[Carpenter Prairie Discussion] B-Cap

Mon Feb 1 18:25:37 CST 2010

Thanks for the information Frank.  I believe that with all great new movements in any nascent industries there is a lot of apprehension and a wait and see attitude  before you jump in.  Especially in Missouri our motto of “show me”  if it really is going to be another dot.com phenomenon or a viable and profitable business opportunity is probably at work.  Making the transition from a demonstration to production facility is a difficult task from a technical, financial and infrastructure standpoint.  Providing an atmosphere of cooperation and support by local and state governments and even federal assistance to reputable firms that have the technological background and deep pockets to make this happen is essential in  success.
We are working on a full blown production facility with Abengoa in Kansas where they will be using corn stover as a feed stock initially, and potentially switch grass or other biomass.  I am very excited about the opportunity for my company www.roeslein.com<http://www.roeslein.com> because it means Mo. jobs  for my staff of Engineers and manufacturing enterprises.  I am also very nervous about this opportunity because I am a conservationist, hunter, part time farmer and lover of wildlife.  The prospect of converting millions of acres of our remaining marginal land into monolithic plantings of switch grass so thick that a razorback hog couldn’t get thru it makes me really nervous and concerned for where this industry is headed.  I have spent the last three years studying various options and believe that the most cited expert in this field of biomass for energy conversion is Dr. David Tilman and his associates at the university of Minnesota.  They have been working on the biodiversity of plants and how that diversity affects wildlife for over 20 years.  After studying this subject now for three years and just having spent this weekend with one of the people conducting much of the field studies I believe that the biodiversity of our prairie can provide the yields and returns that this industry needs when all cost factors and benefits are considered.  I am working with some of the Ethanol  process providers to try to get them to seriously review the data and facts that  help them make informed decisions.
I have learned from working with the very large companies that have the capability to make this investment that there is a hierarchy of purchasing priorities that seem to drive their decisions.  They place certainty of supply at the top of their priorities and it is the uncertainty of supply of reliable biomass feed stock that will place states that have a well thought out plan in the front running of this new industry.  The second priority in this hierarchy is usually quality and this will be no different.  The consistency and quality of the feed stock to give the producers what they need will play a major role in their selection of the supply chain.  The third item and not the least will be price.  Consistent reliable pricing not subject to huge commodity price fluctuations will play a major role in the success of this industry.

How can Missouri Participate in this up and coming, exciting new Industry??

I believe that the state needs a clear and comprehensive assessment of our current energy alternatives, and what we will need in the future.

Alternative energy and the prospects of using our 18 million acres of fescue grazing or marginal CRP that has not been planted into productive prairie plantings should be considered as a potential source of biomass material.  The studies by Dr. Tilman clearly, and by the way unbiased data, supports that when all input costs and environmental benefits are considered, a biodiverse mixture of grasses and forbs provide the best long term solution to this opportunity.  This also just happens to be the best long term solution to sustainable and renewable resource use while also helping wildlife, water quality and storage, as well as soil erosion issues.  Missouri was once one of the most productive prairies in world, producing million of tons of biomass and turning that into protein. It could be again.  With the right financial incentives and opportunities in an exciting new industry Missouri could be one of the leading producers of reliable and consistent biomass feedstock that would not need fertilizers or pesticides or deep well irrigation.  This may upset the current agricultural paradigms, but it has been demonstrated and documented by the leading scientific experts in the use of our former prairies.

I finally received permission to reprint and or send electronically several studies performed by the University of Minnesota for their state on this subject and I believe that our state could take a page or even several out of this effort to establishing our own policy and direction in this exciting new field.  I would encourage you all to read it and if any of the attached are policy makers or have influence in our state policy I would encourage you to get informed and learn as much as you can and help us go in the right direction with the right technology and use our natural resources wisely.  I have tried to become informed so that I could make the right decisions on working with process providers that have a viable and exciting future.  I have been approached by all sorts of magic potion doctors that claim they can make energy out of anything from poop to air and water.  Most of them are just looking for a quick buck and a free lunch, but there are no free lunches and I hope for my grandchildren’s sake that we have enough wise and intelligent people in our state to sort out the rat shit from the raisins.
I am including the Readers Digest version because the files are quite large.  If any of you want the full blown version of the Minnesota study I will be happy to send it to you either by hard copy or email of your computer can handle the file size.  Happy reading.

Rudi Roeslein
CEO
Roeslein & Associates, Inc.
9200 Watson Road, Suite 200
St. Louis, MO  63126  USA
[cid:image001.gif at 01CAA353.2270EEC0]
Main: +1 314 729 0055 x8807
Direct: +1 314 270-8807
Mobile: +1 314 280-3762
Fax: +1 314 729 0070

E-mail: rroeslein at roeslein.com<mailto:jhart at roeslein.com>
www.roeslein.com<http://www.roeslein.com/>
www.imt-mfg.com<http://www.imt-mfg.com/>

From: Frank Oberle [mailto:foberle at nemr.net]
Sent: Sunday, January 31, 2010 9:53 AM
To: Rudi Roeslein
Cc: Eddie Hamill; bob & dorris sherrick; Bob Ball; JR Flores; Steve Mowry; Jon Wingo; Doug Ladd; Carol Davit; Dwaine Gelnar; Gerald Hrdina; Allen Powell; Steve Flick; Bill McGuire; Amy Hamilton; George Seek; Ben Duffield; jim and betty grace; Wayne Morton; Tim Reinbott; Jerry Kaiser; Mervin Wallace; staceyg at missouri.edu; Karen Brinkman; Amy Buechler; Kevin Carpenter; Lisa Allen; Lorna Domke
Subject: B-Cap

