Corn Oil Extraction Optimization. Essential Expertise for Water, Energy and Air SM

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1 Corn Oil Extraction Optimization 1

2 COE Optimization - Overview Technology review TSC & GR 8109 Product development Chemistry Not an equipment solution. Production improvements Both centrifuge types benefit from additive Regulatory needs and requirements. Market drivers If commodity prices come down will additive continue to be cost effective? 2

3 Thin Stillage Clarification with Corn Oil Recovery Designed to increase the separation of thin stillage suspended solids at dry grind corn ethanol plants Increased ethanol production through backset quality improvement Energy savings through improved evaporator & Dryer performance Improved co-product recovery - DDGS and concentration of corn fats, oils, and greases Thin Stillage Flocculants Separation Equipment Patent Issued March 3, 2009 US Patent Nalco has over 60 years experience in separation technologies 3

4 Product Development Experiences from TSC with COE allowed for product formulations to met regulatory for animal feed and allow for higher oil recovery on existing corn oil centrifuges spinning syrup (concentrated thin stillage). Nalco studied products for years while conducting whole stillage and thin stillage research. In the last 6-9 months, the use of these products has finally become economically favorable. The need to meet hurdle rates on capital invested has also increased plants awareness of higher oil yields. 4

5 Production Improvements Many of todays corn oil recovery systems are under performing. Some producers may have seen oil yield (lbs oil/bushel) drop when compared to last years oil yield numbers. Today plants can recover lbs/bushel without any chemical additive. Additive can help the producer increase yield by adding lbs/bushel. Net return to the plant is very dosage dependant. Some plants return a net $6 in oil revenue/$1 spent on additive, others may return net $2 in oil revenue/$1 on additive. It all depends on your starting point. 5

6 Production Improvements No matter where your oil yield starts, additive can help; Improve oil quality Reduce Variability in COE operation. Increase oil yield. One Pound Syrup lb/bu

7 Production Improvements Additive helps both disk stack and tricanter designs. Important to determine optimum dosage of additive to get the highest return on your investment. 7

8 Production Improvements ROI and Net return needs to be considered with using any additive. Feeding highest dosages to recover highest gpm of oil is not always best. Sometimes additive cost consumes extra oil revenue. GR-8109 PPM GR-8109 Oil Produced GPM Base Oil Produced GPM Oil Gain GPM Net Increase $/day ROI/Day Lbs oil/bu w/gr-8109 lbs oil/bu Baseline Lbs oil/bu Net Gain $ 1, % $ 2, % $ 4, % $ 4, % $ 3, %

9 Production Improvements When additives are used, you can see large incremental gains in oil production to a point and then gains begin to level off. 9

10 Regulatory Requirements You are what you eat! Ethanol plants need to be aware of process contact with animal feed Chemical products needs to be safe for animal feed GRAS (Generally Recognized As Safe) Currently listed in CFR as GRAS for animal feed 21 CFR 582 or 584. Self certified GRAS Nalco uses Keller & Heckman as third party verification CVM (FDA review- not required for compliance with feed regulations) Not all animal rations are created equal (dietary exposure as a determination of safety is dependent on % use in animal feed, and the feed consumption factor for individual animal species) Approvals are application specific It is the intended use of a substance, rather than the substance itself, that is eligible for GRAS. If a product is GRAS for one use, it is not necessarily GRAS for all uses. Application influences concentration in the final feed due to varied chemical usage levels, points of application, end product feed rations. Cumulative exposure is also considered. 10

11 How does Nalco Determine Safety Use the principles set forth in the Title 21 Code of Federal Regulations part to establish GRAS status for process aids. Outside consultants act as our Scientific Panel of Experts per 21 CFR (a) Each and every component of the product is reviewed for compliance status as well as the suitable purity of the additive for said use. Conservative (worst-case) assumptions are applied for end use and process parameters to estimate maximum concentration of chemical in final feed component. Review of the component hazards in relation to the dietary exposure for all livestock animals is evaluated to ultimately determine safe use. Assumptions and allowable maximum dosage levels are clearly communicated on product literature to ensure safe use at the customer level 11

12 Communication Product Safety In Section 15 of the MSDS 12

13 Communication Product Safety Information on product label. 13

14 Corn Oil Extraction Optimization If you decide additive is something you want to try, please remember: All species of animals that may include your corn oil or DDGS in their diets need to be covered under GRAS. All mechanical, operational, and chemical aspects of your COE system need to be optimized.???? 14

15 Questions?? 15

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