Project Overview

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Project Overview

• Kenaf Processing Facility
• Fuel Fiber Company
• Tim Castleman

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Project Goals

• Our goal to build operate a state-of-the-art
  processing facility for kenaf
• Our target production 100,000 tons of 90-98
  core-free fiber and 5 - 25 million gallons of
  ethanol per year
• Planning 12 months
• Construction 2 years
• First production run 9-12 months after
  construction begins
• Profitable after 14 months of operation

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Description

• A renewable energy system
• Integrated technologies
• Agriculture
• Harvest and transport
• Fiber separation marketing
• Ethanol other co-products marketing
• Future markets five-fold increase within 10
  years, twenty-fold within the next 20 years

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Competitive Analysis

• Our main competition for fiber, fuel and other
  chemicals is petroleum.
• Oil is selling for 25-30 a barrel now
• 60 of our raw industrial input of petroleum is
  from foreign sources
• We will localize production of raw material for
  fuel and industry
• There is a finite supply of petroleum
• 14 years if imports stopped now
• 28 years if we continue as we are

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Petroleum products

• Petroleum serves as a raw feedstock for 70,000
  different products
• Synthetic materials are often toxic
• Studies link these toxic products and byproducts
  to numerous human illnesses, (cancer, birth
  defects, etc.)
• Petroleum toxins and poor management of forestry
  have led to an environmental crisis

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Competitive Analysis, cont.

• Companies that are going this direction
• ADM
• Cargill
• Dow
• Monsanto
• Kafus
• Kenaf and other natural fiber
• Ford, Visteon and Enron are invested
• Capitalized in excess of 80 Million
• Involvement in ethanol is not known

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Technology

• New and patented technology
• State-of-the-art separation process
• Breakthrough enzyme technology by DOE, NREL, BFD?
• Advances in current Acid Hydrolysis Technology
• Standards need to be adopted
• Ground floor for our input
• Department of Energy, National Renewable Energy
  Laboratories, Bio-Fuel Development Program

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Technology
Method Patent Pending
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Proposed Site

• On active rail line
• Idle since 1993
• Former petroleum refinery
• 10 storage tanks
• Surrounded by cotton farm community
• On pipeline
• Current permit

Fuel Fiber Company
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Co-Products

• Specialty chemicals
• Bio-plastic components
• Oil absorbents
• Animal bedding
• Composite panels
• Non-woven mat materials
• Fertilizer and soil amendments
• 20 of profit re-invested in RD

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Team / Resources

• Resources available for this project
• Tim Castleman, Rudy Schnable, Stephen Irwin,
  Larry Jech, Doug Wilson, Richard Gordon, Peter
  Fox, D.P. Bogner, Malcolm Scott, others
• 20 years local experience growing kenaf
• 50 years of university research
• DOE and USDA labs, knowledge bases, partnering
  and funding
• Arizona State University - East, School of
  Agri-Business and Resource Managment

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Procedures

• New method using 4 current technologies
• Grow kenaf
• Harvest kenaf
• Separate the fiber to 90-98 purity
• Convert remaining lignocellulose to ethanol and
  other co-products

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Benefits

• This combination provides profitability
  where one product would not
• Rural development project
• Environmental
• Renewable Resource System
• Close-carbon loop
• Cleaner Fuels, Air Water
• Economic
• Jobs (75-150 new jobs per facility)
• Put land back into production

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Schedule

• 12-month planning period
• Complete planning activities
• DOE and USDA funding
• Complete engineering and testing
• Arrange construction schedule
• Production begins 9 months from start of
  construction
• Full-scale production within two years
• Profitability after 14 months of operation

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Current Status

• Preliminary investigation is complete
• Kenaf grows well in Arizona
• Fiber separation technology exists
• Ethanol production technology exists
• There are markets for both
• There are many value-added co-product
  opportunities

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Related Documents

• Technology Roadmap for Crop/Plant-Based Renewable
  Resources 2020
• September 1999 ASU Feasibility Study
• Fuel and Fiber Company Business Plan
• Ethanol Industry Outlook 1999 and Beyond
• Presidential Executive Order (August 12, 1999)