In Tennessee, Dupont Danisco Cellulosic Ethanol (DDCE) officially opened its 250,000 gallon demonstration facility in Vonore. This facility is the first one dedicated to converting both agricultural residue and bioenergy crops to fuel ethanol.
The facility has initiated start-up and began producing ethanol in mid-January 2010. For now, the facility is focused on process and data validation to achieve commercial scale production by 2012.
The plant is using corn cobs as a feedstock today, and will begin to integrate switchgrass grown primarily in Tennessee later this year.
“A perfect storm made this happen,” commented DDCE CEO Joe Skurla. “Governor Bredesen’s vision, plus our need to put in a demonstrate plant. To start in October 2008 and to have a plant complete and started up — I’ve seen a lot of projects in my time, but I’ve never seen a team come together and overcome the issues like this one.”
“The Tennessee Biofuels Initiative already is creating new jobs and opportunities, and I believe the Vonore facility is going to be a real catalyst for additional economic activity in Tennessee,” said Tennessee Governor Phil Bredesen. “I’m pleased with the progress of this partnership and believe this marks an important step forward in our state’s efforts to develop clean energy technology.”
“The world should be watching Tennessee,” continued CEO, Joe Skurla. “Here in Vonore, DDCE and Genera Energy are well ahead of the curve as we develop the entire value chain, from feedstock to production.”
Skurla also indicated that they are meeting goals to provide the industry with production solutions that meets demands for low-cost, scalability and sustainability.
Final designs for DDCE’s technology will be completed after the data from this demonstration plant has been analyzed. Following that current DDCE plans are to begin construction in 2011 on the corn cobs plant, which is Skurla says is “likely to be built in the corn belt of Tennessee.”
Asked to comment on what sets DDCE apart from other cellulosic ethanol technology licensors, Skurla identified three factors: “One, all the technologies under one roof, basic and fundamental in every aspect, through our parents DuPont, Genencor and Danisco as well as our own work.
Two, our project execution capabilities — that’s the Dupont and Danisco/Genencor experience in building projects all around the world. Three, we view this holistically — clients will see us as a partner rather than just as a licensing company.”
The plant is producing over 85 gallons per ton, and is targeting 90 gallons per ton by the time of its commercial rollout. Capital costs are $5-$6 per gallon of operating capacity, based on the company’s models, and are expected to reach sub-$5 by the time of the first commercial rollout and "pushing $4" by the time the company has completed “4-5 plants."
The company’s manufacturing cost is $2 per gallon, with a goal of reaching $1.50 per gallon, and will be competitive with $85-$90 oil, and is designed to be competitive without subsidies or incentives.