Frequently asked Questions
This is a list of the FAQ's concerning all aspects of GTL Resources expertise
What is GTL?
What is Ethanol?
What is Ethanol used for?
How is Ethanol produced?
What is the demand for ethanol?
What are the other products?
Acronym stands for Gas to Liquid.
Ethyl alcohol, also known as ethanol or grain alcohol, is a flammable, colorless chemical compound, one of the alcohols that is most often found in alcoholic beverages. In common parlance, it is often referred to simply as alcohol. Its chemical formula is C2H5OH. Ethanol has been known to humans since prehistory. Its isolation as a relatively pure compound was probably achieved first by Islamic alchemists who developed the art of distillation.
Ethanol has important applications. Primarily, Ethanol can be used as an oxygenate capable of reducing air pollution and improving automobile performance.
Product |
Use |
Oxygenate |
to create a cleaner burning gasoline fuel (about 5% ethanol mixed with each gallon of gasoline) |
Fuel Extender |
a fuel called E-10 (10% ethanol/90% gasoline) |
E-85 |
a blend of 85% ethanol and 15% gasoline |
In Brazil, all vehicles currently run on a mixture of 25% ethanol and 75% gasoline. To achieve this in the United States, about 600 new ethanol plants would need to be constructed.
Ethanol is generally produced by processing corn. The grain is received by rail and by truck, then weighed and unloaded in a receiving building. It is then transported to storage bins. Thereafter, it is conveyed to a scalper to remove rocks and debris before it is transported to a hammer mill or grinder where it is ground into a mash and conveyed into a slurry tank for enzymatic processing. Then, water, heat, and enzymes are added to break the ground grain into fine slurry. The slurry will be heated for sterilization and pumped to a liquefaction tank where additional enzymes are added. Next, the grain slurry is pumped into fermenters, where yeast is added, to begin a batch fermentation process. A vacuum distillation system will divide the alcohol from the grain mash. Alcohol is then transported through a rectifier column, a side stripper and a molecular sieve system where it is dehydrated. The 200 proof 100% ethyl alcohol is then pumped to farm shift tanks and blended with 5% percent denaturant, usually gasoline, as it is pumped into storage tanks. The 200 proof ethyl alcohol plus five percent denaturant constitute Ethanol.
Corn mash from the distillation stripper is pumped into one of several decanter type centrifuges for dewatering. The water (thin stillage) is then pumped from the centrifuges to an evaporator where it is dried into thick syrup. The solids that exit the centrifuge or evaporators (the wet cake) are conveyed to the distiller’s dried grains dryer system. Syrup is added to the wet cake as it enters the dryer, where moisture is removed. The process will produce distiller’s grains, which is processed corn mash that can be used as animal feed.
What is the demand for Ethanol?
Recently, California has been the focus of a major Ethanol campaign. Due to concerns about ground water contamination California banned the use of MTBE beginning January 1, 2004. MTBE is an oxygenate commonly used in fuels for compliance with Federal Clean Air Act mandates. MTBE is a major competitor of Ethanol. Ethanol is the most readily available substitute for MTBE in this market. As of January 1, 2004, all of California's reformulated gasoline now contains Ethanol, resulting in a market of more than 700 million gallons per year. California represents a market of about 950 million gallons annually due to the oxygenate requirement for reformulated gasoline (RFG). In June of 2001, California requested a waiver from the RFG oxygenate requirement under the Clean Air Act. The Environmental Protection Agency (EPA) initially denied the request. However, the U.S. Court of Appeals for the Ninth Circuit's July 2003 decision overturned that denial and remanding the decision back to the EPA for further review. Since the Court's decision, California has reissued its appeal to the EPA. As of November 2004, the EPA has yet to deliver a decision on the California waiver request. In addition, New York and Georgia have since filed requests for waiver of the oxygenate requirement. On September 30, 2004, Georgia's request was denied. As of December 2004, New York's request was still pending.
Another emerging Ethanol market is the USA Northeast. As in California, the primary motivations are the health and water concerns surrounding the use of MTBE. For example, the state legislatures of New York and Connecticut also banned the use of MTBE beginning on January 1, 2004. It is expected that Ethanol to replace MTBE as the oxygenate in the RFG program and the Renewable Fuels Association estimates the generation of markets totaling approximately 450 million gallons per year in New York and Connecticut. However, other MTBE replacements may capture a portion or all of these potential markets. The ultimate size of the California and USA Northeast markets will depend on how the RFG oxygenate and MTBE debate plays out in the political arena.
Ethanol demand is expected to continue at a very aggressive pace. Today's demand of more than 3.3 billion gallons per year is expected to grow to 4 billion gallons per year by the year 2012 under current law according to the National Corn Growers Association. If the use of MTBE is phased out on a national level in the next few years and the RFG oxygenate requirement remains unchanged, the anticipated growth may yield a doubling of Ethanol demand much sooner.
It is anticipated that the forecasted increased future demand for Ethanol will assist GTL’s entry in this industry. The dramatic rise in ethanol utilization in the coming years predicted by the NCGA is expected to substantially increase present Ethanol production capacity to supply this demand.
The Mandating of the 2007 Renewable fuel Standard requiring use of 9 billion gallons of renewable fuels in 2008 growing to 36 billion gallons by 2022 is now further evidence of political support for a growth in ethanol demand.
The principal by-product of the ethanol production process is distiller’s grains, a high protein, high-energy animal feed supplement primarily marketed to the dairy and beef industry. Distiller’s grains contain bypass protein that is superior to other protein supplements such as cottonseed meal and soybean meal. According to a 1986 study by the University of Nebraska reported in "Nebraska Company Extension Study MP51—Distiller’s Grains," bypass proteins are more digestible to the animal, thus generating greater lactation in milk cows and greater weight gain in beef cattle.
In addition, the Plant is expected to produce raw CO2 as another by-product of the ethanol production process. GTL plans to sell the CO2 over the fence to a major supplier of medical and industrial gases.