LEGISLATION
The following is a brief summary of legislation that has
been passed by state legislatures within the United
States.
Many of the state legislatures were in session at the time
the information was accumulated for this book. We
reco, lmend that any further information needed regardir,g state legislative bills be obtained directly from
the cl :rks or secretaries of the respective legislature. The
read :r should recognize that errors in the interpretation
.” ‘ac: legislation contained in this report are possible.
basdhol Tax Credit legislation is highlighted within
each state’s legislation summary.
Arkansas
S.B. 454-pawd
. Establishes Office of Alcohol Fuels in DOE and
authorizes $1.2 billion in loan guarantees, price
guarantees. and purchase agreements for
alcohol fuel production facilities that use
renewable resources, with at least one-third of
that total going to facilities that produce no
more than 2 million gallons of alcohol per year.
l
Authorizes the CCC to sell its sugar holdings at
less than normal prices to producers of ethanol
for use in motor fuel.
. Mandates use of gasohol in all federal motor
vehicles where it is available at reasonable
prices and quantities (exceptions are possible
for national security reasons).
0 Mandates USDA-DOT study on possible requirement that all new cars use gasohol or
alcohol, and on barriers to the widespread
marketing of gasohol.
l
Amends Natural Gas Policy Act of 1978 to
facilitate natural gas allocations to certain types
SUMMARY OF E?HANOL LEGISLATION
IV: Domestic Energy Policy Act of 1979
1978.
Gasohol Tax Exemption. Exempts gasohol from motor
fuel tax (9.5 cents).
California
S.B. 3l8-passed 1979.
The Department of General Services would prepare a
plan utilizing a fuel containirlg at least 5% alcohol for
use in at least 25% of the vehicles maintained by the
Department.
A.B. I401-passed 1979.
Authorizes the Department of Motor Vehicles to establish a lo-year methanol fuel experimentation program.
S.B. 771-passed 1979.
The State Energy Resources Conservation and Development Commission shall implement a program to
demonstrate residue conversion technologies at appropriate locations throughout the state to encourage
private-, public-, and investor-owned utility participation in this program. Fifteen million dollars have been
appropriated from the general fund to carry out the purpose of this bill.
A-3
Colorado
indiana
S.B. 80-passed 1978.
S. 2I8-passed 1979.
A nine-member committee was created to promote the
production of gasohol, alcohol, and related industrial
hydrocarbons from Colorado agricultura! and for=?
products. Eighty thousand dollars were appropriated
for administration of the btlk.
Gasohol Tax Exemption - 4% Sales Tax. The tax cxemptroll applies to a 1040 blend of agricu!turaliy derived
ethyl alcohol in fuel
H. B. I135-passed 1978.
Gasohol Tax Exemption - 5 cents. Motor fuel which
contains a! least 103i, alcohol, derived in Colorado, will
receive a S-cent excise tax reduction if sold in counties
with a population exceeding 200.000. As the availability
of gasohol increases, all state and local vehicles will be
required to use gasohol.
H. B. 1463-passed 1979.
Gasohoi Tax Exemption - 5 cents. The tax exemption
applies to a blend of gasoline and 95’%-pure alcohol
derived from agriculture commodities and forest products. Reduces the real and personal property tax assessment for alcohol production facilities producing alcohol
for use in motor vehicles. Provides a voluntary check-off
of off-highway gasoline refund tax money to be placed
into a special fund for the use of gasohol promotion.
H.B. 1607-passed 1979.
Gasohol Tax Exemption - 5 cents. Expands the definition of gasohol to include motor fuels containing
alcohol derived from hydrocarbon or carbon-containing
by-products or waste products. Grants a reduction in
the property tax to facilities used for the production of
such alcohol. The tax exemption applies to a blend of
gasoline and alcohol that is produced from Colorado
products derived from hydrocarbon
or carboncontaining by-products or waste products with a purity
of at least 95 070.
Iowa
H.F. 491-passed 1978.
Gasohol Tax Exemption - 10 cents. Effective July 1,
1979, exe:npts fuel excise tax on motor fuel containing
at least 10% alcohol, distilled from agriculture products,
from July 1, 1978, ending June 30, 1983. (In Iowa there
is a sales tax on excise tax-exempted gasohol which in effect decreases the total tax credit to approximately 7
cents.)
Kansas
H. B. 2345-passed 1979.
Funds totaling $60,000 shall be transferred from the
Corn Commission, Grain Sorghum Commission, Soybean
Commission, and Wheat Commission to the Kansas
Energy Office to be used for the purpose of study and
analysis of grains for use as energy resource alternatives.
H. B. 2324-passed 1979.
Gasohol Tax Exemption - 5 cents. The tax exemption
applies to a 10% blend of 190-proof ethyl alcohol produced from grain grown in Kansas used in all motor
vehicle fuels and shall be effective July 1, 1979. The tax
exemption shall be reduced 1 cent per year until no tax
exemption remains after July 1, 1984. All motor
vehicles owned and operated by the State of Kansas and
subdivisions shall be operated with a 10% blend of ethyl
alcohol when reasonably obtainable.
Louisiana
H.B. 571-passed 1979.
Connecticut
Public Act 627-passed 1979.
Gasohol Tax Exemption - I cent. Lowers state sales tax
on gasohol from 11 cents to 10 cents per gallon, and exempts the motor fuel used in van pool vehicles (which is
already exempt from the motor fuel tax) from the state
sales tax.
Hawaii
S.B. 1581, S.D. I, H.D. l-passed.
(Act 131, Session Laws of Hawaii 1978)
Act 131, which is an omnibus appropriating bill for
alternate energy research and development, appropriate!. $500,000 for the conversion of an old Seagram
distrllery to a plant capable of producing 700,000
gallons of ethanol per year for gasohol purposes. The
Act also appropriates $330,000 to establish a corn-toethanol research and development program.
A-4
Gasohol Ta.uExemption - 8 cents. Exempts the retail
sale of gasohol from state sales tax use, and motor fuel
tax.
S.C.R. 99-adopted 1979.
Requests the Department of Natural Resources to conduct a feasibility study for obtaining methane gas from
sugarcane as an alternate energy source.
H.B. 1033-passed 1979.
To qualify for the purchase of oil, a small refiner must
have in operation a facility for the distillation of
methanol or ethanol produced from Louisiana agricultural commodities.
Maryland
S.B. 807-passed 1979.
Gasohol Tax Exemption - I cent. The tax exemption
shall apply to a 10% blend of ethyl or methyl alcohol.
FUEL FROM FARMS
S.B. 823-passed 1979.
To qermit the Maryland Industrial
Development
Financing Authorit; to encourage and insure loans for
the development and productmn cf a certain motor fuel
known ab gasoho!.
H.B. 16.X!-pas.qed 1979.
agricultural etl;yl alcohol or at least 1YO Perot, I H
:X’ Jc;, direcred ?he Committee to Z~L’KW~ Itl,t;irLII
aild develc>pment of industrial races01 z?\ ;.roducts mesuiting lrom the amertdcd 1. R. 776, to incr.l;‘:ltL: Ihe t’x:emption from 3 cents to 5 cents on ~:irohol, and increased the Legislative tax review limitation from IO
million to 20 million gallons of gasohol sold which permits the legislature to revk ,J the tax credits.
Requires the Secretary cf Agriculture to study the effectiveness of an ethanol anti. gasoline mixture. Requires
the Secretary of Agriculture to inititate a l-year program of tests using gasohol in eight state-owned
vehicles.
Provided for matching funds (up to $500,000) t3 any
city, county, or village wishing to build a gasohol plant.
Missouri
L. B. 52-approved 1979.
H. B. 72-passed 1979.
Gasohol Tax Exemption
- 5 cents. Amended L.B. 776 to
______
increase the exemption from 3 cents to 5 cents on
gasohol and increased the legislative tax review limitation from 10 million to 20 million gallons of gasohol
sold which permits the legislature to review the tax
credit.
Authorizes the Department of Natural Resources to
analyze the potential for increased utilization of coal,
nuclear, solar, resource recovery and reuse, energyefficient technologies, and other energy alternatives,
and to make recommendations for the expanded use of
alternate energy scurces and technologies.
Montana
Resolution 28-adopted 1979.
Provides for a State Oversight Gasohol Committee to be
appointed under the Department of Natural Rescurces
for the Gasohol Program.
S.B. 523-passed 1979.
Provides a lower property tax on equipment, buildings,
and inventory of gasohol production by as much as 3%.
H. B. 402-passed 1979.
Gasohol Tax Exemption. The tax exemption for
gasohol is reduced by 2 cents for each of three succeeding 2-year periods, and the remaining 1 cent tax
exemption expires in 1989.
In 1978, $25,000 was allocated from the alternate energy
program to study gasohol in Montana.
Nebraska
L.B. 776-passed 1971.
Established the Agricultural
Products Utilization
Committee to promote research and development of
gasohol, and to analyze the marketing and testing of
gasohol. The Grain Alcohol Fuel Tax Fund was created
with an initial appropriation of $40,000 and a provision
whereby one/eighth of the motor fuels tax, which is
refundable to nonhighway uses, is used to promote the
activities of the committee. L.B. 776 also provided for a
3-cent tax credit for the sale of gasohol.
L.B. 1207-passed 1972.
Made changes in L.B. 776. Stated that in order to
qualify as a special fuel the blend had to be at 1ea.s.t10%
SUMMARY
OF ETHANOL
LEGISLATION
L.B. 424~-passed 19/a.
L . B. 74-passed 1979.
Requires that the Department of Roads implement a
program using gasohol in its vehicles to the exten’ that
gasohol supplies are available. Gasohol must contain
Nebraska-produced alcohol.
L.B. 571-passed 1979.
The Governor is authorized to enter into agreements
with municipalities or counties to build and maintain
grain alcohol plants. The State of Nebraska will have
the option to purchase the plant. An Alcohol Plant
Fund is created, to be established from funds transferred from the Highway Trust Fund or as appropriated
from the legislature; the state gas tax is increased one
cent to provide additional revenue for the Highway
Fund to support the Alcohol Plant Fund.
New Hampshire
H.B. 2OI-passed 1979.
Gasohol Tax Exemption - 5 cents. The gasohol tax
exemption applies to a 10% blend of alcohol manufactured in New Hampshire, derived from agriculture commodities and forest products, .with a purity of 99%.
New Jersey
A.R. 3034-passed 1979.
Directs the Energy and Natural Resources Committee of
the General Assembly to study large-scale use of
gasohol and other alcohol-based fuels.
New Mexico
S.J. M. 9-adopted 1978.
Resolution requesting the Division of Energy and
Minerals Department to study the feasibility of using
gasohol in New Mexico.
A-5
Rhode island
?4ew York
5. B. Y860-,4 -pr:wed
: 978.
H.R. 7891~adopted
1’978.
Diierts the Commlssiti:er of General Services to condue’ a study of the fea:,iL:li!y of .lrinq gasohcl for stateoperated vehic’es !hrougt. ; comprehel Gve road te.,t.
Requesting ihat rhc Staie Director of Transpor:.l:!c?-1
contiuct experiments with the public ;u dctwnine the
feasibility of a gwoline-a!, oho fuel blend.
S.B. .235&-passed 1979.
South Carolina
The Commissioner 01”General Services is directed to
conduct an experimentai program to test the feasibility
of using a mixture ot gasoline and alcohoi a: fuel for
state-operated motor vehicles.
H.B. 2443-passed 1979.
North Dakota
S. B. 2338-passed
1979 to July 1, 1985, and a 7-cent per gallon tax from
July 1, 1985 to July 1, 1987; provides for removai of
these incentives if loss of revenue totals $5 million.
1979.
Gasohol Tax Exemption - 4 cents. The tax exemption
applies to a blend of 10% agriculture ethyl alcohol (99%
pure) and 90% unleaded gasoline.
H.B. 1384-passed
Provides that gasohol be sold tax-free until October 1,
1979; imposes a 6-cent per gallon tax from October 1,
1979.
Establishes an Agriculture Products Utilization Commission funded by a l/8-cent gasoline refund tax reduciion, %200,000appropriated from July 1, 1979 to June
30. 1983.
South Dakota
H. B. 1064-passed
19 79.
Gasohol Tax Exemption
- 5 cents. The gasohol tax
exemption applies to a 10% blend of alcohol derived
from agriculture and forest products.
Tennessee
H.J.R. 161-passed
1979.
Qklahonra
Creates a special joint committee to study the development and use of methanol as an aiternative fuel.
S.B. 248-passed I9 79.
Texas
Gasohol Tku--.?Zx?::,.lticn
-.~.- - 6.5 cents. The gasohol tax
ox?mption applies t.3 a iti\% +n:.! ; f erhanoi, aisohol,
and gaso!ine.
Oregon
H. B. 2779-passed !979.
Requires use of gasohol in certain state-owned vehicles
to the maximum extent commercially feasible effective
January, 1980.
S.B. 927-passed 1979.
Createssolar, wind, geothermal, water, agricultural and
forest residue, and gasohol energy task forces and an
Alternate Energy Development Commission to prepare
comprehensive alternate resourcesplans to be submitted
to the governor and legislature.
H. B. 2 780-passed 1979.
Exempts, commercial ethanol or methanol gasohol
plants from property tax and corporate income tax effective June 30, 1981, of which 90% is used for a 10%
blend of gasohol and not produced from petroleu:71,
natural gas, or coal.
A6
H. B. I803-passed
2079.
Provides for state loans for establishment of plants to
manufacture fuel from renewable resources, $25,000
may be loaned to any one legal entity and $500,000may
be loaned to a small business corporation. The total
unpaid principles balance shall not exceed$15 million.
H.B. 1986-passed
1979.
Provides for annual alcohol manufacturers permit of
$100. A Texas Legislative Council preliminary draft
provides an alcohol users license of $10, an alcohol fuel
manufacturers license of $25, an agriculture fuel
marketing license of $50, and a beverage alcohol
manufacturers permit of $1,000.
Washington
S. H. B 302-passed
1979.
Exempts B&O Tax on alcohol manufactured for
gasohol when alcohol is sold to another person in
Washington. Does not apply to out-of-state sales. ’
Wyoming
H.B. Il4-passed
1979.
Gasohol Tax Exemption - 4 cents. Sales of gasohol
____.
would be subject to a 4-cent per gallon tax rather than
an 8-cent per gallon tax until July 1, 1984.
FUEL FROM FARMS
TABLE
A-l.
SUMMARY
OF STATE
FUEL EXEMPTIONS
STATE
Arkansas
Colorado
Connecticut
Indiana
Iowa
Kansas
Louisiana
Maryland
Montana
Nebraska
New Hampshire
North Dakota
Oklahoma
South Carolina
South Dakota
Wyoming
SUMMARY
OF ETHANOL
LEGISLATION
STATE
GASOLlNE TAX
,095
.07
.ll
.04
.lO
.08
.08
.09
.09
.105
.lO
.08
.065
.lO
.09
.08
ALCOHOL
STATE
GAGOHOL TAX
EXEMPTION
.095
.05
.Ol
[email protected]
.07
.05
.08
.Ol
.02
.05
.05
.04
.065
.OS
A4
Al4
A7
APPENDIX
* Alcohol
Fuels and BATF
0 Regulatnry
Requirements
* BATF Regional
l
DEPARTMENT
OF TREASURY
B
Offices
Sample Application
PERMIT INFORMATION
for Experimental
Distilled
Spirits
Plant
B-1
ALCOHOL
FUELS AND BATF
The Bureau of Alcohol, Tobacco, and Firearms (BATF)
is responsible for administering federal laws and regulations governing the taxation, production, denaturation,
and distribution of fermentation ethanol. They have the
responsibility to make available, in an understandable
format, the information required by prospective ethanol
producers and users so that they can comply with current laws and regulations.
The information required to qualify a distilled spirits
plant for commercial production of ethanol has been
summarized in BATF publication 5000.1, which is
available at the BATF Regional Office. This convenient
publication provides the applicable regulations and pertinent information to prospective producers and
distributors of ethanol for commercial fuel ventures.
Many citizens, however, are not interested in going into
the fuel business; but instead, want to produce fermentation ethanol as a supplemental fuel for their own use.
They want to make themselvesmore self-sufficient and
reduce their fuel bills. This section will provide the
information needed to qualify with BATF requirements
to produce ethanol for individual use.
Who Can Qualify?
Under Title 27, Code of Federal Regulations, Section
201.64, anyone may establish an experimental distilled
spirits plant for experimentation in, or development of:
l
l
l
sources of material from which spirits may be
produced;
processesby which spirits may be produced or
refined.; or
industrial uses of spirits.
Since “home production” of ethanol for use as an
alternate fuel is a new concept, the BATF can and will
approve the establishment of experimental plants by individuals who are seekingto prove the merit of this idea.
There is no BATF application form to fill out; a letter
written by the individual with certain pertinent information is presented. The information required in this letter
includes natur and purpose, description of plant
premises, description of production process and equipment, security, and rate production. Explanations of
these items follow.
Nature and Purpose
A general statement describing what is intended is required. For example, the applicant wants to produce
fermentation ethanol which will be used as fuel for farm
engines and heaters; including, but not limited to, tractors, combines, swathers, cars, trucks, irrigation
motors, houses, gram dryers, etc.; or, the applicant
intends to experiment with waste products (corn cobs,
B-2
stalks, spoiled grain) to produce fermentation ethanol
to determine if it can be refined and usedas a fuel 10run
farm implements; or, the applicant intends to build a
&ii1 which can efficiently refine fermentation ethanol
produced from waste products for ultimate uw as a
fuel.
Description
of Plant Premises
Describe the location of the premises where the experimental plant will be established. If the applicant is a
farmer, this should include the entire farm \o that the
ethanol produced may be used without remo\ ing it from
the “plant premises.” The description should include
the number of acresinvolved. The buildings used in the
production and storage of ethanol (if applicable) and
their relative location on the farm should be described.
Description
of Production
Process and Equipment
The production process to be used should be described.
For example, “mash to be fermented will consist of
spoiled grain, vegetables, and kitchen garbage. Initial
distillation of fermentation ethanol will be accomplished by solar energy. Ethanol recovered from the
mash via the still will be refined in a still of my own
manufacture.” A descriptive list of the equipment used
in the process should be given. All equipment from the
mash tank to the finished ethanol storage tank should
be included. In addition, when and how the ethanol produced will be denatured should be described; i.e.,
“ethanol will be mixed with gasoline in a 10:1 ratio immediately after production. This will be done in the fuel
storage tank.”
Security
Security measuresto be provided for the ethanol produced should be described. For example, “ethanol will
be stored in a 1,500-gallon fuel tank which is equipped
for locking with a padlock; or, ethanol will be immediately denatured, drummed off, then stored in a locked
ahed.All windows in the shed are equipped with security
screensand two watchdogs are on the premises.”
Rate of Production
The amount of ethanol expected to be produced in an
average 15-day period must be stated. This may be
estimated. The average proof of the finished etha-Jl
produced must be given. For example, “approximLLely
400 gallons of ethanol, averaging between 160-190
proof, will be produced in a 15-day period.”
The completed letter application must be filed with the
Regional BATF Office. They will examine it for completenessthen forward it to one of their field officers for
inspection. A BATF inspector will visit the proposed
plant prior to the time formal authorization to operate
is given. The facilities will be examined and the applicant will be advised of the record requirements for the
operation. The inspector will also discussthe authorized
operations and answer any questions. The inspector will
FUEL FROM FARMS
0.125 gallon a)f pyropate or a compound similar :hereto;
0.50 gallon of acetaldol; and
1 gallon of either keroseneor gasoline.
WJPk * .,nk bond forms (F-2601) and inform the applicant of the dollar ariount of coverage required. [Form
2601 is a surety bond which is executed by the applicant
as the principal and an approved insurance company as
the surety. The amount of the bond will depend upon
the type and volume of operations to be conducted. It is
the BATF estimate of the pofenfial tax liability on the
spirits produced. The rate of tax liability is $10.50 per
proof galIon (1 gallon of lOO-proof spirits). No tax is actually paid for ethanol produced or used on the experimental distilled spirits plant. However, the bond
coverageis still necessaryto ensurethe protection of the
tax liabilities which attach to all spirits produced.] See
the sample Form 2607 which follows.
l\\‘\
‘~\
The BATF inspector will also deliver Forms 4805 and
4871 (relating to water quality considerations and environmental information, respectively) which can be
completed and returned to the BATF inspector during
his/her visit. After the BATF Regional Office receivesa
favorable inspection report and a properly executed
bond, they will issue a formal authorization to begin
operations. This authorization, however, does not exempt the applicant from complying with any state and
local requirements concerning the production of
fermentation ethanol.
or
Formula No. 19. To every 100 gallons
of ethanol add:
4.0 gallons of methyl isobutyl ketone;
and
1.0 gallon of either kerosene or
gasoline.
3.
Question:
Must I denature the ethanol before using it on my farm?
Answer:
While BATF can approve applications
where good cause is shown for the
need to use undenatured spirits as
fuel, they prefer that you denature
your ethanol with gasoline, diesel fuel,
or heating fuel immediately after production. This will allow BATF to approve less stringent security systems
and recordkeeping requirements than
what they impose on applicants who
do not denature their ethanol.
Question:
Can any of the ethanol produced be
used for beveragepurposes?
Answer:
Absolutely not. Besidesthe IRS Excise
Tax of $10.50 per proof gallon, for
which you would become liable, you
could also incur severe criminal
penalties.
The following questions and answers are presented to
clarify certain points relative to the experimental distilled spirits plant application and operation.
1. Question:
No. The ethanol produced may be used as fuel only at the plant premises
described in your bond and letter application. Only a plant qualified as a
commercial distilled spirits pIant
(DSP) ca;l sell, loan, or give ethanol to
another party.
Answer:
2.
Can I sell or loan any excessethanol
produced to another person for fuel
use?
Question:
Can I remove some of the ethanol
from the plant premises for my own
use? (For example, as a fuel for my
personal car.)
Answer:
You may remove ethanol from your
plant premises for your own use as a
fuel: however, the ethanci must be
completely denatured according to
one of the two formulas listed below
before removal.
4.
5.
Question:
Can I build my distillery system prior
to receiving any authorization from
BATF to operate?
Answer:
Yes. However, you must file an application to establish an experimental
distilled spirits plant with BATF immediately after its completion. You
may, however, file sooner if you feel
you will have the equipment set up
prior to the qualification visit by the
BATF inspector. However, under no
circumstances may you start producing spirits prior to receipt of a formal
authorization by the BATF.
Question:
Can I qualify two or more farms for
my plant premises?
Formula No. 18. To every 100 gallons
of ethanol add:
2.5 gallons of methyl isobutyl ketone;
DEPARTMENT
OF TREASURY
PERMIT INFORMATION
6.
B-3
7.
8.
9.
Answer:
Yes, if they are in close proximity :o
each other so as to allow a BATF inspector to inspect all premises
without causing undue travel and administrative difficulties.
Question:
How long a period is the authorization effective?
Answer:
BATF is currently approving operations for a 2-year period unless you
include in your application some
justification for a longer period of
time.
Question:
Can I renew my experimental plant
authorization after expiration?
Answer:
Yes. When the authorization expires,
you may file a new application listing
the current information on all subjects oriznally ucsc-ibed (security,
rate of pralduction, equipment: etc.)
A new bond wiIl not be required
unless significant changes in ::;3erLtions have occurred since the original
filing.
Question:
Can partnerships and corporations
make application
as well as
individuals?
Answer:
Yes, however, if the application is
filed by a partnership, all partners
must sign it. If it is filed by a corporation, a person authorized by the
corporation must sign and proof of
such authorization must accompany
the application (e.g., a certified copy
of a corporate resolution or an
abstract of bylaws giving such
authority).
10. Question:
Answer:
(1) filing application for, and receiving approval to operate an experimental DSP for a limited,
specificd period of time;
(2) filing of a surety bond to cover
the tax on the ethanol produced;
(3) attachment, assessment,and collection of tax;
(4) authorities of BATF Officers;
and
(5) maintenance of records.
No such blanket waiver will be given
for commercial operations. The applicant will have to follow the
qualification procedure outlined in
BATF P 5000.1. BATF will,
however, give favorable consideration to alternate procedures from
regulations which do not present a
definite jeopardy to the revenue;
however, each such variation will be
viewed and ruled upon on an individual basis.
Hopefully, changes in the law and
regulations to facilitate the qualification of commercial plants will occur
within the next 2 years. BATF also
has proposed simpler permit applications for small-scale fermentation
ethanol plants producing fuel;
however, they have not yet been aprF_?r\.,$n?
I
Can I convert to a commercial
operation?
REGULATORY
There is no simple means of converting an experimental operation into a commercial operation. Normally, all provisions of Title 26, U.S.C.
Chapter 51 and Title 27, CFR Part
201 will be waived for an experimental ethanol fuel-related DSP except
for those relating to:
REQUIREMENTS
The Specific Regulatory Requirements of the Bureau of
Alcohol, Tobacco , and Firearms are provided on the
following pages.
0-4
FUEL FROM FARMS
SPECIFIC iiEGULATORY
REQUIREMENTS
Applicable Excerpts From
27 CFR Part 201Distilled Spirits Plants
Subpart
F-Qualifications
Spirits Plants
of Distilled
@201.131 General requirecwnts for
registration.
A person shall not engage in the
business of a distiller.
bonded
warehouseman. rectifier. or bottler
of distilled spirits. unless he has made
application for and has received
notice of registration of his plant
with respect to such business as
provided in this part. Application for
registration shall be made on Form
2607 to the assistant regional commissioner. Each application shall be
executed under penalties of perjury,
and all written statements, affidavits,
and other documents submitted in
support of the application or incorporated by reference shall be deemed
to be a part thereof. The assistant
regional commissioner may, in any
instance where the outstanding
notice of registration is inadequate or
incorrect in any respect, require by
registered or certified mail the filing
of an application on Form 2607 to
amend the notice of registration,
specifying the respects in which
amendment is required. Within 60
days after the receipt of such notice,
the proprietor shall file such application.
(72 Stat.
1349: 26 U.S.C.
5171. 5172)
5201.132 Data for application for
registration.
