Print
E-mail
Comment
Rate
Biodiesel plant plans to use micro algae in place of soybeans
By Diane Vance/Gate City Writer
It's important to realize that remaining dependent on fossil fuels is risky for the environment and the nation's security, U.S. Rep. David Loebsack said Wednesday on a visit to Keokuk's Tri-City Energy.
“It's one of my priorities to encourage the development of alternative fuels,” the Democratic congressman said. “Plants such as this also are crucial for job development. I'm an advocate of this type of fuel source, a renewable, cleaner fuel.”
Al Moander, Tri-City Energy manager of sales and marketing, gave a brief review of the biodiesel processing plant located in a former General Mills flour mill, also known as the Baker Building, at 410 Johnson St.
“This is a critical time for biodiesel products,” said Moander. “Two years ago was the ‘gold rush' for biodiesel. Then the world changed. Our plant was number 11 in Iowa to get up and producing. Now there are 16 biodiesel plants in the state. More plants were planned but have been left on the drawing table.
“Feedstock costs soared. We thought worst-case scenario, soybeans would hit 35 cents per pound.”
Soybeans cost 28 cents a pound in March 2007, around the time Tri-City Energy sold its first product. A year later, soybeans prices were 71 cents a pound.
“There is no way we can produce fuel cost effectively with those prices,” said Moander. “It's created a dilemma in the industry.
“We have a pre-treatment process and can also use animal fat to make biodiesel. We've been buying animal fat out of Davenport. It uses a different chemical process but we end up with biodiesel fuel.
“Iowa plants using strictly soybeans are running at 30 percent capacity now. It's been devastating.”
A solution would be to use a feedstock not subject to commodity food prices, said Moander.
“Research shows micro algae is a practical solution,” he said.
Moander showed a graph of various plant sources and the gallons of fuel each can produce per acre, per year. One acre of corn yields 15 gallons of fuel; soybeans, 48 to 60 gallons; safflower, 83 gallons; sunflower, 102 gallons; rapeseed, 127 gallons; palm oil can be converted into 635 gallons; and an acre of micro algae has the potential to produce 15,000 gallons of fuel per year, Moander said.
Capital costs will take an investment but production costs are not an issue, he added.
“Algae can be synergetic with multiple benefits,” said Laura Scott, Tri City Energy plant manager. “Water is used in the process and that water can be recycled. In some cases, low cost water can be used.”
Synergy means a process can produce more than one viable product.
“Our company's ready to share some fantastic things with you,” said John Rothgeb, Tri-City Energy general manager.
“Enough oil can be produced on 3 percent of land currently used to farm to replace all petroleum diesel - 59 million gallons - used annually in the U.S.,” Rothgeb said. “The process also gives us an opportunity to deal with CO2 emissions.”
Moander showed a smokestack factory, any kind of factory, sending steam and smoke out its chimney.
“We channel those emissions away to a place with sun and oxygen,” he said. “Using the heat from the factory emissions, we can grow micro algae in a controlled water environment. That algae can be harvested to produce fuel. We have plans in the works for multiple algae facilities. We have plans for multiple biodiesel plants.”
Loebsack first visited Tri-City Energy in February 2007. He returned Wednesday for a check on progress. He has toured solar, wind, biodiesel and ethanol energy companies throughout the state.
“Driving into town, I saw a gas station with your logo,” Loebsack said.
Keokuk's Hy-Vee gas station sells Tri-City Energy biodiesel fuel.
“I can market every gallon we produce,” said Moander. “Oil producing nations will keep the price of fossil fuels just at that balance to discourage the development of alternative energies. Oil prices will not get so high that everyone turns to producing alternatives.”
Loebsack said if Congress needs to pass mandates to get people to use more alternative fuels, he'd support that.
“Other lawmakers also are in favor,” he said. “Except for those lawmakers from oil-producing states.”
Loebsack cited tax credits and incentive options to create more alternative energy producing plants.
“In Iowa we have the raw materials available and a skilled and motivated labor force,” he said. “I am open to all sources of alternate energy.”
Loebsack said it will be one of his priorities when Congress reconvenes next week.
“My top priority is getting a bigger relief package for Iowans devastated by the summer floods,” he said. “Nancy Pelosi is visiting Iowa later this week. I don't know the itinerary yet. I will take her to Cedar Rapids, the place hardest hit by the floods.”
