Wednesday, February 08, 2006

Integrated farm energy system would improve ethanol energy balance

INTEGRATED FARM ENERGY SYSTEMS:
"The proposed IFES includes a locally managed system comprised of a 15 million gallon/year (GPY) ethanol plant which uses local crops and an adjoining 25,000 head confined cattle feedlot that is connected to an anaerobic digester. It will produce fuel-grade ethanol, finished cattle, biogas and biofertilizers. Because of proximities and integration of its components, the IFES is economically attractive with an estimated Internal Rate of Return (IRR) that exceeds 25%. This is achievable because of economies of scope. An IFES can reduce commodity transportation costs, reduce ethanol plant capital and operating costs because it is no longer necessary to dry the distillers grains, permit the co-utilization of facilities, equipment and personnel, and allow for the reuse of energy, water and nutrients throughout the system. It is possible to have the IFES achieve �zero discharge� status."

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