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September 20, 2004

A Need for Speed

With a deadline for state production incentives looming, Fagen/ICM team came to the rescue in Merrick County, Neb., bringing Platte Valley Fuel Ethanol to life in record time. Far from a rush job, the 40-mmgy plant is a model of efficiency and a testing ground for new innovations.

By Dave Nilles



More than steel and concrete, more than high-tech equipment and state-of-the-art process technology, Platte Valley Fuel Ethanol is a showcase of the talent, ingenuity and adaptability present in today's ethanol industry. The 40-mmgy plant in Central City, Neb., hit nameplate capacity less than a year after starting construction, proving once again that America's transition to renewable fuels can be swift. Most importantly, the plant brings new jobs and an appreciated economic lift to another Corn Belt community that's welcomed the facility with open arms.



Central City was not alone in its pursuit of an ethanol plant. According to Cliff Mesner, Merrick County economic development director, three communities were vying for the project during site selection. The stakes were high for Central City, still rebounding from the economic blow created after one of the town's largest employers, mobile home manufacturer Atlantic Homes, shut down operations, eliminating 325 jobs in a single day. An ethanol plant would bring back just a fraction of those lost jobs but in a town of 3,000 people it was a start—it was progress. In Mesner's own words, an ethanol plant would change things from "pretty desperate to back on an even keel."


Platte Valley Fuel Ethanol wasn't Merrick County's first attempt at landing an ethanol plant. Efforts in 1980 and 1994 failed. Still, Mesner never gave up on the plan. It was a matter of patience, economics and timing. So when the state's ethanol production incentive program was established in late 2001, Merrick County's ethanol project was suddenly resuscitated.


We started looking at the feasibility of it before we even had a contact within the ethanol industry," Mesner said, who added that the ethanol incentives offered by the state of Nebraska came with a production deadline of June 30, 2004. That was a tight timeline, and as the months rolled past, the prospect of meeting the looming cutoff date was looking bleak. The outlook became a whole lot brighter when Fagen Inc. CEO Ron Fagen entered the picture in October of 2002. "He showed up late in the game, at a point where we had lost hope of getting the incentives," Mesner said.


With Fagen Inc.'s ability and experience, Merrick County's ethanol plan was instantly empowered. Soon, the project would be catapulted from concept to reality.


Hitting the ground running
About one month after Ron Fagen sat down with Mesner, a site for the facility was chosen. Central City would finally get its ethanol plant. The scope of the project was set forth: Fagen Inc. would build a 40-mmgy dry mill ethanol plant incorporating an ICM Inc. process design.


The permitting process culminated on July 16, 2003, when the plant received its construction permit. Mesner was in Lincoln, Neb., when he learned it came through. He then placed two phone calls. The first was to Ron Fagen who was in South Dakota at the time. The second was to Mesner's wife. She went to the site and reported the progress to Mesner as he drove less than two hours from Lincoln to Central City. The first cement truck had arrived only 18 minutes after receiving the construction permit.


"By the time I returned from Lincoln, 16 loads of concrete had been poured," Mesner said. "I didn't see any signs of it slowing down from there."


In order to qualify for state incentives, the plant was brought on line in record-breaking fashion. The Fagen/ICM team brought the plant on line in May 2004, about 10 months after getting the go-ahead to build. According to Fagen, double crews working seven days a week were needed to finish the project on such an accelerated timeline.


"It's been excellent all the way through," Mesner said of working with Fagen Inc. "I give credit to [Ron] Fagen and his organization. They have a real sense of [community]. They understand that, and take it as a responsibility."


Coming on line
Dwayne Braun, plant manager at the facility, grew up on a family farm only 30 miles from the plant. His ethanol experience began as a shift leader at Nebraska Energy LLC in the nearby town of Aurora, where he had worked his way up to production manager. He was the first Platte Valley employee hired and had the responsibility of hiring the entire staff.


Braun said the startup, and the weeks that have followed, have been smooth.


