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Producing Premium DDGS
Tara VigilVice President Business Development
Can it be Achieved in a
Commodity Driven Market?
Ethanol Plant
Profit Considerations
Feedstock
Utilities
Chemicals
Other Expense
Fixed Costs
Feedstock Dominates Costs Ethanol Dominates Revenue
However….
Ethanol
Coproducts
Source: USDA Market News, State EthanolPlant Reports as compiled by Agricultural Marketing Resource Center
Coproducts Make the Margin
Source: Summarized from Ag Decision Maker, D1-10 Ethanol Profitability 4/16/2015 – Don Hofstrand
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DDGS Revenue
Ethanol Revenue
Total Variable and Fixed Cost
Total Ethanol + DDGS Revenue
Feeders’ Biggest Beef with DDGS
• Moisture• Fiber• Granulation• Color• Flowability• Fat• Protein• Residual Starch• Residual Sugar• Sulfur
Room for Improvement
AverageStd.
Deviation
% Dry Matter 88.13 6.12
% Crude Protein 31.17 4.28
% Crude Fiber 7.45 1.52
% Starch 5.34 4.11
% Crude Fat 12.57 3.16
% Ash 5.87 1.14
% Sulfur 0.64 0.18
Excepted from Dairy One LabDISTILLERS GRAINS Accumulated crop years: 05/01/2000 through 04/30/2011
20
25
30
35
40
45
50
Co
mp
osi
tio
n (
%)
Year
DDG(S) Composition Variability by Year
% CrudeProtein
Summarized from Dairy One LabDISTILLERS GRAINS Accumulated crop years: 05/01/2000 through 04/30/2014
0
0.5
1
1.5
Co
mp
osi
tio
n (
%)
Year
DDG(S) Composition Variability by Year
% Sulfur
Summarized from Dairy One LabDISTILLERS GRAINS Accumulated crop years: 05/01/2000 through 04/30/2014
0
1
2
3
4
5
6
7
8
9
10
11
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14
15
Co
mp
osi
tio
n (
%)
Year
DDG(S) Composition Variability by Year
% Starch
Summarized from Dairy One LabDISTILLERS GRAINS Accumulated crop years: 05/01/2000 through 04/30/2014
5
10
15
20
Co
mp
osi
tio
n (
%)
Year
DDG(S) Composition Variability by Year
% CrudeFat
Summarized from Dairy One LabDISTILLERS GRAINS Accumulated crop years: 05/01/2000 through 04/30/2014
Purpose of Dryhouse
• Remove water that was added into the
process
• Produce high quality animal feed
GRAINUNLOADING &
STORAGE
SACCHARIFICATION& FERMENTATION
THIN STILLAGE
MFGE STORAGE DENATURING &
LOADOUT
DEHYDRATION
MILLING MASHING/COOKING LIQUEFACTION
DISTILLATION
MFGE BEER
WHOLE STILLAGE
EVAPORATIONDDGS
STORAGE/LOADING
DDGS WDG
SYRUP
BACKSET RECYCLE
PROCESS WATER RECYCLE
UTILITIES
NAT. GAS
STEAM ELECTRIC
AIR
COOLINGWATER
UTILITIES
DRYING
MASH
MASH
CO2
EVAPORATOR
CONDENSATE
MEALGRAIN
CENTRIFUGATION
CO2
RECOVERY
FRESH WATER
WDGS
Consistent High Quality is Achievable
AverageStd.