Loebsack said Gov. Chet Culver has released an estimate of $7 billion in damage caused by severe weather in Iowa this summer.
“It's one of my priorities to encourage the development of alternative fuels,” the Democratic congressman said. “Plants such as this also are crucial for job development. I'm an advocate of this type of fuel source, a renewable, cleaner fuel.”
Al Moander, Tri-City Energy manager of sales and marketing, gave a brief review of the biodiesel processing plant located in a former General Mills flour mill, also known as the Baker Building, at 410 Johnson St.
“This is a critical time for biodiesel products,” said Moander. “Two years ago was the ‘gold rush' for biodiesel. Then the world changed. Our plant was number 11 in Iowa to get up and producing. Now there are 16 biodiesel plants in the state. More plants were planned but have been left on the drawing table.
“Feedstock costs soared. We thought worst-case scenario, soybeans would hit 35 cents per pound.”
Soybeans cost 28 cents a pound in March 2007, around the time Tri-City Energy sold its first product. A year later, soybeans prices were 71 cents a pound.
ADVERTISEMENT |
“We have a pre-treatment process and can also use animal fat to make biodiesel. We've been buying animal fat out of Davenport. It uses a different chemical process but we end up with biodiesel fuel.
“Iowa plants using strictly soybeans are running at 30 percent capacity now. It's been devastating.”
A solution would be to use a feedstock not subject to commodity food prices, said Moander.
“Research shows micro algae is a practical solution,” he said.
Moander showed a graph of various plant sources and the gallons of fuel each can produce per acre, per year. One acre of corn yields 15 gallons of fuel; soybeans, 48 to 60 gallons; safflower, 83 gallons; sunflower, 102 gallons; rapeseed, 127 gallons; palm oil can be converted into 635 gallons; and an acre of micro algae has the potential to produce 15,000 gallons of fuel per year, Moander said.
Capital costs will take an investment but production costs are not an issue, he added.
“Algae can be synergetic with multiple benefits,” said Laura Scott, Tri City Energy plant manager. “Water is used in the process and that water can be recycled. In some cases, low cost water can be used.”
Synergy means a process can produce more than one viable product.
“Our company's ready to share some fantastic things with you,” said John Rothgeb, Tri-City Energy general manager.
“Enough oil can be produced on 3 percent of land currently used to farm to replace all petroleum diesel - 59 million gallons - used annually in the U.S.,” Rothgeb said. “The process also gives us an opportunity to deal with CO2 emissions.”
Moander showed a smokestack factory, any kind of factory, sending steam and smoke out its chimney.
“We channel those emissions away to a place with sun and oxygen,” he said. “Using the heat from the factory emissions, we can grow micro algae in a controlled water environment. That algae can be harvested to produce fuel. We have plans in the works for multiple algae facilities. We have plans for multiple biodiesel plants.”
Loebsack first visited Tri-City Energy in February 2007. He returned Wednesday for a check on progress. He has toured solar, wind, biodiesel and ethanol energy companies throughout the state.
“Driving into town, I saw a gas station with your logo,” Loebsack said.
Keokuk's Hy-Vee gas station sells Tri-City Energy biodiesel fuel.
“I can market every gallon we produce,” said Moander. “Oil producing nations will keep the price of fossil fuels just at that balance to discourage the development of alternative energies. Oil prices will not get so high that everyone turns to producing alternatives.”
Loebsack said if Congress needs to pass mandates to get people to use more alternative fuels, he'd support that.
“Other lawmakers also are in favor,” he said. “Except for those lawmakers from oil-producing states.”
Loebsack cited tax credits and incentive options to create more alternative energy producing plants.
“In Iowa we have the raw materials available and a skilled and motivated labor force,” he said. “I am open to all sources of alternate energy.”
Loebsack said it will be one of his priorities when Congress reconvenes next week.
“My top priority is getting a bigger relief package for Iowans devastated by the summer floods,” he said. “Nancy Pelosi is visiting Iowa later this week. I don't know the itinerary yet. I will take her to Cedar Rapids, the place hardest hit by the floods.”
Loebsack said Gov. Chet Culver has released an estimate of $7 billion in damage caused by severe weather in Iowa this summer.
 |
 |
|
| Local leaders dismiss GOP flood proposal | Keokuk voters can decide Tuesday on school district's use of new sales tax funds |
Reader Comments
| Please log in or create an account by filling out the form on the right. | |
High Hopes wrote on Sep 4, 2008 4:58 PM: