Progress on developing value-added uses for distillers grains: current and evolving opportunities

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Agricultural and Biosystems Engineering Conference Proceedings and Presentations Agricultural and Biosystems Engineering 6-26-2012 Progress on developing value-added uses for distillers grains: current and evolving opportunities Kurt A. Rosentrater Iowa State University, karosent@iastate.edu Follow this and additional works at: http://lib.dr.iastate.edu/abe_eng_conf Part of the Agriculture Commons, Bioresource and Agricultural Engineering Commons, and the Oil, Gas, and Energy Commons The complete bibliographic information for this item can be found at http://lib.dr.iastate.edu/ abe_eng_conf/346. For information on how to cite this item, please visit http://lib.dr.iastate.edu/ howtocite.html. This Presentation is brought to you for free and open access by the Agricultural and Biosystems Engineering at Iowa State University Digital Repository. It has been accepted for inclusion in Agricultural and Biosystems Engineering Conference Proceedings and Presentations by an authorized administrator of Iowa State University Digital Repository. For more information, please contact digirep@iastate.edu.

Progress on developing value-added uses for distillers grains: current and evolving opportunities Abstract This presentation is on on recent developments with distillers grains (DG) which are a valuable co-product in the ethanol process. Disciplines Agriculture Bioresource and Agricultural Engineering Oil, Gas, and Energy This presentation is available at Iowa State University Digital Repository: http://lib.dr.iastate.edu/abe_eng_conf/346

Progress on Developing Value- Added Uses for Distillers Grains: Current and Evolving Opportunities Kurt A. Rosentrater, Ph.D. Department of Agricultural and Biosystems Engineering Iowa State University (515) 294-4019 karosent@iastate.edu 1

OVERVIEW 1. Ethyl alcohol 2. Coproducts 3. Ongoing research 4. New opportunities 5. Concluding thoughts 2

ETHYL ALCOHOL 3

Ethyl Alcohol The Fuel of the Future 1860 Nicholas Otto (b. 1832, d. 1891), a German inventor, used ethanol to fuel an internal combustion engine 1896 Henry Ford s (b. 1863, d. 1947) first automobile, the quadricycle, used corn-based ethanol as fuel 1908 Hart-Parr Company (Charles City, IA) manufactured tractors that could use ethanol as a fuel Henry Ford s (b. 1863, d. 1947) Model T used corn-based ethanol, gasoline, or a combinations as fuel 1918 World War I caused increased need for fuel, including ethanol; demand for ethanol reached nearly 60 million gal/year 1940 The U.S. Army constructed and operated a fuel ethanol plant in Omaha, NE Ethanol was extensively used as a motor fuel additive prior to the end of World War II (ca. 1933) 4

Ethyl Alcohol The Fuel of the Future The first distillation column for the production of fuel ethanol was invented by Dennis and Dave Vander Griend at South Dakota State University in 1978/1979 5

DDGS Historically Many people have asked what the fuel ethanol industry is going to do about the growing piles of non-fermented leftovers Grain distillers have developed equipment and an attractive market for their recovered grains (Boruff, 1947) Distillers are recovering, drying, and marketing their destarched grain stillage as distillers dried grains and dried solubles (Boruff, 1952) This question has been around for quite some time, and it also appears that a viable solution had already been developed as far back as the 1940s 6

DDGS Historically In the 1940s / 1950s 17 lb (7.7 kg) of distillers feed was produced for every 1 bu (56 lb; 25.4 kg) of grain that was processed into ethanol Similar to today But over 700 gal (2650 L) of water was required to produce this feed (Boruff, 1947; Boruff, 1952; Boruff et al., 1943) vs. < 4 gal. of water today 7

