Department of Environmental Quality

Energy Planning and Renewable Energy Section

June 26, 2012, Billings, Montana

Howard Haines

Montana Bioenergy Program Manager 406 841 5252

hhaines@mt.gov

Biofuels Montana Update:

EPAC Billings Biofuel Conference

Chester MT, 3/07

*Most E10 is out of Billings and Missoula. Ethanol is being used for octane boost (not E10)

Ethanol Use (all retail may or may not)

State FY MGY blend MGY ethanol2004 17 2.42005 30 3.12006 30 3.02007 12.6 3.1 gas total2008 40.669 4.067 491.902009 170.679084 17.067 315.1752010 174.592936 17.459 311.1972011 206.571 blend + 0.632197 =21.3 496.3242012 thru April 198.973 412.578

Proposed Ethanol Plants (Mont)

Permitted MGY Feedstocks0 125 Wheat, corn, barley(only 1 on MDT list, 6/2012)

(383 MGY in July 2008)

Operating/planned cellulosic pilot plants0 (Aug 2008 had 1 in Butte, @ 150k/year capacity)

*Biodiesel as B5 is not tallied (as sold in Havre)

Biodiesel Use (variable, depends on cost)State FY Blend-MGY B-100 gallons2004 0.345 70,0002005 0.347 71,0002006 0.348 71,1492007 336,180**2008 946,328 Total Diesel, mgy2009 802,759 245.243 2010 758,560 207.9312011 784,598 273.570/ 958.6462012 (thru Apr) 807,589 242.179/ 808.925

Proposed Biodiesel Plants (Mont)

Permitted MGY Feedstocks 1 0.1-0.275 Canola, safflower,

camelina

Total planned 0

Operating (FY 2012) 4 0.015 Self use, used fry oil1 0.100 Canola, camelina, other

What’s Next: Biobutanol?• Why:

• Higher energy content (24%+); • Higher allowable blend rate for vehicles & pipelines

(16-24%);• More higher value co-products;• Each gallon of biobutanol = 1.3 ethanol equivalents

• Process: ABE (6:3:1 advanced now 35:65:1) & others

• Each pound grain = about 1/3 (in weight) each of alcohols (acetone, butanol, ethanol, propanol) gases (CO2 & H2) and distillers grains

Biobutanol ~ Biofuels Growth?

• 14 billion gallon/yr (bgy) EtOH capacity(15 bgy RFS cap)

• 13 bgy “E10” blend wall Higher allowable • 100 mgy ethanol ~ 80 mgy biobutanol

(Gevo and Butamax) (plus DDGS, acetone & EtOH) or

• 14 bgy EtOH capacity ~ 11.1 BtOH capacity

• 16% (E10 equivalent) blend rate = 20.8 bgy

• Biorefinery or Bioremediation?

Product Price, $/ton

Gasoline $833.00 ($2.5/gal)Petroleum $612.00 ($90/bb)

butanol 1,780-1,984isobutanol 2,220-2,447

2-ethyl hexanol 2,180-2,660Acetone 1,034-1,322Jet fuel $901.40

fuel ethanol $714.0

Where to Get Help:www.biodiesel.org

www.deq.mt.govwww.biodieseleducation.org

http://agr.mt.gov/camelina/default.aspHoward Haines

406 841-5200, hhaines@mt.gov

Camelina

The End. Thanks for Listening, Questions?