Ethanol Projects
The IRE Expansion Project ("IRE 2")
Construction progress has advanced well during July. The main contractor (Fagen Inc) is focusing on completing peripheral systems to get them operational well in advance of startup, then shifting to complete the process components starting with fermentation and moving through the process to the energy center. The peripheral systems can be used by the existing plant when completed.
The new hammer mills and ground corn conveyors are complete. The new corn silo is 85% full. The new silo started filling on July 7 and is currently being filled at 5,000 bushels per day and has to stay fully filled for one week to check settlement. The cooling tower is nearly complete and will be tested in August. The second ethanol load out facility and flare will also soon be operational.
The warehouse addition was occupied in July and is filling with parts from around the plant. One ethanol tank has been tested with water for integrity and water is currently being pumped into the second tank for its check.
In fermentation, all equipment is set along with most piping and inline instruments. Local control panels are installed and control cabling is being run to the devices. The large bridge over the fermenters was lifted on July 25 and piping is being completed to the top of the fermenters. This completes the path to the CO2 scrubber, which is complete along with its supporting structure and awaits the drop of large diameter piping from the fermenters.
The process building saw the slurry pumps and filters set in place, with only the cooling tower chemical treatment skid left to set. All other equipment in the process building and evaporation are in place. A large percentage of tie ins were made in this building during the shutdown held July 21 to 24, which was accomplished on a three day duration at the request of IRE, shortened from five days as originally planned. Electrical work is moving in pace with the piping. All steel is complete in the evaporator area and the concrete roof has been poured. Siding has been delivered to site and will be put on the building starting in August. All of the piping is complete in the area, except at the roof top level. All concrete floors, curbs and containment are complete. Steel to enclose the new slurry tank has not yet been installed.
The steel around the molecular sieves is now complete. All the equipment at the base of both distillation and molecular sieves are in place along with a significant amount of pipe. The large diameter vapor piping between distillation and evaporation and the large condenser piping were installed during July. Again, electrical cabling keeps pace with the pipe work.
All equipment in the energy center is set with peripheral boiler equipment, air compressor, air dryer and wet cake conveyor installed during July. Piping work is progressing well as is insulation and wiring. A few sections of pipe rack have been left out between the energy center and distillation to allow crane access. These racks will be installed shortly, permitting the installation of the DDG transport duct. The steel purlins for siding and roofing are nearly all in place. Stack emissions monitoring equipment arrived at site. ICM and Fagen are finalising the installation details for the new water treatment equipment to be installed in the existing energy center.
IRE approved conceptual drawings for the new DDGS storage and load out building and detail design is underway, and the contract has been awarded for this work. Steel and equipment procurement will begin shortly.
Fencing now extends three sides of the plant, to the west, north and south. A portion of the east fence has been left out to ease movement of construction traffic. Sprinklers for the entire distillation and molecular sieve area, both existing and new have been added to Fagen’s work, at the request of IRE. We also await bids to provide a fire alarm for the maintenance shop and new warehouse. Container lot paving and lighting has been awarded along with other paving around the plant site. Bids have also been requested for a plant-wide emergency notification system. A landscaping plan has been received and is under review.
The expansion project is on budget and progress is still ahead of schedule.
Cooling Tower Side View
Molecular Sieves Steel
Distillation from the Northwest
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The new corn silo is receiving corn and operating from the control system, form July 8th. The controls are fully automated and operate both the original and new corn receiving systems together. A few days’ delay was encountered in bin filling, partly to confirm dependability of the system before filling. The cooling tower is complete, but needs water return pipes and wiring to the motors to function.
The CO2 scrubber and its support structure and stack are fully assembled and await piping and electrical. The fermentation area has most of the lower pipe assembled with overhead pipe in the racks underway. Large diameter vapor piping and process piping in the distillation/evaporation area is progressing. Electrical work is progressing in process areas with most motors already connected and instrument connections started in all areas. Two heat exchangers need to be set onto the mezzanine level. The roof deck is installed over the fermentation area.
The energy center building structure is now fully erected with all equipment and duct runs in place. Electrical and piping work progresses in the energy center.
Tank farm pipe supports are installed with piping and electrical work started. The tank farm pumps are scheduled to be set in the next few weeks. The new ethanol truck loading pad will be poured shortly and the load out skid will follow. The new flare is set in place and piping and electrical work progressing well. The reverse osmosis unit and multi-media filter are on site and await completed design from Fagen to install. Painting and insulation work continue in discrete areas.
We have had two shutdown planning meetings with Fagen and have shortened the planned construction duration to 72 hours continuous with appropriate shutdown and startup sequencing at either end. This is reduced from our original plan and the project team is confident they can do their work in this reduced window. ICM will be on site during the week of July 14th to assist in tie in locations and any outstanding design details.