GRAIN ALCOHOL DISTILLERY (ca. 1947) 8

MODERN DRY GRIND PROCESS 9

U.S. ETHANOL GROWTH 16000 45 Fuel Ethanol (gal) x 10 6 14000 12000 10000 8000 6000 4000 Ethanol Production RFS Mandated Production Coproduct Generation Feb. 2011: 204 plants, 13,771 Mg/y RFS: 15,000 Mg/y of biofuel by 2015 40 35 30 25 20 15 10 2000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Coproducts (t) x 10 6 5 0 Year Growth of U.S. fuel ethanol industry 10

U.S. ETHANOL GROWTH 1.2E+17 Consumption - Fossil Total U.S. Energy (Btu) 1E+17 8E+16 6E+16 4E+16 Production - Fossil Nuclear Renewable Total Consumption 2E+16 0 1950 1960 1970 1980 1990 2000 2010 Year US EIA, 2011 11

U.S. ETHANOL GROWTH Crude Oil 37% Renewable 8% Nuclear 9% Solar, 1% Geothermal, 5% Waste, 6% Wind, 9% Biofuels, 20% Coal 21% Wood, 24% Hydroelectric, 35% Natural Gas 25% Since 1950s, generally 5 to 9 % of total U.S. US EIA, 2011 energy supply has been renewable 12

COPRODUCTS 13

ETHANOL COPRODUCTS Distillers Dried Grains with Solubles Condensed Distillers Solubles Distillers Wet Grains 14

Jan-80 Jan-81 Jan-82 Jan-83 Jan-84 Jan-85 Jan-86 Jan-87 Jan-88 Jan-89 Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 DDGS Price ($/t) COPRODUCT PRICES 250 200 150 100 50 0 Date 15

Sales Price ($/t) COPRODUCT PRICES 450 400 350 300 250 200 150 100 50 Corn SBM DDGS 0 Jan-11 Feb-11 Apr-11 Jun-11 Jul-11 Sep-11 Nov-11 Date 16

DDGS Price Relative to (%) COPRODUCT PRICES 100 90 80 70 60 50 40 30 20 10 Corn SBM 0 Jan-11 Feb-11 Apr-11 Jun-11 Jul-11 Sep-11 Nov-11 Date 17

Price / Unit Protein ($/ t/% protein) COPRODUCT VALUES 40 35 30 25 20 15 SBM DDGS Corn 10 5 0 Jan-11 Feb-11 Apr-11 Jun-11 Jul-11 Sep-11 Nov-11 Date 18

Value ($/bu corn) DDGS Value (% of total revenue) COPRODUCT VALUES 9 25 8 7 6 5 20 15 4 3 2 1 Value of Ethanol ($/bu corn) Value of DDGS ($/bu corn) DDGS Value (% total) 10 5 0 0 Oct-09 Jan-10 May-10 Aug-10 Nov-10 Feb-11 Jun-11 Sep-11 Dec-11 Date 19

COPRODUCT RESEARCH As ethanol industry grows, supply of coproducts will grow Balance = key to sustainability Livestock producers Ethanol manufacturers 20

ONGOING RESEARCH 21

ONGOING RESEARCH Fuel vs. Food vs. Feed vs. Plastics vs. Chemicals vs. Other uses Goals: Augment current uses Develop new market opportunities Develop/optimize processes and products Improve sustainability Context: Application of physics and chemistry to biological systems Manufacturing with biological polymers: proteins, fibers, lipids 22

ONGOING RESEARCH Material handling Pelleting/densification Aquaculture Human foods Plastic composites 23

MATERIAL HANDLING 24

MATERIAL HANDLING Sieve Opening Size (mm) 2.38 1.68 1.19 0.841 Scale bar = 3.91 mm Scale bar = 2.50 mm Scale bar = 2.34 mm Scale bar = 0.987 mm 0.595 0.420 0.297 0.210 1 2 Scale bar = 0.689 mm Scale bar = 0.52 mm Scale bar = 0.36 mm Scale bar = 0.26 mm 25

