DTN Weekly Distillers Grains Update
Researcher Uses DDGS as Biomass Source for Biocomposite
DAVENPORT, Neb. (DTN) -- A North Dakota native is heading a start-up company that will use technology he and his research team developed to create biocomposite materials from agricultural products.
C2renew corporation, will use biomass such as dried distillers grains with solubles to produce biocomposite materials with plastics for a wide range of engineering applications, according to Dr. Chad Ulven, associate professor of mechanical engineering at North Dakota State University and chief technology officer of the new company.
Ulven, a North Dakota native, got his bachelor's degree from NDSU in mechanical engineering before attending graduate school at the University of Alabama-Birmingham in material engineering, specializing in advanced composite materials. After a stint with the Army research lab, Ulven had the opportunity to return to North Dakota when he was hired as an assistant professor at NDSU. This gave him the opportunity to take his knowledge base of industrial composite materials and began seven years of research at incorporating different biomasses into plastics, both synthetic and renewable.
Those seven years gave him invaluable knowledge of what combinations of biomasses yield different properties for different applications. That gave Ulven the ability to bring a number of visions to fruition. Not only could that knowledge base give him the ability of spin off technology, but provides a way to promote economic development for rural North Dakota. The technology will also provide a way to offer highly technological jobs for graduates of NDSU.
"Students receive a good education at the university, but then they get jobs and move out of the area," Ulven said. "If we can spin off our own technology and keep it in North Dakota, we can provide a place for some of the bright-minded students that come out of our university."
Ulven stressed that the company will be equally invested in engineering services and materials development and supply. The company will do more than just make one type of biocomposite material and sell it. Ulven's knowledge base of the properties of a wide variety of biomasses will allow the company to design biocomposite materials unique for each application.
"It won't be like we have a standard list of six biocomposite that we sell," he said. "We will work with customers to formulate unique materials for each application. That's why we have to be strong on the engineering side of it as well."
The biocomposite material that Ulven will produce through c2renew corporation will be used for a wide range of engineering applications, especially agricultural equipment applications such as interior/exterior handles, consoles, protective shrouds, under-the-hood belt guards, ducting, etc. Once in production, he hopes to manufacture parts for ag-related customers such as John Deere and Bobcat.
Ulven said that DDGS is suitable for certain applications because of its high protein and cellulose/lignin content. The cellulose and lignin content in DDGS give plastic more strength, and the protein makes it less brittle.
"DDGS does act somewhat as a toughening agent, as it reduces the stiffness of the material," he said. "You can take a material that is very strong and brittle, but if you blend in DDGS, you can make the material tougher and less stiff.
Any DDGS used in production will be sourced from local ethanol plants, another economic benefit of locating the company in North Dakota.
"In North Dakota we have access to a wide variety of biomasses, DDGS being one," he said. "If you have to start transporting biomass long distance, the economics dissolve quickly."
Ulven said the biocomposite material produced by the company will be environmentally-friendly according to the needs of the product. Some customers, such as John Deere and Bobcat, want products to maintain environmental resistance over a long period of time that have strength, heat stability and resistance to UV exposure. Other customers want 100% bio-based material that will break down easier.
However, the biocomposite materials are already green, since the agricultural products used to produce them replace the need for petroleum-based plastics.
The development for the technology was funded by commodity groups in North Dakota, such as the North Dakota Corn Council and AmeriFlax, as well as the North Dakota Agricultural Products Utilization Commission. Assisting with the groundwork for commercialization of the technology was NDSU's Technology Transfer Office and the NDSU Research Foundation.
The company is still in the process of securing the remainder of the investors it needs. However, one employee -- one of Ulven's former students and part of the research team -- has been hired. Also, Michael Fuqua, one of Ulven's former postdoctoral research associates, will be a technical consultant for c2renew.
Ulven stressed that CEO Corey Kratcha was vital in the start-up of the company.
Ulven said Kratcha shares responsibility for getting the start-up off the ground. "Had it not been for meeting him and his willingness to work with me, I would not have pursued this small business spin-off."
Ulven is also in the process of negotiating initial purchase orders so the company can start production. Until a facility is built for production, c2renew will be hiring a third party to do compounding of its formulations and produce the materials.
"We will build a production location, but it's kind of like the chicken-and-egg thing," he said. "We will hire the initial manufacturing during the transitional period, so we don't need all that equipment to get off the ground."
Production is expected to begin sometime within the first half of 2013, Ulven said.
The possibilities for the company seem promising, considering the fact the plastics are a 300-million-ton market annually and bioplastics/biocomposites make up less than 1% of that.
But while Ulven is excited about the future of company, he intends to continue teaching at NDSU.
"As of right now, I have no intent to quit my day job. I love the students and being a professor," he said. "I'm allowed in my contract to act as CTO of the company, but also maintain my academic position."
He also said that c2renew could potentially license other technology developed at NDSU as the company grows.