Application on Form 2607 shall be
prepared in accordance with the
headings on the form, and instructions thereon and issued in respect
thereto. and shall include the following:
(a) Serial number and statement of
purpose for which filed.
(b) Name and principal business
address of the applicant, and the
location of the plant if different from
the business address.
(c) Statement of the type of
business organization
and of the
persons interested in the business,
supported by the items of information listed in §20!. 138.
(d) Statement of the business or
businesses to be conducted
(e) In respect of the plant to which
the Form 2607 relates,, a list of
applicant’s
operating and basic
permits, and of the qualification
bonds (including those filed with the
application) with the name of the
surety or sureties for each bond.
(f) List of the offices, the incumbents of which are authorized hy the
articles of incorporation or the board
of directors to act on behalf of the
proprietor or to sign his name.
(g) Plat and p!ans (see $520 1, I54201.159).
(h) Description of the plant (see
fj201.149).
(i) List of major equipment (see
fj201.147).
(j) As applicable, the following:
(I) With respect to the business of
a distiller:
(i) Statement of maximum proof
gallons that will be (a) produced
during a period of I5 days and (h) in
transit to the bonded premises. (Not
required if the qualification bond is
in the maximum sum.)
(ii) Statement of daily producing
capacity in proof gallons.
(iii) Statement of process (see
#201.153).
(iv) Statement whether denaturing
operations will be conducted.
(v) Statement of title to the bonded
premises and interest in the equipment used for the production of
spirits, accompanied where required
by consent on Form 1602 (see
[email protected]).
(2) With respect to the business of
a bonded warehouseman:
(i) Statement of the maximum
proof gallons that will be stored on,
and in transit to. the bonded premises. (Not required if the qualification
DEPARTMENTOF TREASURY.PERMITINFORMATION
.I
bond is in the maximum sum.)
(ii) Description of the system of
storage. and statement of storage
capacity (bulk, packages. and cases).
(iii) Statement whether denaturing
and/or bottling-in-bond operations
will be conducted.
(3) With respect to the business of
a rectifier.
a statement of the
maximum tax the rectifier will be
liable to pay under sections 502 I and
5022, I.R.C., in a 30-dhy period. (Not
required if the qualification bond is
in the maximum sum.)
(4) With respect to rhe business of
bottling after tax determination:
(i) Statement of the name. address,
and plant number of a plant qualified
by the applicant for production or
bonded warehousing. (Not required
if the plant being registered is
qualified for production,
bonded
warehousing, or rectification, or if
the applicant is a State or political
subdivision thereof.)
(ii) Statement whether operations
involving bottling in bond after tax
determination,
as provided in 4
201.114, will be conducted.
(5) With respect to any other
business to be conducted on the plant
premises, as provided by Subpart D
of this part, a description of such
business, a list of the buildings
and/or equipment to be used, and a
statement as to the relationship, if
any, of such business to distilled
spirits operations at the plant.
Where any of the information
required by paragraph (c) or paragraph (g) of this section is on file with
the assistant regional commissioner,
such information, if accurate and
complete, may, by incorporation by
reference thereto by the applicant, be
made a part of the application for
registration.
The applicant shall,
when so required by the assistant
regional commissioner, furnish as a
B-5
part of his application r‘or registration such additional information as
may be necessary for the assistant
regional commissioner to determine
whether the application for registration should be approved.
(72 Stat.
1349: 26 C.S.C.
5171. 5172)
[25 FR 6053. June 30. 1960. as amended by
T.D. 6749. 29 FR 9896. July 23. 1964: T.D.
7112. 36 FR 8.571. Ma)’ X. 19711
52Oi.133
Notice of registration.
The application for registration.
when approved. shall constitute the
notice of registration of the plant. A
plant shall not be registered or
reregistered under this subpart until
the applicant has complied with all
requirements of law and regulations
relating to the qualification of the
business or businesses in which the
appiicant intends to engage. A plant
shall not be operated unless the
proprietor has a valid notice of
registration covering the businesses
and operations to be conducted at
such plant. In any instance where a
bond is required to be given or a
permit is required to be obtained
with respect to a business or operation befsre notice of registration of
the plant may be received with
respect thereto. the notice of registration shall not be valid with respect
to such business or operation in
the event that such bond or permit
is no longer in effect and an application for reregistration shall be filed
and notice of registration again
obtained before thereafter engaging
in such business or operation at such
plant; reregistration is not required
when a new bond or a strengthening
bond is filed pursuant to §20!. 19I or
9201.212.
(72 Stat. 1349: 26 U.S.C. 5171. 5172)
G201.135 Powers of attorney.
The proprietor shall execute and
file with the assistant regional
commissioner
a Form 1534. in
accordance with the instructions on
the form. for every person authorized
to sign or to act on behalf of the
proprietor. (Not required for persons
whose authority is furnished in the
application for registration.)
(72 Stat. 1349; 26 U.S.C. 5172)
B-6
$201.136
Operating permits.
Except as provided in $201.138.
every person required to file an
application for registration under
#20!.13 I shall make application for
and obtain an operating permit
before commencing
any of the
following operations:
(a) Distilling for industrial use.
(b) Bonded warehousing of spirits
for industrial use.
(c) Denaturing spirits.
(d) Bonded warehousing of spirits
(without bottling) for nonindustrial
use.
(e) Bottling or packaging of spirits
for industrial use.
(f) Any other distilling, warehousing, or bottling
operation
not
required to be covered by a basic
permit under the Federal Alcohol
Administration Act (49 Stat. 978; 27
U.S.C. 203. 204). Application for
such operating permit shall be made
on Form 2603 to the assistant
regional commissioner.
(72 Stat.
1349, 1370: 26 1J.S.C. 5171. 5271)
$201.137 Data for application
operating permits.
for
Each application on Form 2603
shall be executed under the penalties
of perjury, and all written statements, affidavits, and other documents submitted in support of the
application shall be deemed to be a
part thereof. Applications on Form
2603 shall be prepared in accordance
with the headings on the form, and
instructions thereon and issued in
respect thereto, and shall include the
following:
(a) Name and principal business
address of the applicant.
(b) Plant address, if different from
the business address.
(c) Description of the operation to
be conducted for which an operating
permit must be obtained.
(d) Statement, of type of business
organization
and of the persons
interested in the business, supported
by the items of information listed in
4201.148.
(e) Trade names (see fiZOl.146).
(f) On specific request of the
assistant regional commissioner,
furnish a statement showing whcthcr
the applicant or any of the persons
whose names and addresses are
required to be furnished under the
provisions of #ZOl.I4X(a)(X) and (c)
hasp- (I) ever heen con\,icted of a
felony or misCcmeanor under Federal or State law. (2) ever been
arrested or charged with any violation of State or Federal law (convictions or arrests on charges for traffic
violations need not be reported as to
subparagraphs (I) and (2) ol !his
paragraph. if such violations are not
felonies). or (3) ever applied for, held.
or been connected with a permit.
issued under Federal law to manufacture, disiribute, sell. or use spirits
or products containing
spirits,
whether or not for beverage use. or
held any financial interest in any
business covered by any such permit,
and, if so. give the number of
classification of such permit, the
period of operation thereunder. and
state in detail whether such permit
was ever suspended. revoked, annulled, or otherwise terminated.
Where any of the information
required by paragraph (d) of this
section is on file with the assistant
regional commissioner, the applicant
may, by incorporation by reference
thereto. state that such information
is made a part of the application for
an operating permit. The applicant
shall, when so required by the
assistant regional commissioner,
furnish as a part of his application for
an operating permit such additional
information as may be necessary for
the assistant regional commissioner
to determlne whether the applicant is
entitled to the permit.
(72 Stat.
lP9.
1370: 26 U.S.C.
5171. 5271)
t201.138 Exceptions to operating
permit requirements.
The provisions of $201. I36 shall
not apply to any agency of a State or
political subdivision thereof. or to
any officer or employee of any such
agency acting for such agency.
(72 SI;II.
1349. 1370: 26 1l.S.C.
§201.147
5171. 5271)
Major equipment.
The following
items of major
FUELFROM FARMS
equipment. if on the plant premises.
shall be described in the application
for registration:
(a) Mash tubs and cookers (serial
number and capacity).
(b) Fermenters (serial number and
capacity).
(c) Tanks used in the production.
storage. denaturation. rectification,
bottling, and measurement of spirits
and tanks used in the storage and the
measurement of denatured spirits
(designated use (or uses), serial
number, capacity. and method of
gauging or measurement).
(d) Permanently installed scales
and other measuring equipment
(including meters).
(e) Bottling lines (list separately as
to use and serial number).
(f) Stills (serial number, kind,
capacity. and intended use). (The
capacity shall be stated as the
estimated maximum proof gallons of
spirits capable of being produced
every 24 hours, or (for column stills)
may be represented by a statement of
the diameter of the base and number
of plates.)
(g) Other items of fixed equipment
used in the production,
storage,
rectification
and/or’bottling
of
spirits, if valued at $5,000 or more
(description and use).
The description shall show, as to
each item of equipment, the location
thereof in the plant, and the premises
(bonded or bottling) and the facility
(production, storage, denaturation.
or bottling on bonded premises, and
rectification or bottling on bottling
premises) in which it is to be used.
Where any equipment is to be used in
two or more facilities, it shall be
identified as for multiple use, and its
use in each facility shall be shown.
(72 Stat.
1349: 26 USC.
$201.148
ments.
5172)
Organizational
docu-
The supporting information required by paragraph (c) of 9201.132.
and paragraph (d) of $201.137,
includes, as applicable:
(a) Corporate documents. ( I)
Certified true copy of articles of
incorporation and any amendments
thereto.
(2) Certified true copy of the
corporate charter or a certificate of
corporate existence or incorporation.
(3) Certified true copy of certificate authcrizing the corporation to
operate in the State where the plant is
located (if other than that in which
incorporated).
(4) Certified list of directors and
officers, showing their names and
addresses.
(5) Certified true copy of bylaws.
(6) Certified extracts or digests of
minutes of meetings of board of
directors. authorizmg certain indtviduals to sign for the corporation.
(7) Statement showing the number
of shares of each class of stock or
other evidence of ownership, authorized and outstanding, the par value
thereof, and the voting rights of the
respective owners or holders.
(b) Articles c$ partnership. True
copy of the articles of partnership or
association, if any. or certificate of
partnership or association where
required to be filed by any State,
county, or municipality.
(c) Statement of interest. (I)
Names and addresses of the IO
persons having the largest ownership
or other interest in each of the classes
of stock in the corporation, or other
legal entity, and the nature and
amount of the stockholding or other
interest of each, whether such
interest appears in the name of the
interested party or in the name of
another for him. If a corporation is
wholly owned or controlled
by
another corporation, those persons
of the parent corporation who meet
the above standards are considered
to be the persons interested in the
business of the subsidiary, and the
names thereof need be furnished to
the assistant regional commissioner
only at his request.
(2) In the case of an individual
owner or partnership, name and
address of every person interested in
the plant, whether such interest
appears in the name of the interested
party or in the name of another for
him.
(72 Stat.
1349. 1370; 26 U.S.C.
5172, 5271)
[25 FR 6053. June 30. 1960. Redesignated
40 FR 16835. Apr. 15. 1975, and amended
at
by
T D. .Al.l--2Y.
$201.149
41 I-R 36491. Aug
30. 19761
Description of plant.
The application for registration
shall include a description of each
tract of land comprising the plant.
clearly indicating the bonded premises. the bottling premises. and any
other premises to be included as part
of the plant. In the case of a plant
producing spirits, where the premises
sub.ject to tax lien under section
5004(b), I.R.C.. are not coextensive
with the bonded premises, the tract
of land on which any building
containing any part of the bonded
premises is situated shail also be
described. The description of each
tract of land subject to lien under
section 5004(b). I.R.C., shall be by
courses and distances. in feet and
inches (or hundredths of feet), with
the particularity required in conveyances of real estate. If any area (or
areas) of the plant is to be alternated
between bonded and bottling premises, as provided in 420 I. 175, each
such area shall be described. and
shall be identified by number or
letter. The description of denaturing
facilities (and equipment) shall show
the manner of segregation of such
facilities from other facilities which
prevents contamination of undenatured spirits. Each building and
outside tank shall be described
(location.
size, construction,
arrangement, and means of protection
and security), referring to each by its
designated number or letter, and use.
If a plant consists of a room or Boor
of a building, a description of the
building in which the room or floor is
situated and its location therein shall
be given.
(72 Stat.
1349: 26 U.S.C.
~201.150
5 172)
Registry of stills.
The provisions of Part 196 of this
chapter are applicable
to stills
located on plant premises. The listing
of stills for distilling in the application for registration, and the approval of the application for registration,
shall constitute registration of’such
stills.
(72 Stat.
1349. 1355; 26 U.S.C.
5172. 5179)
DEPARTMENTOFTREASURYPERMITINFORMATION
B-7
@201.151 Statement of title.
The application for registration
shall include a statrment setting forth
the name and address of the owner in
fee of the lot or tract of land subject
to lien under section 5004(b) (I).
I.R.C.. the buildings thereon, and the
equipment used for the production of
spirits. If the applicant is not the
owner in fee of such property; or if
such property is encumbered by
mortgage or other lien. the application for registration shall be accompanied by a consent on Form 1602. as
provided in $201.152, unless indemnity bond on Form 3A is filed, as
provided in 920 I ,200.
approximate quantity of each material or substance used in producing.
purifying. or refining each type ot
spirits.
(72 Stat.
1349: 26 U.S.C.
PLAT
4201.154
AND
5172)
PLANS
General requiremen?s.
The proprietor shall submit, as
part of his application for registration. a plat of thy pl.r’miccs and plans,
ir. triplicate. as required by this
subpart.
(72 Stat.
1349: 26 U.S.C.
5172)
:
(72 Stat.
1349: 26 U.S.C.
$201.152
5172)
Conwnt on Form 1602.
Consents on Form 1602, where
required by this subpart, shall be
executed by the owner (if other than
the proprietor) of property subject to
lien under section 5004(b) (I), I.R.C..
and by any mor!gagee, judgment
creditor, or other person having a
lien on such property, duly acknowledgir.g that the property may be used
for the purpose of distilling spirits,
subject to the provisions of law, and
expressly stipulating that the lien of
the United States, for taxes on
distilled spirits produced thereon and
penalties relating thereto. shall have
priority of such mortgage, judgment,
or other encumbrance,’ and that in
the case of the forfeiture of such
property. or any part thereof, the title
to the same shall vest in the United
States. discharged from such mortgage. judgment, or other encumbrance.
(72 Stat.
1349: 26 U.S.C.
5172. 5173)
@201.155 Preparation.
Each plat and floor plan shall be
drawn to a scale of not less than
I/ 100 inch per foot and shall show
the cardinal points of the compass.
Each sheet of the drawings shall(a) Bear a distinctive title;
(b) Be numbered in consecutive
order, the first sheet being designated
number I; and
(c) Have a clear margin of not less
than I inch on each side and have
outside measurements of I5 by 20
inches: Provided, That the assistant
regional commissioner may authorize the use of larger sheets if they can
be satisfactorily filed.
Plats and plans shall be submitted on
tracing cloth, sensitized linen, or
blueprint paper, and may be original
drawings, or, if clear and distinct,
reproductions made by lithoprint.
ditto, or ozalid processes. The
director may approve other materials
and methods which he finds are
equally acceptable.
(72 Stat.
#201.153
The statement of process in the
application for registration shall set
forth a step-by-step description of
the process employed to produce
spirits, commencing with the treating. mashing, or fermenting of the
raw materials or substances and
continuing through each step of the
distilling, redistilling, purifying and
refining processes to the production
gauge, and showing the kind and
B-a
1349: 26 U.S.C.
5172)
Statement of process.
$201.156
Depiction of plant.
The plat shall show the boundaries
of the plant, and delineate separately
the portions thereof comprising the
bonded premises, the bottling premises, and any other premises to be
included as a part of the plant, in feet
and inches (or hundredths of feet).
The delineation of these premises
shall agree with the description given
in the application for registration.
The plat shall show (a) all buildings
on the plant premises, (b) all basic
equipment (including
tanks and
stills) not loca:ed in buildings, and (c)
all driveways, public thoroughfares.
and railroad rights-of-way contiguous to. connecting. or separating
the plant premises. Each building,
enclosed area, and outside tank ThaII
be identified. Each pipeline for the
conveyance of spirits to and from the
premises of the plant, and between
bonded and bottling premises, shall
be shown on the plat in blue, and
each pipeline for the conveyance of
denatured spirits to and from the
premises of the plant shall be shown
on the plat in green: Provided, That
in lieu of such colors, the pipelines
may be identified by symbols which
permit ready identification of their
uses. The purpose for which such
pipelines are used and the points of
origin and termination
shall be
indicated on the plat. Where premises on which spirits, wines, 0; beer
are manufactured, stored, or sold are
contiguous to a plant, the plat shall
show the relative location of the
plant and such contiguous premises,
and all pipelines and other connections between them (public utility
pipelines and similar connections
excepted). The outline of such
contiguous premises and of the plant
shall be shown in contrasting colors.
Where a plant consists of less than an
entire building, the plat shall show
the building, and the land on which
such building is situated. Where a
plant consists of, or includes, one or
more floors or rooms of a building
that is not wholly included in the
plant, the floors or rooms so used
shall be shown on a floor plan. Each
floor plan shall show the location
and dimensions of the floors or
rooms, the means of ingress and
egress, and, insofar as required on
plats by this section, pipelines and
contiguous premises. Where construction
of floors or rooms is
identical, a typical plan of such floors
or rooms will be acceptable. Where
the floor plan shows the entire plant
and includes all the information
required by a plat. such plan may be
accepted in lieu of a plat.
(72 Stat.
1349: 26 U.S.C.
5172)
FUELFROM FARMS
j
4201.157
Flow diagrams.
Flow diagrams (plans) shall be
submitted reflecting the production
processes on bonded promises. The
flow diagram shall show major
equipment (identified as to use) in its
relative operating st=quence, with
essential connecting pipelines (appropriately identified by color) and
valves. The flow diagram shall
include the entire closed distilling
system. Minor equipment (such as
pumps, pressure regulators. rotometers) need not be shown. The
direction of flow through the pipelines shall be indicated by arrows.
(72 Stat.
1349: 26 U.S.C.
5172)
@201.158 Certificate of accuracy.
The plat and plans
certificate of accuracy
right-hand corner of
signed by the proprietor.
ly as follows:
shall bear a
in the lower
each sheet,
substantial-
IYame 01 propricrort
IlX~illed
-
assistant regional commissioner ma!
require, In connection with any bond
on Form 2601, a statement. executed
under the penalties of perjury. as to
whether the principal or any person
owning, controlling,
or actively
participating in the management of
the business of the principa! has been
convicted of or has compromised any
offense set forth in $201.198(a) or has
been convicted of any offense set
forth in $201.198(b). In theevent the
above statement contains an affirmative answer. the applicate shall
submit a statement describing in
detail the circumstances surrounding
such conviction
or compromise.
Once every four years, and as
provided in §2Ol.213, a new bond,
Form 2601. shall be executed and
filed in accordance with the provisions of this subpart. No person shall
commence or continue the business
of a distiller, bonded warehouseman,
or rectifier, unless he has a valid
bond. Form 2601 (and consent of
surety, if necessary), as required in
respect of such business by this part.
rpirtts plant ‘Go.)
172
Stat. 1349.
1394: 26 U.S.C.
5173. 5551)
4201.2(10
3A.
Indemnity
bond, Form
A proprietor of a plant quaiifkd
for the prcduction of spiriis may
furnish bond on Form 3A to stand in
lieu of future liens imposed under
section 5004(b)( Il. I.R.C., and no
lien shall attach to any lot or :ract ot
land. distillery, building, or distilling
apparatus by reason of distilling
done during any period included
within the term of any such bond.
Where an indemnity bond has been
furnished on Form 3A in respect ot‘a
plant, the requirements of this part
relating to the filing of consents cn
Forms 1602 and bonds on Forms
1617 and Forms 4737 are not
applicable in respect to such plant.
(72 Stat. 1317. 1349. as amended:
5004. 5 173)
[T.D.
26 U.S.C.
7112. 36 FR 8572. May X. I9711
$201.211 Bonds and penal sums of
bonds.
The bonds, and the penal sums
thereof, required by this subpart, are
as follows:
Accuracy ccrtilied hy:
(Same and capar~ty
the prnprwror)
Sheet
No.(72
Subprl
26 U.S.C.
G-Bonds
Bond
(a) Distiller’s.
Date
Stat. 1349:
Penal sum
Ior
Form
Basis
2601
.,
5172)
and Consents
of Surety
(b)
§201.191 General.
Every person intending to commence or to continue the business of
a distiller, bonded warehouseman. or
rectifier. shall file bond. Form 2601.
as prescribed in thissubpart. with the
assistant regional commissiot,cr. at
the time of filing the or:ginal
application for registration of his
plant. and at such other times as are
required by this part. Such bond
shall be conditioned that he shall
faithfully comply with all provisions
of law and regulations relating to the
duties and business of a distiller,
bonded warehouseman. or rectifier.
as the case may be (including the
payment of taxes imposed by chapter
51 I.R.C.). and shall pay all penalties
incurred or fines imposed on him for
violation of any such provisions. The
(cl
Bonded Warehouseman’s.
Form 2601:
( I) General..
.. ..
....
(2) Limited to storage of not
over 500 wooden packages.
and to a total of not over
50.000 proof pllonr.
(3) Limited
to storage 01
denatured spirits. denaturation of spirits. and storage 01
not to exceed 100.000 prool
gallons of spirits prior to
denaturation.
Rectifier’s,
Form 2hOl
.. .. ..
(d) Combined
Operations.
Form
2601:
I I) Distiller and bonded warehouseman
(2) Distiller and rectifier
_.
(3) Bonded.
warehouseman
and rectifier.
DEPARTMENTOF TREASURYPERMITINFORMATION
The amount of tax on spirit
produced
in his distillery
during a period of I5 days.
The amount of tax on spirit!
(including
denatured
spirits
stored on such premises ant:
in transit thereto.
do . . . . . , . . . . . . . . . . .
do . . . . . . . . . .
..
Min.
Max.
$5.000
$ I00.000
5.000
5.000
200.000
50,000
.
The amount of tax the rectifier
will be liable to pay in a
period of 30 days under sec.
tions 5021 and 5022. I.R.C.
ium of penal sums of bonds in
lieu of which given.
do
.. ... , ..
do . . . . . . . . . . . . . . t . . .
.
10.000
6.000
6.000
(continued
250,000
nexl
page)
f
rooms or buildings shall be equipped
with sash locks or comparable
fasteners. If the location of such
(4) Distiller
bonded waredo ..........................
I I.000
houseman. and rectifier.
250,ooil
windows with respect to the ground,
(5) Distiller and bonded win! ::
to a fire escape, roof, set back, or
do ..........................
6,000
Cellar.
I50.000
balcony, or to an adjacent or
(6) Distiller.
bonded warecontiguous structure would permit
houseman. and bonded winI
ingress to such rooms or buildings or
do ..........................
I I .ooo
250.000
cellar.
(7) Distiller,
rectilier.
and
would otherwise, in the opinion of
do ..........................
7,000
bonded wine cellar.
250.000
the assistant regional commissioner,
(8) Distiller.
bonded warecreate a jeopardy to security, the
houseman.
rectifier,
and
assistant regional commissioner shall
do ..........................
12.000
bonded wine cellar.
300.000
require such windows to be of the
The penal sum shall be calculated in accordance with the
(e) Blanket bond. Form 2601 . . .
following
table:
detention type equipped with wire
glass panes or to be protected by
Total penal sums as deRequirements
for penal
termined under (a). (b).
sum of blanket bond.
means of iron bars or shutters or
(c). and (d).
other means affording equal protecNot over $300.000...
____.
100 percent.
tion to the revenue.
Over $31”) nnC but not
$300.000 plus 70 percent
(c) Other openings. Skylights,
over 5600.000.
of excess over $300,000.
monitors.
penthouses, and similar
Over R600.000 but not
$SlO,OOO plus 50 percent
roof openings in such rooms or
over S I .OOO.OOO.
of excess over $600.000.
Over 51.000.000
but not
S710.000 plus 35 percent
buildings shall be treated as windows
over $2.000.000.
of excess over $ I .OOO.OOO
for security purposes. Ventilating or
Over $2.000.000
1 %1,060,000 plus 25 percent
heating ducts, or sewerage or drainc xcess over $1!.000,000
age
openings which would permit
(I) Indemnity.
Form 3A . . . . . . . .,..
Appraised
value of property..
%300,000
ingress
to such rooms or buildings, or
Decrease in value of property.
(g) Indemnity.
Form 1617 . . . . . . . .
$5,000
300.000
would otherwise, in the opinion of
(h) Indemnity
Bond. Form 4737.
Theamount
ofinvoluntaryliens
against property.
the assistant regional commissioner,
(1)
('1
(i) Withdrawal
Bond. Form 2613
The amount of tax which. at any
create a jeopardy to the revenue,
one time. is chargeable
ashall be protected with secure metal
gainst such bond but has not
grills
or other means which the
been paid.
I .ooo
I .ooo.ooo
assistant regional commissioner
lj) Withdrawal
Bond. Form 2614
do
.
.... ... .
I.000
I .ooo.ooo
(h) Blanket
Withdrawal
Bond
considers to be equally effective.
Form 2615:
(d) Additionalsecurit~~. Where the
I I) Bonded and bottling pre
Sum of penal sums of bonds.
assistant regional commissioner
i\es on same plant prem
Forms 2613 and 2614. in lieu
finds the construction, arrangement,
i\cs.
of which given.
2,000
I ,ooo.ooo
equipment, or protection
inade(21 lwo or more plants in i
Sums of the penal sums of all
region qualified for bondec
the bonds. Forms 2613 and/
quate, he shall require additional
and or bottling operations
or 2614. in lieu. of which
security to be provided (such as
given.
