AG CONFERENCE PRESENTATION

1
Status of Proposed Plants in Kansas
2
The State of the State
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Kansas Alternative Energy Working Group

• Corey Mohn, Lyle Peterson, Kansas Commerce
• Value Added Center, Community Development Block
  Grants, tax credits
• Liz Brosius and Ray Hammarlund, Kansas Energy
  Council (KEC)
• Coordination and legislative issues
• Carole Jordan, Kansas Department of Agriculture
  (KDA)
• Overall agricultural impact
• Ken Kopp, KDA Division of Water Resources (DWR)
• Water resource allocation
• John Ramsey, Kansas Department of Health and
  Environment (KDHE)
• Air, water, environmental remediation, livestock
  waste
• Edie Martin, Kansas Department of Revenue (KDOR)
• Licensing, bonding, motor fuels tax, tax credits
• Jesse Romo, Kansas Department of Transportation
  (KDOT)

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(No Transcript)
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Operating Kansas Ethanol Plants (10)

• Abengoa Bioerergy, Colwich 25 MGY
• East KS Agri-Energy, Garnett 51 MGY
• E.S.E. Alcohol Inc., Leoti 2 MGY
• Gateway Ethanol, Pratt 60 MGY
• MGP Ingredients, Atchison 25 MGY
• Prairie Horizon, Phillipsburg 40 MGY
• Conestoga/Bonanza Bioenergy 55 MGY
• Reeve Agri-Energy, Garden City 12 MGY
• U.S. Energy Partners, Russell 55 MGY
• Western Plains Energy, Campus 45 MGY
• __________________________________________________
  __________________________________________________
  ____
• TOTAL PERMITTED CAPACITY - 370 MGY

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Operating Plants Bushel Consumption

• Abengoa Bioerergy, Colwich 9.3 MBY
• East KS Agri-Energy, Garnett 18.9 MBY
• E.S.E. Alcohol Inc., Leoti 0.7 MBY
• Gateway Ethanol, Pratt 22.2 MBY
• MGP Ingredients, Atchison 9.3 MBY
• Prairie Horizon, Phillipsburg 14.8 MBY
• Conestoga/Bonanza Bioenergy 20.4 MBY
• Reeve Agri-Energy, Garden City 4.4 MBY
• U.S. Energy Partners, Russell 20.4 MBY
• Western Plains Energy, Campus 16.7 MBY
• __________________________________________________
  __________________________________________________
  _____
• TOTAL EXISTING CONSUMPTION 137.1 MBY

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Kansas Ethanol Plants Under Construction (6)

• Abengoa Bioenergy 2 100 MGY
• Arkalon / Conestoga, Liberal 110 MGY
• E Caruso LLC, Goodland 20 MGY
• Everton Energy, Concordia 121 MGY
• Kansas Ethanol, Lyons 55 MGY
• Nesika Energy, Scandia 21 MGY
• ___________________________________________
• TOTAL UNDER CONSTRUCTION 427 MGY
• Note One biodiesel plant under construction
  Renewable Energy Group, Emporia 72 MGY

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Under Construction Bushel Consumption

• Abengoa Bioenergy 2 37.0 MBY
• Arkalon / Conestoga, Liberal 40.7 MBY
• E Caruso LLC, Goodland 7.4 MBY
• Everton Energy, Concordia 44.3 MBY
• Kansas Ethanol, Lyons 20.4 MBY
• Nesika Energy, Scandia 7.8 MBY
  ___________________________________________
• PROPOSED BUSHEL CONSUMPTION 157.6 MBY
• NEAR-TERM BUSHEL CONSUMPTION 294.7 MBY
• (Existing Under Construction)

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U.S. Ethanol Plants and Capacities by State
IA (28) 1,796 MGY MN (16) 677 MGY NE (15) 781
MGY SD (14) 627 MGY KS (8) 211 MGY IL (7) 679
MGY WI (6) 280 MGY IN (5) 312 MGY ND (4) 263
MGY MI (4) 212 MGY MO (4) 155 MGY
CA (4) 69 MGY CO (3) 85 MGY KY (2) 35
MGY TN (1) 67 MGY AZ (1) 55 MGY OR (1) 35
MGY NM (1) 30 MGY WY (1) 11 MGY OH (1) 4
MGY VA (1) unknown
Total U.S. Capacity 6.4 BGY Additional
Capacity Under Construction 6.0 BGY Source
American Coalition for Ethanol Renewable Fuels
Association July 2007
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U.S. Ethanol Plants - Bushels Consumed
IA (28) 665 MBY MN (16) 251 MBY NE (15) 289
MBY SD (14) 232 MBY KS (8) 78 MBY IL (7) 252
MBY WI (6) 104 MBY IN (5) 116 MBY ND (4) 97
MBY MI (4) 79 MBY MO (4) 57 MBY
CA (4) 26 MBY CO (3) 32 MBY KY (2) 13
MBY TN (1) 25 MBY AZ (1) 20 MBY OR (1) 13
MBY NM (1) 11 MBY WY (1) 4 MBY OH (1) 2
MBY VA (1) unknown
Total U.S. Consumption 2.4 BBY Under
Construction Potential Consumption 2.2
BBY Source American Coalition for Ethanol
Renewable Fuels Association July 2007 Assumes
2.7 gallons per bushel
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Resource Requirements

• Between 3 and 4 gallons of water per gallon of
  ethanol produced
• Under Kansas Water Law, must be allocated from
  existing resources at a of original use.
• Rice County Ethanol purchased irrigation rights
  for their plant at 68 of former allocation

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Location, Location, Location

• Access to grain shed
• Impact on historical basis
• Import
• Kansas Advantage? Livestock
• Access to Rail
• Where is the market?
• Unit Train Size Necessary?
• Class One? 6 or 7 left? CSX, NS, UP, BNSF, CN,
  KCS, CP
• Access to Livestock for byproducts
• Ability to feed DWG a big advantage

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U.S. Biodiesel Plants by State
TX 20 IA 11 CA 9 TN 8 NC 7 OH
6 GA 5 MN 5 MO 5 PA 5 WA 5
AL 4 IN 4 MS 4 VA 4 WI 4 CO
3 IL 3 NE 3 9 States with 2 12 States with
1 KS 0
Total U.S. Capacity 1.39 BGY Additional
Capacity Under Construction 1.89 BGY Source
National Biodiesel Board June 2007
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The State of the Future
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Abengoa Bioenergy

• U.S. Department of Energy Grant Award Clean
  Fuels Initiative
• 76 million on 300 million project
• Commercial facility to develop a commercial
  facility to produce ethanol from lignocellulosic
  biomass (operational in 2010)
• Hugoton, Kansas
• 100 MGY capacity when complete
• 15 MGY cellulosic
• 85 MGY starch

16
Black and Veatch

• Biogasification
• Gasification of carbonaceous material to provide
  renewable energy
• Biomass (Flexibile Feedstocks) gt Burner (850
  degrees C) gt Syngas
• Products Ethanol, Methanol, Ammonia, Synthetic
  Gasoline, Synthetic Diesel, Synthetic Aviation
  Fuels, Hydrogen
• Looking to build demonstration plant

17
ICM, Inc.

• Partnership with Lifeline Foods, St. Joseph, MO
• Pilot plant and research and development lab for
  cellulosic ethanol
• Demonstration facility
• Potential location in Kansas

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• Ray Hammarlund
• Kansas Corporation Commission
• [phone]
• www.kcc.ks.gov

Corey Mohn Kansas Department of Commerce (785)
296-3034 www.kansascommerce.com