In the United States (US), POET Biorefining, the ethanol production arm of POET LLC, the world's largest corn ethanol production company has announced that it is moving forward on the construction of a new 80-million (US) gallon (≈303 million litre) per annum plant in Shelbyville, Indiana. The move follows President Trump's directive to the Environmental Protection Agency (EPA) to lift regulations hindering the year-round use of E15 ethanol fuel. The expected completion date is spring of 2020.
According to POET, final permit approval for the planned 80 million gallon (≈303 million litre) per annum plant year has been received. With full construction started, the expected completion date for the nearly US$160 million plant is in the spring of 2020.
This is the right project in the right location at the right time. Farmers desperately need the income boost from this new market for grain, and President Trump’s recent announcement of year-round E15 sales has the biofuels industry poised for new growth and prosperity. Shelbyville is leading the way for future production to meet new E15 demand. We’re excited to partner yet again with Indiana to create a cleaner, healthier environment for our children and grandchildren, said Jeff Broin, CEO at POET.
POET Biorefining – Shelbyville will be the 28th starch biofuel plant in POET’s network and the fifth in Indiana. It will add 45 full-time jobs and US$110 million in annual corn purchases for farmers in the area, primarily within a 30-mile radius. POET plans to start hiring for full-time positions in spring 2019.
Significant new domestic demand expected
New demand for biofuels is expected in coming years once the Trump Administration provides full consumer access to E15 year-round. President Trump announced earlier this month that he has directed the EPA to fix outdated regulations that limit E15 availability. E15 is a higher octane, cleaner burning and lower cost blend of 15 percent biofuel.
According to POET, full implementation of E15 nationwide would add 7 billion gallons (≈ 26.5 billion litres) of biofuels demand and an additional 2 billion bushels (≈ 50.8 million tonnes) of corn demand for farmers who have been struggling with low crop prices and declining farm income over the last five years. This additional demand is important for communities that rely on agriculture to drive their economies.
POET’s project provides jobs right here in Shelby County, but its indirect effects will extend well beyond that. This boosts income for farmers, expands the tax base and circulates new dollars across the entire economy, said Brian Asher, Executive Director, Shelby County Development Corporation.
The new facility includes POET’s state-of-the-art environmental controls and production processes. Those include features such as the proprietary Total Water Recovery, which eliminates process water discharge from the plant, and POET’s patented BPX process, which lowers energy use and increases yield, making this state-of-the-art plant even more efficient.
The 30-year-old company has a network of 27 production facilities and, through its joint venture with DSM, also operates a commercial-scale cellulosic ethanol plant in Emmetsburg, Iowa. The company has a total annual production capacity of more than 1.7 billion (US) gallons (≈ 6.44 billion litres) of ethanol and 9 billion pounds (≈ 4.08 million tonnes) of high-protein animal feed.
The United States is the world’s largest producer of corn. Figures from the National Corn Growers Association (NCGA) shows that US farmers produced around 14.6 billion bushels (≈ 370 million tonnes) in the 2017 season of which 5.5 billion bushels (≈ 140 million tonnes) was corn used for fuel ethanol and distillers dried grains (DDGs) production.