(‘1
(9
fences, floodlights, alarm systems,
‘Sum of outstanding
involuntary
lien or liens covered by the bond.
watchman services) or changes in
Sum ol the minimum
penal sums required for each plant covered by the bond.
construction, arrangement, or equip‘Sum 01 the maximum
penal sums required for each plant covered by the bond. (The maximent to be made to the extent
mum penal sum lor one plant is 51.000.000.)
necessary
to assure him that the
7102.
5173.
5174.
5175)
Stat.
1349.
as
amended.
1352:
26
U.S.C.
(6X/\ Stat. X47. 72
construction, arrangement, or equip[25 FR 6053. June 30. 1960. as amended by T.D. 7112. 36 FR 8572. May 8, 19711
ment is adequate to protect the
revenue.
openings approved b) the assistant
SubpNH-Constructionand
Equipment
g201.234 Locking ofstorage rooms
regional commissioner. separations
or buildings on bonded premg201.231 Protection of premises.
between bonded premises and botises.
tling premises shall be secure and
(a) Buildings. The buildings in
Where spirits are bottled or
which spirits are held or stored shall
unbroken.
be securely constructed of masonry,
packaged, or stored in packages or in
(b) Doors and windows. Doors to
concrete, wood, metal, or other
cases or in other portable containers
rooms or buildings under the joint
equally substantial material, and
on bonded premises, the proprietor
custody of the assigned officer and
arranged, equipped, and protected to
shall provide a room or building for
the proprietor shall be so installed
afford adequate supervision and
and equipped as to prevent their
such bottling, packaging, or storage.
inspection by internal revenue officremoval and shall be rigidly secure
Such room or building shall be
ers. Except for doors or other
when locked. Windows in such
constructed as provided in 4201.23 I,
Penal sun
Basis
B-10
Min.
Max.
FUEL
FROM
FARMS
arranged and equipped so as to be
suitable for the intended purpose,
and shall be equipped for locking
with Government locks. An!, other
bui ding. room, or enclosure on
bor ded premises. not secured b!
Government lock. in which spirits
(including
denatured spirits) are
held. shall beequipped for locking bl
the proprietor.
$201.236 Identification
of structures, areas, apparatus, and
equipment.
Each room or enclosed area where
spirits (including denatured spirits)
or wines. distilling or fermenting
materials, or containers are held. and
each bullding. within the plant. shall
be appropriately marked as to use.
Each tank or receptacle for spirits
(including denatured spirits) or wine
shall be marked to show its serial
number. capacity. and use. Where
tanks or receptacles are used for
multiple purposes. such uses shall be
indicated. Each still shall be numbered and marked to show its use. All
other major equipment used for
processing or containing
spirits
(including denatured spirits) or wine.
or distilling or fermenting material,
and all othertanks. shall be identified
as to use unless the intended use
thereof is readily apparent.
(72 Stat.
1353: 26 U.S.C.
$201.238
517X)
Government office.
The proprietor shall provide an
office at the plant for the exclusive
use of Government
officers in
performing supervisory and administrative duties and safeguarding
Government records and property.
Such office shall be adequately
equipped with office furniture and a
secure cabinet fitted for locking with
a Government lock and with toilet
and lavatory, facilities, shall be well
lighted. ventilated. and heated. and
shall be subject to the approval of the
assistant regional commissioner,
Where suitable facilities are otherwise a\,ailable. the assistant rcgionul
commissioner may waive the requirements for a separate GoLernnient
office.
g?lLlgC. :,nd their deposit in bonded
storage. by redesignation 01.the tank
in which the production gauge is
made as a storage tank. and the
necesAnr>’ locking or \ealing 01‘ the
tank to remo\e it t’rom the closed
s)‘stetll.
5201.240 Closed distilling system.
The distilling
system shall be
continuous 2nd closed at all points
where potable or readily recoverable
spirits are present. and shall be so
designed. constructed.
and connected as to prevent the unauthoriled removal therefrom without
detection. of such spirits and of
distilling material and stillage from
which spirits are readily recoverable.
The security of the closed distilling
system shall be maintained. and
removal of spirits therefrom controlled by Government locks or seals,
or by such meters or other devices or
methods affording comparable protection as may be approved by the
Director. Processing equipment not
susceptible of being locked or sealed
(a) shall be located in a room or
enclosure which shall be in the joint
custody of the assigned ol’ficer and
the proprietor.
which room or
enclosure shall be locked with a
Government lock. and shall not be
unlocked or remain unlocked except
when such officer is on the plant
premises, or (b) shall be otherwise
equally protected in a manner
approved by the Director. In addition, processing equipment not
located within a room or building
shall, unless the premises or general
area containing such equipment is
enclosed within a fence or wall which
the assistant regional commissioner
deems adequate to the protection of
the revenue, be enclosed within a
secure fence constructed as provided
in 920 I .243( b). The provisions of this
section do not preclude the removal
of spirits from the closed distilling
system. pursuant to production
DEPARTMENTOF TREASURYPERMITINFORMATION
(72 sta1. 1353. 26 I’ S.(‘
$201.242
5203)
Denaturing facilities.
Where the proprietor is authorized
to denature spirits. he shall provide
on his bonded premises. segregated
fhcilities for use in his denaturing
operations. These facilities shall
include:
(a) A storage room or rooms. fitted
for locking, for storing packages of
denaturants, if denaturants are to be
received in packages:
(b) Tanks and other suitable
receptacles, fitted for locking. for
storing denaturants. it’ denaturants
are to be received in bulk quantities;
(c) Tanks. fitted for locking. for
denaturing spirits, if spirits are IO be
denatured in tanks;
(d) Tanks for storing denatured
spirits, if denatured spirits are to be
stored on bonded premises in tanks;
and
(e) Storage space in a rooi;7 or
building for storing packages of
denatured spirits, if denatured spirits
are to be removed in packages.
The proprietor shall also provide
such meters and other equipment
and apparatus as may be necessary to
carry out proposed operations.
Meters, equipment, and facilities
used for handling or processing
denaturing materials or denatured
spirits shall not be used for spirits
other than spirits to be denatured:
Pro\~i;/erl. That the assistant regional
commissioner may authorize their
use for other spirits when he determines that contamination of such
other spirits will not take place.
(72 Star. 1353: 26 U.S.C.
5178)
B-11
SPECIFIC REGULATORY
REQUIREMENTS
Applicable Excerpts From
i
27 CFR Part 211Distribution and Use of
Denatured Alcohol and Rum
Subpafi
D---Qualification
and Usen
of Bonded
Dealers
APPLICATIOS FOR INDUSTRIAL USE
PERMIT
$211.42 Application, Form 1479,
for permit to use or recover.
Every person desiring tc use
specially denatured alcohol or specially denatured rum, or both. and
every person desiring to recover
denatured alcohol. specially denatured rum, or articles shall. before
commencing business. make application for and obtain an industrial use
permit. Form 1481. Except as
provided in $2 I I .42a. application for
an industrial use permit shall be on
Form 1479. Such application. and
necessary supporting documents as
required by this subpart for such
permit. shall be filed with the
assistant regional commissioner. All
data. written statements, affidavits.
and other documents submitted in
\upport of the application shall be
deemed to be a part thereof. Such
application shall be accompanied by
evidence which will establish the
authority of the officer or other
person who executes the application
to execute the same and, where
applicable. by the application for a
withdrawal
permit, Form 1485.
required by 5211 161.
172 Stat.
1370: 26 U.S.C.
5271)
[T.D. 7058.35 FR 14395.Sepr.12. 19701
$211.43
Data for application,
Forms 1474* and 1479.
Each application on Form l474*
or 1479 shall include, as applicable,
the following information:
(a) Serial number and purpose for
which filed.
(b) Name and principal business
address of applicant.
(c) Location of the dealer’s or
user’s premises if different from the
business address.
(d) Statement as to the type of
business organization and of the
persons interested in the business.
supported by the items of information listed in 421 1.53.
(e) Statement of operations showing the estimated maximum quantity
in gallons of specially denatured
alcohol or specially denatured rum t\>
be on hand, in transit, and unaccounted for at any one time and. in
the case of users, a general statement
as to the intended use to be made of
the specially denatured alcohol or
specially denatured rum. and whether recovery, restoration, and redenaturation processes will be used, and.
if so. the estimated number of gallons
of recovered denatured alcohol,
recovered specially denatured rum,
or recovered articles to be on hand at
any one time.
(f) Listing of principal equipment
to be used in manufacturing, packaging, and recovery processes, including processing tanks, storage tanks,
bottling facilities, and equipment for
the recovery, rlcstoration (including
the serial number, kind, capacity.
name and address of owner, and
intended use of distilling apparatus).
,nd redenaturation
of recovered
denatured alcohol or specially denatured rum by users. and the size and
complete description of the specially
denatured alcohol or specially denatured rum storeroom or storage
tanks.
(g) Trade names (see $211.52).
(h) List of the offices, the incumbents of which are authorized by the
articles of incorporation, by laws, or
the board of directors to act on
behalf of the applicant or to sign his
name.
(i) On specific request of the
assistant regional commissioner,
furnish a statement showing whether
any of the persons whose names and
addresses are required to be furnished under the provisions
of
$42 I I .53(a) (2) and 2 I I .53(c) have ( I )
ever been convicted of a felony or
misdemeanor under Federal or State
iaw. (2) ever been arrested or charged
with any violation of State or Federal
law (convictions or arrests or charges
for traffic violations need not be
reported as to subparagraphs (I)and
(2) of this paragraph, if such violations are not felonies). or (3) ever
applied for, held, or been connected
with a permit issued under Federal
law to manufacture. distribute, sell,
or use spirits or products containing
alcohol or rum. whether or not for
beverage use, or held any financial
interest in any business covered by
any such permit, and, if so. give the
number and classification of such
permit, the period of operation
thereunder,
and state in detail
whether such permit was ever suspended, revoked, annulled. or otherwise terminated.
Where any of the information
required by paragraphs (d) through
(h) of this section is on file with the
assistant regional commissioner, the
applicant may, by incorporation by
reference thereto. state that such
information is made a part of the
application
for an industrial use
permit. The applicant shall, when so
required by the assistant regional
commissioner, furnish as part of his
application
for an industrial use
permit such additional information
as may be necessary for the assistant
regional commissioner to determine
whether the applicant is entitled to
the permit.
(72 Sral.
1370: 26 :’ S.C. 5271)
*Bondeddealeronly
B-12
FUELFROM FARMS
4211.53 Organizational documents.
The supporting intormation rcquired by paragraph (d) of $2 I I .43
includes. as applicable:
(a) Corporalr
doc~irnletlls.
(I)
Certified true copy of the certificate
of incorporation. or certified true
copy of certificate authoriring the
corporation to operate in the State
where the premises are located (if
other than that in which incorporated).
(2) Certified list of names and
addresses of officers and directors.
(3) Statement showing the number
of shares of each class of stock or
other evidence of ownership. authori7ed and outstanding. the par value
thereof. and the \,oting rights of the
respective owners or holders.
True
(b) .4rricle.v c!f‘ par~twrship.
copy of the articles of partnership or
association. if any, or certificate of
partnership or association where
required to be filed by any State.
county. or municipality.
0.f’ itirerrsr.
(I)
(c) Slaremenr
Names and addresses of the IO
persons having the largest ownership
or other interest in each of the classes
of stock in the corporation, or other
legal entity, and the nature and
amount of the stockholding or other
interest of each. whether such
interest appears in the name of the
interested party or in the name of
another for him. If a corporation is
wholly owned or controlled
by
another corporation. those persons
of the parent corporation who meet
the above standards are considered
to be the persons interested in the
business of the subsidiary and the
names and addresses of such persons
shait be >dhmitted to the assistant
regional commissioner on his specific
request.
(2) In the case of an individual
owner or partnership, name and
address of every person interested in
the business. whether such interest
appears in the name of the interested
party or in the name of another for
him.
$211.54
Powers of attorney.
An applicant
or permittee shall
esecutc and file with the assistant
regional commi:,sioner a Form 1534.
in accordance with the instructions
on the form, for e\ery person
auihoriled to sign or to act on his
hchall.. (Not required for persons
whose authority
is furnished in
accoid:~~~x .iiith $21 1.43 c,r$2l l.43a.)
[‘I 1). 70.58. 35 I-R 1439h. Sept.
$211.72
12. 1970]
LJser’s bond, Form 1480.
Every person filing an application
on Form 1479 shall. before issuance
of the industrial use permit, file
bond. Form 14x0. with the assistant
regional commissioner. except that
no bond will be required where the
application is flied by a State. or any
political subdivision thereof. or the
District of Columbia, or where the
quantity
of specially denatured
alcohol and specially denatured rum
authorized to be withdrawn does not
exceed 120 gallons per annum and
the quantity which may be on hand,
in transit, and unaccounted for at
any one time does not exceed I2
gallons. The penal sum of the bond
shall be computed on each gallon ot
specially denatured alcohol or rum.
including
recovered or restored
denatured alcohol or specially denatured rum or recovered articles in the
form of TIenatured spirits. authorized
to be on hand, in transit to the
premises of the user, and unaccounted for at any one time, at
double the rate prescribed by law as
the internal revenue tax on a proof
gallon of distilled spirits: Pru\Yc/ed.
That the penal sums of bonds
covering specially denatured alcohol
Formulas No. I8 and No. I9 shall be
computed on each gallon at the rate
prescribed by law as the tax on a
proof gallon of distilled spirits. The
penal sum of any such bond (or the
total of the penal sums where original
and strengthening bonds are filed)
shall not exceed $100,000 or be less
than $500. No bond is required where
application is filed on Form 4326, as
provided in $21 I .42A.
(72 Stat.
[T.D.
1372; 26 U.S.C.
5272)
705X. 35 FR 14396. Sept.
DEPARTMENTOF TREASURYPERMITINFORMATION
12. 19701
Subpart
F-Premises
$211.91
and Equipment
Premises
A permittee shall have prcmihcs
suitahlc for the huhine>a being
conducted and adequate for the
protection of the revenue. When
specially denatured spirits are to be
stored, storage facilities shall be
provided on the premises for such
spirits received or recovered thereon.
Except as otherwise provided in this
section. these storage facilities shall
consist of storerooms or stationary
storage tanks (not necessarily in a
room or building), or a combination
thereof. A user receiving specially
denatured spirits in tank cars or tank
trucks and storing all such spirits
therein. as pro\,ided in $21 I, thX.
need not pro\idc stationary storage
tanks. Where specially denatured
spirits are to bc received at or
removed from a permittee’s premises
in bulk conveyances. suitable fac~lities for such operations shall be
provided.
(72 Sld1
Subpart
1172. ?ft I S.(’
G-Formulas
~211.101
5271)
and Processes
General.
(a) Fbr.nl 147%,4. Every person
desiring to use specially denatured
spirits for other than laboratory or
mechanical purposes, ah provided in
$211.169, or to recover denatured
spirits or articles, shall. except where
previously approved formulas are
adopted or ah provided in $2 I I. 102.
suhmit on Form 1479-A. directly to
the Director. a description of each
process or formula: a separate Form
1479-A shall be used for each such
formula or process. In the case 01
articles to he manufactured with
specially denatured spirits. quantitative formulah and processes shall be
given. The preparation of Form
1479-A shall be in accordance with
the headings and the instructions
thereon.
(h)
Prc\~iou.v/~~~ uppro\~4
FCJIWI.C
147%,4. Any persons who intends to
use previously approved formulas
and processes. Forms 1479-A. on
and after July I. 1960. shall submit to
B-13
the assistant regional commissioner ;I
list. in quadruplicatc. 01. all 5uch
appro\,rd Forms 1479-A which hc
intends to continue using. The li\t
shall show. a~,to each Form 1479-A.
the article or proceh\ in 11hich
denatured spirit\ are used or rccovered. the formula 01. spcciall!,
denatured spirita. the lahorator!
riumber ?! the sample (if an!,). the
date of appro\,al. and the code
number prescribed for the article or
process.
(72 srar
I?hY. 1.7’2. Yl I s C’. 5241. S2’7)
[2S FR 596X. .lunc IX. 1960. a, amcndcd h!
1.0 7OSR. 35 kR I.lW-1. Scpr. I?. IWO]
Q211.107
Samples
ingredients.
of
articles
and
In connection with the submission
of Form 1479-A covering :he proposed manufacture of an article
(except a rubbing alcohol. a rubbing
alcohol base. a proprietary solvent,
or a special industrial
solvent)
containing specially denatured spirits. the applicant shall submit to the
Director an g-ounce sample of the
article (except that a 4-ounce sample
will be sufficient for a perfume which
contains more than 6 ounces of
perfume oils per gallon). For all toilet
preparations containing specially
denatured spirits. the applicant shall
also submit a l-ounce sample of the
perfume oils (or of purchased
mixtures consisting of perfume oils
with other ingredients) to be used.
The Director may at any time require
the submission of samples of (a) an)
ingredients included in a formula,
and (b) proprietary antifreeze solutions containing completely denatured alcohol.
(72 Stat.
1372: 26 l:.S.C.
[37 FR 5751. Mar.
5273)
21. 19721
Subpart H-Sale and Use of Completely
Denatured Alcohol
substance and dots not appear in the
finished product: (b) in the arts and
industries (except in the manulltcturc
01‘ preparations or products lor
internal human use or consumption
where any of such alcohol or 01’ the
denaturants used in such alcohol
may remain in the I’inishcd product):
and (c) for fuel. light. and poner. Else
of completely denatured alcohol in
(41 I~rrtlrlrlrrrl,ltr
\<I I!
the arts and industries includes. hut is
spccl.lll!
dcn:lturcll
;1Ic~1111l1l01.111111;1
.J,,
IO0
so I
not limited to, the manutllcture 01’
Methyl Iwhut>l hct~,nc
I
cleaning fluids. detergents. protz/ r-hut! I ,IILoI~~II
2
prietary antifreeze solutions. thin(i;~\~~l~nc (II ruhhcr Ih\dr~~c;~~bon
ners. lacquers. and brake fluids.
WI\Clll
I
Persons distributing and using (but
(5) I;lrllilllnlrrl/r
\,I I
not recovering for reuse) completeI>
Spcclall!
dsmlturcd
;tlcoh~~l IormuI;ti
denatured alcohol are not required to
Sk, I..................,,
,,,
IO0
Meth! I whut> I Lclrrnr
I
obtain a permit or to file bond under
2
Sccond;~r~ hut! I ;~lc~~hol
this part. Persons recovering comI
(ia\ol~nc 01 ruhhcr h\tlrrlc;lrhon
WI\CI~I
pletely denatured alcohol for reuse
shall procurean industrial use permit
in accordance with Subpart D ofthis
part and file bond in accordance with
Subpart E of this part. Containers of
$211.171
Sales by producers.
products manufactued with comProprietary solbents may he sold
pletely denatured alcohol. such as
by producers to any person for use in
proprietary antifreeze preparations.
manufacturing or as a solvent and to
solvents, thinners. and lacquers. shall
distributors and other persons for
not be branded as completely denaresale.
tured alcohol nor shall any such
product be advertised. shipped, sold.
or offered for sale as completely
denatured alcohol.
$211.172
Else in manufacturing.
(72 Stat. 1.762. 1369. 1372; U.S.C.
5273)
5214.5241.
Subpart J-Operations
by Users ot Specially
Denatured Spirits
PROPRIETARY
SOLVENTS
§211.170 Manufacture
tary solvents.
of proprie-
All articles coming under the
general classification of proprietary
solvents shall be manufactured with
specially denatured alcohol Formula
No. I. The formulations shall be as
follows. except as may otherwise be
authorized by the Director:
$211.I 11 General
( I ) Fomularmt~
Completely denatured alcohol
may be sold and used for any lawful
purpose. Completely
denatured
alcohol may be used (a) in the
manufacture of definite chemical
substances where such alcohol is
changed into some other chemical
B-14
.
3’0. I.
Gallot7.\
Specially denaturedalcohol formula
No. I..........................
Ethyl acetate.
.
Gasoline
or rubber hydrocarbon
solvent.
(2) Fomtuku~ic~n ;Vo. II.
Specially
denatured
alcohol
No. I..........................
_.
100
5
When a proprietary solvent is used
in the manufacture. for sale, of an
article containing more than 25
percent of alcohol by volume.
sufficient ingredients shall be added
to definitely change the composition
and character of the proprietary
solvent. Such articles shall not be
manufactured until a Form 1479-A
covering production ofthe article has
been submitted to and approved by
the Director, except that Form 1479A need not be submitted to cover the
manufacture of surface coatings
(including such products as inks)
containing two pounds or more of
solid coating material per gallon of
such article. The formulation number (see 521 I. 170) of the proprietary
solvent to be used in manufacturing
the article shall be stated in the Form
1479-A.
I’ormula
IO0
[T.O.
6715. 29 FR 3659. Mar.
FUEL
24. lYh4]
FROM
FARMS
SPECIAL
4211.180
IKDUSTRIAL
(3) Forndar
ion c‘.
Specially denatured
alcohol
No. I or 3-A
.
Methyl isobutyl ketone
SOLVENTS
IManufacture.
Special industrial solvents shall be
manufactured with specially denatured alcohol Formula No. I or 3-A.
The formulations shall be as follows,
except as may otherwise be authorized by the Director:
(4) f~ormularion
D.
Ethyl acetate
Specially denatured
alcohol
No. I or 3-A
Isopropyl
alcohol or mc:hyl
Methyl isobutyl ketone
[T.D.
(2) Formrrhrion
B.
Specially denatured
alcohol Formula
No. I or 3-A _.
_.
Isopropyl alcohol
Methyl iaobutyl ketone
Methyl alcohol
... .
..
SPECIFIC REGULATORY
100
5
I
S
100
I
5
Formula
alcohol
6715. 29 FR 3659, Mar.
#211.181
GaN0n.r
( I) Formu/arion
A.
Specially denatured
sicohol
Formula
100
No. I or 3-A . . . .
.
.
Isopropyl alcohol or methyl alcohol .
IO
I
Methyl isobutyl ketone . . . . . . . . . . . .
Formula
_.
I00
15
I
24. 1964:
Sales by producers.
Special industrial solvents may be
sold by producers to any person for
use in manufacturing or as a solvent.
and to wholeslae distributors and
other producers of such solvents for
resale. Sa!e of such solvents for
distribution through retail channels
is prohibited.
[T.D.
6715. 29 FR 3659. Mar.
24. 19641
4211.182
Use in manufacuring
artic!es for sale.
When a special industrial solvent is
used in the manufacture of an article
for sale, sufficient ingredients shall
be added to definitely change the
composition and character of the
special industrial solvent; such an
article shall not be manufactured
until a Form 1479-A covering its
production has been submitted to,
and approved by, the Director. The
formulation letter (see $21 I .180) of
the special industrial solvent to be
used shall be stated in the Form 1479A. Special industrial solvents shall
not be reprocessed into other solvents intended for sale where the
other solvent would contain more
than SOpercent alcohol by volume.
[37 FR 5752. Mar.
21. I9721
REQUIREMENTS
Applicable Excerpts From
27 CFR Part 212Formulas for Denatured
Alcohol and Rum
Subpari C-Completely
Denatured Alcohol
Q212.10 General.
Completely denatured alcohol will
be denatured in accordance with
formulas prescribed in this subpart.
Producers of completely denatured
alcohol may be authorized to add a
small quantity of an odarant, rust
inhibitor,
or dye to completely
denatured alcohol. Any such addition’may be made only on approval
by the Director. Request for such
approval shall be submitted to the
Director in triplicate. Odorants or
perfume materials may be added to
denaturants authorized for oompletely denatured alcohol in amounts
not greater than I part to 250. by
weight: Provided. That such addition
shall not decrease the denaturing
value nor change the chemical or
physical constants beyond the limits
of the specifications for these denaturants as prescribed in subpart E,
DEPARTMENT
OF TREASURY
except as to odor. Proprietors of
distilled spirits plants using denaturants to which such odorants or
perfume materials have been added
shall inform the Director of the
names and properties of the odorants
or perfume materials so used.
[22 FR 1330. Mar. 5. 1957. as amended
T.D. 6474, 25 FR 5988, June 29. 19601
9212.11
by
Formula No. 18.
To every 100 gallons of ethyl
alcohol of not less than 160’ proof
add:
2.50 gallons of methyl isobutyl ketone:
0.125 gallon of pyronate
or a compound
similar thereto:
0.50 gallon of acetaldol
(h-hydroxybutyraldehyde):
and
I .OO gallon of either kerosene. deodorized
kerosene. or gasoline.
[T.D.
6634, 28 FR 1038, Feb. 2. 19631
PERMIT INFOSMATION
4212.12
Formula No. 19
To every 100 gallons of ethyl
alcohol of not less than 160” prool
add:
4.0 gallons of methyl isobutyl ketone: and
I.0 gallon of either keroscnc. deodorifcd
kerosene, or gasoline.
[T.D.
6634. 28 FR 103X. Feh. 2. 196.11
Subpart D-Specially
Denatured Spirits
Fomwlas and Authorized Uses
g212.15
General.
(a) Fotwtrr/u.v.Specially denatured
alcohol shall be denatured in accordance with formulas prescribed in
this subpart. Alcohol of not less than
185O of proof shall bc used in the
manufacture
of all formulas of
specially denatured alcohol. unless
otherwise authorized by the Director. Rum for denaturation shall be of
s-15
.
not less than 150° of proof and shall
be denatured in accordance with
Formula No. 4.
(b) uses. Users and manufacturers
holding approved Forms 1479-A
covering manufacture of products or
use in processes no longer authorized
for a particular formula may continue such use. Subject to the
provisions of Chapter 5 1 I. R.C.. Part
21 1 of this chapter. and this part. the
Director
may authorize,
in his
discretion, the use of any formula of
specially denatured alcohol or specially denatured rum for uses not
specifically authorized in this part.
The code number before each item
under “authorized uses”shall be used
in reporting the use of specially
denatured alcohol or specially denatured rum.
ATF Form 3A
ATF Forrn 1534
$212.16
ATF Form 4805
(1740.2)
ATF Form 4871
(1740.1)
ATF Form 5100.1
B-16
g;~llonr mcrh! I ;IICLIIIOI
Formula T%o.1
(a) Forr~~ulu. To every 100 gallons
of alcohol add:
Five gallons
uood
$212.38
Formula Il’o. 28-A.
alcohol.