"The biggest driver for me from the start was to pursue research that impacts society, and this fit into that very nicely," he said. "That fact that this company can spur some economic development in North Dakota and provide jobs for some of our engineers and scientist when they graduate, are the key drivers for me to get this thing going."
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DTN WEEKLY DISTILLERS GRAIN SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 1/11/2013 | 1/4/2013 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $258 | $265 | -$7 | |
| Modified | $145 | $150 | -$5 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $255 | $255 | $0 | |
| Indiana | Dry | $255 | $257 | -$2 | |
| Iowa | Dry | $252 | $250 | $2 | |
| Minnesota | Dry | $250 | $250 | $0 | |
| North Dakota | Dry | $270 | $265 | $5 | |
| New York | Dry | $255 | $255 | $0 | |
| South Dakota | Dry | $260 | $260 | $0 | |
| Hawkeye Gold, IA (515-663-6413) | |||||
| Iowa | Dry | $255 | $255 | $0 | |
| Modified | $131 | $131 | $0 | ||
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $262 | $262 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $265 | $265 | $0 | |
| Wet | $85 | $105 | -$20 | ||
| Illinois | Dry | $272 | $268 | $4 | |
| Nebraska | Dry | $265 | $265 | $0 | |
| Wet | $85 | $105 | -$20 | ||
| Wisconsin | Dry | $250 | $255 | -$5 | |
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $260 | $260 | $0 | |
| Indiana | Dry | $255 | $255 | $0 | |
| Iowa | Dry | $250 | $245 | $5 | |
| Michigan | Dry | $255 | $250 | $5 | |
| Minnesota | Dry | $240 | $240 | $0 | |
| Nebraska | Dry | $265 | $255 | $10 | |
| New York | Dry | $255 | $255 | $0 | |
| North Dakota | Dry | $260 | $260 | $0 | |
| Ohio | Dry | $260 | $258 | $2 | |
| South Dakota | Dry | $250 | $245 | $5 | |
| Wisconsin | Dry | $250 | $245 | $5 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $260 | $260 | $0 | |
| Iowa | Dry | $245 | $245 | $0 | |
| Minnesota | Dry | $240 | $240 | $0 | |
| Nebraska | Dry | $265 | $265 | $0 | |
| Ohio | Dry | $260 | $260 | $0 | |
| South Dakota | Dry | $245 | $240 | $5 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $315 | $320 | -$5 | |
| *Prices listed per ton. | |||||
| Weekly Average^ | $256 | $255 | $1 | ||
| The weekly average prices above reflect only those companies DTN | |||||
| collects spot prices from. States include: Missouri, Iowa, Nebraska, | |||||
| Kansas, Illinois, Minnesota, North Dakota, South Dakota, Michigan, | |||||
| Wisconsin and Indiana. Prices for Pennsylvania, New York and | |||||
| California are not included in the averages. | |||||
*The spot prices gathered by DTN are only intended to reflect general market trends and may vary. Please contact individual plant or merchandiser for exact prices.
If you would be willing to take a weekly phone call and have your distiller grains spot prices listed in this feature, please contact Cheryl Anderson at (308) 224-1527 or (800) 369-7875, or e-mail cheryl.anderson@telventdtn.com.
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| VALUE OF DDG VS. CORN & SOYBEAN MEAL | ||||
| Settlement Price: | Quote Date | Bushel | Short Ton | |
| Corn | 1/10/2013 | $6.9875 | $249.55 | |
| Soybean Meal | 1/10/2013 | $408.70 | ||
| DDG Weekly Average Spot Price | $256.00 | |||
| DDG Value Relative to: | 1/11 | 1/4 | 12/28 | |
| Corn | 102.58% | 103.59% | 104.09% | |
| Soybean Meal | 62.64% | 62.87% | 60.32% | |
| Cost Per Unit of Protein: | ||||
| DDG | $10.24 | $10.20 | $10.32 | |
| Soybean Meal | $8.60 | $8.54 | $9.00 | |
| Notes: | ||||
| Corn and soybean prices take from DTN Market Quotes. DDG | ||||
| price represents the average spot price from Midwest | ||||
| companies collected on Thursday afternoons. Soybean meal | ||||
| cost per unit of protein is cost per ton divided by 47.5. | ||||
| DDG cost per unit of protein is cost per ton divided by 25. | ||||
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USDA MARKET NEWS/DISTILLER GRAINS PRICES
USDA WEEKLY DISTILLERS GRAINS SUMMARY (Jan 4, 2013)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 250.00-260.00 | 120.00-135.00 | 83.00-89.50 |
| Minnesota | 240.00-245.00 | 128.00 | 80.00 |
| Nebraska | 250.00-283.00 | 135.00-147.00 | 87.00-118.75 |
| South Dakota | 245.00-249.00 | 134.00-136.00 | 92.00 |
| Wisconsin | 250.00-265.00 | 118.00-135.00 | NQ |
| Eastern Corn Belt | 250.00-260.00 | 128.00-135.00 | NQ |
| Kansas | 275.00-282.00 | NQ | 95.00-110.00 |
| Northern Missouri | 253.00-265.00 | NQ | NQ |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 297.00-304.00 | ||
| Pacific Northwest | 298.00-304.00 | ||
| California | 295.00-302.00 | ||
| Texas Border | 320.00-340.00 | ||
| Lethbridge AB | 275.00-285.00 | ||
| Chicago | 266.00-271.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Jan 8, 2013)
Distillers Dry Grains
FOB Truck Offers 300.00-315.00 no comp
Rail Delivered California Points Offer 311.00 dn 2.00
PACIFIC NORTHWEST WEEKLY FEED (Tue Jan 8, 2013)
Distillers Dried Grains: Offers for Distillers Dried Grains delivered by rail to feed mills in the Pacific Northwest were 300.00-310.00, steady to 3.00 lower compared to week ago offers. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were 318.00-325.00, also steady to 3.00 lower compared to week ago offers.
