christianson & associates, pllp ethanol energy efficiency report & iowa plants analysis iowa...
TRANSCRIPT
Christianson & Associates, PLLP
Ethanol Energy Efficiency Report
& Iowa Plants Analysis
Iowa Renewable Fuels Association Summit
John O. Christianson
Energy Efficiency Improvements Data gathered from 2004 – 2007
Submit accurate data to the EPA to determine the actual levels of energy usage within the ethanol production industry and evaluate greenhouse gas emissions.
Full copy of the report available at www.christiansoncpa.com
U.S. Ethanol Industry Efficiency Improvements 2004 through 2007
BTUs
Plants producing DDGSAverage of all plants used 29,231 BTUs/gal
2007
• Reduction of 4,700 BTUs / gal since 2004• Reduction of 13.84% BTUs used
Plants producing Wet distillersAverage of all plants used 19,901 BTUs/gal
2007
• Reduction of 5,430 BTUs/ gal since 2004
• Reduction of 21.45 % BTUs used
BTUs
Plants producing DDGS (Leaders)Used 26,693 BTUs / gal in 2007
• Reduction of 1,890 BTUs / gal since 2004
• Reduction of 6.6% BTUs used
Plants producing Wet distillers (Leaders)
Used 17,526 BTUs / gal in 2007
• Reduction of 5,209 BTUs / gal since 2004
• Reduction of 22.81% BTUs used
BTUs
kWh
kWh
Plants producing DDGSUsed .7412 kWh / gal in 2007• Reduction of.1264 kWh since 2004• Reduction of 14.57% kWh used
Plants producing Wet distillersUsed .5237 kWh / gal in 2007• Reduction of .1196 kWh since 2004• Reduction of 18.59%
Plants producing DDGS (Leaders)
Used .5734 kWh in 2007• Reduction of .0262 kWh since 2004• Reduction of 4.37% kWh used
Plants producing Wet distillersUsed .4769 kWh in 2007• Reduction of .0671 kWh since 2004• Reduction of 12.33% kWh used
kWh
Economics of being an Energy Efficiency Leader
Plants producing DDGS• Equates to over $1 Million saving for
BTUs• Equates to over $350,000 savings for
kWh
Plants producing Wet distillers• Equates to $950,000 savings for BTUs• Equates to $100,000 savings for kWh
Yellow ~ Iowa PlantsBlue ~ Feedlot PlantsGreen ~ All other Plants
Wet vs. DryIowa & East of Hwy
83Approx.70% dry
Feedlot countryLess than 5% is dry
Ethanol Netback PriceIowa lower by $0.09 to $0.15 / gal
• 2007 prices ranged from $1.81 - $1.90 / gal
• 2008 prices ranged from $2.04 - $2.19 / gal
Feedstock Costs
Iowa paid from $0.09 to $0.36 less / gal
•2007 prices ranged from $1.15 - $1.46 / gal
•2008 prices ranged from $1.76 - $2.12 / gal
Distiller RevenueWet distillers increased revenue by $0.15 - $0.23/ gal
BTUs Cost per Gallon
Wet Distillers save 30% of BTUs usage
Feedlot country saved• 2007 $0.15 / gal• 2008 $0.23 / gal
Grind Margin Calculation
Ethanol Netback*+ DDGS Netback*- Feedstock Cost*- Denaturant Cost- BTU Cost
Grind Margin
* Includes Realized Hedging
Grind Margin Analysis
Grind Margin2007Iowa led the country by $0.04 - $0.14 / gal
2008Iowa followed by $0.06 - $0.10 / gal
Iowa Corn cost benefit is NOT enough to offset
• Ethanol price disadvantage• Distillers revenue disadvantage
Biofuels Financial Benchmarking
This service provides the industry with valuable industry insights and information. According to industry experts, these can be the key to managing industry risks. Timely, accurate financial information is vital to your plant’s success.
Thank You
John O. Christianson, CPAChristianson & Associates, PLLP
320-235-5937www.christiansoncpa.com
For more information on Biofuels Financial Benchmarking ServicesPlease contact: Paula Emberland at (888) 852-5937