Hypothetical Case Study: Ethanol Facility

The ABC Ethanol Company has come to you with interest in building a 50 million gallon cellulosic ethanol plant in XYZ community. Breaking into small groups by state, please use this Interactive Exercise to guide your discussion related to crop production and harvesting, water and community economic development. Although this is a hypothetical example, select a real geographic locale (county and municipality) to ground your discussion.

DISCUSSION FOR BIOEN 2: Crop Production and Harvesting

The ABC Ethanol Company would like some input on what feedstocks could be available and at what quantities. Using the Crop Comparison Matrix, discuss what might be the best options for biomass feedstock to supply the ethanol company.

Here are some useful facts for planning:

· One dry ton of biomass will yield 70 gallons of ethanol

· In addition to converting biomass to ethanol, the company would like to secure an additional 200,000 tons to power a boiler

· It will take 10 years of production to pay off the plant, but the company would like to operate for 20-30 years (therefore we need long term supply of feedstock)

Answer the following questions:

Select up to 4 biomass feedstocks (5 min)

Estimate the number of acres for each feedstock needed (10 min)

Do you have enough acres to supply this? (5 min)

Discuss potential harvest, storage and transportation methods (5 min)

Using budgets in section 2.1, estimate economic impact (10 min)

Which federal program is most important to the economic success of this project and what happens to the project in year 10 if that program terminates?

DISCUSSION FOR BIOEN 3: Water Resources Issues and Opportunities

The permitting of the ABC Ethanol Company has raised issues within the local community. Using the community you selected, answer the following questions. If you don’t know the answer, indicate how you would find out the information or who you would talk to find out the answer.

What is the closest water supply to the cellulosic ethanol plant and can it provide the necessary water to operate the plant upon start up?

What level of quality must the water be at before it can be used in the cellulosic conversion process and is the water readily available or will a water purification plant be needed?

Is utilization of the available water supply financially feasible?

Is there enough water to support the cellulosic ethanol plant when mature and operating at full capacity, and adequately supply current needs of the surrounding community.

Can the water supply provide for potential community and other industry growth and/or manufacturing?

Cellulosic crop production is generally less harsh on the environment than some other forms of ethanol feedstocks, but what are potential environmental concerns that may be associated with cellulosic production?

DISCUSSION FOR BIOEN 4: Community Economic Development and

The ABC Ethanol Company has also raised concerns about whether there is sufficient labor capacity and physical infrastructure to make the operation of the plant viable. Using the same community as above, please discuss and answer the following questions. If you don’t know the answer, indicate how you would find out the information or who you would talk to find out the answer.

Is there a sufficient transportation infrastructure available? This would include roads, railroad terminals, etc.

Are the roads accessing the facility capable of supporting the increased traffic load?

Is an adequate, cost effective electrical supply available?

Is there a skilled labor force available to run the plant without creating hardship for other employers in the area?

Will it conflict with current or projected uses for the same feedstock?

If not additional labor will need to be brought in. Is there adequate housing available for new community members?

Is there financial support within the community/region available to support the venture?

SUMMARY QUESTIONS:

1. What is the most promising feedstock for your region? Why?

2. What are the biggest impacts to water quality?

3. What are the hurdles to creating a sustainable supply chain in your state?

4. In what ways could this plant and the resultant supply chain be developed to minimize water quality impacts and promote agricultural sustainability?

5. In what ways could the development of this ethanol plant contribute to a positive triple bottom line for your state or region?