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National Sorghum Producers Tim Lust, CEO Helping Meet RFS Goals.

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Presentation on theme: "National Sorghum Producers Tim Lust, CEO Helping Meet RFS Goals."— Presentation transcript:

1 National Sorghum Producers Tim Lust, CEO Helping Meet RFS Goals

2 Sorghum to Ethanol

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4 U.S. Sorghum Production 6.2

5 2013 planting intentions 7.62 million acres projected in 2013 Up 22 percent from last year Kansas and Texas lead with 77 percent of expected acreage Acres expanding to different regions ▫ North Carolina ▫ Missouri ▫ South Dakota

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7 Other economic drivers Growers balance: ▫ Market demand ▫ Costs of production  Land  Water  Fuel ▫ Risk

8 What Does the Advanced Playing Field Look Like? Grain sorghum approved as a conventional feedstock. Alone it does not qualify as advanced with 32% GHG reduction score. If traditional ethanol plants make “green” improvements, they can qualify if 50% reduction threshold met. Plants looking to make changes to meet goal. Western Plains (NW KS) installing large anaerobic digester. Will be producing 50 million advanced gallons per year soon. CA plant likely next

9 How could plants qualify? Anererobic Digestor $25-$30 million Biogas $5 million + $11 gas Up to 200 million gallons CO 2 capture Biomass Up to 300 million gallons

10 What Does the Advanced Playing Field Look Like? Main question: What level of advanced biofuels will be required for 2013? Second question: What level of advanced biofuels will be required for 2014?

11 What does the advanced playing field look like? The imports of Brazilian “advanced” gallons in 2012 had huge negative impact on the entire U.S. ethanol industry. There is strong support for “domestic” gallons of advanced biofuels. RIN values will change - currently about ??

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13 RFS Requirements YearConventionalAdvancedBiodieselCellulosic 20064.00--- 20074.70---RFS1EPAct of 2005 20085.40--- 200910.50-0.50- 201012.000.200.650.10 201112.600.300.800.25 201213.200.501.000.50RFS2 201313.800.751.00 201414.401.00 1.75 201515.001.501.003.00 EISA of 2007 201615.002.001.004.25 201715.002.501.005.50 201815.003.001.007.00 201915.003.501.008.50RFS3? 202015.003.501.0010.50 202115.003.501.0013.50 202215.004.001.0016.00 RFS Renewable Fuel Requirements by Type (billions of gallons)

14 RFS Requirements YearConventionalAdvancedBiodieselCellulosic 20064.00--- 20074.70---RFS1EPAct of 2005 20085.40--- 200910.50-0.50- 201012.000.200.650.10 201112.600.300.800.25 201213.200.501.000.50RFS2 201313.800.831.28.014 As of now 201414.40 ?? 201515.00 EISA of 2007 201615.002.001.004.25 201715.002.501.005.50 201815.003.001.007.00 201915.003.501.008.50RFS3? 202015.003.501.0010.50 202115.003.501.0013.50 202215.004.001.0016.00 RFS Renewable Fuel Requirements by Type (billions of gallons)

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16 SWEET SORGHUM Yield – 31.64 Tons/Acre Wet – Top yield 77 Tons 15 gals/Ton 475 gallons/acre up to 800 gallons acre GHG score – very high Southeast Renewables –FL 20 million gallon – January 2015

17 What are you going to do with the bagasse? Burn it! Co-Gen – Under EPA models, U.S. processor will get huge credit because US electricity has about 25% more GHG emissions than Brazil electricity – overall GHG reduction could be as high as 90%. Feed It! Cattle love it. EPA has not decided yet. Make Cellulosic Ethanol out of it! The recent patents by Sweetwater regarding the ability to take bagasse/any other feedstock and convert to cellulosic as a part of a traditional ethanol plant process.

18 BIOMASS SORGHUM Yield – 12.83 Tons/Acre Dry up to 20 Tons 92.3 gals/Ton 1184 gallons/acre or more Cellulosic Feedstock Grows in 90-110 days

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20 What has not been done? Sweet sorghum petition finalized/submitted to EPA. Biomass (energy) sorghum petition (911 pages) was submitted in August as a cellulosic feedstock but has not been approved by EPA. NSP’s experience is private industry involvement with EPA helps prioritize petitions. EPA wants to see it is a viable crop and there is commercial production in place to generate gallons.

21 Challenge Remains: Defending the RFS

22 Thank You


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