All rack piers are installed with a few remaining sections of support steel and racks to install, held back to provide access to the energy center. Fencing continues to be installed around the site. Earthwork and grading to building entrances is being done in advance of concrete apron installation. Our civil engineer is preparing a landscape design, after meeting with the City of Rochelle. The warehouse addition is nearly finished with offices already occupied. Design for the DDG storage building is moving ahead, following a scope review meeting with operations.
The expansion project is on budget and progress is now ahead of schedule.
Energy Centre from the Southwest
CO2 Scubber tower and plant from the East
Cooling Tower near completion
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During May the project reached its highest labor count to date, The following progress has been made:
Corn Silo work progressing, work to be completed end of June, Grains and DDG receiving area complete, Fermentation area piping and electrical work well underway, Cooling Tower pumps and adjacent piping complete, boiler set and related facilities going in, DDG dryer conveying done, working on centrifuge conveying, Ethanol Storage tank shells erected, installing floating roofs, and most pipe rack piers complete with rack installation moving forward.
The project continues to progress on time and on budget.
20/05/08 Tank Farm Storage Tank
20/05/08 Cooling Tower Pumps
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The existing plant was shutdown for three days during April to enable new equipment to be installed and integrated to the existing equipment. This was highly successful with the plant brought up and running again within the planed timeframe. All electrical work requiring an outage was done during this shutdown. New spouts and diverter valves were installed on top of the corn silo to improve flow and direct corn to the silo. Fagen completed the scalper and hammer mill installation during this time and tied the new DDG conveyance into the existing system.
As steel and concrete work subsides, the mechanical and electrical contractors are coming to the fore with high levels of productivity to date. Winter weather no longer poses an obstacle and their progress shows in the quantity of equipment installed and trays run throughout the plant. Large quantities of pipe spool pieces have been delivered to site.
The ductwork on top of the existing corn silo is complete and the bucket elevator legs run the full length of the silo. Structural and electrical work is both underway. The new corn silo motor control centre is installed and all the control wiring has been pulled to the top of the silo.
The fermentation building structure is complete and the fermenter pumps and heat exchangers set. Piping has started in the area. Large diameter cooling tower piping, which runs through this area, is well underway and nearly completed at the cooling tower itself. The process addition, south of the existing evaporators is in similar condition with all pumps set and pipe work underway. The electricians have run cable tray in both additions and have a significant length of wire in place.
The boiler was set during the shutdown. This allows completion of the steel for the new energy centre with the northernmost bays already in place. Ductwork between the boiler and the dryers is currently being installed. Most of the work around the DDG dryers is complete and the work has shifted to the centrifuges, smaller process components, remaining steel, piping and electrical work in the energy centre
The ethanol storage tanks are 80 percent done with completion slated in May. The distillation and molecular sieve vessels are set. Additions to the site electrical supply are complete and energized. The new warehouse exterior is nearly complete and work will shift to the interior during May.
Overall the expansion continues to be on time and on Budget.
02/05/08 Corn Silo New Chutes
02/05/08 The boiler being set during shut down
02/05/08 Ethanol Storage Tank
02/05/08 Warehouse exterior
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During the month of March construction work progressed well. The fermenters, slurry and liquefaction tanks are all complete. The Corn Silo building is complete.
Steel structures have advanced rapidly for the south process building addition, fermentation building extension and upper levels of the energy centre.
Installations of the 190 proof condenser, CO2 scrubber and molecular sieves have been completed.
DDG dryer cyclones and ducting within the energy centre are installed and work has shifted to setting conveyors.
Electrical work is moving at a fast pace in all areas of the plant.
Overall the Project remains on time and on budget.
20/03/08 Fermenters Completed
20/03/08 Slurry Tank 20/03/08 Liquefaction Tank
20/03/08 Corn Silo Complete
20/03/08 Molecular Sieves
20/03/08 Energy centre with dryers, ductwork and cyclones in place
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Despite rough winter conditions, work has progressed well in February, the last 2 fermenters are taking shape with three quarters of the work done. The Corn storage silo is on schedule and halfway to completion.
A new electrical room by the cooling tower was completed and has been filled with electrical equipment. The energy centre electrical room is fully populated with gear and wiring is progressing at a rapid pace.
After hours of digging steel erection continues on the energy centre and south process addition in advance of equipment placement. Steel has arrived for the for the fermenter building extension.
Equipment setting is moving quickly with the arrival and placement of the distillation area columns. The molecular sieve columns are right on their heels with arrival scheduled in March. Much of the dryer ductwork and cyclones have been set in place, allowing steel to progress on the energy centre. A large portion of conveyors, pumps, heat exchangers and instruments have arrived at site, in anticipation of the mechanical contract award during March.
