The Business of Manufacturing Greenfield Grain-Based Ethanol: Increasing Opportunities for Growth

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We all want to live in a world where we don’t have to worry about our food and the environment. And while people are making great progress towards that goal today, no one has yet found a way to execute it perfectly. But with the advent of renewable energy technology, there is a light at the end of the tunnel. Today we’re going to take you through an interesting interview on Greenfield grain-based ethanol plant.

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What Is Greenfield Grain-Based Ethanol Plant?

Greenfield grain-based ethanol plant is a new type of factory that switches the production of bio-ethanol from the traditional way, which is taking out precursors from agricultural crops. This new method uses a process called enzymatic saccharification, which takes out sugars and breaks down starches in the major feedstocks of agricultural crops such as corn, wheat, and sugar cane. Then it uses them to produce bioethanol using bacteria.

More importantly, since the process is based on enzymes and bacteria instead of traditional solvents, for example, alcohols or steam, it repairs the damage to the environment caused by traditional methods using solvents. The use of enzymes and bacteria also eliminates any concern that the water and soil used in traditional methods may be contaminated with chemicals present in those solvents. And since the process uses feedstocks that are widely available, it can be used commercially with a high rate of success.

In Greenfield grain-based ethanol plant the existing fermentation system is replaced with enzymes and bacteria that is based on technology for digesting starch through enzymatic saccharification, which can also use agricultural byproducts such as straw or corn crushers byproducts. After adding enzyme, bacteria and water together, the whole batch process begins.

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Benefits of Opening a Greenfield Grain-Based Ethanol Plant Business

Greenfield ethanol plants are new, independent ethanol plants that are not related to an existing refinery. Greenfield plants differ from acquisitions of existing facilities in that they introduce novel processes and products into the marketplace.

A greenfield plant offers many benefits including: high profit margins, independence from traditional markets and supplies, reduced risks associated with market volatility and dependence on a few suppliers, significant tax benefits for the industry, good potential for government incentives, means of securing outside private financing through equity partners. Greenfield plants can be greenfield wind or biomass and fuel cell-based ethanol plants or gasoline direct-injection (GDI) plants.

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Demand of Greenfield Grain-Based Ethanol Plant Business

Greenfield sites for corn ethanol plants have enormous demand, considering their location in a market where the fuel itself is still increasing. The demand for construction of new greenfield sites is high and should continue to be so since it will help with the goal of finding ways to reduce greenhouse gas emissions. Constructing a plant at this time may be worth it, but that site might not be available in the future when you need it. With an increased demand of corn-based ethanol, it only makes sense that these greenfield sites will be in high demand.

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In 2003, there was a total construction of seven new grain-based ethanol plants involving more than $1.5 billion in new investment in the United States alone. In 2004 and 2005 the US saw a construction of eight new plants with a total investment of $1.9 billion and $2 billion respectively. These new plants were built in the Midwest, Plains states, with Minnesota and Iowa being the top two states for construction. With the sale of the ethanol, revenue increased by $23 billion in 2006-2007 (“Greenfield Sites”).

Plants have started to be built and have opened at a faster rate than they had been in most prior decades. However, with these fast rates of being opened, there are still new areas that need to be fill-in where there is less demand for them. The demand for ethanol is steadily increasing and continues to do so, whereas plants are being built at a faster rate than they had been in the past. Some of these sites that were not constructed yet or have been continuously being built after they were open will be left idle in perpetuity. This is due to the environmental concerns that exist when it comes to the construction of greenfield sites.

To start a new grain-based ethanol plant in India, contact NIIR Consultancy Service, a top provider of total turnkey solutions for the production of ethanol and the processing of sugar. You can always rely on our experts, and we take pleasure in our ability to work with you to develop new sources of income through operational excellence. To learn more about us and our services, feel free to browse our website further. Small oil refineries, sugar refineries, food producers, pharmaceutical firms, and multinational enterprises are just a few of our clientele. We take great pride in the innovative projects we have developed and put into action, the increased production capabilities, and the operational excellence we have attained.

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