(a) ForIIJuh.
(b) ALlthorized
61 I.
612.
61.1.
620.
lises. As a fuel:
Automobile
and supplementdr!
luels
Airplane and supplementary
luel~
Rocket and .jet luels.
Proprietary
heating furls.
4212.19
Formula No. 3-A.
(a) Forrnulu.
of a Distilled Spirits Plant
Indemnity Bond
Power of Attorney
(5000.0)
ATF Form 1602
ATF Form 2601
(5110.56)
ATF Form 2603
(5110.25)
ATF Form 2607
(51!0.41)
ATF Form 2625
(5000.9)
Fi\c
123 FR 1330. Mar. 5. 1957. a\ amended h!
T.1). 6474. 25 FR 59Xx. .lunc 29. 1960: l..D
6977. 33 FR 1570% Oct. 24. I9hX]
FORMS GENERALLY REQUIRED TO BE PREPARED
For Qualification
of alcohol add:
Consent
Distilled Spirits Bond
Application for Operating
Permit Under 26 U.S.C. 517(b)
Registration of Distilled Spirits
Plant
Personnel QuestionnaireAlcohol and Tobacco
Products
Supplemental Information on
Water Quality Considerations
--Under 33 U.S.C. 1341 (a)
Environmental Information
Signing Authority for
Corporate Officials
To every 100 gallons
To ev’er)’ IO0 gallons
of alcohol add:
One gallon
of g;iwllnc
(I-J) .4 urlwrixtl
61 I.
612
613.
620
6.70.
I/.\(‘.\.
As a fuel:
.Automohllc
and \upplcmenrar!
lueI\
Airnlanc and \upplcmtntar>
lwl\.
Rochcr and ICI lusl~
Proprlctar!
hc;~l~ng Iuc’I\.
‘Jthcr lucl LILC+
FORMS GENERALLY REQUIRED TO BE PREPARED
For Qualification of a Specially Denatured
Alcohol User’s Premises
ATF Form 1479
(5150.23)
ATF Form 1479-A
(5150.19)
ATF Form 1480
(5150.2!?)
ATF Form 1485
(5150.12)
ATF Form 1534
(5000.8)
ATF Form 2625
(5000.9)
ATF Form 4805
(1740.2)
ATF Form 4871
(1740.1)
ATF Form 5100.1
Application for Permit to Use
Specially Denatured Alcohol
Formula for Article Made with
Specially Denatured Alcohol
or Rum
Bond of User of Specially
Denatured Alcohol or Rum
Application and Withdrawal
Permit of User to Procure
Specially Denatured Alcohol
Power of Attorney
Personnel QuestionnaireAlcohol and Tobacco
Products
Supplemental Information on
Water Quality Considerations
-Under 33 USC. 1341 (a)
Environmental Information
Signing Authority for
Corporate Officials
FUELFROM FARMS
BATF
REGIONAL
Central
Region
OFFICES
Regional Regulatory Administrator
Bureau of Alcohol, Tobacco, and Firearms
550 Main Street
Cincinnati, OH 45202
Phone (513) 684-3334
Indiana, Kentucky
Michigan, Ohio,
West Virginia
Mid-Atlantic
Region
Delaware, District of
Columbia, Maryland,
New Jersey, Pennsylvania,
Virginia
Midwest
Region
Illinois, Iowa, Kansas,
Minnesota, Missouri,
Nebraska, North Dakota,
South Dakota, Wisconsin
North-Atlantic
Region
Connecticut, Maine,
Massachusetts, New Hampshire,
New York, Rhode Island,
Vermont, Puerto Rico,
Virgin Islands
Southeast
Region
Alabama, Florida, Georgia,
Mississippi, North Carolina,
South Carolina, Tennessee
Southwest
Region
Arkansas, Colorado,
Louisiana, New Mexico,
Oklahoma, Texas, Wyoming
Western
Region
Alaska, Arizona,
California, Hawaii,
Idaho, Montana,
Nevada, Oregon,
Utah, Washington
DEPARTMENT
OF TREASURY
PERMIT INFORMATION
Regional Regula.tory Administrator
Bureau of Alcohol, Tobacco, and Firearms
2 Penn Center Plaza, Room 360
Philadelphia, PA 19102
Phone (215) 597-2248
Regional Regulatory Administrator
Bureau of Alcohol, Tobacco, and Firearms
230 S. Dearborn Street, 15th Floor
Chicago, IL 60604
Phone (312) 353-3883
Regional Regulatory Administrator
Bureau of Alcohol, Tobacco, and Firearms
6 World Trade Center, 6th Floor
(Mail: P.O. Box 15,
Church Street Station)
New York, NY 10008
Phone (212) 264-1095
Regional Regulatory Administrator
Bureau of Alcohol, Tobacco, and Firearms
3835 Northeast Expressway
(Mail: P.O. Box 2994)
Atlanta, GA 30301
Phone (404) 455-2670
Regional Regulatory Administrator
Bureau of Alcohol, Tobacco, and Firearms
Main Tower, Room 345
1200 Main Street
Dallas, TX 75202
Phone (214) 767-2285
Regional Regulatory Administrator
Bureau of Alcohol, Tobacco, and Firearms
525 Market Street, 34th Floor
San Francisco, CA 94105
Phone (415) 556-0226
B-17
I
SAMPLE APPLICATION
FOR EXPERIMENTAL
DISTILLED
SPIRITS PLANT
The following correspondence is representative of what would be needed in the permit application for an experimental distilled spirits plant.
Department of the Treasury
Bureau
of Alcohol,
Tobacco 8 Firearms
Refer To
DS-TI-T: M D
EXD-SDM
Phone: 214-767-2285
Farm Fuel, Inc.
1617 Cole Boulevard
Golden, Colorado 80401
Gentlemen:
Your letter application to establish and operate an experimental distilled spirits plant
under the provisions of Title 27, Code of Federal Regulations 201.65 has been approved.
This authorization will be effective for a period of two (2) years commencing with the
date on our approval of your bond.
For the purposes of this application, we are waiving the provisions of Title 27, Code of
Federal Regulations, Part 201, except those sections pertaining to the attachment,
assessment, and collection of tax (for unauthorized use of the distilled spirits); security
applicable to the experimental plant; and bond requirements. In addition, we have not
waived the authorities of BATF Officers, including plant and required records.
For each production run of alcohol, you shall maintain a record showing the date(s) of
production, kind(s) and quantityfies) of raw materials used, and quantity and proof of
alcohol produced. In addition, you shall maintain a record of disposition of all alcohol
produced showing the dates and manner of disposition. The alcohol shall be stored under
lock and access thereto shall be limited to personnel essential to the experimentation.
Upon termination of this authorization, any alcohol remaining shall be destroyed under
Government supervision.
Alcohol produced by the experimental plant may be used at your experimental distilled
spirits premises in pure form, after denaturation, or after mixing with gasoline or other
additives. However, any alcohol intended for removal from the plant premises, such as
fuel in an automobile to be operated on public roads, must be completely denatured
according to a formula prescribed in 27 CPR Part 212 and included in BATF 5000.1.
Appropriate records covering the denaturing operations must also be maintained. The
records shall show the quantity of alcohol used, kind(s) and quantityties) of material
added, and the disposition of the resultant mixture. Distilled spirits produced by the
experimental plant or fuel mixtures made with such spirits may not be sold or given
away.
This authorirltion does not relieve you of any responsiblity for complying with state and
local requirtiments relating to the production and use of ethyl alcohol and may be rescinded should jeopardy to the revenue or administrative problem arise.
Sincerely yours,
cc CT7-l ,~q&nL-.
,,/
Earl P. Kennard
Regional Regulatory Administrator
B-18
FUEL FROM FARMS
CEPARTMENT
OF ALCOHOL,
BUREAU
DISTILLED
SURETY
(OR
OF BOND
OF BUSINESS
Co. of
Colorado,
OPERATIONS
OFFICE
AMOUNT
Insurance
Inc.
Cl BLANKET
q COMBINEO
1617 Cole Boulevard
Golden,
Colorado
Corporation
!
(htumber, street, city. State, ZIP Code)
80401
OF BOND
’ EFFECTIVE
30,000.00
DATE,
I/2/80
I
(Check applicable box.)
KNOW
ALL YEN BY THESE tRESENTS,
Th., WI.
Aacricn
in the shore LIIIOU)II. krful
mooey or Ihe Unhcd
ankn~jaLn11~
and rt~erdl~.
fiimly by chcv prereau.
Tbir bond :haU not in soy C~HII elrectivr
bclo:e (be
theI d11e rithou,
notice 10 Ihs obligorr.
fiovidrd,
That U
1111 of the bond.
WHEREAS.
l rery pel:on Intending
,o commrnu
o,
ritb the prorlr~on:
01 Title 26 Unhrd S,akr Code; nnd
WHEREAS,
ondcr
the prorkion:
of TkIc 26 Unl,cd
rowld otherrise
be repWed
10 rirc mo,e ,bao ooe bond
tbu;
13 RECTIFIERS
BONDED
WAREHOUSEMANT
SURETIES)
The Universal
KIN0
q
ADDRESS
PreS.
OF BOND
m DISTILLER’S
on back)
A Colorado
Farm Fuel,
Inc.
Dave Strawman,
TYPE
FIREARMS
SPIRITS BOND
(See inrtructions
2. 3, and 4.)
instructions
PRINCIPALfSee
OF THE TREASURY
TOBACCO
AND
,ht ,bor.-n.mrd
prindpal
Scatu, ror the paymcol
show dew, bu, If meetpled
oo crruAvr
date k inmrlrd
con,,nv,
,bc borher:
of
sod runry
(o: ,.r.th:l.
U. .eY sod
rhkb
we b&ad auruhu,
ow behr.
by the Uoi,.d
Sutr:
lo tia tprsa proridrd,
of I dbtUh,,
o, or,
bo8d.d
S,n,c: Code, wy pcrwo blrndbg
10 mmarnn
,o cows hl: rocral
ooeratioo,
#halI. lo Iau
It *hall
,he delr
r.,ebo.srr.o.
or coo,lnue
Ibaraof.
rive
fbmly
bowad Y.,O Ihe Uoi,cd S,B,~: of
l I~c~~o,I.
adminhuatora.
rucprsurrt.
aed
br l fl#eHvc. eaordlag
of ~xosutloo
Aown
01 or,
,.ctlrkr.
IO I,: term: l o ted :flr,
brloc &all bc tbr rfl*s,he
.baU‘kr
Load
k l rcordmmce
budnr::
a: ploprirlor
oI I dilikd
spirits pbnt Who
a comb&-d
oprialiomr
bond So cove1 bk op.,&-
tad
VHEREAS.
dLtiIlcd
under the p,o.i,iom
of Titl, 26 Unltrd S,,ccs Code. my pc,,‘m intcndh~
lo cmnmcncc o, coariauc
bndoees
., proprlr,or
of I bomdd rbr
allat end 1.
tpirilr
pbnt
qudicd
Io: Ihe production
of di:,Ulrd
splits shall.L
&em of the bonda rhlch
romld
otberrlr
k :tqtited
by hr.
rir* I cambiocd
o~tahss~
bond 10 eo.1, his opt,.,,onl;
,r,d
VHEREAS.
under the provisions
ofTl,Ie
26 Ual,cd St~lcsCodc
and rr4ullioor.
soy pr:on
(Inchdin&.
lo tba UI
ofa corporalbo.
sontroLkd
01 VbO&
l Wm*d CEkiidbtkr)
oprratinl
rnorr than ooe dktlllcd
spirit: pkol b aa alcohol lob8ao
and fitterms
,c#oo may fir a bkaket
bond.
L lieu of rplratc
bonds. COVe,hl IM opwalio~
l r amy 1-0 a, mom ruch pknts and ,ny bonded
r&r sellw rhlcb w adjwenl
10 any such p&l
qu9Oed
for the produclka
of dirlllkd
rpLi11; md
VHF.REAS.
the principal
i: opersrin;.
o, lnccnd: ,o opwatc. ,bc prcmirc: :pdfiid(Lb1 on back mdrt
“Dercriprim
0, Pttmr,t#
~p~ad*’
#he W~C. ,ddrcn.
and rc#lrrq
nvnbrr
o/ each ph?;
#ad Ihe opnffen#
lo? rblch
PCk
Pknl
&
qrdlfied.
ffrperc
h inrujfiricnt.
l trsch appropriawly
ldmrlfird
~epwnrr shtrt of~pprorlmarrly ,he “me ~ke.j
Southwest
Region
I# druribmd
in ,hr (rcrcr~l)
applkatIon(r)
IO, rcgirtration
(or rpproral).
wd (alI 00 which
pknt(:)
(k) (WI) lodId
b the _______________
______________
l lmhsl. tobacco wad fucwms regioo.
NOV. THEREFORE,
the condltionr
of ,bir bond an :uch Ihat U ,bc principalI. SbalL la 811 :c:pcc,,,
witbout
Iremd or er~rlon,
comply rl,b all Ibe prorisloo:
of hw and reguhdom~
mLti#
ID Ihe dmtiea
nod bnlhsu
ot bmrht*rs
for
rblcb
thk bond ir liven: end
2. Shall pay aU penallie: hcurred
end fine, hnjoscd
on him for rlolrtloa
or any or Ibr uld pralsloa:;
and
3. ShaU:
(#Ini a dl:,lUcr,
ply’. o, CIY,~ IO b, PC,& ,o the Unllcd
S,a,rr. all ,.x.,
Imposed by hr no. o, hwrnfter
lo fo,cc. ph: pmeltka U ..y. and Lnlrrr:,.
rllb rs:prct
IO ,hc burincsr
of a dbtikr.
and on .U dktilled
sPbl,fi ptoducmd
by him. aad on &U arkIts (kchdin~
denatored
IPMII) 101 0, htrrafls,
b Irand
lo. or receirtd
.
81. hk dirtllkry:
and
/)/a: a bondrd
w~rchourcman.
pay. o: cawe ,o,br pd4 ,o the Uallrd Sta,r~, all ,axe: hpovd
by law oov
o: hwc~f,ar
lo fora.
phr
paaaltie:
iI *my, nod in.
W:c*,. on aI1 distilled
splits (inckdin
dcasturcd
rph311) now ot berrallrr
depodttd
la &I
bonded
rarahouu.
belorr
rltbdraral
tb*,eor
from uld bonded
r8rcbouse
(rxccpt
as otherrkc
provided by kw). end rllhh
20 yw,# (except at otherrkr
prorlded
by kr)
from Ibe data af orWoll tatry lo, depoail in inlcrmel
~cvcnuc bond. and on alI dI:tillcd
rpirh
(includioa
draeturd
rplrlu) mow o, brrcafw,
h trw111t Iherao 01 rsseived
thereat: aed
(c)a: I rrstlfier.
pay. o, cw:e
10 bc paid. to the Uallrd
S,a,u,
all Inxw hpovd
by br oow of here~f,er lo Rtsr. ph
psraltir:
II any. end in,c,e:,.
for which
ha may become lkble; end
Id)e:
the proprirtar
of I bonded wine colkr. pay. or cqsc to be paid. to ibe Lhlred
s~~cr.
au tsxaa,
heludiol
iii
oscup8lion~l
mod rectllicatbn
taxe&
lmposed
by kr now or bcrv~rlr,
in rorce (plus penMet
II any. and Ia~e,es;) for which hg may brcomr
Ueblr
rich mpecl
to oprr8tlon
or the uld bonded wine
crllu.
and on all dktlUod
#pbi,s end riot
MIW or hercahr,
lo ctanrlt thwlo
orreaixd
thwat.~nd
oo Al dktllkd
#pkiu tad win8 traowrd
Ihrrrhom.
inslodinp
rinc withdrawn
rithoo,
Payment or tax. oo notice by ths principal,
for cxpo,trrloo.
o, .Y on rrurb
o, abar(l.
o, traoak,
10 l ro,siw.r,~dr
zone. and ~01
so axponed,
used.
o, txanrrerred,
o, olhcrwkr
krfuIIy
disposed of o, twaumlrd
lo,:
?rovUcd,
Tbrl
1111 obll9alko
Aall oat apply 10 ~1s 011 wlo* ia
cxceu
of II00
rhlch
bwe been dctcrAned
for dalened
paymar
opoo ,rmorsl
ol Ihr rlrn
from
the prsmius
of rha nld
bonded
wine nIk:
0, tr8nlfer
to
, t,xpaid
wine ,oom Ihweoo: ,md
4. A: l dinillcr.
d&II not :ufIcr the p:ope,ty.
0: any put chcrwl. :vbjacl
10 lbn mode: 26 U&C.
5004(b) II). to br l wambard
by IwNWge.
judmcel. of MhI
lien during the time In which he :ball carry on_mch b,urinr~~Irxccm~
,bnt lhi: condltba
&all DO, 9ppIr dvr’n;
I&..l9rar
of any Iademnlty
Load Ckeo god*,
26 U.S.C. 5173 Ib) (I) (Cl.o,
to lay judgmeat
o, OIbe? lirn sonred
by a bond direa nndef 26 U.S.C. 5173 (b) (4)): and
J. ShsIl. a: to aU dirtiUed
rpbb:
(includLa~
dmaInr.d
spirits)
rcmwsd
from
the bonded
prsmkr~
fme or 8.1. hilhf~lIy
comply
rltb
nil tbt 1~u~*m~ntI
Of hW
end rcguklioar
perminin:
,Le,c~+oA
6. Shall. ss to alI dk,llkds
&@
witbdnm
fmm thc&dcd
prrmises without payment Ai tax, on wpliulion
of Ihc propriclor of UC bonded prcmius. for cxpoflrlion
0, [Or
use On reuih ~r~aiii%e~t. 01 for trmsfcr to I IO,‘&-trade
Zone. oI for lnrurcr
(0 1 culloms bonded wrrrhmw.,
0~ for pcax,zh, dcrrlopiii&t
(I, L&n& ~,rulh&edhy
law/n)falthfuUy
comply wl,b all :be rcquir~memtr
olhr
nod re:ul:,ionr
p~rl~loln9
thereto: and
Ib&a.to
,he uld dirtiIkd
:plrrfl~an~q~t
Jhrtrof
wichd,aa&
r~por~4,loo
0: for Rp.-oo
rwrlr
o~~k~.aft
o: lo: Ino+,
to I I*-wade
tool p: IO!
Paodcrto
n cuss
bonded wvhoun.
or for raearch. development,
or Icrlin&. md_nol so cxportod, urd QI mnnrrcrrcd, 0, othervise kwfully disposed or or accoynted ror, PaY to (he
IJnllrd States Ihe tu im$oud thereon by IIW. oow or hercaller in force. to9crhcr with pen&k:
and innrest;
Tb*n ,hi: [email protected]
II 10 be l UU aad void. but othe,rW
to remelt
In lull fern end .IIect.
Vs. Ihe obli9orr.
lo, ourseher.
ow be&s. exe~otor:.
ndmlol:t:ato::.
I~CCIUQ,:, end u&o#,
llro
:4,se 0) thrill nII ~IlpuIa~ha~.
eov*naaU,
and
b:rremenls
ol
lhlr bead rhaq atad
to tad apply 10 any sbanda La lhr tu:ioer
eddteu
01 Ibe prcmln~,
lba ~stm:los
a: co,uUmenl
01 lucb ptrmi~:,
incbdin9
tbr buildbra
thereon.
of #By pa:, Ihwrol.
0: Lo @quipmra(.
o: may s(bcr chln4r
rbleh
r.qui:e:
Ibt principal
to IJ( I oew or amwndcd rs:i:hnloa.
rpptic:,ion.
0, aolkc.
ratrp,
vhoe
th cheap eon:ti,uIs~
a change la the ptoptielorrhlp
of ,he budntu,
ot h lbr bntloa
of the premises.
and (b) thrl MI bbnd :baU coolinur
k rffcsl wbcowrr
opcrllkl
of tAe dinlllcry
o, of the roctifyln4
plant i: rerumrd
from time lo llmr followinS
rurpmrbo
of oprr~Uonr
by so 81,rroaw proprklo:.
nmd 1~) that this bond shall ronlinur
b ~ffcet. nocrilhIrandin~
the excktion
of ths bottliq.in.bond
drpurmcor,
o, ~7 part the,so(.
horn time to tima lo, ow tempora,Uy
tn the rrctUicalio9
0, bolllinr
of dhWkd
spfrllr on which Ihe 1.x hu brrn plld o, drtrrmlwd.
And we. the obligon.
lo; ou,aeIvcs, ou, b&r. IIICY,~,~,
odmkLualo,&
wccewo,x.
nod .&or,
do lurthg,
coveoaot
aad ag,e# Ihal upoo Ihe breach Or ImY Of the
amd ,hr mid ,u,o,y
hrrrbr
-#ire,
cownanlc
of lhk bond. the United S1ue1 mai patsue its rsmrdks
adains, ,hs princlprl
or ,u,e,y independently,
o, adah:,
bo,b jointi;,
UY ri&ht .a1 privilclr
I, may ham of Irquirbd.
opoo aolisr.
or otherrise.
that Ihc IJolted Stilra
IhalI rllrl cornmace
~clioo. hlcnrnc
k .Dy lclion
of any oI,Y,C
rhelmev~r
already
sommenced,
01 o:hrrvlv
exbaun I,: :emedt;
adab:
Ibe p:lnclpaL
,,n
ndjwsxt
VITNLSS
au, hssdr and ual,
Ilqrd,mbd,enddrJkmdbu1+~c-ol-
ATF Form 2601
2nd
thk
(5110.561
DEPARTMENTOFTREASURY
dcy
of
January
I9 u”
(8-78)
PERMIT INFORMATION
6.19
OESCRIPTiON OF PilEMlSESOPERATEO
I
I
I
I
I
I
--
/
I
I
REGIONAL REGULATORY
ADMINISTRATOR’S APPROVAL
REGlOh
The foregoing bond, having beer executed in due form
approved by me on behalf of the United States.
jIGNATURE
rOBACC0
OF REGIONAL
AN3
FIREARMS
c
L-
REGULATORY
,
and in compliance with the applica ble law, regula::cns. and inrtrucf:ons,
ADMINISTRATOR.
BUREAU
Or= ALCOI-fOL.
DATE
;s
APPROVED
,
\,l
.
/,.,
:.,-,
.,
.^
INSTRUCTIONS
1. This bond shall be filed in duplicate with the Regional
Regulatory Administrator,
Bureau of Alcohol, Tobacco and
Firearms. of the region where the premises covered by the bond
are locared.
2. The name, including the full given name, of each party to
the bond shall be given in the heading, and each party shall sign
the bond. or the bond ?ney be executed in his name by an
empowered attorney-in+ct.
3. In the case of a partnership, the firm name, followed by
the names of all its members, shall be given in the heading. In
exmting
the bond, the firm name shall be typed or written,
followed by the worn “by” and the signatures of all partners, or
the signature of any partner authorized ;o sign the bond for the
firm, or the signature of an empowered attorney-in-fact.
4. If the principal is a corporation, the heading shall give the
corporate name, the name of the State under the laws of which
it is organized, and the location of the principal office. The
bond shall be executed in IC, corporate name, immediately followed by the signature and title of the person authorized to act
for the corporation.
5. if the bond is signed by an attorney-infact
for the principal, or by one df the members for a partnership or association,
or by an officer or other person for a corpcration, there shall be
filed with the bond an authenticated
copy of the power of
attorney, or a resolution of the board of directors, or an excerpt
of the bylaws, or other ddurment, authorizing the person signing the bond to execute it for the principal, unless such aurhorization has been filed with the Regional Repisrory
Administrator, Bureau of Alcohol, Tqbacco and Firearms, in which event a
statement to that effect shall be attached to the bend.
6. The signature for the surety shall be attested under corporate seal. The signature for the principal, if a corporation,
shall also be so attestedif the corporation has a corporate seal;
if the corporation
has no seal, that fact should be stated. Each
signature shall be made in the presence of two persons (except
where corporate seals are affixed), who shall sign tneir names as
witnesses.
7. A bond may be given with corporate surety authorized to
ac; as surety by the Secretary of the Treasury, or by the deposit
of collateral security consisting of bonds or notes of the United
States. The Act of July 30, 1947 isection
15, Title 6, U.S.C.)
provides that “the phrase ‘bonds or notes of the United States’
shall be deemed l l l to mea,n any public debt obligations of
the United States and any bonds, notes, or other obligations
which are unconditionally
guaranteed as to both interest and
principal by the United States.”
6. If any altera:ion or erasure is made in the bond before its
execution, there shall be incorpcrated
in the bond a statement
to that effect by the principal and surety or sureties; or if any
alteration or erasure is made in the bond afrer its execution, the
consent of all parties thereto shal! be written in the bond.
9. The penal sum named in the bond shall be in accordance
with 27 CFR Part 201.
10. If the bond is approved, a copy shall be returned to the
principal.
11. All correspondence about the filing of this bond or any
subsequent action affecting this bond should be addressed to
the Regional Regulatory
Administrator,
Bureau of Alcohol,
Tobacco and Firearms with whom the bond is filed.
ATF FORM
B-20
2601
I5110.561
(E-78)
FUEL FROM FARMS
The Universal Insurance Con-$qy
Golden, Colorado
‘X,,.<,
Power of Attorney
KNOW ALL MEN BY THESE PRESENTS:
That UNIVERSAL INSURANCE COMPANY, a Colorado Corporation, does hereby
appoint DONALD RUBIN, JOHN SMITHSON, or ANDY ANDERSON-GOLDEN,
COLORADO its true and lawful Attorney&in-Fact,
with full authority to execute on its
behalf fidelity and surety bonds or undertakings and other documents of a similar
character issued in the course of its business, and to bind the respective company
thereby, in amounts or penalties not exceeding the sum of ONE HUNDRED THOUSAND
AND NO/l00 Dollars ($lOO,OOO.OO).
EXCEPT NO AUTHORITY IS GRANTED FOR:
1. Bid or proposal bond? where estimated cont.ract price exceeds the amount stated
herein.
2. Open Penalty bonds.
3. Bonds where Attorney&in-Fact
appear as a party at interest.
