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cattle feeding paradigm shift???

Red Robin

Well-known member
Will this move the cattle feeding from the west back to the cornbelt?


E3 BioFuels to Launch First Closed-Loop Ethanol Plant in Mead,

Nebraska, in December 2006 Eliminating the Need for Fossil Fuels in

Ethanol Production

SOURCE E3 BioFuels

MEAD, Neb., Oct. 30, 2006 /PRNewswire/ -- Dennis Langley, Chairman and CEO of

E3 BioFuels, announces the Genesis plant will begin production in December

2006 at Mead, Nebraska, as the first-ever closed-loop system for distilling

commercial quantities of ethanol using methane gas recaptured from cow

manure, instead of fossil fuels. This virtually eliminates the need for

fossil fuels in the production of ethanol.

The closed-loop system -- derived from an exclusive patent co-owned by

an affiliate of E3 BioFuels -- combines a 25-million-gallon ethanol

refinery, beef cattle feedlot, and anaerobic digesters to maximize energy

efficiencies unavailable to each component on a stand-alone basis. This

system eliminates the potential for manure to pollute watersheds, and it

enables the wet distillers grain from ethanol production to be fed on-site

to cattle without energy-intensive drying and transportation costs.


In the October edition of Wired Magazine, venture capitalist Vinod

Khosla writes, "It may surprise you to learn that the most promising

solution to our nation's energy crisis begins in the bowels of a waste

trough, under the slotted concrete floor of a giant pen that holds 28,000

... beef cattle."

Khosla, co-founder of Sun Microsystems, continues, "E3 BioFuels is

about to fire up the most energy efficient corn ethanol facility in the

country: a $75 million state-of-the-art biorefinery ... The output: a

potential gusher of renewable, energy-efficient transportation fuel."


"The Genesis plant at Mead will be the first to market ethanol produced

from closed-loop, self-sustaining ethanol technology by at least a year or

two, in comparison to any other competitors," Langley said. "This plant

will make ethanol more than twice as energy-efficient as any other method

of producing ethanol or gasoline."

E3 BioFuels-Mead has named the plant Genesis to celebrate that it's the

first commercially viable facility on the planet to use this new

technology, as well as signifying the birth of a revolution in energy

production.



"This is the new low-cost alternative for meeting America's energy

needs with domestically produced ethanol." Langley said. "E3 BioFuels'

system enables America to take a giant leap from the oilfields of the

Mideast to the cornfields of the Midwest. The future is now, the future is

here -- with the opening of the E3 BioFuels-Mead's Genesis plant."



"The Genesis plant effectively serves as a diligent steward of the

environment -- producing a clean-burning motor fuel, solving water run-off

pollution from agricultural wastes, and reducing greenhouse gas emissions."

Langley said E3 BioFuels plans to build 15 more such plants near

feedlots and dairy farms, of increasing size, within the next five years.

Langley is a proven entrepreneur with a lifetime of experience in the

energy industry. He served as founder, chairman and CEO of the first

pipeline in the United States to be chartered to create competition.

Langley's companies have owned, designed, constructed and/or operated more

than $2 billion worth of projects in the energy industry.



In a forthcoming statement, Langley will clarify E3 BioFuels'

relationship to PRIME BioSolutions and to David Hallberg, a former employee

of one of E3 BioFuels' affiliates. The statement will clarify that E3

BioFuels and its affiliates are the owners and the sole operators and

managers of the Mead plant.



E3 BioFuels website: http://www.e3biofuels.com





SOURCE E3 BioFuels



prnewswire.com
 

High Plains

Well-known member
I don't know if this ethanol boom will completely shift cattle feeding back to the corn belt, but it sure does give even more feed-cost advantage to the corn-belt boys. The methane digestor concept adds a completely different level of potential economics to the deal.

The same concept is also being done in the Hereford, Texas area with some of the dairies. I know of another methane digestor going in at a Colorado feedlot. Granted, the Texas dairies and feeders are shipping in the corn, whereas that's not the case in the corn belt.

This is all getting very interesting. Thanks for posting Red Robin.

HP
 

IL Rancher

Well-known member
There are rumblings of feed yards going up around here. Within 2 years from now there will be 4 Ethanol Plants within an hours-hour and half drive from here, 3 located along interstate type highways. there is a neighbor kicking around the idea right now to take advantage of the clsoest one and an investor in another one has talked about building one right next door... The biggest problem right now is the processing may not be available locally for these feedlots so they would have to ship the steers a distance, not to meniton not as many feeders available... If anyhting it wll probably just increase the number of cow calf people as they will start going the stalk/byproduct method of feeding their cows in the winter instead of growing hay thus being able ot convert hay ground to pasture... of couse, 3 dollar corn makes converting that hayground into corn ground a bit appealing for a lot of folks around here..
 