*All prices quoted per ton unless otherwise noted.
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RFA WEEKLY U.S. LIVESTOCK FEED PRODUCITON
| CO-PRODUCT OUTPUTS (metric tons) | |||
| Week Ending | Distillers Grain | Corn Gluten Feed | Corn Gluten Meal |
| 12/14/12 | 81785 | 8398 | 1555 |
| 12/21/12 | 82979 | 8520 | 1578 |
| 12/28/12 | 80292 | 8244 | 1527 |
| 01/04/12 | 82183 | 8438 | 1563 |
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
*Information from 2010 Weekly U.S. Fuel Ethanol/Livestock Feed Production report (http://www.ethanolrfa.org/…)
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IN THE NEWS
Strategies for Evaluating Co-products
Minnesota livestock nutritionist Chad Zehnder offered some tips for buying ethanol co-products in an article by Minnesota Farm Guide (http://bit.ly/…).
Zehnder, a nutritionist for Purina Animal Nutrition LLC, said first farmers need to quit thinking of feedstuffs such as distillers grains as byproducts, which denotes a secondary or incidental product of a manufacturing process. A co-product is a product produced along with another product, he said, and added that distillers grains has becoming a commodity.
Zehnder said producers also need to think about availability of co-products, not just at the present but into the future to avoid having to change rations. Also, consider the class or type of cattle and how the co-product will affect performance. The consistency of the product should be evaluated also. Zehnder recommended that producers get a sample or nutritional information from their plant and to be aware of sulfur content.
Producers also need to consider freight and moisture content. While wet distillers grain is cheaper, it is heavier and expensive to haul a long distance. Also, producers need to calculate storage and the cost of shrinkage, to avoid losing feed at a time when distillers grains are still relatively high.
Lastly, Zehnder reminded producers to evaluate their current facilities for bunk management and ration mix capabilities.
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DDG CONFERENCES
*Distillers Grains Technology Council Inc.'s 17th Annual Distillers Grains Symposium
The Distillers Grains Technology Council will hold its 17th Annual Distillers Grains Symposium on May 15-16, 2013 in Bloomington, Minnesota. For information, contact the DGTC office at (502) 852-1575 or (800) 759-3448, or check the DGTC website (http://www.distillersgrains.org).
(If you are sponsoring or know of any event, conference or workshop on distillers grains, and would like to list it in the DTN Weekly Distillers Grains Update, please contact Cheryl Anderson (see contact info below).
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DDG LINKS/RESOURCES
Organizations
*Distillers Grains Technology Council
http://www.distillersgrains.org
*National Corn Growers Association Corn Distillers Grains Brochure
*Iowa Corn
*Renewable Fuels Association - Ethanol Co-Products
*American Coalition for Ethanol
*U.S. Grains Council
*South Dakota Corn Utilization Council
http://www.drieddistillersgrains.com
Government Sites
*Iowa Department of Agriculture and Land Stewardship/Office of Renewable Fuels & Coproducts
http://www.distillersgrains.com
University Sites
*University of Minnesota - Distillers Grains By-Products in Livestock
and Poultry Feed
*University of Illinois - Illinois Livestock Integrated Focus Team Distillers Grains site
http://ilift.traill.uiuc.edu/…
*University of Nebraska - Beef Cattle Production By-Product Feeds site
*University of Nebraska Extension
*Iowa Beef Center - Iowa State University
http://www.iowabeefcenter.org/…
*University of Missouri - Byproducts Resource Page
*South Dakota State University - Dairy Science Department - Dairy cattle research
(select "Distillers Grains" from the topic menu)
*Purdue University Renewable Energy Web Site
http://www.extension.purdue.edu/…
(select "Biofuels Co-Products from the menu)
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We welcome any comments/suggestions for this feature. Please let us know what information is valuable to you that we could include in the Distillers Grains Weekly Update. Please feel free to contact Cheryl Anderson at (308) 224-1527, or e-mail cheryl.anderson@telventdtn.com.
(AG/CZ)
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