IN WITNESS WHEREOF. UNIVERSAL INSURANCE COMPANY of Colorado, Inc. has
AUTHORITY FOR POWER OF ATTORNEY
That UNIVERSAL INSURANCE COMPANY, a Colorado Corporation, in pursuance of
authority granted by that certain resolution adopted by their respective Board of
Directors on the 1st day of March, 1976 and of which the following is a true, full, and
complete copy:
“RESOLVED, That the President, any Vice-President, or any Secretary of each of this
Company be and are hereby authorized and empowered to make, execute, and deliver in
behalf of this Company unto such person or persons residing within the United States of
America, as they may select, its Power of Attorney constituting and appointing each
such person its Attorney-in-Fact, with full power and authority to make, execute and
deliver, for it, in its name and in its behalf, as surety, any particular bond or undertaking
that may be required in the specified territory, under such limitations and restrictions,
both as to nature of such bonds or undertaking and as to limits of liability to be
undertaken by these Companies, as said Officers may deem proper; the nature of such
bonds or undertakings and the limits of liability to which such Powers of Attorney may be
restricted, to be in each instance specified in such Power of Attorney.
RESOLVED, That any and all Attorneys-in-Fact and Officers of the Company, including
Assistant Secretaries, whether or not the Secretary is absent, to and are hereby
authorized and empowered to certify or verify copies of the By-Law?5of this Company as
well as any resolution of the Directors, contracts of indemnity, and all other writings
obligatory in the nature thereof, or with regard to the powers of any of the officers of
DEPARTMENT OF TREASURY PERMIT INFORMATION
S-21
’
t
RESOLVED, That the signature of any of the
this Company or of Attorneys-in-Fact.
persona described in the foregoing resolution may be facsimile signatures as fixed or
reproduced by any form of typing, printing, or other reproduction of the names of the
persons hereinabove authorized.”
CERTIFICATION OF POWERATTORNEY
I, Horlan Winsom, Asst. Secretary of UNIVERSAL INSURANCE COMPANY, do hereby
certify that the foregoing Resolution of the Board of Directors of this Corporation, and
the Power Attorney issued pursuant thereto are true and correct and are still in full
force and effect.
IN WITNESSWHERE
the Corporation
ffixed the facsimile seal of
Horlan Winsom, Asst. Secretary
S-22
FUEL FROM FARMS
~OlOBll,
~UIUIQUU
UU-tLJ
I
September 15, 1979
U.S. Treasury Department
Bureau of Alcohol, Tobacco, and Firearms
Regional Regulatory Administrator, Southwest Region
Main Tower, Room 345
1200 Main Street
Dallas, Texas 75202
Dear Sir:
I am president of Farm Fuel, Inc. We are working with the Ethanol Department of the
State University to develop the capability to produce alcohol. An in-depth plan has been
developed by ourselves and our advisors. I will be personally responsible for the operations of the ethanol production units.
Sincerely,
:- ‘3,x
- -‘: ,-ri,;.i:
Dave Strawman
President
I,-:...
.
DS/to
Enclosures
DEPARTMENT OFTREASURY PERMIT INFORMATION
B-23
Farm Fuel Inc.
1617 Cole Boulevard
Golden, Colorado 80401
U.S. Treasury Department
Bureau of !&ohol, Tobacco, and Firearms
Regional Regulatory Administrator, Southwest Region
Main Tower, Room 345
1200 Main Street
Dallas, Texas 75202
Subject:
Application for a Permit to Operate an Experimental Distilled Spirits Plant for
Two Years
A.
Nature of Operation: Farm Fuel, Inc. wishes to apply for a permit to operate a
farm-sized experimental Distilled Spirits Plant (DSP) for experimentation and
demonstration purposes for two to six months. At the end of this period we wish to
be producing farm-sized DSPs for resale.
The applicant is a corporation,
incorporated under the laws of the State of Colorado.
B.
How Much Production: Each of our DSPs will produce approximately 25 gal/hr,
600 gal/day, and up to 210,000 gallyr.
C. Purpose More Specifically_: Farm Fuel, Inc. would set up one farm-sized DSP at the
manufacturing facility
at 1617 Cole Boulevard in Golden, Colorado, for
experimentation and demonstration purp0se.s. Our goal is to manufacture and sell
farm-sized plants to farmers so they may become energy-independent. This will also
help the economy of Golden, the economy of Colorado, and the United States in
helping our balance-of-trade deficit.
D. Corporate Authorization:
The President and the Secretary have each been
authorized by the Board of Directors to sign applications and other documents
required by the Bureau of Alcohol, Tobacco, and Firearms.
E.
Plant Security: The entire distilled spirits plant as described herein will be bonded.
It will be that land located in the eastern half of the southwest quarter of Section 9,
Mean Township, R9W, lOPM, located in Jefferson County, Colorado. The tract of
land is completely surrounded by a substantially constructed chain link fence of 9gauge wire mesh. The fence is 6 feet high and is superimposed at the top by three
strands of barbed wire. The entrance gate is equipped for locking. On this land,
there will be a single l-story building which will be of brick construction with a
concrete floor and a flat tar and gravel roof over l-inch wood sheathing, supported
on IL-inch by la-inch joints on Is-inch centers. The entrance door, which will be
equipped for locking from the outside, will be located at the center of the southern
end of the building. It will be an overhead steel door 15 feet wide and 12 feet high.
On either side of this door will be two windows with sills 5 feet from the base of the
building. Each of these windows will be 4 feet wide by 8 feet high and each will be
protected by securely affixed wire mesh screen of 6-gauge steel, having 1 l/a-inch
mesh. At the opposite end of the building there will be another overhead steel door,
identical to the entrance door except that it will be equipped for locking from the
B-24
FUEL FROM FARMS
*
I’
inside. A third door, also equipped for locking from the inside, will be located on the
east side of the building, 50 feet from its northern end. This door will be a a-inch
thick, metal-clad door, 3 feet wide by 7 feet high.
The above described building will be located on the bonded premises as follows:
Beginning at a point 10 feet east of the western boundary of the bonded premises
and 52 l/2 feet north of the southern boundary, proceed due east for 125 feet, then
due north for 200 feet, then due west for 125 feet and, finally, due south for 200
feet to the point of beginning.
The southern quarter of the west side of the building will be partitioned into three
offices, as follows:
The southernmost office will be 200 feet long (in line with the DSP building) by
15 feet wide. The room immediately north of that room will be used for a
government office, and it will be 16 feet long by 15 feet wide. The third room
will be 14 feet long by 15 feet wide. Each of these three rooms will be welllighted by fluorescent lighting and will have an entrance on its east wall
equipped for locking. In addition, each room will have a window on its east
wall affording light as well as a view of the activities within the plant. Each
room will be ventilated through the air conditioning and heating system which
includes vents for return of stale air through the system. A desk, two chairs,
and a filing cabinet will be provided in the government office, and additional
furniture will be furnished if needed. Lavatory and toilet facilities will be
located immediately north of the three rooms described above.
F.
Description of Equipment: On the outside of DSP building, at a site approximately
20 feet from its northern end and 20 feet from its eastern side, will be tne beer still
and the rectifying column. These are described as follows: Beer Still No. 190,
manufactured by I. Lovehooch and Co., Distillate, Ohio, is a 12-inch column still
having 24 plates. Rectifying Column No. 200, manufactured by Samson and Co., is
also a la-inch column with 24 plates.
Other Equipment
,
Mash tub and cooker No. 1
Fermenter No. 1
High wine tank No. 1
High wine tank No. 2
Denaturing tank No. 1
Capacity
1,500 gallons
2,000 gallons
5,000 gallons
4,800 gallons
3,000 gallons
All of the above tanks, except the mash tub and cooker and the fermenter, will be
equipped with accurately calibrated sight glasses.
An accurately adjusted, tamper-proof, White Mule electronic meter will be sealed
into the draw-off line between the rectifying column and the manifold connecting to
the two high wine tanks, and a drip sampling device will also be installed on that
line, downstream from the meter. All of the above described “other” equipment will
be installed inside the DSP building along the east wall, with the two denaturing
tanks 20 feet south of the side door and the remainder of the equipment north of
that door.
G. Process Description: Qualification bond will be in the maximum penal sum. We
expect to produce a maximum of 600 proof gallons of alcohol per day (24 hours).
DEPARTMENT OF TREASURY PERMIT INFORMATION
0.25
Statement of Process-Fuel-grade Fermeiltation Alcohol
Mashing
a. Place 312 gallons of water into the mash tub.
b. Slowly add 52 bushels of ground corn, ground wheat, or a mix of these
two grains in any proportion found to be expedient. Begin stirring the
mixture at the same time and heat the mixture to a temperature of
lOOoF.
As needed, add either concentrated sulphuric acid or a slurry mix of
C.
hydrolated lime, in quantities sufficient to adjust the pH of the mash to
between 6.0 and 7.5.
d. Prepare a slurry composed of 2.6 pounds of TAKA-THERM and 4.5
gallons of water, warmed to lOOoF.
e. Add the TAKA-THERM slurry to the mash while continuing to stir it, and
bring the temperature up to 203°F for 30 minutes.
f. While continuing with the stirring, reduce the temperature of the mash
to 194OF.
g. Hold the temperature at 194OFfor 2 hours or until all of the starch has
been converted to dextrin, stirring all the while.
h. Cool the mash to 130°F while continuing to stir it.
i. By slowly adding concentrated sulphuric acid, adjust the pH of the mash
to about 4.0.
j. Add 6.5 pounds of DIAZYME L-IOOD, continue to stir, and hold the
temperature of the mash at 130’F for 30 minutes.
k. While the mash continues to be stirred, add sufficient cold water to
reduce its temperature to 85’F.
1. Using a water slurry of hydrated lime, adjust the pH of the mash to 5.5.
Fermentation
a. Stir 0.65 pound of sugar into 2.6 gallons of water at 85’F and add 1.3
pounds of bakers’ yeast. Adjust pH to betwee:‘ 6.5 to 7.
b. As soon as the yeast mixture becomes active, pump the mash from the
mash tub to the fermenting tank, and add the yeast mixture to it while
pumping.
c. Let the mash rest in the fermenting tank until fermentation is complete.
Distillation
a. Through a strainer, pump the mash from the fermenting tank into the
beer still at plate 22 and inject steam into the bottom of the still.
Maintain temperature at the top of the beer still at 175’F.
b. Vapor will pass through the draw-off line of the beer still at the top of
the still and pass through this pipeline into the rectifying column at plate
23.
c.
B-26
Alcohol vapors will pass through the top draw-off line of the rectifying
column, through the condenser, thence, in liquid form, through the
trybox. At that point the alcohol may either be refluxed back to the
rectifying column or directed to one of the tanks. From the tanks the
alcohol may either be recycled through the distilling system or drawn off
pursuant to a production gauge.
FUEL FROM FARMS
All alcohol produced, except for small quantities to be used for laboratory testing,
will be completely denatured by entering gasoline through a Y connection converging
with the alcohol draw-off line of the two tanks. An A.O. Don proportioning device
will be used to control the flow of gasoline so that the resulting completely
denatured alcohol will contain 5 gallons of gasoline to each 100 gallons of alcohol.
H. Title: Title to the bonded premises is held in fee simple by the Denver Industrial
Complex, Inc. There is an outstanding mortgage on the land and building in the
amount of $65,000, held by the First Bank of Kansas, Carbon Grain, Kansas 10020.
See attached letter from the Denver Industrial Complex, Colorado.
I.
Records: Complete and accurate records will be kept of all runs as to all materials,
yeast, corn, denaturant, amount of water, and energy used and yield of alcohol.
Accurate records of disposition will also be kept and will be open to inspection.
J.
Other Information:
No bonded warehousing operations will be conducted. No
rectifying operations. willibe conducted. No bottling operations will be conducted.
In the open area in the northeast corner of the building, convenient to the
fermenting tank, there will be a press for removing the liquids from the solids to be
strained from the- mash, before it enters the beer still. These solids will be sold as
cattle feed to either or both of two nearby feedlots. The business of negotiating
sales of such feedstocks and of keeping the necessary records of sales transactions
will be conducted in the larger of the two company offices.
A, h,
.\--p-~‘x.,
Gave Strawman, President
DEPARTMENT OF TREASURY PERMIT INFORMATION
S-27
The Denver Industrial Complex
U.S. Treasury Department
Bureau of Alcohol, Tobacco, and Firearms
Regional Regulatory Administrator, Southwest Region
Main Tower, Room 345
1200 Main Street
Dallas, Texas 75202
The Denver Industrial Complex, a partnership, owner of the property described in Exhibit
“A” and ‘W attached does hereby authorize Farm Fuel, Inc. to set up and operate grain
alcohol distilling equipment on the described property.
The Denver Industrial Complex further authorizes inspectors of the Federal Bureau of
Alcohol, Tobacco, and Firearms to enter described property during regular working hours
to inspect equipment and records of Farm Fuel, Inc.
The Denver Industrial Complex
Dan Scherr
6-28
FUEL FROM FARMS
APPENDIX
Environmental
l
Areas for Potentially
- Ethanol
- Vehicular
ENVIRONMENTAL CONSIDERATIONS
Hazardous
Production
Fuel Use
C
nsiderations
Environmental
Effects
AREAS FOR POTENTIALLY HAZARDOUS
ENVIRONMENTAL EFFECTS
There are two areas to be examined for potentially
hazardous environmental effects-the ethanol production processand large-scaleuseof ethanol as a vehicular
fuel.
Ethanol Production
There will be several types of effects on the environment
causedby the production of fermentation ethanol which
can be avoided with proper precautions.
Crop Residue Removal. The first and possibly most important environmental impact could be the removal of
crop residues for use as a boiler fuel. Crop residues are
important because they help control soil erosion
through their cover and provide nutrients, minerals, and
fibrous material which help maintain soil quality.
However, not more than one-third to one-half of the
residues from a grain crop devoted to ethanol production need be used to fuel the process. Also, there are
several methods, such as crop rotation and winter cover
crops, which lessenthe impact of crop residue removal.
Use of Wet Stihge. The second environmental impact
to be considered is related to the application of thin
stillage to the land. Thin stillage, the product of the
filtering process whereby the course solids are filtered
out of the whole stillage, is composedof very small solid
particles and solubles. Two kinds of problems can result
from applying thin stillage to the land: odor and acidity.
The impacts of applying thin stillage to the land can be
attenuated by using a sludge plow, possible recycling of
the thin stillage within the plant, or use of anaerobic
digestion to reduce the pollution potential of the thin
stillage.
Air Pollution. The third potential environmental impact is air pollution. Two forms of air pollution could
result from development of an ethanol production
scheme on-farm: the release of pollutants from the
boiler used to produce steam from process heat, and
vaporization of ethanol lost during the production process.If crop residues are used as boiler fuel, which is a
preferred plan, the resulting pollutants are primarily
particulate matter which can be controlled through the
use of flue stack scrubbers. The release of ethanol
vapors is not a major concern at this time.
Vehicular Fuel Use
Under the Clean Air Act of 1977 all fuel additives are
automatically banned unless the manufacturer of the
fuel additive demonstrates that the additive will not
ENVlRONMENTAL CONSIDERATIONS
causeor contribute to the failure of any vehicle to meet
applicable emission standards. The federaliy specified
reference fuel is indolene and the required tests are for
emissions of tailpipe hydrocarbons, carbon monoxide,
nitrogen oxides, and evaporative hydrocarbons. The
last mentioned test involves the measurement of fuel
vapors from the gas tank when the engine is left to idle
and from locations such as the pump at the gas station.
The requirements in these tests are quite stringent; in
fact, in an Environmental Protection Agency (EPA)
study 111, commonly accepted pure summer-grade
gasoline when compared with indolene failed-in oxidation catalyst vehicles and in three-way catalyst
vehicles-all four tests mentioned above.
On the other hand, the samestudy reported that a 90%indolene/lO%-ethanol blend showed definite improvements over pure indolene in tailpipe hydrocarbon
and carbon monoxide emissions, nitrogen oxides emissions equal to the summer-grade gasoline, and a slight
increase of evaporative emissions relative to the pure
summer-grade gasoline.
EPA and the Department of Energy have conducted a
cooperative gasohol testing program to obtain and
evaluate environmental impact data. On the basis of
these tests, EPA concluded that the addition of 10%
ethanol to gasoline [2]:
l
slightly decreaseshydrocarbon emissions;
l
significantly decreasescarbsn monoxide emissions;
. slightly increasesnitrogen oxides emissions; and
l
substantially increases evaporative hydrocarbo’t
emissions.
On December 16, 1978, EPA approved use of gasohol
under Section 21l(f)(3) of the Clean Air Act of 1977and
found that there was no significant environmental risk
associaied with gasohol’s continued use [3]. Further-.
more, new emissions control systems, such as the
“threeway catalyst with exhaust oxygen sensors for carburetion feedback for air-fuel control,” have been
shown to be equally effective using either gasoline or
gasohol [ 31.
In summary, the results to date have been generally
favorable with respect to the use of gasohol in automobiles. However, in a recent technical memorandum,
the Office of Technology Assessmentof the Congressof
the United States stated that the “mixture of observed
emissions reductions and increases, and the lack of extensive and controlled emissions testing, does not justify
a strong value judgment about the environmental effect
of gasohol used in the general automobile population
(although the majority of analysts have concluded that
the net effect is unlikely to be significant)” 141.
c-3
1. Jackson, B. R. “Testimony at DOE Hearings on
Alcohol Fuels. ” U.S. Environmental Protection
Agency; December6.1978.
2. Characterization Report: Analysis of Gasohol
Fleet Data to Characterize the Impact of Gasohol
on Tailpipe and Evaporative Emissions. U.S. Environmental Protection Agency, Technical Support
Branch, Mobile Source Enforcement Division,
December 1978.
O-4
3. Allsup, J. R.; Eccleston, P. B. “Ethanol/Gasoline
Blends as Automotive Fuels.” Alcohol Fuels
Technology, 3rd International
Symposium;
Asilomar, CA; 1979.
4. Office of Technology Assessment. Gasohol-A
Technical Memorandum. September 1979, 69 p.
Available from Superintendent of Documents,
U.S. Government Printing Office, Stock No.
052~003-00706-1. [P48]
FUEL FROM FARMS
APPENDIX
D
Reference Information
l
Conversion
Factors
l
Properties
of Ethanol,
l
Water, Protein,
l
Typical
l
Energy Content
l
Percent Sugar and Starch in Grains
l
Comparison
of Raw Materials
for Ethanol
Production
l
Comparative
Energy Balances
for Ethanol
Production
REFERENCE INFORMATION
Analysis
Gasoline,
and Water
and Carbohydrate
of Distillers’
Content
of Selected
Farm Products
Dried Grain Solids-Corn
for Feed
D-l
CONVERSION
FACTORS
1 gallon water = 8.33 pounds (at 60 “F) = 0.134 cubic foot = 128 fluid ounces = 4 quarts = 8 pints
= 3.785 liters
1 gallon of ethanol weighs 6.6 pounds
1 barrel of crude oil = 42 gallons
1 Btu = 252 calories = heat required to raise 1 lb of water 1 degree Fahrenheit (OF).
1 bushel = 56 pounds
1 calorie = .00397 Btu = heat required to raise 1 gram of water 1 degree Centigrade (“C)
1 U.S. liquid gallon = 4 quarts = 231 cubic inches = 3.78 liters
8 gallons = 1 bushel
1 liter = 1.057 U.S. liquid quarts
1 fluid ounce = 30 milliliters
1 pound = 453.6 grams
1 cubic foot = 7.48 liquid gallons = 62.36 pounds H20 (at 60” F+)
1 acre = 43,560 square feet = 4,840 square yards
To convert from “F to “C, subtract 32 and then multiply by J/9.
To convert from “C to OF,multiply by % and then add 32.
D-2
FUEL FROM FARMS
PROPERTIES
.
OF ETHANOL,
GASOLINE
AND WATER
CHEMICAL PROPERTIES
Gasoline
Ethanol
Water
Formula
Molecular Weight
%Carbon (by weight)
%Hydrogen (by weight)
%Oxygen (by weight)
C/H ratio
Stoichiometric Air-to-Fuel Ratio
ccCl2
varies
85-88
12-15
indefinite
5.6-7.4
14.2-15.1
CH,CHzOH
46.1
52.1
13.1
4.7
4.0
9.0
Hz0
18.015
PHYSICAL PROPERTIES
Gasoline
Ethanol
Water
Specific Gravity
Liquid Density lb/ft’
lb/gal
psi at 100” F (Reid)
psi at 77” F
Boiling Point (OF)
Freezing Point (OF)
Solubility in Water
Water in
Surface Tension (dyne/cm*)
Dielectric Constant
Viscosity at 68 “F (cp)
Specific Resistivity
0.70-0.78
43.6 approx.
5.8-6.5
7-15
0.3 approx.
80-440
- 70 approx.
240 ppm
88 rvm
1.0
0.288
2 x 10’6
0.794
49.3
6.59
2.5
0.85
173
-173
infinite
infinite
23
24.3
1.17
0.3 x lo6
THERMAL PROPERTIES
Gasoline
Ethanol
18,900 (avg)
115,400 (avg)
11,500
73,560
20,260
124,800
12,800
84,400
150
900
396
3,378
91-10s
86-90
106-108
98-100
1.4-7.6
4.3-19.0
0.48
430-500
-50
0.60
685
70
1.0
0.0806
0.00112
0.00
Lower Heating Value
Btu/lb
Btu/gal
Higher Heating Value
Btu/lb at 68°F
Btu/gal
Heat of Vaporization
Btu/lb
Btu/gal
Octane Ratings
Research
Pump (Ron + Mon)/Z
Flammability Limits
(qo by volume in air)
Specific Heat
@u/lb - “F)
Autoignition Temperature (OF)
J?lash Point (OF)
Coefficient of Thermal
Expansion at 60°F and 1 atm
REFERENCE INFORMATION
212
32
54.9
1.0
Water
--
940
7,802
D-3
WATER, PROTEIN, AND CARBOHYDRATE
CONTENT OF SELECTED FARM PRODUCTS
% CarboCrop
Apples, raw
Apricots, raw
&tichokes, French
Artichokes,
Jerusalem
Asparagus, raw
Beans, lima, dry
Beans, white
Beans, red
Beans, pinto
Beets, red
Beet greens
Blackberries
Blueberries
Boysenberries
Broccoli
Brussels sprouts
Buckwheat
Cabbage
carrots
CaulXower
Celery
Cherries, sour
Cherries, sweet
Collards
Corn, field
Corn, sweet
Cowpeas
Cowpeas, undried
Crabapples
Cranberries
Cucumbers
Dandelion greens
Dates
Dock, sheep sorrel
Figs
Garlic cloves
Grapefruit pulp
Grapes, American
Lamb’s-quarters
Lemons, whole
Lentils
Milk, cow
Milk, goat
Millet
%Water VoProtein
hydrate
84.4
85.3
85.5
0.2
1.0
2.9
14.5
12.8
10.6
79.8
91.7
10.3
10.9
10.4
8.3
87.3
90.9
84.5
83.2
86.8
89.1
85.2
11.0
92.4
8.2
91.0
94.1
83.7
80.4
85.3
13.8
72.7
10.5
66.8
81.1
87.9
95.1
85.6
22.5
90.9
77.5
61.3
88.4
81.6
84.3
87.4
11.1
87.4
87.5
11.8
2.3
2.5
20.4
22.3
22.5
22.9
1.6
2.2
1.2
0.7
1.2
3.6
4.9
11.7
1.3
1.1
2.7
0.9
1.2
1.3
4.8
8.9
3.5
22.8
9.0
0.4
0.4
0.9
2.7
2.2
2.1
1.2
6.2
0.5
1.3
4.2
1.2
24.7
3.5
3.2
9.9
16.7
5.0
64.0
61.3
61.9
63.7
9.9
4.6
12.9
15.3
11.4
5.9
8.3
72.9
5.4
9.7
5.2
3.9
14.3
17.4
7.5
72.2
22.1
61.7
21.8
17.8
10.8
3.4
9.2
72.9
5.6
20.3
30.8
10.6
15.7
7.3
10.7
60.1
4.9
4.6
72.9
Crop
Muskmelons
Mustard greens
Okra
Onions, dry
Oranges
Parsnips
Peaches
Peanuts
Pears
Peas, edible pod
Peas, split
Peppers, hot chili
Peppers, sweet
Persimmons
Plums, Damson
Poke shoots
Popcorn
Potatoes, raw
Pumpkin
Quinces
Radishes
Raspberries
Rhubarb
Rice, brown
Rice, white
Rutabagas
Rye
Salsify
Soybeans, dry
Spinach
Squash, summer
Squash, winter
Strawberries
Sweet potatoes
Tomatoes
Turnips
Turnip greens
Watermelon
Wheat, HRS
Wheat, HRW
Wheat, SRW
Wheat, white
Wheat, durum
Whey
Yams
VoWater ToProtein
91.2
89.5
88.9
89.1
86.0
79.1
89.1
5.6
83.2
83.3
9.3
74.3
93.4
78.6
81.1
91.6
9.8
79.8
91.6
83.8
94.5
84.2
94.8
12.0
12.0
87.0
11.0
77.6
10.0
90.7
94.0
85.1
89.9
70.6
93.5
91.5
90.3
92.6
13.0
12.5
14.0
11.5
13.0
93.1
73.5
0.7
3.0
2.4
1.5
1.0
1.7
0.6
26.0
0.7
3.4
1.0
3.7
1.2
0.7
0.5
2.6
11.9
2.1
1.0
0.4
1.0
1.2
0.6
7.5
6.7
1.1
12.1
2.9
34.1
3.2
1.1
1.4
0.7
1.7
1.1
1.0
3.0
0.5
14.0
12.3
10.2
9.4
12.7
0.9
2.1
% Carbohydrate
7.5
5.6
7.6
8.7
12.2
17.5
9.7
18.6
15.3
12.0
62.7
18.1
4.8
19.7
17.8
3.1
72.1
17.1
6.5
15.3
3.6
13.6
3.7
77.4
80.4
11.0
73.4
18.0
33.5
4.3
4.2
12.4
8.4
26.3
4.7
6.6
5.0
6.4
69.1
71.7
72.1
75.4
70.1
5.1
23.2-K,
‘.
