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New Integrated Ethanol-Feedlot-Methane System Under Development in South Dakota

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New Integrated Ethanol-Feedlot-Methane System Under Development in South Dakota ( new-integrated-ethanol-feedlot-methane-system-under-developm )

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more energy intensive plowing practices. This significantly reduces fossil fuel use, and further augments carbon sequestration, helping to prevent soil erosion. “In order to take advantage of the powerful synergies of this integrated process, we must combine several different disciplines and types of expertise”, noted the PRIME project director, Victor W. Schlesinger, Omaha, Nebraska. “We believe that we have assembled the most experienced, and qualified, firms from these various disciplines, and that this project will substantially benefit from their knowledge.” The PRIME consortium includes the following firms: Katzen International Inc., Cincinnati, OH (ethanol design and engineering); Agricultural Engineering Associates, Inc., Uniontown, KS (feedlot design and civil engineering); Dr. Terry Klopfenstein, University of Nebraska-Lincoln Animal Sciences Department (ruminant animal nutrition); Saunders County Feeders, Mead, NE (enclosed cattle feeding); Resource Development Associates, Washington, DC (anaerobic digestion & bio-fertilizers); Biorefiner, Washington, DC (biorefineries & greenhouse gas reduction); and Dakota Ag Energy, Inc., Sioux Falls, SD (technology development & project financing). "This marriage of cattle feeding with ethanol production is long overdue", said Pat Tracy, manager of J.E.S. Farms. "It value-adds South Dakota's two largest industries, and will bring new investment and quality jobs to our rural communities. With projects like this one, South Dakota's farmers and ranchers can break the vicious spiral of lower and lower commodity prices, and participate in a profitable processing venture." The first PRIME complex is projected to be on-line in early-2002. It will create up to 50 quality direct jobs, process approximately 8 million bushels of corn annually, and will have a feedlot capacity of approximately 25,000 head (over 60,000 head of finished cattle on an annual basis). As the process is successfully demonstrated, project sponsors expect to build more of the integrated complexes throughout South Dakota and other Northern Plains states. PRIME officials say that almost 40 PRIME facilities, each with 15 million gallons of ethanol capacity, would be needed in South Dakota alone to utilize all the corn grain currently shipped from the state. Perhaps the best feature is the projected economics for PRIME facilities. Because of proximities and integration of its components, PRIME complexes are economically attractive with an estimated Internal Rate of Return (IRR) that exceeds 25%. This is achievable because of economies of scope and scale. A PRIME complex can reduce commodity transportation costs, reduce ethanol plant capital and operating costs because it is no longer necessary to dry the distillers grains, permit the co-utilization of facilities, equipment and personnel, and allow for the reuse of energy, water and nutrients throughout the system. On top of this, by capturing and reusing effluents, PRIME officials say it is possible to have their facilities achieve “zero discharge” status. This significantly decreases the harmful environmental impact of some of today’s current practices. For additional information on PRIME, contact Vic Schlesinger, PRIME Project Director, 10906 North 61st Street, Omaha, NE 68152-4234; phone +1 402 572 5649. 3

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