Ethanol Misconceptions with relation to rising food prices.

Phase Two Ethanol Production with Value Added HPES

The world news media has “ethanol experts” who say that ethanol is responsible for possible food price increases. This misinformation causes people to discount the added benefits of what ethanol can do to reduce dependence on imported oil. This perception of taking food out of people’s mouths is simply not true. There are two types of corn – sweet corn and feed corn (cow corn). People do not normally eat cow corn as it is very starchy, has a more bitter taste and is not appealing to humans. Cow corn based ethanol can easily add 10% to the current gasoline volume without increasing crop production. Ethanol produced in the USA reduces the dependency on foreign oil.

We propose building Phase Two Ethanol plants that use animal feed corn (commonly called Number 2 Yellow Dent corn or cow corn). Cow corn (about $5 per bushel) is cheaper than sweet corn (normally about 3 ears per $1). Cow corn can store up to a year without reduction of the quality of the corn.

A normal ethanol plant produces DDGS (Dried Distiller Grain Soluble) at a protein level of 12% protein as a by-product of ethanol production. It is used as animal feed. It is normally shipped in bulk by truck.

Our Phase Two plants concentrate the DDGS into a new product: High Endo Sperm Soluble (HPES) which are at 32% protein concentration vs the old way of producing 12% protein DDGS. That means our value added HPES has 3X (three times) the protein per ton. Because the HPES is concentrated protein, it’s an animal feed supplement which can be added to lesser grade feeds to reduce cow and pig feeding expenses. HPES is 3X concentrated so that shipping costs are less than for shipping non-concentrated DDGS (less fuel and less space used for transport). HPES commands a higher price than DDGS – although it costs the same to produce once the plant is set up. There is a reduction in the use of animal growth hormones as the protein in higher concentration enables the animals to grow faster (it is protein that adds muscle mass to animals not starch).

Cow corn has the following major components:

• Fiber 9.5%
• Germ 4.0%
• Protein 9.5%
• Starch 62.0%
• Water 15.0%

The ethanol production uses the corn starch to make 200-proof alcohol (ethanol). Our Phase Two plants will produce 18 pounds of HPES (32% protein grain) versus 18 pounds of 10-12% protein grain for every bushel of cow corn.

Remember when laundry detergent was sold in large 84 ounce containers? Now laundry detergent is sold in the small concentrated soap bottles of 32 ounces for a higher price than the old larger containers. Both clean the same amount of clothes. The concentrated smaller bottles cost less to ship and have less impact on the environment.

That is what a Phase Two plant does. It reduces the residual grain product in ethanol production into a HPES concentrate that has less volume, is easier to ship and is more cost effective for farmers. It saves fuel, time and resources.

Another environmental concern is that cow corn fed directly to animals has a high starch content.

Corn starch is digested in cows and made into sugar that makes methane gas which goes directly into the air. The Phase Two plants make the HPES concentrated protein germ meal, which has less starch and more protein. This will produce a lot less methane gas in cows. Methane gas is a major hothouse gas that causes global warming.

In summary:

1.          A Phase Two Ethanol plant has a value added component of producing HPES.

2.         HPES is an increased profit center that saves farmers fuel and money.

3.         The added cow corn usage does not change the cow supply of food, it just concentrated. The higher protein (32%) allows animals to grow faster with less growth hormones.

4.         Ethanol is a local renewable source of energy, lessening dependency on foreign oil.

5.         64% of the corn produced in the USA is animal food. Phase Two Ethanol Plants do not destroy the corn by-products. They concentrate them into HPES (High Protein Endo Sperm), a high protein animal food.

6.         Sweet corn in not used in Phase Two Ethanol Plants. Therefore these plants do not harm people’s food shelves or cause food prices to increase.

Sweet corn in not used in Phase Two Ethanol Plants. Therefore these plants do not harm people’s food shelves or cause food prices to increase.