"When the final permit came in, they hauled in the first load of corn later that night," Braun said. "We started up and haven't looked back since."


The plant began grinding corn and filling the fermentors May 5. Following its first performance run, supervised by ICM, the plant began producing ethanol May 8.


The month of June allowed employees to get more familiar with the plants capabilities. The final Fagen trailer moved out in early June. July was used to focus on optimizing performance and improving efficiency. In fact, Braun said July was considered "optimization month."


Several goals were set for the month of August. At press time, the plant was being pushed harder in order to maximize returns, while employees were receiving diversified cross-training in plant operations.


Efficient energy use
The Platte Valley Fuel Ethanol plant has been a picture of efficiency since coming on line. Its been running at about 31,000 Btus per gallon and approximately 2.8 gallons of water per bushel, according to ICM Project Manager Rod Simms. "It's a very efficient process and plant," Simms said. "From the start of construction, we exceeded [nameplate] capacity in less than 12 months."


The plant uses the latest technology available to the ethanol industry, making it one of the most efficient dry mills of its kind, said Production Coordinator Andy Roberts. Roberts came to Platte Valley with experience in the wastewater process. That experience has paid off at the plant. He compared the energy efficiency at Platte Valley Fuel Ethanol to that of a coffeepot. "You use the burner to warm the coffee and it creates condensation constantly off the pot," he said. "We capture the condensation and heat energy to use in a different part of the plant."


A bio-methanator is used to help eliminate wastewater. There is a small amount of process water discharge that comes off the ethanol and from the wet feed. The other water used comes into contact with the cooling tower and through reverse osmosis with the boiler. It's a process that is common in Fagen/ICM facilities, Roberts said.


The Platte Valley Fuel Ethanol wastewater system allows for efficient use of natural gas and electricity. No heat is wasted in the ethanol process. This includes the reuse of condensate, and no discharge or process streams. The end result is a conservation of water and energy.


"I really believe water will become a major limiting factor eventually in a lot of production systems in the future," Roberts said.


Platte Valley Fuel Ethanol will be the first ICM ethanol plant to get an extra hand in electrical efficiency. The plant will be the first to pilot ICM's electrical maintenance program. It's a program they've been working on for six months to a year, Simms said. Its primary focus is to prevent unscheduled shutdowns.


The goal of the program is to provide ICM plants with inventory control, access to spare equipment and preventative maintenance measures. With the potential rise in corn costs and lower prices for ethanol causing tighter margins, ICM wanted to help lower the costs of running a plant, according to ICM Director of Plant Services Cheri Loest.


Avoiding downtime
For the most part, ethanol production has been smooth sailing for Platte Valley Fuel Ethanol. In fact, Mother Nature provided the only major glitches. The plant faced several power outages during its production ramp up due to lightning storms. It's a problem they haven't faced since. "It benefited us because it [provided] a lot of experience bringing the plant back up," Roberts said. "Guys made some clutch decisions and things are really going well."


Lightning storms aside, the facility has been running at or above full capacity right out of the gate, according to Roberts. He credits the plant's early success to Platte Valley's dedicated—and growingly experienced—employees. "Huge strides have been taken in the last couple months," Roberts said. "The light comes on nowadays when someone is working on a problem. I'm starting to really watch things click."


After the ICM support team left six weeks after startup, Roberts said he was putting in long hours answering questions and monitoring systems. His goal for the next few months is to fade out of the control room and start handing off responsibility so he can focus more on efficiency. The loop of efficiency in the plant makes every choice important.


"A decision goes full circle," Roberts said. "If one part of the wheel has a bump in it, you'll see it when it comes around."


Demand for high quality corn
Platte Valley Fuel Ethanol takes about 60 truckloads of corn per day at full production. By holding it up to high standards, Braun says the plant is able to make sure the incoming feedstock is of high quality. "Garbage in, garbage out," Braun warned.


