updated: 4/27/2007 5:09:39 PM

Carmel Company Helps Produce New Farm Pellet

InsideINdianaBusiness.com Report

Carmel-based Ag Pellet Energy has partnered with Texas-based Landers Machine to create a new pellet product that can be used as a fuel for energy or as a feed for livestock. The new product is made from 100 percent dried distiller grains (DDG). Officials say burning the DDG pellet with coal helps reduce emissions. Cattle feeding tests are scheduled this year with assistance from Iowa State University.

Source: Inside INdiana Business

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Press Release

Ag Pellet Energy based in Carmel, Indiana, and Landers Machine, located in Ft. Worth, Texas, have produced a new pellet product derived from 100% dried distiller grains (DDG) that can be used either as a fuel for energy or as a feed for livestock. The innovation of this new product comes in the form of a “100% DDG Pellet” with no additives or compounds.

Gary Wobler, president of Ag Pellet Energy stated, “This technology breakthrough will have tremendous economic benefits for the ethanol industry by increasing operational efficiencies. The 100% DDG Pellet is up to 28% denser than granular DDGs allowing for greater savings in shipping costs. Increased flow-ability will also reduce idle-time when off-loading rail cars, trucks, and barges. Natural gas consumption can also be reduced when pelleting the DDG material.”

Ag Pellet Energy received a “Values Fund” grant with assistance from Mary Holz-Clause and staff at Iowa State University for the purposes of developing a DDG prototype pellet. The 100% DDG Pellet was developed with technical assistance from Scott Landers of Landers Machine in Fort Worth, Texas. Production development and test-runs of the pellet were conducted at the Waterloo Mills Company in Waterloo, Iowa. After several months of research and testing, Ag Pellet Energy developed the “100% DDG Pellet” to serve both the fuel and feed markets.

In March, a test-burn was conducted at the Wisdom Station power plant, Spencer, Iowa, which is owned and operated by Corn Belt Power Cooperative, Humboldt, Iowa. The test burn consisted of mixing 10% of Ag Pellet Energy’s DDG Pellets with 90% coal at the power plant. Although the plant did not achieve full generation output with the fuel blend, a reduction in emissions was realized. Mike Thatcher, vice president, generation, at Corn Belt Power says, “With the fuel mixture, we saw a reduction in the percent opacity, which is the measurement of visual emissions coming out of the stack. We believe the DDG ash causes the precipitator to perform better.”

Cattle feeding tests will also be conducted later this spring through Iowa State University with on-going analysis of distillers' grains feeding and delivery to cattle. Dr. Dan Loy, Researcher at Iowa State will be working with producers on the initial tests. “Until now, a 100% DDG pellet was considered to be impossible to pelletize for livestock feed due to the amount of oil and fat found in the standard DDG material. This new product is very unique and should have a distinct advantage for the feed industry and livestock producers,” said Dr. Loy.

Gary Wobler was impressed with the collaborative effort he found in Iowa. “We are very fortunate to have worked in cooperation with Landers Machine, LDJ Manufacturing in Pella, the Waterloo Mills Company, Corn Belt Power, and Iowa State University. Special thanks, goes to Iowa Area Development Group in West Des Moines for coordinating this project,” stated Wobler from his office in Carmel, Indiana.

Ag Pellet Energy and Landers Machine have introduced this concept to the ethanol industry and are forming a new company, Ag Fuel & Feed, which will be based in Iowa. The “100% DDG Pellet and Processing System” is designed to be located at or near ethanol plants. Filing for “patent-protection” is currently underway on the “100% DDG Pellet and Processing System” for Ag Fuel & Feed.

Source: Ag Pellet Energy

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