Source: Handbook of the Nutritional Contents of Foods, USDA.
D-4
FUEL FROM FARMS
TYPICAL
ANALYSIS
., Moisture
Protein
Lot
Fiber
Ash
Amino Acids
Lysine
Methionine
Cystine
Histidine
Arginine
Aspartic Acid
Threonine
Seriuine
Glutamic Acid
Proline
Glycine
Alanine
Valine
Isoleucine
Leucine
Tyrosine
Phenylalanine
Tryptophan
OF DISTILLERS’
DRIED GRAIN SOLIDS-CORN
Distillers’
Dried Grains
Distillers’
Dried Solubles
Distillers’ Dried
Grains with Solubles
VW
woo)
Wo)
7.5
27.0
7.6
12.8
2.0
4.5
28.5
9.0
4.0
7.0
9.0
27.0
8.0
8.5
4.5
0.6
0.5
0.2
0.6
1.1
1.68
0.9
1.0
4.0
2.6
1.0
2.0
1.3
1.0
3.0
0.8
1.2
0.2
ENERGY CONTENT
0.95
0.5
0.4
0.63
1.15
1.9
0.98
1.25
6.0
2.9
1.2
1.75
1.39
1.25
2.6
0.95
1.3
0.3
0.6
0.6
0.4
0.6
1.0
1.7
0.95
1.0
4.2
2.8
1.0
1.9
1.3
1.0
2.7
0.8
1.2
0.2
FOR FEED
Distillers’
Dried Grains
Distillers’
Dried Solubles
Dlstlllers’ Drled
Grains with Solubles
For Cattle:
Total digestible nutrients
Megacalories per kilogram
83
2.19
80
2.32
82
2.3
For Poultry:
Megacalories per kilogram
2.0
2.75
2.62
For Swine:
Megacalories per kilogram
1.84
2.98
3.39
Source: FeedFormulation, Distillers Feed ResearchCouncil, 1435Enquirer Building, Cincinnati, Ohio 45202.
REFERENCE INF6RMATION
D-5
PERCENT SUGAR AND STARCH IN GRAINS
VoSugar
Grain
COMPARISON OF RAW MATERIALS
FOR ETHANOL PRODUCTION
Gal
Ethanol
Protein
Yield
%Protein
dry
2.6/bu
2.6/bu
2.6/bu
2.5/bu
P.4/cwt
18lbIbu
20.7/bu
16.8/bu
17.5/bu
14.8/cwt
29-30
36
29-30
27.5
10
20.3/tori
0.4/gal
264/tori
68/tori
20
20
%Starch
Raw Material
Barley
Corn
Grain sorghum
Oats
We
Wheat
2.5
1.8
1.4
1.6
4.5
64.6
72.0
70.2
44.5
64.0
63.8
Source: Composition of Cereal Grains and Forages,
National Academy of Sciencespublication.
Corn
Wheat
Grain sorghum
Average starch grains
Potatoes(75VoMoist)
12-14
Sugar beets
Molasses (50% sugar)
Source: National Gasohol Commission.
.
Manufacturing
Energy
Ethanol
Production
<
‘zq
.
Direct
Heat
Ethanol and
Coproducts
Figure D-1. Ethanol Production System Block Diagram
D-6
FUEL FROM FARMS
ENERGY BALANCES
(Basis: 1 Bushel Corn)
COMPARATIVE
ENERGY BALANCES
FOR ETHANOL PRODUCTION
Energy balances are a confusing and controversial subject. The sources of the confusion are varied but most
stem from differences in opinion regarding what must
be included for consideration and the proper approach
to use. One of the principal sourcesof confusion is the
type of energy balance being investigated in a given
case. Some energy balance studies compare the total
energy contents of the products and coproducts with the
fossil energy consumed in their production. Other
studies compare the amount of crude petroleum energy
required to produce a given amount of petroleum
substitute. Whatever types of energy are compared, an
energy balance study has the objective to compare the
energy input to a system with the energy output of the
system. If the energy input is greater than the energy
output, the energy balance is said to be negative; conversly, if the energy output of the system is greater than
the energy input to the system,the energy balance is said
to be positive. The causes of disparity among rhe
various studies include differences in assumptions and
reference technologies, and ambiguities in defining the
boundaries of the given system under consideration.
Consider the ethanol production system shown in
Figure D-l. Energy inputs to the system include the liyuid fuel and manufacturing energy required to produce
the feedstocks and the electrical and heat energy required to convert the feedstocksinto ethanol. Note that
the solar energy input is not included. Energy output of
the systemis in the form of ethanol which can be usedin
vehicles and other applications and other coproducts.
To illustrate how differences in opinion among various
studies can arise, consider the ethanol energy balance
studies of Scheller and Mohr [l] and Reilly 121.For 1
bushel of corn, the two studies calculate similar values
for the total nonrenewable energy inputs as follows:
Energy Inputs
Agricultural
Scheller & Mohr
Energy
Reilly
119,000Btu 135,000Btu
Direct on-farm
Fertilizer and
chemicals
Transport
Ethanol Process Energy
Cooking and
fermentation
Distilling a:.,2
centrifuging
Dehydration
Evaporation of stillage
Drying of stillage
TOTAL ENERGY INPUT
370,000Btu 368.000 Btu
WOoCJ
105,000
37.ooo
113,000
51,000
489,000Btu 503,000 Btu
From similar values of energy input, Scheller and
Mohr proceed to calculate a positive energy balance,
while Reilly calculates a negative energy balance. Reilly
considers the outputs to be 2.6 gallons of ethanol, with a
total (lower) heating value of about 191,000 Btu, and
the stillage coproduct which can be given an energy
credit of about 49,000 Btu [3]. Subtracting the energy
input of 503,000 Btu from the total of energy output of
240,000 Btu, Reilly obtains a negative energy balance of
260,000 Btu. However, Scheller and Mohr include, as
an additional coproduct, the heat content of 75% of the
corn stover to be used as energy input into the ethanol
production process. This amounts to an additional
energy output of about 322,000 Btu. Thus, Scheller and
Mohr would calculate a total energy output of 562,ooO
Btu and achieve a positive energy balance of about
73,000 Btu for each bushel of corn processed into
ethanol.
REFERENCES
1. Scheller, W., Bohr B. “Net Energy Balance for
Ethanol Production.” Presented at the 171st National Meeting of the American Chemical Society,
New York, April 7,1976.
2. Reilly, P. J. “Economics and Energy Requirements
for Ethanol Production.”
Department of
REFERENCE INFORMATION
Chemical and Nuclear Engineering, Iowa State
University; January 1978.
3. Chambers, R.S., Herendeen, R.A., Joyce, J.J.,
and Penner, P.S. “Gasohol: Does It or Doesn’t It
Produce Positive Net Energy?” Science, Volume
206 (no. 4420): Novem’cer 16, 1979,pp. 789-795.
D-7
APPENDIX
E
Resource People and
Organizations
. Associations
and Organizations
l
Biologists
l
Chemists
l
Colleges
l
Component
l
Consultants
l
Co-Ops in Operation
Manufacturers
. Economists
l
Educators
l
Engineers
l
Engine Modification
l
Enzyme Producers
l
Molecular
l
On.Farm Operating
l
Plant Operation
. Sources
Engineers
Sieve Manufacturers
Plants
Consultants
of Public
Financing
NOTICE
The following list of resource people and organizations
is provided for your information. Neither DOE nor
SERI recommend or vouch for thesesources. We would
appreciate receiving additions or revisions to this information.
RESOURCE PEOPLE & ORGANIZATIONS
E-l
,
ASSOCIATIONS
AND
ORGANIZATIONS
American Agriculture
Movement
308 Second Street, SE
Washington, D.C. 20515
2021544~5750
The Bio-Energy Council
1625 Eye Street, NW
Suite 825A
Washington, D.C. 20006
Contact: Carol Canelio
2021833-5656
Brewers Grain Institute
1750 K Street, NW
Washington, D.C. 20006
Corn Development Commission
Route 2
Holdrege, NE 68949
Distillers Feed Research
Council
1435 Enquirer Building
Cincinnati, OH 45202
Contact: Dr. William Ingrigg
513/621-5985
Gasohol USA
10008East 60th Terrace
Kansas City, MO 64133
816/737-0064
The Grange
Route 1, Box 154
Waterloo, NE 68069
402/359-5605
International Biomass Institute
1522 K Street, NW
Suite 600
Washington, D.C. 20005
Contact: Dr. Darold Albright
202/783- 1133
Mid-America Solar Energy
Complex
8!40-26th Ave., South
Bloomington, MN 55420
61218540400
National Farmers Organization
Surprise, NE 68667
National Farmers Union
Denver, CO 80251
E-2
National Gasohol Commission,
Inc.
521 South 14th Street, Suite 5
Lincoln, NE 68508
402/475-8044 or 8055
Leo Span0
The Army/Navy Lab
Natick, MA 01760
617/653-1000, Ext. 2914
National Center for Appropriate
Technology
P.O. Box 3838
Butte, MT 59701
406/494-4577
CHEMISTS
Small Farm Energy Project
P.O. Box 736
Hartington, NE 68739
Contact: Renise Remmel
402/254-6893
Solar Energy Research Institute
1617 Cole Boulevard
Golden, CO 80401
Contact: Paul Notari
Clay Smith
Steve Rubin
303/231-1207
The Wheat Growers
Route #l, Box 27
Hemingford, NE 69438
Contact: Vie Haas
308/487-3794
The Wife Orgariization
Osceola, NE 68651
BIOLOGISTS
Antonios A. Antonopoulos
Argonne National Laboratory
9700 South Cass Avenue
Argonne, IL 60439
312/972-3368
Paul Middaugh
University of South Dakota
Brookings, SD 57007
605/688-4116
Robert Middaugh
1704 Third Street
Brookings, SD 57006
605/692-5760
Micro-TEC Lab, Inc.
Route 2, Box 19L
Logan, IA 51546
Contact: John W. Rago
712/644-2193
Lance Crombie
Route 1
Webster, MN 55088
5071652-2804
John P. Dickie
401 Sible Street
St. Paul, MN 55101
612/291-2813
Harry P. Gregor
Columbia University
353 SeeleyWest Mudd Building
New York, NY 10027
212/280-4716
John Lang
Box 423
Dubuque, IA 52001
3191582-1867
Antonio R. Moreira
Colorado State University
Fort Collins, CO 80523
303/491-5252
Richard Spencer
Southwest State University
Marshall, MN 56258
507/537-7217
COLLEGES
Talladega College
627 West Battle Street
Talladega, AL 35160
Contact: Richard A. Morrison
(205) 362-8800
Mid-South Energy Project
Mississippi County Comm.
College
Box 1109
Blytheville, AR 72315
Contact: Harry Smith
(501) 762-1020
Modesto Jr. College
Modesto, CA 95350
Contact: Ron Alver
(209) 526-2000
FUEL FROM FARMS
College of Siskiyous
800 College Avenue
Weed, CA 96094
Contact: Gary Peterson
(916) 938-4463
Eastern Iowa Comm. College
2804 Eastern Avenue
Davenport, IA 52803
Contact: Robert Illingsworth
(319) 242-6841
State Fairground Comm.
College
Sedalia, MO 65301
Contact: Marvin Fielding
(816) 826-7100, Ext. 60
Lamar Comm. College
2401 South Main
Lamar, CO 81052
Contact: Bill Henderson
(303) 336-2248
lowa Central Comm. College
330 Avenue M
Fort Dodge, IA 50501
Contact: Edwin Barbour
(515) 576-3103
South East Comm. College
Milford, NE 68405
Contact: Dean Roll
(402) 761-2131
Delaware Tech. & Comm.
College
1832N. DuPont Parkway
Dover, DE 19901
Contact: Rich Morchese
(302) 678-5416
Brevard Comm. College
1519 Clearlake Road.
Cocoa, FL 32922
Contact: Maxwell King
(305) 632-l 111
College of Southern Idaho
315 Falls Avenue West
Twin Falls, ID 83301
Contact: James Taylor
(208) 733-9554
Kankakee Comm. College
Box 888
Kankakee, IL 60901
Contact: M.E. Marlin
(815) 933-0345
Lake Land Comm. College
South Route 45
Matoon, IL 61938
Contact: Robert D. Webb
(217) 235-3131
Paducah Comm. College
Box 1380
Paducah, KY 42001
Contact: Donald Clemons
(502) 442-6131
Onondaga County Comm.
College
Syracuse, NY 13215
Contact: Andreas Paloumpis
(3 15) 469-7741
Nicholls State University
Thibodaux, LA 70301
Contact: William Flowers
(504) 446-8111
Navajo Comm. College
Box 580
Shiprock, NM 87420
Contact: Raymond Housh
(505) 368-5291
Cecil Comm. College
1000 North East Road
North East, MD 21901
Contact: Robert Gel1
(301) 2876060
North Dakota State School
of Science
Wahpeton, ND 58075
Contact: Claire T. Blikre
(701) 671-2221
Springfield Tech. & Comm.
College
One Armory Square
Springfield, MA 01105
Contact: Robert Geidz
(413) 7816470
Pitt Comm. College
Box Drawer 7007
Greenville, NC 27834
Contact: William Fulford
(919) 756-3130
Clark University
450 Main
Worchester, MA 01610
Contact: Harry C. Allen
(617) 793-7711
Panhandle State University
Box 430
Goodwell, OK 73939
Contact: Gene Reeves
(405) 742-2121
Lincoln Land Comm. College
Springfield, IL 62708
Contact: Robert Poorman
(217) 786-2200
Mott Comm. College
1401 East Court Street
Flint, MI 48503
Contact: Charles Roche
(3 13) 762-0237
Eastern Oregon State College
8th & K Streets
LaGrande, OR 97850
Contact: Terry Edvalson
(503) 963-2171
Vincennes University
Vincennes, IN 47591
Contact: Daryle Riegle
(812) 882-3350
Southwest State University
Marshall, MN 56258
Contact: Richard Spencer
(800) 533-5333
Lehigh County Comm. College
2370 Main Street
Schnecksville, PA 18078
Contact: Robert Walker
(215) 799-l 141
Des Moines ATVI
2006 South Ankeny Blvd.
Ankeny, IA 50021
Contact: Richard Byer
(5 15) 964-6228
NW Mississippi Junior College
Highway 51
North Senatobia, MS 38668
Contact: William Oakley
(601) 562-5262
RESOURCE PEOPLE 8. ORGANIZATIONS
South Dakota State LJniv,
Brookings, SD 57007
Contact: Paul Middaugh
(605) 688-4111
E-3
Oglala Sioux Comm. College
Box 439
Pine Ridge, SD 57700
Contact: Roberta Barbalace
(606) 867-5110
Navarro Jr. College
Box 1170
Corsicana, TX 75110
Contact: Darrell Raines
(214) 874-6501
Texas Tech. University
Lubbock, TX 79409
Contact: Steven R. Beck
(806) 742-2121
University of Vermont
Burlington, VT 05405
Contact: Robert B. Lawson
(802) 656-2990
D. N. Gray
Biotechnology and Toxicology
Toledo, OH 43666
419/247-9206
Great Northern Equipment
Company
3550 Great Northern Avenue
Route 4
Springfield, IL 62707
Contacts: Dale Devermon
Ray Kramer
217/787-9870
Jerry Joseph
Middle State Mfg. Co.
16th Avenue, Box 788
Columbus, NE 68601
402/564-1411
College of the Virgin Islands
Contact: Michael Canoy
St. Thomas, VI 00801
Rochelle Development Inc.
Box 356
Rochelle, IL 61068
Contact: John Askvig
815/562-7372
Washington State University
Box 708
Chehalis, WA 98532
Contact: Larry Gueck
(206) 748-9121, Ext. 212
Silver Engineering Works Inc.
3309 Blake Street
Denver, CO
Contact: Richard D. Smith
303/623-0211
Eastern Wyoming College
3200 West C
Torrington, WY 82240
Contact: Charles Rogers
(307) 532-7111
Sludge Express Company
Sheldon, IA
Contact: David Vander
712/324-3305
COMPONENT
MANWACTURERS
ACR Process Corporation
602 East Green Street
Champaign, IL 68120
ALCOGAS
220 Equitable Building
730 17th Street
Denver, CO 80203
Contact: Evan L. Goulding
303/572-8300
3T Engineering Inc.
Box 80
Arenzville, IL 62611
Contact: Wm. C. Talkemeyer
217/997-5921
United Industries
P.O. Box 11
Buena Vista, GA 31803
Contact: John Daniel
912/649-7444
W. A. Bell
P.O. Box 105
Florence, SC 29503
Vendome Copper and Brass
153 North Shelby Street
Box 1118
Louisville, KT 40202
502/587-1930
Easy Engineering
3351 Larimer Street
Denver, CO
303/893-8936
E. Dale Waters
Double “L” Mfg. Inc.
P.O. Box 533
American Falls, ID 83211
E-4
208/226-5592
Wenger Alko-Vap System
1220 Rochester Boulevard
Rochester, IN 46975
Contact: Oscar Zehier
219/223-3335
Weslipp
Franklin, NE
Contact: Brian Hayers
303/425-3101
CONSULTANTS
Bartlesville Energy
Technology Center
Bartlesville, OK
Contact: Jerry Allsup
918/336-4268
Battelle Columbus Laboratories
505 King Avenue
Columbus, OH 43201
Contact: Billy Allen
614/424-6424
Center for Biology of Natural
Systems
Washington University
St. Louis, MO
Contact: David Freedman
314/889-5317
EG&G Idaho, Inc.
P.O. Box 1625
Idaho Falls, ID 83415
Contact: Don LaRue
208/526-0509
Energy Inc.
P.O. Box 736
Idaho Falls, ID 83401
Contact: Steve Winston
208/524-1000
Environmental Group
RD #3
Quakertown, PA 18951
Contacts: Jack Hershey
Bob Meskunas
215/536-8243
Galusha, Higgins and Galusha
P.O. Box 751
Glascow, MT 59230
Contact: Jim Smrcka
4&I/228-9391
FUEL FROM FARMS
William S. Hedrick
844 Clarkson
Denver, CO 80218
303/832-1407
Pincas Jawetz
Independent Consultant on
Energy Policy
425 East 72nd Street
New York, NY 10021
212/535-2734
TRW Energy SystemsGroup
8301 Greensboro Drive
McLean, VA 22102
Contacts: V. Daniel Hunt
Mani Balasubramaniam
Harlan L. Watson
Warren Standley
7031734-6554
CO-OPS IN OPERATION
Ted Landers
New Life Farm
Drury, MO 65638
4171261-2553
Office of Energy Management
and Conservation
1533 North 12th
Bismarck, ND 58501
Contact: Clay Dunlap,
Federal Aid
Coordinator
7011224-2250
Keith Allen
State Fair Community College
Sedalia, MO 65301
Carrol deBrockart
P.O. Box 12068
Salem, OR 97309
5031378-8609
Tom Bullock
University of Nebraska
Lincoln, NE 68588
402/472-3578
ECONOMISTS
Tom P. Abeles
3704 11th Avenue South
Minneapolis, MN 55407
612/825-9451
Anne Kunze
RFD 1, Box 210
Woonsocket, SD 57385
6051796-4602
Bii Elsey
5230 Navaho Drive
Alexandria, VA 22313
703/256-7694
Lowell Langerman
Route 2
Fayette, IA 52142
3191425-3244
Edward Falck and Company
1625 Eye Street
Washington, D.C. 20006
Contact: Michael H. Pete
202/331-1989
Mike Levi
North Carolina State University
Raleigh, NC 27607
919/737-3386
Southern Illinois, Inc.
P.O. Box 327
Energy, IL 62933
Contact: John McCarty
618/993-6322:
RESOURCE PEOPLE B ORGANIZATIONS
Paul Middaugh
South Dakota State University
Billings, SD 57007
6051688-4116
EDUCATORS
Wiliiam Flowers
Nichols State University
Thibadoux, LA 70301
8001535-2840
David Freedman
Center for the Biology of
Natural Systems
Washington University
Box 1126
St. Louis, MO 63130
314/889-5317
Ted McFadden
9539 Fort Foote Road
Oxon Hill, MD 20022
3011839-5019
Malcolm Lillywhite
P.O. Box 2043
Evergreen, CO 80439
3031674-1597
Marvin Lind
257 Jewett Boulevard
Des Moines, IA 50309
515043-0881
Cliff McBride
1900 Clarendon Road
Sedalia, MO 65301
8161826-7100,Ext. 44
Y. T. Pei
475 Steamboat Road
Greenwich, CT 06830
203/622-9020
Gordon Rowe
Des Moines Area Community
College
2006 South Ankeny Blvd.
Des Moines, IA 50021
5151964-6266
Aline Shermie
Nichols State University
Thibadoux, LA 70301
800-535-2840
Herbert Staulcup
Washington University
Campus Box 1196
St. Louis, MO 63130
314/889-6600
Dr. James H. Tangeman
Colby Community College
Colby, KS 67701
913/462-3984
Charles Thornhill
Pratt Community College
Pratt, KS 67127
316/672-5641
Dean Wuesterberg
RFD 1
Donahue, IA 52746
3 19/843-3032
ENGINEERS
William P. Bailey
2508 Northwest 87th
Seattle, WA 98117
I
Ernie Barcell
Seven Energy Corp.
3760 Vance
Wheat Ridge, CO 80030
303/425-4239
E-5
Ulrich Bonne
Honeywell Inc.
Corp. Tech. Center
10701Lyndale Avenue South
Bloomington, MN 55420
612/887-4477
Robert S. Chambers
808 South Lincoln Avenue #14
Urbana, IL 61801
217/384-8003
Miles Connors
Stone and Webster
One Penn Plaza
New York, NY 10001
212/760-2000
Dave Decker
Tilden Fertilizer
Tilden, NE 68781
402/368-531?
Wayne C. Faulconer
Distillation and Mass Transfer
Consultant-Engineering
6307 East Ninth Street
Wichita, KS 67208
31616866537
Bryan Hayes
Franklin, NE 68939
Bii and Lesa Hedrick
844 Ciarkson Street
Denver, CO 80218
303/832-1407
H. M. Neely
P.O. Box 587
Colby, KS 67701
913/462-2641
Kenneth J. Schmitt
Alternative Energy Ltd.
650 Pine Street
Colby, KS 67701
913/462-7531
Dr. William A. Scheller
University of Nebraska
Lincoln, NE 68588
402/472-2750
Henry Schowalter
1508 West John
Grand Island, NE 68801
3081384-9165
E6
R. E. Talkemeyer
Agri-Fuels Gasohol
3-T Engineers
Arenzville, IL 62611
217/997-2188
Norbert Haverkamp
Compost Making Enzymes
Rural Route 1, Box 114
Horton, KS 66439
913/486-3302
Steven J. Winston
Route 3, Box 239
Idaho Falls, ID 83401
2081522-6413
Miles Laboratories, Inc.
Enzyme Products Division
P.O. Box 932
Elkhart, IN 56515
219/564-8111
ENGINE MODIFICATION
ENGINEERS
Novo Laboratory, Inc.
59 Danbury Road
Wilton, CT 06897
203/762-2401
Mart Kirik
222 McIntyre Street West
North Bay, Ontario PlB 2Y8
Canada
Dick Pefley
University of Santa Clara
Santa Clara, CA 95053
408/984-4325
Kenneth J. Schmitt
Alternative Energy Ltd.
650 Pine Street
Colby, KS 67701
913/462-7531
Scientific Products Co.
North Kansas City, MO 64116
8161221-2533
MOLECULAR SIEVE
MANUFACTURERS
W. R. Grace
P.O. Box 2117
Davison Chemical Division
Baltimore, Maryland 21203
Contact: Paul E. Cevis
301-659-9000
Southwest Research Institute
San Antonio, TX
Chuck Stone
California Legislature
Sacramento, CA 95814
916/445-7518
Thomas J. Timbario
1900 Sulphur Spring Road
Baltimore, MD 21227
301/247-5666
Ying-Nien Yu
Ying Manufacturing
Corporation
1957 West 144 Street
Gardena, CA 90249
213/770-1756
ENZYME
PRODUCERS
Biocon, Inc.
261 Midland Ave.
Lexington, Kentucky 40507
606/254-0517
ON-FARM
PLANTS
OPERATING
Don Cook
Route 1, Box 17A
Craig, CO 81625
3031824-6746
Lance Crombie
Route 1
Webster, MN 55088
507/652-2804
Lowell Fey
5169 Ute Highway
Longmont, CO 80501
303/823-5052
Forrest Flippo
RFD 4
Abilene, KS 67410
913/263-4367
Larry Hardimon
Route 1
FUEL FROM FARMS
White Heath, IL 61884
2 17/687-2622
Brian Hultine
Rural Route 2
Saronville, NE 68979
402/773-4746
Alan and Archie Zeithamer
Route 2, Box 63
Alexandria, MN 56308
612/762-1798 (Alan)
6121763-7392(Archie)
PLANT OPERATION
CONSULTANTS
Dick Johnson
Felox Corporation
7703 Normandale Road
Minneapolis, MN 55435
612/835-l 103
Harland Anderson
Five Woodcrest Drive
Burnsville, MN 55337
6121825-9451
JamesMiles
Box 83, Route 1
New Albin, IA 52160
507/724-2387
Daniel Archer
!35! Waconia Avenue, SW
Box 1445
Cedar Rapids, IA 52406
319/398-0644
Marvin Oerke
RFD 3, Box 194
Butler, MO 64730
816/669-5159
Jim Pufahl
Box 99, Route 2
Milbank, SD 57252
605/432-4169
Lloyd Reeser
Route 1
Weldon, IL 61882
217/736-2539
Midwest Solvents Co., Inc.
1300 Main Street
Atchison, KS 66002
913/367-1480
Miles Connors
One Penn Plaza
New York, NY 10001
212/736-1500
Robert Chambers
808 South Lincoln #I4
Urbana, IL 61801
2171384-8003
Dale Devermon
3550 Great Northern Avenue
Route 4
Springfield, IL 62707
217/787-9870
William S. Hedrick
844 Clarkson
Denver, CO 80218
303/832-1407
Dr. Ing. Hans Mueller
Chemapec, Inc.