Overall the project is on time and on budget.
20/02/08Fermenters from East
20/02/08 Corn Silo from the west
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During January two south Fermenter Side walls half done, with walls of other two fermenter's complete.
Corn Storage roof steel in place with partial panels installed and DDG receiver in place.
Continuation of floor slab Concrete pours in the process area.
Energy centre focused on minor steel work including stairs, railings and wiring in the electrical room.
Stripped forms from mole sieve pad, Mole Sieve and distillation area equipment pads complete.
Erection of first Ethanol storage tank.
New electrical room building completed, Formed and Poured piers for DDG rack West and South of Energy Centre.
Major Equipment delivered onsite included internals for beer column, Rectifier and Side Stripper.
The project remains on schedule and on budget.
28/01/08 South Fermenter's
28/01/08 Corn Silo Roof
28/01/08 DDG Receiver
28/01/08 Energy Centre Electrical Room
28/01/08 Tank Farm
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During December the work was focused on continuation of erection of north fermenters with plans to set 2nd roof early January.
Energy Centre housekeeping pads poured for electrical gear in electrical room, and motor control centre cabinet installation work started
Cooling Tower erection of rack steel work continuing
Corn Storage bin to arrive on site early January with assembly of DDG receiver/bag house
Overall the project remains on schedule and on budget.
Lifting evaporator off truck
Lifting fermenter roof
South process building extension
Good progress on DDGS rack steel
North fermenter's take shape
Energy centre electrical room
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During November Dryer Drums were in place, energy centre steel 30% erected and decking for centrifuge floor in place in advance of concrete placement.
Evaporator Concrete pad poured with evaporators to be set on December 3 through 5,
Work starting inside corn Silo on December 3 with placement of new hammer mill,
Most pipe rack footings and piers in place with exception of intentional omissions for future equipment handling.
Two north fermenter's going up on schedule and foundation work for new corn silo is progressing with good weather .
The Overall project is on schedule and on Budget.
16/11/07 Dryer Drums
16/11/07 Energy Centre Steel Erection
16/11/07 Silo Footing Rebar
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Foundation work continues with completion in the fermentation and cooling tower areas.
Energy centre perimeter foundations are finished and first floor concrete slabs are well underway.
Excavation for the south process building expansion have begun. This area houses the future evaporators and slurry tank.
Steel deliveries began October 30th starting with the energy centre framing.
Steel erection for the energy centre started November 1st.
The tank erector will arrive on site this week and will start with the erection of the fermenter's
The corn storage silo layout begins today with excavation for the foundation starting November 7th. Foundations will be complete in mid-December
Fagen, the process expansion general contractor anticipates startup in December, 2008.
The project remains on schedule and on budget.
02/11/07 Energy Centre Steel Erection
02/11/07 Energy Centre Steel Erection
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During September activity was again concentrated upon concrete work prior to the onset of winter conditions. Fermenter bases are now all formed and are being filled. The energy centre has seen significant activity with foundation walls and column footings now in place. Preparatory work for the corn silos is underway and the additional ethanol storage tanks have seen progress. Photographs below illustrate some of this progress.
Overall the project is proceeding well and remains on target and to budget
(26/09/07) Energy Centre Foundation wall
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(28/09/07) Energy Centre Column Footings
(28/09/07) Energy Centre Perimeter Walls
(28/09/07) Corn Silo Sampling
(28/09/07) Ethanol Tank Rebar
(28/09/07) Ethanol Tank Concrete Pour
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Notice to proceed was given to the constructors, Fagan Inc., at the end of July and work commenced on the 50 million gallon pa expansion in August.
Contractually there is a 21 month construction period with ethanol production expected to begin in May 2009.
An aggressive approach to schedule is being taken to advance work to the fullest extent possible before winter’s onset.
Work to date has concentrated upon concrete work in the fermenter's and the energy centre.
Photos indicating progress to date are shown below and monthly project updates will be issued at the start of each month.
(30/08/07) Fermenter Footing Concrete Pour
(06/09/07) Fermenter Framework
(11/09/07) Fermenter Tieing Rebar
(11/09/07) Early work on the expansion energy centre
Steady Improvement - Existing IRE ("IRE1") plant performance
Having commenced production on 27 December 2006, the plant subsequently passed its acceptance tests by 16 January 2007.
This included producing at above nameplate capacity of 50 million gallons per annum (mgpa) over a 7 day period.