Planners,     I believe this endeavor by DuPont exemplifies the potential opportunities that could be envisioned and implemented here in Missouri. We could use our innovative talents and combined environmental resources to improve the quality of life for our depressed rural communities while immensely developing better wildlife habitat.     fo

New metrics for cellulosic ethanol - DuPont Danisco launches its demonstration plant<http://www.biofuelsdigest.com/blog2/2010/01/29/metrics-for-cellulosic-ethanol-surface-as-dupont-danisco-launches-its-demonstration-plant/>
[cid:image002.jpg at 01CAA353.2270EEC0]<http://www.biofuelsdigest.com/blog2/2010/01/29/metrics-for-cellulosic-ethanol-surface-as-dupont-danisco-launches-its-demonstration-plant/ddce/>

The DuPont Danisco cellulosic ethanol plant in Vonore, Tennessee

In Tennessee, Dupont Danisco Cellulosic Ethanol will officially open its 250,000 gallon demonstration facility in Vonore, and the first one dedicated to converting both agricultural residue and bioenergy crops to fuel ethanol. The facility has initiated start-up and began producing ethanol in mid-January. The facility is focused on process and data validation to achieve commercial scale production by 2012. The plant is using corn cobs as a feedstock today, and will begin to integrate switchgrass grown primarily in Tennessee later this year.

“A perfect storm made this happen,” DDCE CEO Joe Skurla told the DIgest. “Governor Bredesen’s vision, plus our need to put in a demonstrate plant. To start in October 2008 and to have a plant complete and started up - I’ve seen a lot of projects in my time, but I’ve never seen a team come together and overcome the issues like this one.”

Skurla said that final design for DDCE’s technology will be completed after data is accumulated from the demonstration plant, and construction will begin in 2011 on the cobs plant, which is likely to be built in the corn belt.

To improve the lifecycle analysis of the plant and increase the reduction in Greenhouse gas emissions, the plant is burning lignin, recovered from the process, as fuel for the system in place of natural gas. Lignin is being burned as fuel for the system.

Tennessee Gov. Phil Bredesen will be on an honored speaker at the event, along with other state, local, and business dignitaries. The 74,000-square-foot facility has the capacity to produce 250,000 gallons of ethanol from corncobs and switchgrass and is preparing DDCE’s innovative integrated technology for commercial production by 2012.

Skurla confirmed to the Digest that conversations are occurring with “several early adopters” in terms of licensing technologies, and said that the US was a likely first area of licensing operations although he added that conversations have emerged with potential parties in Europe, Asia and South America, and said that the technology would be effective with any region where agricultural residues or energy crops could be provided at scale. Likely facility size is 50 Mgy in the near term , working off a 35-50 mile radius for residues and crops. Skurla commented that ultimately the company beeves it can deploy its technology at 100 Mgy scale.

The model for biomass aggregation? DDCE pointed to the partnership with Genera Energy, a University of Tennessee spinout that is developing the logistics for a biomass supply chain, with a goal of establishing multi-year contracts for energy crops that would be grown specifically for the cellulosic ethanol facility, and thereby limit the volatility in feedstock prices that have plagued first-generation ethanol.

Asked to comment on what set DDCE apart from other cellulosic ethanol technology licensors, Skurla identified thre factors: “One, all the technologies under one roof, basic in fundamental in every aspect, through our parents DuPont, Genencor and Danisco as well as our own work. Two, our project execution capabilities - that’s the Dupont and Danisco/Genencor experience in building projects all around the world. Three, we view this holistically - clients will see us as a partner rather than just as a licensing company.”

Metrics? The plant is producing over 85 gallons per ton, and is targeting 90 gallons per ton by the time of its commercial rollout. Capital costs are $5-$6 per gallon of operating capacity, based on the company’s models, and are expected to reach sub-$5 by the time of the first commercial rollout and “pushing $4″ by the time the company has completed “4-5 plants”. The company’s manufacturing cost is $2 per gallon, with a goal of reaching $1.50 per gallon, and will be competitive with $85-$90 oil, and is designed to be competitive without subsidies or incentives.

DDCE was established in 2008 to integrate the state-of-the art technologies and engineering expertise of DuPont and Danisco, and today is accelerating commercialization of cellulosic ethanol.

Warren Nevad, executive director of the Tennessee Renewable Energy and Economic Development Council said “TREEDC is very proud of the University and the Governor’s revolutionary vision of making Tennessee the premier leader and business model with cellulosic ethanol development.  TREEDC believes that the eventual commercialization of this innovative technology to market will be a windfall for rural communities as they look at ways to bring back jobs and energy independence to their communities.”

Meanwhile Forbes has files an excellent report<http://www.forbes.com/feeds/ap/2010/01/28/business-financial-impact-us-biorefinery-switchgrass-tennessee_7312954.html?boxes=Homepagebusinessnews> on the opening, with a focus also on a local switchgrass grower who said that he planted on 39 acres which were too steep for row crops, such as corn or soybeans. The grower reported that “switchgrass is extremely slow to germinate” and is less profitable than row farming but offers superior returns to pasture or hay ground. UT estimates that 5,600 acres of switchgrass will be cultivated in Tennessee in 2010.

More on the story from DDCE<http://www.ddce.com/media/100107.html>.

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