Red Robin

Well-known member
With the price of fuel, both produced and saved in transportation, with the price of electricity saved in the ethenol production, and with the savings of having to transport corn to cattle and cattle to people, I think this idea has an economic advantage over the looming South American feed yards (if they ever materialize) of paul engler size. The best thing about it is it's in front of the environmental train instead of under it.
 

Big Muddy rancher

Well-known member
Pound Maker feed lot of Lanigan SK.has had a feedlot ethanol plant tied together for years. They aren't the new technology like this one but they did put the two together.
 

Shorthornguy

Well-known member
Good....More Ethanol Plants and Bio-Diesel Plants. We don't need to be at the mercy of foreign oil. Can't help anybody out on the manure ....I need all mine for fertilizer. :)
 

Red Barn Angus

Well-known member
Fascinating new plant. It brings up so many questions....what will this trend do to feeder cattle prices or will the cheap distillers grain offset some of the corn demand? If we get enough ethanol we wouldn't need to buy foreign oil and the war would be over since they wouldn't have enough money to fight a war. Also interesting that you hear little about oil companies being involved in ethanol production....so many scenarios, so many questions, such interesting times ! Of course it will take a while for it all to play out but the possibilites are endless. Thanks for the post.
 

Jason

Well-known member
I read a 6 page summary of a study done to determine if Alberta feedlots are/can be/will be still competative with US feedlots.

One of the big items is the ethanol industry.

The report said corn production will need to increase greatly if ethanol will be sustainable, seed producers said they still can double yields with new varieties.

If yields increase and ethanol becomes mainstream the report said the advantage would be to US feedlots.

Some of the reasons were our barley costs are higher and the yield increases aren't available.

Methane digesters have been working for a few years already here. One hutterite colony in north central Alberta produces all their electricity and sells some from a manure methane digester. Another one that uses garbage as a methane source is in Coaldale, haven't heard how it is working out.

Another benefit is the compost left over is better for the land than the raw manure. And I have heard some work is being done on water reclaimation in concert with these projects.
 

pknoeber

Well-known member
I doubt that cattle feeding will move into a more populous area that doesn't need it for it's economic base. Way to many environmental/nuisance issues to deal with when you get back east with the 30"+ of rainfall and the associated "ambiance" that a feedyard can provide for 4-5 miles downwind :? It's cheaper to haul neat boxes of beef and shuttle cars of corn than it would be to move the infrastructure of the feeding/slaughter industry.

And oh yeah, the ethanol plants are moving to feeding country. Put the plants on a major rail line where they can get the corn in and the etoh out to BOTH coasts in an efficient manner and it works. Plus, there aren't nearly as many people to complain about the unpleasant smells, increased truck traffic and all of the other aspects that come along with processing.

Phil
 

John SD

Well-known member
Phil, I think you hit the nail on the head. Good rail service in and out is a must.

Several years ago I was set to invest in a closed loop ethanol plant/feedlot/ methane digester located in the central part of the state. The project fell through because the capital drive fell short of its goal.

IMO, the weak link of this proposed project was the lack of rail service to the site. EVERYTHING (corn, ethanol, and fed cattle) would have to be trucked in and out. The PRIME group was involved with this project. I wish them well and hope their new venture will fly.
 

IL Rancher

Well-known member
All of the plants around here are being built on rail lines, on is also built on a pipe lineand has barge access on the property... One plans to dry ithe gluten and send it down south. We have a packing plant 30 miles from here but the real thing keeping the feedlots away from here is cost of land... Why would you spend 4000-5000 an acre to put up a feed lot? It will be interesting..

I remember reading an article 3-4 years back that they thought they might have double crop corn in the next 10 years that would would bring 150% the yield of what the ground was currently giving.. Not this farm north but further south... If they do that... Yikes... Corn yields have really increased rapidly compared to a lot of the other grains/legumes... Beans have been flat around here for years which is yet another reason corn on corn is becoming more appealing to the locals.
 

mwj

Well-known member
IL Rancher said:
All of the plants around here are being built on rail lines, on is also built on a pipe lineand has barge access on the property... One plans to dry ithe gluten and send it down south. We have a packing plant 30 miles from here but the real thing keeping the feedlots away from here is cost of land... Why would you spend 4000-5000 an acre to put up a feed lot? It will be interesting..

I remember reading an article 3-4 years back that they thought they might have double crop corn in the next 10 years that would would bring 150% the yield of what the ground was currently giving.. Not this farm north but further south... If they do that... Yikes... Corn yields have really increased rapidly compared to a lot of the other grains/legumes... Beans have been flat around here for years which is yet another reason corn on corn is becoming more appealing to the locals.

I think you will find thay gluten comes from a differant process. I was listening to a program on production traits in corn. They say that using the proper hybred to match the process they can get a 10% gain in al. output with no other change in inputs 8) The biggest prob. I can see with these plants is that they require millions of gal. of water per day to operate!!!!!!!!!! Water is fast becoming the next thing that will start a war in this country!
 