Plant output is measured against nameplate production capacity of 50 mpga. During the first three months of operations, the Plant operated at an average production capacity of 47 mgpa which was above the planned 45 mgpa. During April and May 2007, the Plant operated at an average production capacity of over 55 mgpa and the rates for June to date show further increases largely due to operational experience. The existing permit for the Plant limits annual production to a maximum of 60 million gallons.
Plant operations commenced as of 27 December 2006.
On 6 September 2005, GTL Resources acquired a controlling interest in Illinois River Energy to build an Ethanol plant at Rochelle Illinois. Construction of the plant commenced on 12 September 2005 and was completed on 27 December 2006 on time and on budget. The site is in a prime location in respect of corn supply and Ethanol marketing.
The company’s objective is to benefit from the USA governments legislation of August 2005 that renewable fuel consumption must double to 7.5 billion gallons per annum by 2012.
(Note - The 2007 Renewable Fuel Standard mandated significant further consumption to 36 Billion gallons by 2022)
IRE’s business
IRE was formed on 2 February 2002 as a Delaware limited liability company, for the purpose of constructing and operating an ethanol plant in Illinois. In October 2004 IRE acquired the site of approximately 81 acres on which the Plant is now built. The Plant is a dry-milling facility, further details of which are described in “Ethanol : The Production Process”.
Location
The Plant is near Rochelle, Illinois, approximately 70 miles west of Chicago. It has several favourable attributes for locating a large scale ethanol plant, including:
- an abundant corn supply - Illinois ranks second in US corn production with more than 1.5 billion bushels produced annually; the Plant will initially require 18 million bushels of corn when operating at full capacity;
- close proximity to markets - the Plant is the closest ethanol plant to Chicago, one of the largest ethanol markets in the United States. The Company intends to exploit, through the good transportation infrastructure which the Plant will enjoy, the potential markets local to the site in Illinois, concentrating on the Chicago/Milwaukee area;
- transportation links - Rochelle is situated on an intersection of mainline rail systems. In addition, the Plant can use Rochelle’s local rail system which connects into the main rail lines without incurring switching fees;
- close proximity to the rail to truck intermodal facility near Rochelle - this should bring significant truck traffic to the area and allow IRE to pick and choose among many possible subcontractors for transporting ethanol and distiller’s grains; and
- the availability of utilities run by the City of Rochelle.
Minority Interests in IRE
There are a number of local minority interest holders who hold approximately 12½% of the equity in IRE. The Directors believe that these local partners are an advantage to IRE because of their detailed understanding of the background of the corn supply industry and ethanol industry and are expected to be able to assist IRE in obtaining the permits required to expand the Plant. During the development phase of the Plant the Company has worked closely with a number of these minority unit holders and established solid working relationships with them that the Directors believe will assist the Company as it moves forward with business operations and future expansion plans.
Production contractors
All of the major contractual arrangements for the construction and operation of the Plant are fully documented and agreed.
IRE entered into a Design/Build Agreement with Fagen in connection with the design, construction, and performance testing of the existing plant and also for the expansion project now underway. In connection with the Design/Build Agreement ICM has issued to IRE a licence to use certain technology and information in the design and construction of the Plant. ICM also grants to IRE a perpetual licence which allows IRE to use certain proprietary property of ICM’s in the operations of the Plant. In addition, Provista are providing services for marketing ethanol and UBE for the marketing of distillers’ grains. Cargill are providing the feed stocks required by the Plant, namely corn and natural gas and the associated risk management activities.
Fagen is a considerably experienced design and build contractor which has been involved in the construction of more ethanol plants than any company in the industry. ICM, an experienced engineering, manufacturing and merchandising operation, has been involved in the research, design and construction of ethanol plants for many years. Fagen and ICM have often combined their considerable capabilities to provide turnkey services to ethanol plant developers.
Commercial Agreements
Cargill – Corn supply and risk management
Provista, United Bio Energy (UBE) – Ethanol sales, distiller's grains sales
Fagen/ICM – Design and construction of the plant
Plant Statistics
With the Plant now producing ethanol at its full 50 million gallon pa. capacity, it
- uses approximately 17.8 million bushels of corn pa.
- uses approximately 1.5 million Btu of natural gas
- produces approximately 175,000 tons of dried distiller’s grains pa.
- produces approximately 144,000 tons of raw carbon dioxide pa.
Distiller’s grains, are a by-product of the dry mill ethanol production process, and are a high protein, high energy animal feed supplement. Wet distiller's grains require less gas for drying but with a short shelf life offer lower realisations.
Guarantees contained in the Fagen Inc construction contract include:
- Minimum ethanol yield of 2.8 denatured gallons per bushel of corn
- Minimum DDGS yield of 18 pounds per bushel of corn
- Maximum natural gas usage of 34,000 Btu per denatured gallon on ethanol produced