GEC KC meeting 2 6 06

Slide1: 

Dry Mill Ethanol Plants Environmental Impacts and Future Growth Presented to Governor’s Coalition February 10, 2006 by Bill Roddy

Slide3: 

110 MGY

Dry Mill Industry Evolution: 

Dry Mill Industry Evolution Plants in operation during each decade: 1980’s -175 Plants (20K to 7M gallons) 1990’s - 33 Plants (1.5M to 30M gallons) 2000’s - 91 Plants (30M to 110M gallons) ICM has 37 Plants in operation today ranging from 5 M to 110 M gallons

Slide6: 

ICM Process Guarantees Ethanol-2.80 denatured (@ 5%) gallons per bushel Natural Gas-34,000 BTU per denatured gallon of ethanol with DDGS (22,000 wet cake only) Electrical - 0.75 Kw per denatured gallon per hour Emissions compliance – Written guarantee

"Potential to Emit" Preliminary Estimate: 100% DDGS Capability: 

"Potential to Emit" Preliminary Estimate: 100% DDGS Capability Bushmills Ethanol: 49 MMgpy (permitted), 500,000 tons/yr grain (17,857,144 bu/yr), 162,218 tpy DDGS

ICM Plants Under Construction: 

Agri-Farms, LLC Necedah, WI 50 MMGPY Hawkeye Renewables Expansion Iowa Falls, IA from 40 to 80 MMGPY Hawkeye Renewables – Fairbank Fairbank, IA 100 MMGPY Lincolnway Energy Nevada, IA 50 MMGPY US Bioenergy Albert City, IA 100 MMGPY Western Wisconsin Ethanol Boyceville, WI 40 MMGPY Heron Lake Ethanol Heron Lake, MN 50 MMGPY Superior Corn Products Lake Odessa, MI 40 MMGPY Red Trail Ethanol Richardton, ND 50 MMGPY Front Range Energy Windsor, CO 40 MMGPY Suncor Sarnia, ONT 50 MMGPY Commercial Alcohol Varennes, QUE 30 MMGPY Trenton Agri Energy Expansion Trenton, NE from 30 to 40 MMGPY Commonwealth Agri Energy Expansion Hopkinsville, KY from 20 to 33 MMGPY Prairie Horizon Agri-Energy Phillipsburg, KS 30 MMGPY The Andersons Albion Ethanol Albion, MI 55 MMGPY Illinois River Energy LLC Rochelle, IL 50 MMGPY Heartland Grain Fuels LP Expansion Huron, SD from 14 to 30 MMGPY Iroquois BioEnergy Co. LLC Rensselear, IN 40 MMGPY GLE Redfield Redfield, SD 40 MMGPY Aventine Renewable Energy Inc Pekin, IL 60 MMGPY Ethanol Grain Processors Washington, KS 30 MMGPY Anderson’s Grain – Clymers Clymers, IN 110 MMGPY Demeter Bloomingburg Bloomingburg, OH 100 MMGPY Platte Valley Ethanol Expansion Central City, NE from 40 to 80 MMGPY Big River Resources Expansion West Burlington, IA from 40 to 80 MMGPY Blue Flint Ethanol Underwood, ND 50 MMGPY Siouxland Ethanol Jackson, NE 50 MMGPY ICM Plants Under Construction

Slide9: 

Environmental Approvals Air Permit Non Contact Water Discharge (irrigation, POTW, or surface water) Storm water NOI & SWP2 Above Ground Storage Tanks Water Allocation Permit (supply) Endangered Species Historical and Archaeological Environmental Assessment (e.g., MN) Note: ICM Plants are CESQGs

Slide10: 

Energy Balance All Studies (with exception of Professor David Pimental of Cornell) cite a net energy gain of 34% for dry mill fuel ethanol manufacture. Ethanol: 84,000 Btu/gal & octane 130 (compares to gasoline at 125,000 Btu/gal) Driving forces include; improved farming efficiencies (e.g., no till), better chemicals for weed and insect control for fewer trips in field, improved manufacturing efficiencies.

