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Feasibility of an Integrated Poultry and Ethanol Production System in North Alabama

Feasibility of an Integrated Poultry and Ethanol Production System in North Alabama. Project Rationale and Description. : Goals for North Alabama.

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Feasibility of an Integrated Poultry and Ethanol Production System in North Alabama

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  1. Feasibility of an Integrated Poultry and Ethanol Production System in North Alabama Project Rationale and Description

  2. : Goals for North Alabama • An economical alternative to local land application of poultry litter--remove water quality constraints on retention and further growth of the poultry industry • A new corn-ethanol industry in north Alabama

  3. Feasibility Study • One of 19 out of 400+ projects funded in 2003 USDA/DOE bioenergy solicitation • Matching funds from • TVA PPI • TVA Resource Stewardship • Poultry Water Quality Consortium • In-kind support • TVA Economic Development

  4. Potential Solutions for P Surpluses • Reduce P imports and excretion--feed management (partial solution) • Export unprocessed poultry litter (requires subsidies; logistical limitations) • Export value-added organic products (low-volume markets) • Produce process heat and/or electricity • Export ash nutrients for use in fertilizers • Reduce P imports by using ash as P feed supplement (Large-vol., year-round, non-subsidized market for poultry litter)

  5. Process Heat from PL hasFavorable Economics, If • Ash value offsets delivered PL feedstock cost • Ash value > PL cleanout and transportation costs • Large continuous demand for process heat (replace natural gas) • Promising option: New corn/ethanol plant • Southeastern corn/ethanol plants already proposed • MTBE phase-out • Expect Renewable Fuels Standard (2.7 to 5.0 billion gallons) • State incentives

  6. Integrated Poultry and Ethanol Production SE U.S. Markets DDGS 128 K tons Carbon Dioxide Corn 15 M bu Ethanol 40 M gal Carbon Dioxide Poultry Litter 178 K tons Steam & Hot Air 6.5% of feed Ash 26 K tons Poultry Feed 1/2 Meat 35% of PL of P supp. Fertilizer

  7. :Win-Win for All Participants • Poultry growers—economical, non-subsidized, alternative use for poultry litter • Poultry integrators • Lower feed and carbon dioxide costs • Non-subsidized alternative use for poultry litter (no ownership but vested interest) • Ethanol producers • Lower and more stable energy costs vs. natural gasLower ethanol transportation costs—eastern U.S. • Local DDGS market • Local CO2 market • Above advantages more than offset higher corn costs • IPEP ethanol competitive with regular octane gasoline in SE US(10% ethanol blend sold as medium octane grade) • Thermal energy providers • Large continuous demand for thermal energy • Ash nutrient value ~ offsets fuel cost • Potential local ash market as mineral feed supplement

  8. Objective • Assess technical, economic, and environmental feasibility of vs. • Traditional stand-alone corn/ethanol plants • Other alternative uses of poultry litter

  9. Expected Outcome • Provide documentation required to:1. Develop business plans2. Acquire financing to commercialize -------------------------------------------------------------- • Facilitate commercialization—SE U.S. • Improve economic and environmental performance • Poultry production • Corn/ethanol production

  10. Responsibilities for Core Tasks • Sparks Companies, Inc.— vs. traditional corn/ethanol • Energy Products of Idaho—Fluid bed combustion of PL • TVA—Poultry litter ash use in fertilizers • Auburn Poultry Science—Poultry litter ash use as a mineral supplement (feeding trials); DDGS use in poultry diets • Tennessee Valley RC&D—Poultry litter supplies and prices

  11. Responsibilities for Coordination/Integration • TVA • Technical project coordination • Transportation costing • Overall economics • Life-cycle analysis—GHG, energy • IPEP vs. other poultry litter alternative uses • TR Miles Technical Consultants, Inc. • Prime contractor—financial administration/bio-energy consulting • Poultry litter and ash handling and storage • Carbon dioxide capture and clean-up from ethanol fermentation

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