230 Crosways Park Drive
Woodbury, NY 11797
5161364-2100
Jackson Yu
50 Beale Street
San Francisco, CA 94119
415/768-2971
GB Fermentation Industries,
Inc.
One North Broadway
Des Plaines, IL 60016
3 12/827-9700
LeRoy Schartz
RFD3
Great Bend, KS 67530
316/793-7144
Development Planning and
ResearchAssociates
2000 Research Drive
P.O. Box 727
Manhattan, KS 66502
Contacts: Milton David
Robert J. Buzenberg
913/539-3565
Dr. L. Eugene Schroder
North Route
Campo, CO 81029
303/523-6787
Donald Miller
2900 Vernon Place
Cincinnati, OH 45219
513/281-2800
Eldon L. Shelter
S&S Galvanizing Co.
P.O. Box 37
Clay Center, NE 68933
Jim Kumana
1050 Delta Avenue
Cincinnati, OH 45208
513/871-7500
Roger Sweet
Agrifuels, Inc.
Crookston, MN 56716
E. Kirchner
10 South Riverside Plaza
Chicago, IL 60606
312/454-3685
Enerco, Inc.
139A Old Oxford Valley Road
Langhorne, PA 19047
Contact: Miles J. Thomson
215/493-6565
William J. Jones
i818 Market Street
Philadelphia, PA 19103
215/299-8193
Biomass Suchem
Clewiston, FL 33440
Contact: Dr. Ron DeSpephano
813/983-8121
Albert Turner
Southwest Alabama Farmers
co-op
Selma, Alabama
205/683-8808
Joseph L. Gordon
Box 7808
Boise, ID 83729
208/386-5670
Don Smith
Rural Route 1, 650 Pine
Colby, KS 67701
913/462-7531
Glen Brandt
Brandt Chemical Co.
P.O. Box 277
Pleasant Plains, IL 62677
217/626-1123
Continued on Page E-IO
RESOURCE
PEOPLE 81 ORGANIZATIONS
E-7
.
TABLE E-l. SOURCES OF PUBLIC FINANCING
PROGRAM
APPLICANT
Alcohols & Industrial Hydra
carbons ISact. 1419 of Food
and Agr~culturrl
Act of 1977.
P.L. 96.1131
Colleges & Univsrritier
Hewng
B Demonstrable Capcaty in
Food end Agricultural
Rerssrch
J.S. Oewtmenl
of
4gr~cultura ScisnEa
L Education Admin.
Energy Research ISect. 1414
of Food and Agr,cuitural
An
Of 1977. P.L. 95-l 131
Colleger and Unwsrsitiss Havmg
a Demonrtrable
Capecity in Food
&Agricultural
Research
Grants of 2-3 Yearr Durat,on
for Rarearch
J.S. Department
\gricultura/Wfica
,f Energv
No rertrictmnr
General Adwce
General Advice on USDA
Program Availabihty
Cooperatives. Private Investors
I” Town of Lest than 50,000
Loan Guarantees
DRGANfLATfON
U.S. oepartment
xdture
01 Aan.
Science & Education
Admtn.
of
J.S. Otpanmsnt
of
&gricultura/Farmerr
+oma Admin.
Burinw
J.S. Departmmt
Operating and Farm Owner.
ship Loans
Of
4gWiltWJ/F~~~~S
-lam
& Industrial
IB&li
ELIGIBILITY
I TYPE OF ASSISTANCE
Grants of 2-3 Years Duration
for Reseerch
I
Farmers. Farmer Cooperativsr
Dwecr Loans at Colt of
Borrowing. Loan Guarantees
Admin.
I
U.S. Ospartment
AgriculturalFarnwt
Home Admin.
iouring
,pnnt
of
and Urban Dsval(HUD)
Commumtv
Facilities
Private NonProfit
Entities
Public
Loans at 5%
I
Urban Development
Grttllt
Action
imdl Business Admiw
tration
Small Busineu Energy Low
Act, P.L. 96.313
3apanmant of Commarca
imnomic Oarelopment
Umininrstlon
Public Works and Development
Facilitms
States. Locat Gowmmentc,
Indian Tribes, NonProfit
Organizations
Grants for 5080% of B
Total Projvzt Cost Depending
on Need
I
E-8
.
iconomic DtlYBlopmdnt
IdministratIon
Business Oavelopmsnt
hsistanc8
Businsr# Enterprires
Cooperatives
lommunity
Services
Currently Fundmd by CSA
Rural end Small Farm
Energy Grantees
Grant (Limited)
AQiltanCB
)spanmant
of Energy
Biomass Energy SVrtem8
Program
Individuals, Farmers
Bwinsssec, Institutions
(No Rastrictlonsl
Including
-Technical
Direct Loans up to 65%
Loan Guarantees Up to 90%
Conwuction
84 Operation of
D~monnrarion
Plants Sarvlng
Enargy Needs of Rural Low
Income Rssidants. Provision
of Technical Assistance to
Other Commwities
in Smsll
Scale Alcohol Production
Technical A~rirtence..
Comprtitiva
Award1
Dapwtmsnt
of Energy
Small Scale Technology
Program
Individuals
Institutions
Department
Of Ensrgv
Alternatiw
Utilization
Individuals, Farmsrs.
Susinasrar, Institutions
INo Aatrinlonrl
Competitiw
~spartment
of Enew
Urban Warm Programs
Individuals, Businessa,
Institutions.
Communities
(No Rastrictlonr~
Competitive Awards Loan Guarantees are Under
Consideration
Depwmmt
Of Energy
Office of Consunwr
NO Restrictions
Technical, Emnomic.
Regulatory Advica
Fualr
Program
Affairs
and Small
Awards
&
FUEL FROM FARMS
ELIGIBLE
ACTIVITIES
I
PURPOSE OF PRDJECT
I
LIMITS
OF PROJECT
Rasarch on the Evrluotfon.
Hmdling Trutmsnr
& Convanion of 6iormss Ratources
for M.nufactura
of Ethyl
Alcohol
To Develop Improved Processes
for Production of Al-ho1
from Biomass
$100.000 per grant of 2-3
Years ouratton
Rmwrch on Fermentation
&
Relmsd Processi for Produslion of Alcohol. Other than
Ethanol: and Hydrocarbons
To Develop improved Methods
of Production & Blendmg
Marketing & Utilization
of
PK.dUCtl
$lOO,OW per Grant of 2-3
Years Duration
Biomass Production for
Afmhof Fuels: Conversion
and U= of Alcohol
Ssrvese* fnformation
Clearing
hou:e and Provides for
Coordinated USDA
Fixad Cons. Operating
CaPltSl
Creation of Jobs. Emnomlc
Growth in Communities
Under
50,000 Population
I
ADDITIONAL
INFORMATION
USDA
Washington.
D.C. 20250
202/447-6050
USDA
Washington,
I
D.C. 20250
202M47.6050
I
Director, Office of Energy
Hm. 226E. Admmirtratlon
USDA
Washington, D.C. 20250
202/447.24&i
I26.OW.OW Par Project Max.
car1 Larson
Priority on Smell and lntermediste
Scale Of $1 .OQo.OOo or LSU
Director of B&I Loans
USDA/FmHA
2021447.7666
lmprowment
of Farm Income
I
I
Construction
Loans,
Working Capital
Working
Capital.
I
Raosrch
11
Supplim, Plant Construction,
Materials, Dwelopment,
Menufanuring
Equipment for
Alcohol Fuels Purposes
Conttrunfon
& Equipment of
Alcohol Full Plantr,Prioritias
on Small Sale Plants (LESS
than One Million Gallons Par
YEW)
or Auxiliary
Plmts
Facilities
to Such
I
Intermediate
or LOU
Scald of $1 ,OW,WO
Director of Rural Oavelopmenr
Proaramr - USDA
202i447-3213~
Washington. D.C. 20250
Stimulate employment
and Tax %se in Distressad Citlrrs
Promote Small Businesses in
Almhol Production Related
Activities
NOW
Help Jo; Situation.
lncreasn
Income lncraasa Crop Markets.
Inc.&
Supply of Tr&wetibn
Director
Direct Loans of Less than
I $360.060. Loan Guarantssc of
Less than 5500.000, No More than
30% for R&O. NO More than 36%
for Working Capital
Genarally S3OODDO war Projan.
Must be in EDA Designated
Redevelnpmant
Area
I
Washinoton.
D.C. 20410
Technology
Assfatnncs
I
Division
EDA Office of Public Affairs
202Kv7.5113 for “lllmst
“mm8 b loCBllons
EOA Office of Public Affain
202/37X113
Areas. This Program Norm&
Wou
not be Appropriate for Individual
Farmers
I
To Omlop & Disseminate
Efficient Tachnofcgiss for
Small Scdla Fual Alcohol
PXdllCtiqn
Grmcs Go Only to 5 Currantlv
Fundld CSA Projects. Phase
II Technical Assistants
Available to Other Eligible
Organizations.
Phswr II I
Canvmlon
of Biomass 10
Alcohol Fuels
Rrnaareh and Owalopmsnt
for On-Farm Svstams.
Adnnced Ensrgy Crops.
Callanion
& Harvesting
Improvamonts.
& Advanced
Convanion Tachnologisr
NOflU
Small Scale R~nmabls
Enaqy Sourcas
Develop Innovative SmallScale Renewable Energy
Technolcqias
s5opOO psr Proisn
Two Years
Develop end Tan Altsrnativs
Fuels lncludfw Alcohols In
Diesel and Internal Combustion
Engines
NOIW
Eugene Eckland
Chief, Alternafive
Fuels
Lkilizntion Program
OOE
20 Mass. Ava.,N.W.
Washington. D.C. 20626
Conversion of Urban and
“,“[d$9;
Waste Products
Conduct Retwch
and
Dewlo~msnt
B Demonstrate
Techniques Converting
Municipal Wane to Gases
and Liquids Ensrgy
NOM
Dan Waltsrr
Chief, Community
Technology
Systems Branch
DOE
20 Mao. Ave.. N.W.
Wmhi?gton, D.C. 20628
Small Sela On.Flrm
Production Systems
Oiswminata Stataaf.ths.Arl
Information
-Train
the
Public in Small Alcohol Fuals
Facilities
Dick Saul
Energy Programs
Dffice of Community
Action
Community
Services Administration
12W 16th St. N.W.
Wuhingtun,
O.C. 20506
202/632.6503
Remarch and Dwalopmwu
Alsa Tssting of Alternative
FIleIs
RESOURCE
Almhol
PEOPLE & ORGANIZATIONS
-
I
of UOAGlHUD
2021472.3647
I
To Stabilize or Stimulate
Local Eeonomv. Agricultural
Area Emphasis
I
I
I
I
Fixed Assuts
Flalated Erfmnsa
D.C. 20260
$2W.O00 Direct Loen
$3W.W0 Loan Guerantsee
I
Growth
I
2021447-6243
Washington.
Fired Assets, Working
Capital
I
Solar Enorgy [email protected] Institute
1617 Cola Boulonrd
Goldan. CO 60401
303/231-1416
over
DOE Regional Gificar
Toll free calls fo either:
600/535.2640
6OOl6336333
Plant Operations Consultants - Continued
Guaranty Fuels
1120 East Main Street
Independence, KS 67301
913/331-0027
E-10
Midwest Solvents Co.
1300 Main Street
Atchison, KS 66002
Contact: Howard Hinten
913/367-1480
Steven J. Winston
Route 3, Box 239
Idaho Falls, ID 83401
208/522-6413
FUEL FROM FARMS
APPENDIX
F
Bibliography
. General
l
Conversion
l
Coproducts
l
Design
l
Distillation
l
Economics
l
Energy Balance
l
Environmental
l
Feedstocks
Considerations
. Fermentation
. Hardware-Equipment
. International
BIBLIOQRAPHY
l
Regulatory
l
TranSpOrtatiOn
USe
GENERAL
Introductory
Brown, M. H., Brown 3 Alcohol Motor Fuel
Cookbook, Desert Publications, Cornville, AZ. 8e325,
1979, 14 p,p. ($9.95).
Commoner, B., The Politics of Energy, Alfred A.
Knopf, NY, 1979, 102 p.
Crombie, L., Making Alcohol Fuel-Recipe and Procedure, 1979, 40 p. Available from Micro-Tech
Laboratories, Inc., Route 2, Box #19, Logan, IA 51546.
($4.50).
Cibat and Gibat, The Lore of Still Building, 1978,
128 p. Available from Micro Tech Laboratories, Inc.,
Route 2, Box #19, Logan, IA 51546. ($4.00)
Jawetz, Pincas, “Calculations Linking Farm Policy to
Energy Policy,” Testimony at Hearings on The Gasohol
Motor Fuel Act of 1978, U.S. Senate, Subcommittee on
Energy Research and Development, Committee on
Energy and Natural Resources, Washington, D.C.,
August 7-8, 1978, U.S. Government Printing Office,
Washington, D.C. 20402, 1978Publication No. 95-165,
pp. 113-142.
National Alcohol Fuels Producers Association, Lincoln, NE, A Learning Guide for Alcohol Fuel Production, 1979, 600 p. Available from NAFPA, 2444 B
Street, Lincoln, NE 68502, $75.00 with membership.
Nellis, M., Making it on the Farm. Alcohol Fuel is
the Road to Independence, 1979, 88 p. Available
from American Agriculture News, P.O. Box 100,
Iredell, TX 76649. ($2.95).
Pimental, D.; et al., “Energy and Land Constraint in
Food Production,” Science, Vol. 190 (No. 4126),
November 21, 1975, pp. 754-61.
Rrportr
Alcohol Fueis Workshop, A Symposium presented for
the Farmers Home Administration, Washington, D.C.,
September20, 1979.
Third International Symposium on Alcohol Fuels
Technology, Asilomar, CA, May 28-31, 1979. :
ments, Stock No. 061-000-00313-4, Washington, D.C.
Freeman, J. H.; et al., American Petroleum Institute.
Alcohols-A Technical Assessmentof Their Application as Fuels, API Publication No. 4261, July 1976.
Office of Technology Assessment, Gasohol-A
Technical Memorandum, September 1979, 69 p.
Available from Superintendent of Documents, U.S.
Government
Printing
Office,
Stock No.
052-003-00706-l.
Magazines
Alternative Sources of Energy, Alternative Sources of
Energy, Inc., Route 2, Milaca, MN 56353, $6.00&r.
(bimonthly).
BioTimes, The International Biomass Institute, 1522
K Street NW, Suite 600, Washington, D.C. 20005,
$10.00 including membership. (monthly).
Farm Show Magazine, 8500 - 210 Street, Lakeville,
MN 55044. ($9,OO/yr).
Gasohol USA, ‘National Gasohol Commission,
P.O. Box 9547, Kansas City, MO 64133, $12.OO/yr.
(monthly).
Mother Earth News, Mother Earth News, P-0. Box 70,
Hendersonville, NC 28739, %lS.OO/yr.(bimonthly).
Small Farm Energy Project Newsletter, Center for
Rural Affairs, P.O. Box 736, Hartington, NE 68739,
free. (bimonthly).
Solar Lcfe, SEINAM (Solar Energy Institute), 1110
Sixth Street NW, Washington, DC. 20001, %5.OO/yr.
(monthly).
Congrrralonal
Hoarlngr
National Fuel Alcohol and Farm Commodity Production Act of 1979, Hearings before the Subcommitteeson
Conservation and Credit Department Investigations,
Oversight and Research, and Livestock and Grains,
Committee on Agriculture, U.S. House of Representatives, 96th Congress, May 15-16, 1979. Available
from U.S. Government Printing Office, Stock No.
052-070-0507l-3.
Baratz, B.; Ouellette, R.; Park, W.; Stokes, B.; Mitre
Corporation, “Survey of Alcohol Fuel Technology,
Volume I,” Technical Report No. M74-61-Vol. 1;
November, 1975; 43 p. Available from NTIS,
PB-256007/6ST, $7.25 paper copy, $3.00 microfiche.
Oversight-Alcohol Fuel Options and Federal Policies,
Hearings before the Subcommittee on Energy Development and Applications of the Committee on Science
and Technology, U.S. House of Representatives, 96th
Congress, May 4, 1979, June 12, 1979, No. 26-the
Committee on Scienceand Technology.
Department of Energy, “Report of the Alcohol Fuels
Policy Review,” Report No, DOIVPE-0012, June
1979, 119 p. Available from Superintendent of Docu-
The Gasohol Motor Fuel Act of 1978, Hearings before
the Subcommittee on Energy Research and Develop-
F-2
FUEL FROM FARMS
ment of the Committee on Energy and Natural Resources, U.S. Senate, 95th Congress, August 7-8, 1978,
Publication No. 9% 165.
Alcohol Fuefs, Hearings before the Subcommittee on
Advanced Energy Technologies and Energy Conservation Research, U.S. House of Representatives - 95th
Congress, July 11-12, 1978. Available from U.S.
Government Printing Office (No. 350-520).
Alcohol Fuels, Special Hearing before the Committee
on Appropriations, U.S. Senate, 95th Congress,
January 31, 1978. Available from U.S. Government
Printing Stock Office, No. 052-070-04679-l.
CONVERSION
Bruschke, H., “Direct Processing of Sugarcane into
Ethanol,” Paper presented at the International Symposium on Alcohol Fuel Technology: Methanol and
Ethanol, Wolfsburg, Federal Republic of Germany,
November 21-23, 1977. Availability:
NTIS,
CONF-77 1175, Complete proceedings, %15.25 printed
copy, $3.00 microfiche.
Morrison, Robert T.; Boyd, Robert N., Organic
Chemistry, 3rd Edition, 1973, Allyn and Bacon, Inc.,
Rockleigh, NJ.
COPRODUCTS
Distillers Feeds, Distillers Feed Research Council,
Cincinnati, OH 45202.
Paturau, J. M., By-Products of the Cane Sugar Zndusty, Elsevier Publishing Company, Amsterdam,
1969, 274 p.
Reilly, P. J., Iowa State University, Ames, IA. “Conversion of Agricultural By-Products to Sugars,” Progress report, 1978.
Winston, S. J., Energy Incorporated, “Stillage Treatment Technologies,” October 1979, 20 p,
Winston, S. J., Energy Incorporated, “Current Stateof-the-Art Stillage Use and Disposal,” October 1979,
30 p.
Wisner, R. N.; Gidel, J. O., Iowa Agriculture Experiment Station, “Economic Aspects of Using Grain
Alcohol as a Motor Fuel, with Emphasis on By-Product
Feed Markets,” Report No. 9; June 1977.
Brackett, A. T.; et al., “Indiana Grain Fermentation
Alcohol Plant ,” 1976, 80 p. Available from Indiana
Department of Commerce, State House, Room 336,
Indianapolis, IN 46204. (free).
Chambers, R. S., ACR Process Corporation, Urbana,
IL, “The Small Fuel-Alcohol Distillery: General
Description and Economic Feasibility Workbook,”
1979, 21 pages. Available from ACR ProcessCorporation, 808 S. Lincoln Ave., Urbana, IL 61801. (free).
Katzen, Raphael Associates, “Grain Motor Fuel
Alcohol Technical and Economic AssessmentStudy,”
Report No. HCP/J6639-01, June 1979, 341 p.
Available from NTIS, $12.00 paper copy, $3.00
microfiche.
DISTILLATION
King, C. J., Separation Processes,McGraw-Hill, N.Y .,
1971.
Tassios, D. P., ed., Extractive and Azeotropic Distillation, Advances in Chemistry, Number 115, American
Chemical Society, Washington, DC., 1972.
McCabe, W,; Smith, J. C., Unit Operations in
Chemical Engineering, Third Edition, McGraw-Hill,
NY, 1976.
ECONOMICS
David, M. L.; Hammaker, G. S.; Development Planning and Research Associates, “Gasohol Economic
Feasibility Study,” Final report, July 1978.
Economics, Statistics, and Cooperative Service,
“Gasohol from Grain-The Economic Issues,” Final
Report AGERSF-21, January 19, 1978,23 p. Available
from NTIS, PB-280120/7ST, $4.00 printed copy, $3.00
microfiche.
Jenkins, D. M., Battelle Columbus Laboratories,
“Technical Economic Analysis of the Manufacture of
Ethanol from Corn Stover,” November 1977.
Jawetz, P., “A New Way to Calculate the Savings from
Fuels Substituted for Petroleum,” Energy Research
Reports, Vol. 5 (No. 18), October 15, 1979.
Koppel, J., Northeast Midwest Institute, Washington,
DC., Guide to Federal Resources for Economic
Development, September 1979, 137 p.
ENERGY BALANCE
DESIGN
Ahsheller, W. B.; et al., ‘“Design of a Two-Bushel Per
Day Continuous Alcohol Unit,” Chemical Engineering
Progress, Vol. 43 (No. 9), September 1947, pp.
467-472.
BIBLIOGRAPHY
Alich, J. A,; Scholey, F. A.; et al., SRi International.
“An Evaluation of the Use of Agricultural Residues as
an Energy Feedstock: A Ten Site Survey,” Report No.
TID-27304/2, January 1978, 402 p. Available from
NTIS, $13.25 paper copy, $3.00 microfiche.
F-3
Commoner, B., Center for the Biology of Natural
Systems,Washington University, St. Louis, MO, “The
Potential for Energy Production by U.S. Agriculture,”
Testimony before the U.S. Senate Committee on
Agriculture, Nutrition, and Forestry, Subcommittee on
Agricultural Researchand General Legislation, July 23,
1979.
Jawetz, P., “Alcohol Additives to Gasoline-An
Economic Way for Extending Supplies of Fuel and for
Increasing Octane Ratings,” American Chemical Society National Meeting, September9-14, 1979; Division of
Petroleum Chemists, Vol: 24 (No. 3), pp. 798-800,
Washington, DC., reprint.
Nathan, R. A., Battelle Columbus Laboratories, “Fuels
from Sugar Crops,” Report No. TID-22781, July 1978.
Available from NTIS, $8.00 paper copy, $3.00
microfiche.
National Academy of Sciences. Atlas of Nutritional
Data on United States and Canadian Feeds. 1971.
Available from NAS, 2101 Constitution
Washington, D.C. 20418.
Ave.,
Portola Institute. Energy Primer. 1978.
Potato Alcohol. A Solution to the Energy Crises and
Higher Pricesfor Spuds, Potato Grower of Idaho, April
1978, 50 p.
Ladisch, M.R.; Dyck, K., “Dehydration of Ethanol:
New Approach Gives Positive Energy Balance,”
Science, Vol. 205 (No. 31), August 3,1979, pp. 898-900.
Lewis, C. W., “Fuels from Biomass-Energy Outlays vs.
Energy Returns: A Critical Appraisal,” Energy, Vol. 2
(No. 3). September 1977, pp. 241-8.
ENVl.RONMENTAL CONSIDERATIONS
Brown, D.; McKay, R.; Weir, W., “Some Problems
Associated with the Treatment of Effluents from Malt
Whiskey Distilleries,” Progress in Water Technology,
Vol. 8 (No. 2/3), 1976, pp. 291-300.
Jackson, ‘E. A., “Distillery Effluent Treatment in the
Brazilian Nationale Alcohol Programme,” The
Chemical Engineer, April 1977, p. 239-242.
Stauffer, M.D. Jerusalem Artichoke - Production.
Available from Agriculture Canada, Research Station,
P.O. Box 3001, Morden Manitoba, ROG IJO, Canada.
1979.
FERMENTATION
Engelbart, W., “Basic Data on Continuous Alcoholic
Fermentation of Sugar Solutions and of Mashes from
Starch Containing Raw Materials,” Paper presented at
the International Symposium on Alcohol Fuel
Technology: Methanol and Ethanol, Wolfsburg,
Federal Republic of Germany, November 21-23, 1977. ,
Available from NTIS, CONF-771175, complete proceedings $15.25 printed copy, $3.00 microfiche.
Kant, F. H.; et al., U.S. Environmental Protection
Agency, “Feasibility Studies of Alternative Fuels for
Automotive
Transportation,”
Report No.
EPA-460/374-009, 1974. Available from NTIS, PB235
581/GGI, $4.50 paper copy, $3.00 microfiche.
Lipinsky, E. S.; Scantland, D. A.; McClure, T. A.,
Battelle Columbus Laboratories, “Systems Study of
the Potential Integration of U.S. Corn Prodution and
Cattle Feeding with Manufacture of Fuels via Fermentation,” Report No. BMI-2033, Vol. I, June 4, 1979.
Available from NTIS.
Lowry, S. 0.; Devoto, R. S., Georgia Institute of
Technology, “Exhaust Emissions from a SingleCylinder Engine Fueled with Gasoline, Methanol,
and Ethanol,” Combustion Science and Technology,
Vol. 12 (No. 4, 5, and 6), 1976, pp. 177-182.
Miller, D. L., Department of Agriculture, Peoria, IL.
“Ethanol
Fermentation and Potential,”
Paper
presented at the Cellulose
Conference
in
Biotechnological Bioengineering, No. 5, pp . 345,
Berkeley, CA, June 25, 1974, USA.
FEEDSTOCKS
HARDWARE - EQUIPMENT
Chubey, B. B.; Dorrell, D. G., “Jerusalem Artichoke, a
Potential Fructose Crop for the Prairies,” Journal of
the Canadian Institute of Food Science Technology,
Vol. 7 (No. 2), 1974, pp. 98-100.
Lukchis, G. M., “Adsorption Systems: Part 1. Design
by Mass-Transfer-Zone Concept,” Chemical Engineering, June 11, 1973, pp. 111-116.
Lipinsky, E. S.; et al., Battelle Columbus Laboratories,
“System Study of Fuels from Sugarcane, Sweet
Sorghum and Sugar Beets,” Vol. 1, Comprehensive
Evaluation, Report No. BMI-1957, Vol. 1, March 15,
1977; Vol. 2, Agricultural Considerations, Report No.
BMI-1957; Vol. II, December 31, 1976; Vol. 4, Corn
Agriculture, Report No. BMI-1957 A; Vol. IV, March
1977.