Slide11: 

Required Equipment: Dryer Emissions: Thermal Oxidizer Product Loadout: Flare Fermentation: Improved Scrubbers Fugitive VOCs: Leak Detection and Repair Road Dust: Street Sweeping Process Dust: Baghouses Cost: $1.5 - $2.0 Million per plant (equipment) $30,000 - $50,000 per plant (fines) Impact of EPA’s Consent Decrees

Slide12: 

Steam Drum Exhaust Stack Combustion Air & Natural Gas Water In Steam Out To Process Approximately 1500 F (Final temp determined in compliance test) Exhaust Thermal Oxidizer/Heat Recovery Steam Generator

ICM Thermal Oxidization System: 

ICM Thermal Oxidization System

ICM Fermentation Scrubber: 

ICM Fermentation Scrubber

Key Emission Standards: 

Key Emission Standards NOx, CO, VOCs (scaled), PM/PM10, SO2 are guaranteed by ICM to be less than 100 tpy each for the following: Gas Fired Steam Generation (by TO or Boilers): 100 Mgpy Coal Fired (ICM’s Clean Coal Technology; Bubbling Fluid Bed with limestone/lime & ammonia injection & baghouse): 50 Mgpy HAPs are guaranteed to be less than 10/25 tpy for Gas and Coal Configurations

Example Water Discharge*: 

Example Water Discharge* Source: Cooling Tower, Multi Media Filter, RO & Softener (all non contact water) Volume: 100 gpm Total Dissolved Solids: 3,000 mg/l (controlled by cooling tower cycles) Chlorides: 40 mg/l Conductivity: 5000 μmhos/centimeter pH: 6.5 – 9.0 Temperature: < 90° F *State Dependent, Water Source Dependent

Slide17: 

Nuisance Odor ICM recommends development of an “Odor Action Plan” as follows: (not a regulatory requirement) A single odor complaint will be immediately investigated and “validated.” The source of odor will be corrected or shut down and repaired. The plant shut will shut down if necessary to correct the source of nuisance odor. In case of TO failure, the plant automatically shuts down.

Slide18: 

Brantford, Ontario, March 10, 2003 - The tour bus was stopped directly downwind of the ethanol plant in Monroe, Wisconsin and many got out to sniff the air. “I was very impressed with the fact that there was hardly any odor at all from the plant”, said Edith Davis, wife of Roger Davis of Davis Petroleum. “One of the reasons I came along on this tour was to make sure that the proposed ethanol plant would be a good neighbor to our community, and I am now more convinced than ever that it will be.” Nuisance Odor?

Environmental Impacts: 

Environmental Impacts Plants are engineered to have insignificant impact on the surrounding environment. Water Discharge quality is engineered to meet state standards (irrigation, surface water or POTW). When using groundwater, test wells are installed and groundwater is monitored prior to construction to insure the water table can handle 500 gpm (typical 50 Mgy plant) without impacting the water table or nearby wells.

Slide20: 

Erosion and sedimentation during construction are minimized with a stormwater pollution prevention plan. Surface runoff is controlled by stormwater pond and released after inspection. Process waste water is returned to the process after treating in an anaerobic digester called the biomentanator. The biomethanator gas (methane) displaces natural gas in the DDGS Dryer. Tanks are sited in an impervious secondary containment area. Environmental Impacts (cont.)

Slide21: 

Stationary source air emissions qualify the source as a “synthetic” minor source. Noise levels will not exceed 80 dB off property. Potential for nuisance odor is minimized with the Best Available Control Technology and Odor Action Plan. ICM’s plants typically assure that no adverse impact on nearby natural resources will occur. Wetlands are typically avoided. Environmental Impacts (cont.)

Bad Batch (Due to Infection): 

Bad Batch (Due to Infection) Continue to process wet cake or DDG Blend it back in Truck to municipal waste plant DO NOT: Goals: Avoiding Land application Land filling

ICM’s Future: 

ICM’s Future ICM’s backlog: Nearly 100 US plants in planning stages 6 foreign plants in planning stages 1 Canadian plant under construction (50 MGY) Predicted sizes: 50 to 110 MGY range 200 MGY under discussion Demand for coal energy increasing ICM’s first coal plant is operational (50 MGY) Coal guarantee currently limited to PRB coal (0.25% sulfur)

Slide24: 

Questions?