YPC - The DDGS Forum

Increasing the value of the
Ethanol Co-Product
Pannonia DDGS Forum, Budapest 2014
Peter Williams and
Angela Booth
The Agriculture Group of
Associated British Foods plc
AB Agri
Frontier
• Agronomy
expertise, crop
inputs and
grain marketing
services to
arable farmers
and to food,
drink and
bioethanol
producers
AB Connect
• Marketeer of
food, drink and
biofuel coproducts
• Leading British
manufacturer
of pig and
poultry
compound
feed
• Encompassing
Trident, KW and
ABN brands
AB Sustain
• Designs,
develops and
delivers
sustainable
agricultural
supply chain
solutions
• Specialists in
supply chain
management,
GHG modelling,
biodiversity and
animal welfare
AB Vista
• International
supplier of
microingredients to
animal feed
manufacturers
• Provider of NIR
calibrations via
AuNIR
www.abagri.com
Premier
Nutrition
China
• Nutrition solutions • Compound feed,
provider that
produces starter
feeds for the pig
sector and
premixes for the
pig, poultry, dairy,
beef, aqua and
pet sectors
concentrates,
pre-mixes and
co-products from
the Chinese food
and drink industry
Why is the co-product stream so vital to the process?
www.abagri.com
5 good reasons
• For many plants the value of the co-product stream can be the difference
between profit and loss
• The co-product stream can account for approx 40% of plant energy costs
• Optimising the feed co-product disables the food vs fuel debate
• A high value co-product contributes to lowering the carbon foot print of a
bioethanol plant
• Increasing value of the co-product makes a direct addition to the bottom line
3
Demand for livestock products will increase
www.abagri.com
Why cereals alone will not do the protein job
www.abagri.com
Animal Feed
Cereal Proteins
10
23-50
≈23.0
9
14-16
Soya bean meal
11
48
Soya bean
Animal feed production relies on an
available source of concentrated protein
36
5
SBM – soya protein is not nutritionally perfect
www.abagri.com
A host of anti-nutritional factors:
• Trypsin inhibitor.
• Antigens: Glycinine. β-conglycinine.
• Lectins.
• Non Starch Polysaccharides and Oligosaccharides.
• Urease, goitrogens, saponins …etc.
6
The high fibre content and relatively low protein
limits DDGS inclusion in non-ruminant diets
www.abagri.com
Current market share estimates of US DDGS
consumption
Beefcattle
Dairy cattle
Swine
Poultry
7%
10%
27%
56%
USDA Economic Research Service Oct 2011
7
Global supply of Fishmeal is stagnant,
while demand is growing
Global 1990-2021
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Global Fishmeal production is stagnant
Global Fishmeal production
(Mio. Tons)
10
9
0.4%
0.1%
8
6,4
7
6,8
6,5
6
5
4
3
2
1
0
'90
'95
'00
'05
'10
'15
'21
Demand is for Fishmeal, which so far has been essential in the fish diet, is rising, but
supply is stagnant
Source: OECD-FAO Agricultural Outlook 2012
Global meat production CAGR:
‘95-’10,
‘11-’21
Beef:
1.1%,
1.5%
Pig:
2.3%,
1.4%,
Poultry:
4.1%,
2.2%
Can protein feeds derived from ethanol
production contribute to the shortfall in
high quality protein?
The dry grind ethanol process generates
large quantities of grain protein & yeast
www.abagri.com
ash/protein
starch 60-70%
sugar
NSP
Oil
Wheat/Corn
Water
Biorefinery
Enzymes
CO2
Protein; Fibre ratio 1:1
Ethanol
yeast protein ash sugar
NSP
bio-products
protein
fibre
Oil
Approx
30% of
original
grain
DeWater
DDGS
Distillers Dried Grains and Solubles
30-40%
OPEX
energy
Some protein separated
from fibre
Yeast a suspended solid
Yeast a valuable protein
plus…..
9
Recovery of yeast Protein Concentrate (YPC)
By additional separation of the co-product stream
www.abagri.com
Grain
corn/wheat
Processing and
fermentation
Ethanol
Distillation
YPC
Separation
Syrup
DDGS
Fibre
10
YPC an AB Agri patented process
www.abagri.com
Ethanol producers leveraging
co-product value
A process for recovering an
added value high protein
concentrate
A novel protein supplement
recovered from a dry grind
ethanol process
Intellectual property
11
YPC is a novel yeast plus protein supplement
With no ant-nutritional factors like soya
www.abagri.com
DDGS
70,0
YPC
60,0
60,0
50,0
50,0
40,0
40,0
%
%
30,0
30,0
20,0
20,0
10,0
10,0
0,0
0,0
PROTEIN
OIL
EECFIBRE
Equalised to 92% Dry matter
NDF
Protein
70,0
YPC1
YPC2
Yeast
YPC3
12
Yeast activity and EU use of Antibiotic Growth Promoters
www.abagri.com
• Whole yeast; a EUBIOTIC
- As a probiotic – modulation of gut
bacteria, improved innate immunity,
improved disease resistance,
•Yeast β-glucan
- Improved immunity, improved disease
resistance, improved growth
performance, reduced sea lice
prevalence
• Yeast MOS
- Modulation of gut bacteria, improved immunity, improved disease resistance, improved growth
performance, improved gut morphology and immunity, reduced sea lice
• Yeast nucleotides
- Modulation of gut microbiota, improved innate immunity, improved disease resistance, improved
growth performance, improved gut morphology and immunity, improved mucus production
• Minerals
- Yeast biocomplexed minerals – improved mineral digestibility
13
YPC is an ideal EUBIOTIC for fish and poultry
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They grow faster
with YPC
Growth of trout
142
Growth of chicks
450
400
140
350
138
300
136
250
200
134
150
132
100
130
128
50
0
10
15
% YPC inclusion
20
0
0
7.5
12.5
% YPC inclusion
17.5
14
Implications of biorefining for ethanol &
livestock production
www.abagri.com
• Meat production is one of the main causes of man-made climate change
-
Nearly 20% of global greenhouse gas (GHG) emissions.
-
Feed production causes >40% of emissions from livestock production.
• In this context land use change is a major contributor to GHG production
• Used in biorefining, cereal crops, can substantially reduce carbon emissions
from EU meat production.
• Simple fractionation of Co-product streams
−
Alternative co-products suitable for high value monogastric and aqua markets
−
A potential EUBIOTIC product – a protein/yeast feed additive to improve gut health
−
Capturing the additive value of yeast
• Increased co-product revenue
-
Market diversification; hedge against trend swings
• Dry grind plant efficiencies in the dryer and evaporators
15
The future: a complete Bio refinery
www.abagri.com
The biorefinery is an opportunity to optimise the value of
crops for food, feed, fuel and industrial feedstocks
16