F-4
Lukchis, G. M., “Adsorption Systems:Part III. Adsorbent Regeneration,” Chemical Engineering, August 6,
1973, pp. 83-90.
INTERNATIONAL
Jawetz, P., “The Common SenseApproach in Developing Fuel Alcohols. ” Workshop on Fermentation
Alcohol for Use as Fuel and Chemical Feedstock in
Developing Countries, Vienna, Austria, March 26-30,
FUEL FROM ‘FhRMS
1979, Paper no. ID/WG.293/12, United Nations Industrial Development Organization. (Papers dated:
February 5, 1979-abstract, March 26, 1979-paper).
gines’ Steady State Performance and Regulated Emissions Characteristics,” Topical Report, January 1978.
Ribeiro, Filho F. A., “The Ethanol-Based Chemical Industry in Brazil,” Workshop on Fermentation Alcohol
for Use as Fuel and Chemical Feedstock in Developing
Countries, Vienna, Austria, March 1979, Paper No.
ID/WG.293/4 UNIDO, United Nations Industrial
Development Organization.
Allsup, J. R.; Eccleston, D. B., “Ethanol/Gasoline
Blends as Automotive
Fuel,”
Report No.
BETC/RI-7912, May 1979, 13 p. Available from NTIS,
$4.00 paper copy, $3.00 microfiche.
Sharma, K. D., “Present Status of Alcohol and Alcohol
Based Chemical Industry in India,” Workshop on
Fermentation Alcohol for Use as Fuel and Chemical
Feedstock in Developing Countries, Vienna, Austria,
March 26-30,1979, paper no. ID/WG.293/14 UNIDO,
United Nations
International
Development
Organization.
REGULATORY
Abeles, T. P.; King, Jatma R., Minnesota Legislature
Science and Technology Project, “Parameters for
Legislature Consideration of Bioconversion Technologies,” February 1978, 45 p. Available from NTIS,
PB 2847421453, $4.50 paper copy, $3.00 microfiche.
Bureau of Alcohol, Tobacco, and Firearms, Ethyf
Alcohol for Fuel Use, Informational Brochure, ATF
Bernhardt , W., “Future Fuels and Mixture Preparation
Methods for Spark Ignition Automobile Engines,”
Progress in Energy and Combustion Science, Vol. 3
(No. 3), 1977, pp. 139-150.
Bushnell, D. J.; Simonsen, J. M., “Alcohol Assisted
Hydrocarbon Fuels: A Comparison of Exhaust Emissions and Fuel Consumption Using Steady-State and
Dynamic Engine Test Facilities,” Energy Communications, Vol. 2 (No. 2), 1976, pp. 107-132.
Panchapakesan, N. R.; Gopalakrishnzn, K. V., “Factors that Improve the Performance of an Ethanol-Diesel
Oil Dual-Fuel Engine,” Paper presentedat the International Symposium on Alcohol Fuel Technology:
Methanol and Ethanol, Wolfsburg, Federal Republic of
Germany, November 21-23, 1977. Available from
NTIS, CONF-771175, complete proceedings $15.25
printed copy, $3.00 microfiche.
PX 5000.1, July 1978, 7 p.
Bureau of Alcohol, Tobacco, and Firearms, Alcohol
Fuel and ATF, Informational Brochure, ATF P5000.2,
August 1979, 4 p.
TRANSPORTATION USE
Adt, R. R., Jr., et al., University of Miami, “Effects of
Blending Ethanol with Gasoline on Automotive En-
BIBLIOGRAPHY
Scott, W. M., Ricardo Consulting Engineers, “Alternative Fuels for Automotive Diesel Engines,” Paper
presented at the Symposium on Future Automotive
Fuels-Prospects, Performance, and Perspective,
Warren, MI, October 6, 1975, in Future Automotive
Fuels:
Prospects,
Performance,
and
Perspective,
Colucci. J. M.; Gallopoolos, N. E. (eds.); pp. 263-292.
Available from NTIS, CONF-751018.
F-5
APPENDIX
G
Glossary
GLOSSARY
ACID HYDROLYSIS: decomposition or alteration of a
chemical substanceby acid.
ACIDITY: the measure of how many hydrogen ions a
solution contains.
AFLATOXIN: the substanceproduced by some strains
of the fungus Aspersillus Flavus; the most potent carcinogen yet discovered; a persistent contaminant of
corn that renders crops unsalable.
ALCOHOL: the family name of a group of organic
chemical compounds composed of carbon,
hydrogen, and oxygen; a seriesof molecules that vary
in chain length and are composed of a hydrocarbon
plus a hydroxyl group, CHa-&H&-OH;
includes
methanol, ethanol, isopropyl alcohol, and others.
ALDEHYDES: any of a classof highly reactive organic
chemical compounds obtained by oxidation of
primary alcohols, characterized by the common
group CHO, and used in the manufacture of resins,
dyes, and organic acids.
ALKALI: soluble mineral salt of a low density, low
melting point, highly reactive metal; characteristically “basic” in nature.
ALPHA-AMYLASE - AMYLASE: enzyme which converts starch into sugars.
AMBIENT: the prevalent surrounding conditions
usually expressed as functions of temperature,
pressure,and humidity.
AMINO ACIDS: the naturally-occurring,
containing building blocks of protein.
AMYLODEXTRINS:
BALLING HYDROMETER OR BRIX HYDROMETER: a triple-scale wine hydrometer designed to
record the specific gravity of a solution containing
sugar.
BARREL: a liquid measure equal to 42 American
gallons or about 306 pounds; one barrel equals 5.6
cubic feet or 0.159 cubic meters; for crude oil, one
barrel is about 0.136 metric tons, 0.134 long tons,
and 0.150 short tons.
BASIC HYDROLYSIS: decomposition or alteration of
a chemical substanceby alkali (basic) solution.
BATCH FERMENTATION: fermentation conducted
from start to finish in a single vessel.
BATF: Bureau of Alcohol, Tobacco, and Firearms;
under the U.S. Department of Treasury. Responsible
for the issuance of permits, both experimental and
commercial, for the production of alcohol.
BEER: the product of fermentation by microorganisms;
the fermented mash, which contains about 11-12070
alcohol; usually refers to the alcohol solution remaining after yeast fermentation of sugars.
nitrogenBEER STILL: the stripping section of a distillation
column for concentrating ethanol.
seeDextrins.
ANAEROBIC DIGESTION: without air; a type of
bacterial degradation of organic matter that occurs
only in the absenceof air (oxygen).
ANHYDROUS: a compound that does not contain
water either absorbed on its surface or as water of
crystallization.
ATMOSPHERIC PRESSURE: pressure of the air (and
atmosphere surrounding us) which changesfrom day
to day; it is equal to 14.7 psia.
AZEOTROPE: the chemical term for two liquids that,
at a certain concentration, boil at the same
temperature; alcohol and water cannot be separated
further than 194.4 proof becauseat this concentration, alcohol and water form an azeotrope and
vaporize together.
G-2
AZEOTROPIC DISTILLATION: distillation in which
a substanceis added to the mixture to be separatedin
order to form an azeotropic mixture with one or
more of the components of the original mixture; the
azeotrope formed will have a boiling point different
from the boiling point of the original mixture which
will allow separation to occur.
BEER WELL: the surge tank used for storing beer
prior to distillation.
BETA - AMYLASE: seeAmylase.
BIOMASS: plant material, includes cellulose carbohydrates, ligniferous constituents, etc.
BOILING POINT: the temperature at which the transition from the liquid to the gaseousphase occurs in a
pure substanceat fixed pressure.
BRITISH THERMAL UNIT (Btu): the amount of heat
required to raise the temperature of one pound of
water one degreeFahrenheit under stated conditions
of pressure and temperature (equal to 252 calories,
778 foot-pounds,
1,055 joules, and 0.293
watt-hours); it is the standard unit for measuring
quantity of heat energy.
FUEL FROM FARMS
BULK DENSITY: the mass (weight) of a material divided by the actual volume it displaces as a whole
substanceexpressedin lb/ft’; kg/m’; etc.
tion; each stage of fermentation occurs in a separate
section of the fermenter, and flow rates are set to correspond with required residencetimes.
CALORIE: the amount of heat required to raise one
gram of water one degreecentigrade.
COOKER: a tank or vesseldesignedto cook a liquid or
extract or digest solids in suspension; the cooker
usually contains a source of heat; and is fitted with
an agitator.
CARBOHYDRATE: a chemical term describing compounds made up of carbon, hydrogen, and oxygen;
includes all starchesand sugars.
CARBON DIOXIDE: a gas produced as a by-product
of fermentation; chemical formula is CO?.
COPRODUCTS: the resulting substancesand materials
that accompany the production of ethanol by
fermentation process.
DDGS: see Distiller Dried Grains with Solubles.
CASSAVA: a starchy root crop used for tapioca; can be
grown on marginal croplands along the southern
coast of the United States.
CELL RECYCLE: the processof separating yeast from
fully fermented beer and returning it to ferment a
new mash; can be done with clear worts in either
batch or continuous operations.
CELLULASE: an enzyme capable of splitting cellulose.
CELLOUSE: the main polysaccharide in living plants,
forms the skeletal structure of the plant cell wall; can be
hydrolyzed to glucose.
CELSIUS (Centigrade): a temperature scale commonly
used in the sciences;at sealevel, water freezesat 0°C
and boils at 100°C.
CENTRIFUGE: a rotating device for separating liquids
of different specific gravities or for separating
suspended colloidal particles according to particlesize fractions by centrifical force.
DEHYDRATION: the removal of 95% or more of the
water from any substance by exposure to high
temperature.
DENATURANT: a substance that makes ethanol unfit
for human consumption.
DENATURE: the processof adding a substanceto ethyl
alcohol to make it unfit for human consumption; the
denaturing agent may be gasoline or other substances
specified by the Bureau of Alcohol, Tobacco, and
Firearms.
DEPARTMENT OF ENERGY: in October 1977, the
Department of Energy (DOE) was created to consolidate the multitude of energy-oriented government
programs and agencies; the Department carries out
its mission through a unified organization that coordinates and managesenergy conservation, supply development, information collection and analysis, regulation, research, development, and demonstration.
DESICCANT: a substancehaving an affinity for water;
used for drying purposes.
CHLOROPLAST: a small portion of a plant cell which
contains the light-absorbing pigment chlorophyll,
and converts light energy to chemical energy.
DEWATERING: to remove the free water from a solid
substance.
COLUMN: vertical, cylindrical vessel used to increase
the degreeof separation of liquid mixtures by distillation or extraction.
DEXTRINS: a polymer of D-Glucose which is intermediate in complexity between starch and maltose
formed by hydrolysis of starches.
COMPOUND: a chemical term denoting a combination of two or more distinct element?.
DEXTROSE: the same as glucose.
CONCENTRATION: ratio of massor volume of solute
present in a solution to the amount of solvent.
CONDENSER: a heat-transfer device that reduces a
thermodynamic fluid from its vapor phase to its
liquid phase.
CONTINUOUS FERMENTATION: a steady-state
fermentation system that operates without interrupGLOSSARY
DISACCHARIDES: the class of compound sugars
which yield two monosaccharide units upon hydrolysis; examplesare sucrose, mannose, and lactose.
DISPERSION: the distribution
particles in a medium.
of finely divided
DISTILLATE: that portion of a liquid which is removed as a vapor and condensedduring a distillation
process.
G-3
DISTILLATION: the process of separating the components of a mixture by ciliferences in boiling point;
a vapor is formed from the liquid by heating the liquid in a vessel and successively collecting and
condensing the vapors into liquids.
DISTILLERS DRIED GRAINS (DDG): the dried
distillers grains by-product of the grain fermentation
process which may be used as a high-protein (28%)
animal feed. (Seedistillers grains.)
DISTILLERS DRIED GRAINS WITH SOLUBLES
(DDGS): a grain mixture obtained by mixing
distillers dried grains and distillers dried solubles.
DISTILLERS DRIED SOLUBLES (DDS): a mixture of
water-soluble oils and hydrocarbons obtained by
condensing the thin stillage fraction of the solids obtained from fermentation and distillation processes.
DISTILLERS FEEDS: primary fermentation products
resulting from the fermentation of cereal grains by
the yeast Saccharomycescerevisiae.
DISTILLERS GRAIN: the nonfermentable portion of a
grain mash comprised of protein, unconverted carbohydrates and sugars, and inert material.
ENRICHMENT: the increaseof the more volatile component in the condensate of each successivestage
above the feed plate.
ENSILAGE: immature green forage crops and grains
which are preserved by alcohol formed by an
anaerobic fermentation process.
ENZYMES: the group of catalytic proteins that are
produced by living microorganisms; enzymes
mediate and promote the chemical processesof life
without themselvesbeing altered or destroyed.
ETHANOL: C2H,0H; the alcohol product of fermentation that is used in alcohol beveragesand for industrial purposes; chemical formula blended with
gasoline to make gasohol; also known as ethyl
alcoho! or grain alcohol.
ETHYL ALCOHOL: also known as ethanol or grain
alcohol; seeEthanol.
EVAPORATION: conversion of a liquid to the vapor
state by the addition of latent heat of vaporization.
FACULTATIVE (ANAEROBE): a microorganism that
grows equally well under aerobic and anaerobic conditions.
FAHRENHEIT SCALE: a temperature scale in which
Q-4
the boiling point of water is 212” and its freezing
point 32”; to convert “F to “C, subtract 32, multiply
by 5, and divide the product by 9 (at sealevel).
FEED PLATE: the theoretical position in a distillation
column above which enrichment occurs and below
which stripping occurs.
FEEDSTOCK: the base raw material that is the source
of sugar for fermentation.
FERMENTABLE SUGAR: sugar (usually glucose)
derived from starch and cellulose that can be converted to ethanol (also known as reducing sugar or
monosaccharide).
FERMENTATION: a microorganically mediated enzymatic transformation of organic substances,
especially carbohydrates, generally accompanied by
the evolution of a gas.
FERMENTATION ETHANOL: ethyl alcohol produced from the enzymatic transformation of organic
substances.
FLASH HEATING: very rapid heating of material by
exposure of small fractions to temperature and using
high flow rates.
FLASH POINT: the temperature at which a combustible liquid will ignite when a flame is introduced;
anhydrous ethanol will flash at 51’ F, 90-proof
ethanol will flash at 78’ F.
FLOCCULATION: the aggregation of fine suspended
particles to form floating clusters or clumps.
FOSSIL FUEL: any naturally occurring fuel of an
organic nature such as coal, crude oil, or natural gas.
FRACTIONAL DISTILLATION: a process of separating alcohol and water (or other mixtures).
FRUCTOSE: a fermentable monosaccharide (simple)
sugar of chemical formula CIH1106. Fructose and
glucose are optical isomers; that is, their chemical
structures are the samebut their geometric configurations are mirror images of one another.
FUSEL OIL: a clear, colorless, poisonous liquid mixture of alcohols obtained as a byproduct of grain
fermentation; generally amyl, isoamyl, propyl,
isopropyl, butyl, isobutyl alcohols and acetic and lactic acids.
GASOHOL (Gasahol): registered trade names for a
blend of 90% unleaded gasoline with 10% fermentation ethanol.
FUEL FROM FARMS
GASOLINE: a volatile, flammable liquid obtained
from petroleum that has a boiling range of approximately 29”216’ C and is used as fuel for sparkignition internal combustion engines.
GELATINIZATION: the rupture of starch granules by
temperature which forms a gel of soluble starch and
dextrins.
INOCULUM: a small amount of bacteria produced
from a pure culture which is used to start a new
culture.
INULIN: a polymeric carbohydrate comprised of fructose monomers found in the roots of many plants,
particularly Jerusalem artichokes.
GLUCOSE: a monosaccharide; occurs free or combined and is the most common sugar; chemical
formula CsH1206.
LACTIC ACID: C3Hs03, the acid formed from milk
sugar (lactose) and produced as a result of fermentation of carbohydrates by bacteria called Lactobac-
GLUCOSIDASE: an enzyme that hydrolyzes any
polymer of glucose monomers (glucoside). Specific
glucosidases must be used to hydrolyze specific
glucosides; e.g., B-glucosidasesare used to hydrolyze
cellulose; a( -glucosidases are used to hydrolyze
starch.
LACTOSE: a white crystalline disaccharide made from
whey and used in pharmaceuticals, infant foods,
bakery products, and confections; also called “milk
sugar”, CllH220LL.
GRAIN ALCOHOL: seeEthanol.
HEAT EXCHANGER: a device that transfers heat
from one fluid (liquid or gas) to another, or to the
environment.
HEAT OF CONDENSATION: the same as the heat of
vaporization, except that the heat is given up as the
vapor condensesto a liquid at its boiling point.
HEAT OF VAPORIZATION: the heat input required
to change a liquid at its boiling point (water at
212” F) to avapor at the sametemperature (212” F).
HEATING VALUE: the amount of heat obtainable
from a fuel and expressed,for example, in Btu/lb.
HEXOSE: any of various simple sugars that have six
carbon atoms per molecule.
HYDRATED: chemically combined with water.
HYDROCARBON: a chemical compound containing
hydrogen, oxygen, and carbon.
HYDROLYSIS: the decomposition or alteration of a
polymeric substance by chemically adding a water
molecule to the monomeric unit at the point of
bonding.
cilus.
LEADED GASOLINE: gasoline containing tetraethyllead to raise octane value.
LIGNIFIED CELLULOSE: cellulose polymer wrapped
in a polymeric sheath extremely resistant to
hydrolysis because of the strength of its linkages
called lignin.
LINKAGE: the bond or chemical connection between
constituents of a polymeric molecule.
LIQUEFACTION: the change in the phase of a
substanceto the liquid state; in the caseof fermentation, the conversion of water-insoluble carbohydrate
to water-soluble carbohydrate.
MALT: barley softened by steepingin water, allowed to
germinate, and used especially in brewing and distilling.
MASH: a mixture of grain and other ingredients with
water to prepare wort for brewing operations.
MEAL: a granular substance produced by grinding.
MEMBRANE: a sheet polymer capable of separating
liquid solutions.
HYDROMETER: a long-stemmed glass tube with a
weighted bottom; it floats at different levels depending on the relative weight (specific gravity) of
the liquid; the specific gravity of other information
is read where the calibrated stem emerges from the
liquid.
METHANOL: a light volatile, flammable, poisonous,
liquid alcohol, CH30H, formed in the destructive
distillation of wood or made synthetically and used
especially as a fuel, a solvent, an antifreeze, or a
denaturant for ethyl alcohol, and in the synthesis of
other chemicals; methanol can be used as fuel for
motor vehicles; also known as methyl alcohol or
wood alcohol.
INDGLENE: a chemical used in comparative tests of
automotive fuels.
METHYL ALCOHOL: also known as methanol or
wood alcohol; seeMethanol.
QLOSSARY
G-5
T
MOLECULAR SEIVE: a column which separates
molecules by selectiveadsorption of molecules on the
basisof size.
MOLECULE: the chemical term for the smallest particle of matter that is the samechemically as the whole
mass.
MONOMER: a simple molecule which is capable of
combining with a number of like or unlike molecules
to form a polymer.
MONOSACCHARIDES: seeFermentable Sugar.
OCTANE NUMBER: a rating which indicates the
tendency to knock when a fuel is used in a standard
internal combustion engine under standard conditions.
OSMOTIC PRESSURE: osmosis - applied pressure required to prevent passageof a solvent across a membrane which separatessolutions of different concentrations.
OSMOPHYLLIC: organisms which prosper in solutions with high osmotic pressure.
obtained from a given amount of starch or the
amount of alcohol that normally can be obtained is
usually lessthan theoretical yield.
PROOF: a measureof ethanol content; 1 percent equals
2 proof.
PROOF GALLON: a U.S. gallon of liquid which is
50% ethyl alcohol by volume; also one tax gallon.
PROTEIN: any of a class of high molecular weight
polymer compounds comprised of a variety of amino
acids joined by a peptide linkage.
PYROLYSIS: the breaking apart of complex molecules
into simpler :units by heating in the absence of
stoichiometric quantities of oxygen.
QUAD: one quadrillion (lOI or 1,OOO,OOO,OOO,OOO,OOO)
Btu’s (British thermal units).
RECTIFICATION: with regard to distillation, the
selective increase of the concentration of the lower
volatile component in a mixture by successive
evaporation and condensation.
PACKED DISTILLATION COLUMN: a column or
tube constructed such that a packing of ceramics,
steel, copper, or fiberglass-type material.
RECTIFYING COLUMN: the portion of a distillation
column above the feed tray in which rising vapor is
enriched by interaction with a countercurrent falling
stream of condensedvapor.
pH: a term used to describe the free hydrogen ion concentration of a system; a solution of pH 0 to 7 is acid;
pH of 7 is neutral; pH over 7 to 14 is alkaline.
REFLUX: that part of the product stream that may be
returned to the process to assist in giving increased
conversion or recovery.
PLATE DISTILLATION
COLUMN (Sieve tray
column): a distillation column constructed with perforated plates or screens.
RELATIVE DENSITY: seeSpecific Gravity.
POLYMER: a substancemade of molecules comprised
of long chains or cross-linked simple molecules.
RENEWABLE RESOURCES: renewable energy;
resources that can be replaced after use through
natural means; example: solar energy, wind energy,
energy from growing plants.
POUNDS PER SQUARE INCH ABSOLUTE (psia):
the measurement of pressure referred to a complete
vacuum or 0 pressure.
ROAD OCTANE: a numerical value for automotive
anti-knock properties of a gasoline; determined by
operating a car over a stretch of level road.
POUNDS PER SQUARE INCH GUAGE (psig): expressed as a quantity measured from above atmospheric pressure.
SACCHARIFY: to hydrolyze a complex carbohydrate
into a simpler soluble fermentable sugar, such as
glucoseor maltose.
POUND OF STEAM: one pound (mass) of water in the
vapor phase not to be confused with the steam
presswe which is expressed in pounds per square
inch.
SACCHAROMYCES: a classof single-cell yeastswhich
selectively consume simple sugars.
PRACTICAL YIELD: the amount of product that can
actually be derived under normal operating conditions; i.e., the amount of sugar that normally can be
G-6
SCRUBBING EQUIPMENT: equipment for countercurrent liquid-vapor contact of fh:e gasesto remove
chemical contaminants and particulates.
SETTLING TIME: in a controlled system, the time reFUEL FROM FARMS
quired for entrained or colloidal material to separate
from the liquid.
SIGHT G.4UGE: a clear calibrated cylinder through
which liquid level can be observed and measured.
SIMPLE SUGARS: seeFermentable Sugars.
SOLAR ENERGY RESEARCH INSTITUTE (SERI):
the Solar Energy Research Development and
Demonstration Act of 1974 called for the establishment of SERI, whose general mission is to support
DOE’s solar energy program and foster the
widespread use of all aspectsof solar technology, including direct solar conversion (photovoltaics), solar
heating and cooling, solar thermal power generation,
wind conversion, ocean thermal conversion, and
biomass conversion.
SPECIFIC GRAVITY: the ratio of the mass of a solid
or liquid to the mass of an equal volume of distilled
water at 4” C.
SPENT GRAINS: the nonfermentable solids remaining
after fermentation of a grain mash.
STARCH: a carbohydrate polymer comprised of
glucose monomers linked together by a glycosidic
bond and organized in repeating units; starch is
found in most plants and is a principal energy storage
product of photosynthesis; starch hydrolyzes to
severalforms of dextrin and glucose.
STILL: an apparatus for distilling liquids, particularly
alcohols; it consists of a vesselin which the liquid is
vaporized by heat, and a cooling device in which the
vapor is condensed.
STILLAGE: the nonfermentable residue from the
fermentation of a mash to produce alcohol.
STOVER: the dried stalks and leaves of a crop remaining after the grain has been harvested.
GLOSSARY
STRIPPING SECTION: the section of a distillation
column below the feed in which the condensate is progressively decreased in the fraction of more volatile
component by stripping.
SUCROSE: a crystalline disaccharide carbohydrate
found in many plants, mainly sugar cane, sugar
beets, and maple trees; C2Hz20, ,.
THERMOPHYLLIC: capable of growing and surviving
at high temperatures.
THIN STILLAGE: the water-soluble fraction of a
fermented mash plus the mashing water.
VACUUM DISTILLATION: the separation of two or
more liquids under reduced vapor pressure; reduces
the boiling points of the liquids being separated.
VAPORIZE: to change from a liquid or a solid to a
vapor, as in heating water to steam.
VAPOR PRESSURE: the pressure at any given
temperature of a vapor in equilibrium with its liquid
or solid form.
WHOLE STILLAGE: the undried “bottoms” from the
beer well comprised of nonfermentable solids,
distillers solubles, and the mashing water.
WOOD ALCOHOL: see Methanol.
WORT: the liquid remaining from a brewing mash
preparation following the filtration of fermentable
beer.
YEAST: single-cell microorganisms (fungi) that produce alcohol and CO under anaerobic conditions and
acetic acid and CO under aerobic conditions; the
microorganism that is capable of changing sugar to
alcohol by fermentation.
ZYMOSIS: seeFermentation.
G-7
FOR MORE INFORMATION
For additional information on fermentation ethanol
seeAppendix E or contact the following:
National Alcohol Fuels Information Center
1617 Cole Boulevard
Golden, Colorado 80401
(800) 525-5555
National Gasohol Commission
521 South 14th Street, Suite 5
Lincoln, Nebraska 68508
(402) 475-8044
Nicholls State University
P.O. Box 2031
Thibodaux, Louisiana 70301
(800) 352-2870(Louisiana)
Southwest State University
Marshall, Minnesota 56258
(800) 533-5333
UNITED STATES DEPARTMENT OF ENERGY
I? 0. BOX 62
OAK RIDGE.TENNESSEE
OFFICIAL
PENALTY
BUSINESS
FOR PRIVATE USE.5300
Managed
by
Solar Energy
A Division
of Midwest
POSTAGE
37830
Research
Research
1617 Cole Boulevard
Golden, Colorado 80401
SER!/SP-451-519
AND FEES PAID
UNITED STATES
DEPARTMENT
OF ENERGY
Institute
Institute
U.S. Department
under
Contract
of Energy
No. EG-77-C-01-4042
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