MATERIAL HANDLING Carbohydrate Protein Batch 1 Batch 2 2.28 1 2 Particle Diameter (mm) 1.68 1.19 Plant 3 4 0.841 5 26 1

MATERIAL HANDLING z= a + bx + cy 150 140 130 120 110 100 90 80 1.125 1.15 HR (-) 1.175 1.2 1.225 1.25 1.275 1.3 45 40 35 30 AoR ( o ) 150 140 130 120 110 100 90 80 Mass Flow Rate (g/min) x= AoR ( ) y = HR (-) z= MFR (g/min) R 2 = 0.99 Error= 2.42 MFR < 100 = Poor Flow 100 < MFR < 120 = Fair Flow MFR > 120 = Good Flow Good flow Fair flow Poor flow 27

MATERIAL HANDLING 40 35 30 25 20 15 10 5 0 40 AoR ( o ) 35 30 25 1.1 1.2 1.175 1.15 1.125 1.275 1.25 1.225 HR (-) 20 15 10 5 0 40 35 30 25 Moisture Content (% db) z= a + b/x + cy x= AoR ( ) y = HR (-) z= Moisture content (%, db) R 2 = 0.71 Error= 4.50 Moisture < 9.9 (Good Flow) 9.9 < Moisture < 17.5 (Fair Flow) 17.5 > Moisture (Poor Flow) Good flow Fair flow Poor flow 28

MATERIAL HANDLING 0.35 0.30 CC/Dispersibility * d/f (-) 0.25 0.20 0.15 0.10 Plant 2 y = 3.4629x - 3.4854 R 2 = 0.8823 Plant 5 y = 2E-11e 21.531x R 2 = 0.8368 Plant 1 0.05 Plant 4 Plant 3 0.00 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 PBD/ABD (-) 29

PELLETING/DENSIFICATION 30

PELLETING/DENSIFICATION Mag. x 10 DDGS A Mfg B 60 200 31

PELLETING/DENSIFICATION 6000 5000 a $50/ton DDGS Sales Price, s $100/ton DDGS Sales Price, s $150/ton DDGS Sales Price, s $200/ton DDGS Sales Price, s 15 $/ton pelleting cost, Cop 6000 5000 Total Slack Cost per Car, SCcar ($/car) 4000 3000 2000 10 $/ton pelleting cost, Cop 5 $/ton pelleting cost, Cop 4000 3000 2000 Pelleting Cost per Car, Pcar ($/car) 1000 1000 0 0 0 10 20 30 40 50 60 70 80 90 100 Percentage of DDGS Pelleted, p (%) Resulting slack costs and costs of pelleting for each rail car due to differing DDGS sales prices and annualized pelleting cost a) breakeven occurs at points of intersection 32

PELLETING/DENSIFICATION 1500 $50/ton DDGS Sales Price, s $100/ton DDGS Sales Price, s $150/ton DDGS Sales Price, s $200/ton DDGS Sales Price, s 10 $/ton pelleting cost, Cop 15 $/ton pelleting cost, Cop 5 $/ton pelleting cost, Cop b 1500 Total Slack Cost per Car, SC car ($/car) 1000 500 1000 500 Pelleting Cost per Car, Pcar ($/car) 0 0 40 50 60 70 80 Percentage of DDGS Pelleted, p (%) Resulting slack costs and costs of pelleting for each rail car due to differing DDGS sales prices and annualized pelleting cost b) magnification of the intersections clearly shows the proportion of DDGS which needs to be pelleted to achieve breakeven 33

PELLETING/DENSIFICATION p (%) 80 75 70 65 60 55 50 45 40 175 150 125 s ($/ton) 100 75 50 25 14 5 6 7 8 9 10 11 1213 Cop ($/ton) 80 75 70 65 60 55 50 45 40 p (%) Percent of DDGS pelleted, p (%), required to achieve breakeven increases as both DDGS Sales Price, s ($/ton), and Pelleting Cost, Cop ($/ton), increase 34

35