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New Technologies in Ethanol Production

This recent technology separates the corn kernel into its components without the soaking step. Depending on the process—several companies currently offer similar technologies—the feedstock may be misted with water before being separated into bran, germ, and the high-starch endosperm portion of the kernel (BioFuels Journal, 2005d,e). The advantages of dry fractionation over processes that require a soak step are threefold: lower costs because less energy is required for drying the feed coproduct, lower emissions, and greater coproduct output because the mash is more highly concentrated. The germ can be sold or pressed for corn oil, and the bran also has potential for food or energy use. . | United States Department of Agriculture Office of the Chief Economist Office of Energy Policy and New Uses Agricultural Economic Report Number 842 c. Matthew Rendleman Hosein Shapouri A USDA New Technologies in Ethanol Production USDA United States Department of Agriculture Office of the Chief Economist Office of Energy Policy and New Uses New Technologies in Ethanol Production C. Matthew Rendleman and Hosein Shapouri Agricultural Economic Report Number 842 February 2007 Abstract Fuel ethanol production has increased steadily in the United States since the 1980s when it was given impetus by the need to reduce energy dependence on foreign supplies. The momentum has continued as production costs have fallen and as the U.S. Clean Air Act has specified a percentage of renewable fuels to be mixed with gasoline. The fraction of annual U.S. corn production used to make ethanol rose from around 1 percent in 1980 to around 20 percent in 2006 and ethanol output rose from 175 million gallons to about 5.0 billion gallons over the same period. New technologies that may further increase cost savings include coproduct development such as recovery of high-value food supplements and cellulosic conversion. High oil prices may spur the risk-taking needed to develop cellulose-to-ethanol production. Developments such as dry fractionation technology now commercially viable may alter the structure of the industry by giving the cheaper dry-grind method an edge over wet milling. Dry milling requires smaller plants and local farmer cooperatives could flourish as a result. Though improvements in processing and technology are important however the fluctuating price of inputs such as corn the cost of energy alternatives and environmental developments play larger roles in the fortunes of the industry. Acknowledgments The authors wish to thank a number of people who made valuable suggestions and corrections to the paper. They include Don Erbach and Andrew McAloon of the Agricultural Research .