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Measurement Automation Strategy: Key to Bio-Ethanol ... - Krohne

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<strong>Measurement</strong> <strong>Au<strong>to</strong>mation</strong><br />

<strong>Strategy</strong> <strong>Key</strong> <strong>to</strong> <strong>Bio</strong>-<strong>Ethanol</strong><br />

Refinery Efficiency<br />

KROHNE White Paper <strong>Measurement</strong> <strong>Au<strong>to</strong>mation</strong> <strong>Strategy</strong> <strong>Key</strong> <strong>to</strong> <strong>Bio</strong>-<strong>Ethanol</strong> Refinery Efficiency<br />

By Hemant Narayan<br />

Introduction<br />

The conversion of corn in<strong>to</strong> fuel<br />

ethanol is once again gaining<br />

popularity and is an appealing<br />

business opportunity for farm<br />

communities and agribusinesses<br />

in the mid-west and other<br />

regions of the U.S. and Canada.<br />

Inves<strong>to</strong>rs are attracted by the<br />

prospect of more than doubling<br />

the monetary value of a bushel of<br />

corn by converting it in<strong>to</strong> 2.75<br />

gallons of fuel ethanol, 17<br />

pounds of animal feed, and other<br />

value added byproducts.<br />

In the U.S. alone, over 120 plants<br />

are now producing ethanol from<br />

corn feeds<strong>to</strong>ck, and another 76<br />

are under construction. Dozens<br />

more are in various stages of<br />

planning, with <strong>to</strong>tal domestic<br />

production capacity expected <strong>to</strong><br />

double during the next five years.<br />

The Des Moines Register<br />

recently reported that farmers<br />

planted more corn in 2007 than<br />

in any year since 1944, based on<br />

expectations of increased<br />

ethanol production.<br />

The rapid increase in production<br />

reflects the expanding market<br />

for bio-ethanol, driven by<br />

growing recognition of the<br />

economic, social and<br />

environmental benefits of<br />

biofuels. <strong>Ethanol</strong> is increasingly<br />

in demand as an octane-enhancing<br />

substitute for the additive MBTE, which<br />

is being banned in many states. The<br />

2005 Energy Policy Act stimulated the<br />

growth of this industry by offering<br />

federal incentives and goals for<br />

replacing a portion of our nation’s<br />

gasoline requirements with a<br />

renewable fuel source by 2012. Current<br />

estimates indicate we will surpass<br />

these benchmarks well before 2012.<br />

Fourteen billion gallons of ethanol<br />

would be required, if an E10 (10%)<br />

blend were <strong>to</strong> replace all 140 billion<br />

gallons of gasoline consumed in the<br />

U.S. annually. Add <strong>to</strong> this a strong push<br />

from state legislatures for the market<br />

adoption of E85 (85%) blends, and the<br />

growing interest in Canadian and<br />

overseas markets, and it is easy <strong>to</strong><br />

understand the high level of investment<br />

in new production capacity.<br />

Thin Profit Margins<br />

The strong demand, however,<br />

represents only one part of the<br />

profitability equation. The whole<br />

proposition is not profitable if<br />

inefficiencies in the production process<br />

itself add significant costs, as a result<br />

of excess energy consumption, poor<br />

yields, wasteful use of raw materials,<br />

process chemicals and enzymes.<br />

Unfortunately, in many cases, that is<br />

exactly what’s happening.<br />

The cost of natural gas and other<br />

utilities are especially problematic, as<br />

these items far exceed the other major<br />

cost components, including the cost of<br />

plant construction and labor. For<br />

example, in a typical plant, the natural<br />

gas that fuels boilers, evapora<strong>to</strong>rs,<br />

February 20, 2008 2 of 12

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