Guidelines are used to test the grain as it enters the plant. The corn is probed and graded at the scale. Unacceptable corn is rejected. "We're not going to take poor grain," Braun said.


Poor grain usually isn't a problem for the local farmers. Much of the corn grown near the Platte River Valley is irrigated. Braun said the plant does its part to inform farmers about the need for quality corn in ethanol production. Platte Valley Fuel Ethanol sends representatives and informational resources to Husker Harvest Days, a three-day agriculture event held each fall in Nebraska. Thousands in the agriculture industry attend the event.


The price of corn was approaching $3 per bushel when the plant was brought on line in May. Braun said the plant intends to buy as much corn from the local area as possible. That attitude has helped increase the base price of corn by at least several cents.


Load in and load out efficiency
The plant's load in and load out areas are additional notably efficient processes. Trucks hauling in corn spend no more than six to 10 minutes from the time they scale in to when they scale out. Platte Valley Fuel Ethanol has the ability to unload a semi trailer every two minutes with its two truck pits. "We take pride in how quickly trucks come in and out," Braun said.


The Nebraska Central railroad services the plant's rail needs. The short line railroad provides about 9,000 feet of siding in two side rails by the main terminal. There are also four shorter lines on the premises. One rail load out is automated to load a car in 30 minutes. The plant has one rail dump pit and has the ability to scale out on the rail.


The incoming corn goes through a 215,000 bushels per hour grain leg into 450,000 bushels of grain storage. Two hammer mills are used to crush the corn.


Platte Valley Fuel Ethanol produces about 800 tons of modified distillers grains everyday. It takes about 15 to 20 minutes to load a truck with the grains. The plant is permitted for one dryer used to dry the modified distiller grains to about 55 percent moisture. This provides less demand for water and more economical transportation.


A local feed supplier markets the product, most of which goes in a northerly direction due to the four ethanol plants south of Central City along Interstate 80. Central City is located in a cattle-rich part of the state, which creates a high demand for feed products.


Retaining employees
A source of pride Braun points out is that Platte Valley has had nearly zero turnover in its staff. Only three employees had much experience in the ethanol industry before joining the plant. Since initial hiring, only one of the 36 United Bio Energy managed employees has been replaced.


Braun said one reason for this may be the extensive training program used by ICM. It was one reason Braun himself was excited to work for the plant.


There has been so much support from Fagen/ICM in doing what we have to do," Braun said. "We just have to focus on learning and operating."


ICM's training began in the classroom. The Platte Valley staff spent two weeks in training before shadowing employees at ICM's Russell, Kan., plant. The Fagen/ICM support group was there through several days of hydrotesting before startup.


Platte Valley uses four people per shift like similar-sized Fagen/ICM plants.


Giving back to the community
Despite the efficiency of the plant, it is still in a state of constant improvement. The day Braun first spoke with EPM he called it "landscaping day." With the plant in close proximity of the Platte River Valley—less than a mile away—the group strives for an environmental touch with the site. Planting trees is a current priority.


The relationship with the community has been beneficial for all involved. The plant has helped give back jobs, increase corn prices and provide high-quality distillers grains for area cattle farmers. Central City did its part in showing overwhelming support for the plant.


A "First Load of Corn" fundraiser benefited the Merrick County Child Development Center, a nonprofit daycare in need of money. Local residents were asked to donate 20 bushels of corn, or the $60 equivalent, to the plant's first truckload. Fagen Inc. matched the proceeds. Close to 3,700 bushels of corn was donated and almost $25,000 was raised for the daycare center.


Braun said the town of Central City has been behind the plant 100 percent, while the plant's neighbors have been very cooperative. That support showed even during the impressive flurry of activity before the plant produced its first drop of ethanol. EP



Dave Nilles is an Ethanol Producer Magazine staff writer. He can be reached at dnilles@bbibiofuels.com.


This article was published in the 2004 August issue of Ethanol Producer Magazine.
 

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