American Ethanol

(Jamie) Welcome back! Let’s catch up with Duane as he and Scott discuss marketing ethanol for Pratt Energy.
(Duane) Duane Toews joining you once again on AGam in Kansas, a chance while at the Kansas Speedway to catch up with Scott Anderson with Pratt Energy. Scott you market ethanol for the plant and a pretty important job. Critical that we keep some profitability in this. (Scott) Absolutely, it’s very important to this agricultural state. And we market about 55 million gallons annually to the petroleum industry and we have 11 other ethanol plants in the state. We do over 500 million gallons annually as a state, so we consume about 15 or 16 million bushels of corn in our facility, corn or milo this year. It’s a big economic engine for the Pratt community and for the state as a whole. (Duane) We think about the opportunities for growers in the area. Obviously a big consumer of corn and sorghum as well. (Scott) Absolutely. You know we have at Pratt, about 120 trucks a day on our property that are either hauling in corn or are hauling out the distillers grain and ethanol. (Duane) Thinking about marketing obviously the ethanol one component you reference the distillers. The cattle industry has certainly embraced that product, not really a by-product, it’s a co-product if you will. (Scott) Absolutely, I’ve been in the industry about six years and we used to refer to it as a by-product, but now it’s certainly a co-product and helps to drive the economic engine of the ethanol plant. We also have a third co-product in the form of distillers oil that we spin off too. And that also either goes to biodiesel or back to the cattle industry and the feedlots. (Duane) We’re obviously at a point where E-10 has been around for some time. E-15 another option for us that we’re trying to push into the marketplace. (Scott) Absolutely, so we’re here at the NASCAR race and this is the American Ethanol sponsored race, which promotes E-15, which is 15 percent ethanol in the blended gasoline. And they’ve been doing that for five years now and they’ve driven over 8,000 miles at about 9,000-9,500 RPM on these engines. So, under a very stressful conditions they’ve had no failures on the engines on the five years that they’ve been doing it, so pretty impressive. (Duane) Austin Dillon, driving the Number 3, representing American Ethanol, Richard Childress racing. He’s been a great advocate for ethanol as well. (Scott) Absolutely. Yea, he was at the Kansas City Agri-Business Luncheon on Friday, got to listen to him speak. And he continues to stress and that’s really I think what it’s all about, is removing ourself from the dependence of foreign oil and keeping people safe, producing a product that’s made right here in the U.S. (Duane) As far as your job there with Pratt Energy, marketing ethanol I’m assuming that there’s a limited market that you sell to, or is it pretty broad? (Scott) So, we would be like a wholesale business. And we’re gonna sell to mainly the major oil companies or the independent refiners in our market area. Pratt happens to be a truck only market, so all of our product is shipped by truck. Some of the other plants will use the railroad and ship farther distances. (Duane) As far as a typical day at an ethanol plant, so we have product coming out on a continual basis? Or is it on cycles? (Scott) Yea, so it’s a continuous flow type operation and every 58 hours they produce another batch of ethanol, but it’s on a continuous flow basis, so there’s always something in the system. And at Pratt, we produce about 600 truckloads of ethanol, or about 4.5 million gallons on a monthly basis. (Duane) As far as in terms of how much then that goes through that plant, a great opportunity for growers in the area, both corn and sorghum to improve their basis for the grain that they grow and sell. (Scott) Absolutely, we put more demand on that feed stock and that in turn runs the prices up and then it benefits the farm economy. (Duane) Our thanks to Scott Anderson with Pratt Energy joining us here on AGam in Kansas. Jamie back to you.
(Jamie) Stay with us as Duane visits next with Greg Krissek, CEO of the Kansas Corn Growers Association.

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