POET signs $284,000 deal with Iowa State University to support feedstock research

POET has established a research collaboration with Iowa State University to support feedstock research. The project will provide research funds aimed at improving POET’s BPX hydrolysis process that eliminates the use of heat in starch-to-sugar conversion and ethanol fermentation. BPX is used at 20 of POET’s 22 plants. POET is contributing $284,000 to a research effort led by Jay-lin Jane, a carbohydrate chemist and professor. The study will identify which lines of corn starches are more easily hydrolyzed.

POET has been making strong expansionary moves in recent months. In additino to opening its corn ethanol plant in Leipsic, OH, the company has proposed a 115 Mgy corn ethanol plant in Farmersburg. In South Dakota, POET’s ethanol plant near Chancellor, will be expanded from 50 to 100 Mgy without expansion of fossil fuel usage. The expansion includes the addition of a solid waste fuel boiler that will produce more than 50 percent of the plant’s power needs.

The CEO of POET said recently that the company will increase production capacity to at least 1.5 billion gallons in 2008 through new plant construction. Speaking at the Reuters Global Agriculture and Biofuels Summit, Jeff Broin said that the company expects also to add cellulosic fuel capabilities to most of its 22 existing plants. POET is constructing four new ethanol plants and expanding one other.

POET also recently announced that its Emmitsburg, IA cellulosic ethanol plant, jointly funded with the US Department of Energy, will produce 125 Mgy including 25 Mgy from corn fiber and cobs. The plant, which will be operational in 2011, will pay between $30 and $60 per ton of cobs and fiber for the 850 tons per day required by the plant. The cob price equates to a price of $0.63 and $1.26 per bushel, compared to more than $4 per bushel for corn.

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