Deviation
% Dry Matter 91.4 0.52
% Crude Protein 32.2 1.21
% Crude Fiber 7.9 0.69
% Starch 2.41 0.32
% Crude Fat 7.7 0.39
% Ash 5.0 0.31
% Sulfur 0.28 0.05
You Get Out What You Put InINPUTS
– Grain• Fiber• Proteins• Fat• Starch• Contaminants
– Water– Enzymes– Nutrient Addition– Chemical Additions for:
• Sanitation• pH adjustment• Bacterial Control• Emissions Control• Fouling Control
– Operation’s Input
Whatever You Put in is Concentrated 3-Fold in the DDGS
1/3
1/3
1/3
What Goes into the DDGS Depends on Plant Design
Milling
Piping Design for Sanitation
Equipment Design for Sanitation
Instrument Automation
Adequate Cooling Water Systems
Dryer Design and Sizing Criteria
DDGS Handling and Storage
Consistency is Key
Milling
Consistency is Key
Piping and Equipment Design for Sanitation– Minimizes Chemical Inputs
• Contributes to Reduction or Elimination of Sulfur Addition
• Minimizes Caustic Consumption
• Minimizes Sanitation Chemical Usage
– Contributes to Elimination of Antibiotic Usage
No Dead Legs
Piping and Equipment Design for Sanitation
Welding – Keep it Smooth
Piping and Equipment Design for Sanitation
Piping and Equipment Design for Sanitation
Bio-Focused Design for Piping and Equipment
Bio-Focused Design for Equipment
Piping and Equipment Design for Sanitation
Piping and Equipment Design for Sanitation
Bio-Focused Design for Equipment
Consistency is Key
Automated Processes = Consistent Products
• Fermenter Fill
• Yeast Slurry Tank Transfer
• Mash Cooler Train CIP
• Yeast Slurry Tank CIP
• Yeast Slurry Tank Fill
• Fermenter Transfer
• Fermenter CIP
Adequate Cooling Systems
Temperature Maintenance in Fermentation
• No Stuck Fermenters
• Minimize Residual Sugar
• Decrease Infection Potential
Dryhouse Design and Sizing Criteria• Solids / Liquid Separation
– Enough Units for Proper Separation
– Spare Capacity May be Necessary for Consistency
Dryhouse Design and Sizing Criteria
Dryer Size Matters– Affects Temperature Necessary to Dry
– Influences Protein Degradation
– Influences Volatile Emissions
– Influences Product Color
– DDGS Cooling Must be Properly Sized
– Avoid Bridging
– Avoid Spontaneous Combustion
DDGS Handling
Improper Cooling Leads to Product Bridging
DDGS Handling and Storage
Design
Operations
Consistent High-Quality
Products
• Backset
• Sanitation
• Fermentation Management
• Chemical Additions
What You Put in Also Depends on Plant Operations
Backset Considerations
• Backset Decreases Fresh Water Input to Plant
• Amount of Backset Can Affect Viscosity
• Backset Affects Necessity for Chemicals for pH Control
• Amount of Backset Increases Potential for Recycling Contamination and Infection
• Increasing Backset, Increases Non-Fermentable Solids Recycled and Affects Evaporator Performance
Make Taking Shortcuts in Sanitation Unacceptable
• Maintain Schedules
• Monitor Sanitation Chemical Concentrations and Inventories
• Importance of Shift Uniformity and SOP Maintenance
Laboratory
The Lab is the “Eyes” of the Plant.
Without Consistent Lab Sampling and Recording, You are Operating Blind.
•Establish Baseline•Repeatable Results•Shift Uniformity
Consistent Fermentation Monitoring
Process Control with ChemicalsAffects Coproduct Quality
• Sodium Bisulfite or Ammonium Bisulfite
• Sulfuric Acid (pH control or cleaning)
• Sulfamic Acid (cleaning)
• Caustic (cleaning)
• Water Quality (sulfer, minerals)
Inadequate Starch Conversion
Poor Yeast Management
Poor Fermentation Management
Non-Sanitary Operations
Inadequate Product Recovery
Yield Killers
How Much Does Deceased Yield Really Cost ?
1. Using more grain per liter of ethanol produced
2. Increased Energy Consumption
Tangible Costs of Decreased Yield
70
80
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130
90.00 92.00 94.00 96.00 98.00 100.00
Re
alti
ve P
rod
uct
ion
Relative Ethanol Yield
DDGS
Ethanol
Yield, Production & Energy Relationship
Decreased Yield = Decreased Ethanol = Increased
DDGS = Increased Drying Energy
Process Efficiency 97% 96% 95% 94% 93% 92%
Ethanol Yield (L/MT corn) 405.9 401.7 397.6 393.5 389.5 385.4
Feedstock-Corn (MT/day) 1,408 1,422 1,437 1,452 1,467 1,483
Additional DDGS Produced
(MT/day) 12.4 21.5 30.7 39.8 49.1 59.0
Additional Feedstock Cost
(US$/day) $(1,940) $(3,931) $(5,955) $(8,022) $(10,092) $(12,246)
Revenue from Additional DDGS
(US$/day) $1,710 $2,961 $4,233 $5,489 $6,759 $8,126
Energy Cost for Extra Drying
(US$/day) $(391) $(678) $(969) $(1,256) $(1,547) $(1,859)
Total Yearly Loss from Yield
(US$/year) $(217,298) $(576,343) $(941,592) $(1,325,932) $(1,707,628) $(2,092,871)
Base Yield of 410 L/MT and 98% Process Efficiency for Comparison
200,000,000 Liter per Year Ethanol Plant
Is DDGS Undervalued
Thank You for Your Attention