Barley Ethanol project - Maryland

Summary

Eastern Shore Processing LLC (“ESP”) is a Maryland company formed for the purpose of developing a small scale advanced biofuel, carbon dioxide, and high protein feed production facility on the Eastern Shore of Maryland.  ESP focus is to build highly efficient small scale production located near end users and optimized to match local markets. The nameplate capacity of this facility is 10 million gallons per year of bioethanol. The primary feedstock for the plant is local barley.

Project Highlights

The ethanol produced at the facility is an advanced biofuel as defined in EISA 2007; feedstock is hulled barley (non-corn). Process uses gasification of biomass to generate all required energy, thus providing maximum possible GHG reductions and qualifying the project for additional RIN credits, carbon credits, and REC. Products are ethanol, CO2, and protein meal; site has CSX rail spur. EnergyOne will manage, operate, and maintain the entire facility for ESP.

Core Strategy

EnergyOne – a company that owns and manages ESP - has created a blueprint for distributed low cost production of advanced renewable fuel and animal feed from barley in Maryland. Based on this concept, ESP will build a small scale barley ethanol and carbon dioxide production plant designed to leverage local resources and efficiently meet local market needs.

ESP target markets are local Mid-Atlantic markets for ethanol, animal feed and carbon dioxide which include the Eastern Shore of Maryland, Delaware, Baltimore, Washington DC, Philadelphia, southern Pennsylvania, and Virginia. In these markets, ESP will be the only producer of ethanol, CO2, and barley protein meal with a strong market demand for these products.

ESP has established a strategic partnership with Perdue Farms, which is headquartered in nearby Salisbury, MD and has substantial operations on the Eastern Shore of Maryland. Perdue Farms will supply ESP with barley feedstocks and purchase all of ESP barley protein meal product. The ESP ethanol plant will be co-located with Perdue’s elevator and feed mill in Hurlock, MD; ESP will use barley stored at Perdue’s elevator as a feedstock in ethanol production and will send its barley protein meal product “across the fence” to Perdue’s feedmill to be incorporated into feed products. Perdue will use the protein meal in its own production as well as market the excess meal to its customers and will provide full marketing service and support for the entire barley protein meal production of ESP.

The Opportunity

Fuel ethanol produced by ESP qualifies as an advanced biofuel due to the advanced energy efficient technology, barley feedstock, and onsite energy generation from waste products.  The RINs generated from advanced biofuels have significant value and should command a premium over corn ethanol. ESP estimates in excess of 40 million gallons per month local demand for ethanol in the service area of the proposed facility. The eastern shore of Maryland, Delaware, and southern Pennsylvania have large and year round markets for animal feed and carbon dioxide (dry ice, carbonation). The ESP ethanol plant would help these local customers as it will offer Barley Protein Meal, a locally produced alternative high protein, high value feed at a lower cost.  Maryland’s food processing industry also drives demand for liquid CO2.  The CO2 would be used locally for refrigeration and beverage carbonation.

Site Location and Description

Proposed 15 ac Hurlock, MD location provides an ideal location for a small scale ethanol plant in Maryland.  The site is located next to Perdue Farms Hurlock Elevator and Feedmill which will supply ESP with barley feedstock and use the barley protein meal animal feed product.  The selected site has 15-20 additional acres available which provides adequate space for project needs as well as allows future expansion potential.

Feedstock

ESP will use local Maryland grown barley as well as barley grown in neighboring states which will be shipped by truck and rail to minimize transportation costs.  In addition barley is a winter crop that would be grown specifically for the production of ethanol and would not compete with land for food production.  The state of Maryland enthusiastically supports barley based ethanol as it will provide substantial economic benefits to local farmers growing barley.

Timeline

Construction of ESP facility is expected to be completed by ICM, Inc. and takes eight to ten months. The short timeframe is due to the availability of facility engineering and fabrication, the site and business preparation that ESP has undergone, and the predictability of environmental permitting.

Project Financial Requirements

The total project cost for the 10 MGY plant is $40 million dollars.