Ben H

Well-known member
I've seen a few methane digesters in use at Dairy operations in New York state. First of all the types I saw only work for a semi-liquid manure. It will be interesting to see if they can do something with dryer manure. The manure flows through concrete baffles to slow the rate. The concrete tank is covered with a plastic top that swells up with gas. The methane is on top and is piped into a gasoline generator that had been converted over similar to propane. The question I asked is why not use it for veichles, the answer I got is that it's pretty dirty.
Then what? The manure goes through a seperator where the solids are composted and the liquid is piped out to a tank and used for irrigation.
The other big thing here is that a whole lot of the odor is lost from the fermintation (digesting) process. This is important where we may more odor regulations down the road.
 

IL Rancher

Well-known member
I meant to say Distillers MWJ.. Just so used to feeding Gluten from the corn sweatner plant that is what always comes to mind when I amt alking about it..... The one they are trying to build 3-4 mils away from here as a crow flies is having some water trouble... TRouble is, they have gotn none right now.. They had to drill down to 1000 feet deep or something like that and the only water they hit was black... Yep, coal vein underneath the plant.. Big coal vein. So they decided that maybe piping it in from a property one of the ivestors owns would be a good idea... Milky water at that sight.. sand in the aquifer.. Tehy will get their water eventually but it is going to cost them. With the others going up some of us wonder if this one is going to go belly up befoe it gets off the ground...

Water is a real issue but remember, in 24 hours one of those enter pivots takes just as much water as one of those plants and their are dozens of thsoe going up. the livestock producers around here are starting to wonder iof during a dry summer with all of those pivots running if we are going to have anywater.. I kno we need 10,000 gallons a day, might have to put the sand points back into operation or build ponds to hold runoff..
 

Texan

Well-known member
Interesting topic. But if you're going to move a 100,000 head feedlot, why move it closer to population centers, unfriendly environmental regulations, high-priced real estate, etc.? When you can move it to a place where everything is cheaper and more plentiful?

Instead of shifting cattle feeding to the corn belt, it could accelerate shifting corn production, ethanol production and cattle feeding/slaughter to South America.

Then all we would have to do here is unload tankers and refrigerated containers......
 

Red Robin

Well-known member
Texan said:
Interesting topic. But if you're going to move a 100,000 head feedlot, why move it closer to population centers, unfriendly environmental regulations, high-priced real estate, etc.? When you can move it to a place where everything is cheaper and more plentiful?

Instead of shifting cattle feeding to the corn belt, it could accelerate shifting corn production, ethanol production and cattle feeding/slaughter to South America.

Then all we would have to do here is unload tankers and refrigerated containers......
freight, demand, the ability to stay current to name a few. The ability to transport, foot and mouth, stable government and currency to name a few more.
 

Texan

Well-known member
Freight is next to nothing in big enough quantities.

Demand doesn't change just because the center of production changes.

Who cares about staying current when the costs of production are next to nothing?

Transportation isn't a problem. We're already doing it.

Foot and mouth won't be a problem down there forever.

Stable governments and currency can be purchased, if the price is right.

With the cost of replacing infrastructure and the less than desirable life expectancy of that infrastructure in the corn belt because of a growing population, why take a chance on having to spend that money twice?

You've got to figure that the big money is wondering why move east when Cactus has already blazed the trail south.
 

Red Robin

Well-known member
Freight is next to nothing in big enough quantities.

Freight inside most south american countries is almost impossible. You can't take corn to cattle or cattle to slaughter very easily. Once processed it has to get on a ship and from there it is cheap till it gets to America then it has to be handled again and broke out to towns etc. I'd say freight costs something and it's unreliable. There will be shrinkage.

Demand doesn't change just because the center of production changes.
Really ? tell that to the Japs.

Who cares about staying current when the costs of production are next to nothing?

I commented without knowing the actual numbers but I can assure you in volitile markets like grain and beef, people like to be current. Ask someone who bought feeders a month ago the difference a month makes, much less 6mos.

Transportation isn't a problem. We're already doing it. Inside the country of Brazil for example, a friend of mine that was there said it's a night mare. They are way behind .

Foot and mouth won't be a problem down there forever. Would you bet a 10, 50, or a hundred million bucks?

Stable governments and currency can be purchased, if the price is right. Not really sure what you mean here.

With the cost of replacing infrastructure and the less than desirable life expectancy of that infrastructure in the corn belt because of a growing population, why take a chance on having to spend that money twice? With government subsidies on ethanol production, the 300 percent efficient plants we see in this example and the location next to corn and people, I think it'll move east. JMO I know absolutely nothing.

You've got to figure that the big money is wondering why move east when Cactus has already blazed the trail south.
 
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