The phase II project combines fuel ethanol production with manufacturing of a protein concentrate to create a new industry in a rural south Idaho community. In phase 1 research, MMP demonstrated technical feasibility of a process to produce ethanol and protein concentrate as co products from barley. The use of barley addresses irrigation constraints in south Idaho by creating increased value for a less water consumptive crop. Phase 1 also demonstrated integration of wastewater from a local food process plant into the process, overcoming constraints to process water supply. In Phase 1 MMP worked with its USDA/ARS CRDA partner (Hagerman Fish Culture Experiment Station) to demonstrate potential markets for the barley protein concentrate (BPC) as a feed ingredient in the south Idaho farmed trout industry. The BPC, with 50 to 60% protein content has a high value relative to distillers grains and makes ethanol production profitable despite historically high grain prices and current low price for ethanol. Phase II research will generate the data necessary to determine capital and operating cost for a ethanol/BPC manufacturing facility; and establish BPC inclusion rates and value in trout feeds. MMP will optimize process variables including use of wastewater, construct and operate a pilot plant and work with our CRDA partner to conduct research trials and commercial demonstrations of BPC in farmed trout feed. In phase II MMP will advance commercialization with the technical and financial documentation necessary to finance design, construction and start-up of a commercial facility. OBJECTIVES: The overall goal of the phase II project is to advance commercialization of a process to produce ethanol and protein concentrate as co products from barley. Phase 1 demonstrated technical feasibility of using food process wastewater and low value barley in ethanol production. During the phase 1 project, MMP also worked working with our USDA/ARS CRDA partner to demonstrate technical feasibility for producing ethanol and barley protein concentrate (BPC) with 50 to 60% protein and potential applications in feeds for farmed trout. Based on the phase 1 economic analysis, producing ethanol and BPC as co products is economically promising and represents an opportunity to create a viable agricultural industry in a rural community in South Idaho. The phase II project will advance the technology to the point where MMP can prepare the technical and financial documentation for a debt equity package to finance design, construction and start up of a commercial facility for manufacturing barley protein concentrate and ethanol. To achieve this goal, technical objectives of phase II research will focus on generating the data necessary to: determine capital and operating cost for a manufacturing facility to produce ethanol and BPC as co products; and to establish BPC inclusion rates and value in trout feeds. Specific technical objectives are to: 1) Optimize final process design. This objective will optimize process variables and evaluate effects of incorporating wastewater and low value barley in the process on BPC value 2) Establish market value of BPC in trout feeds, through trout feeding studies 3) Identify specific markets; determine scale of first commercial facility 4) Determine capital and operating cost for the first commercial facility. Complete preliminary engineering, process flow and schedule A engineering package 5) Prepare comprehensive business plan for potential equity investors and documentation to support applications to for USDA loan guarantees or similar programs. APPROACH: The approach for the project is to use local agricultural resources to create sustainable industry in an economically depressed rural community. In the phase 1 project MMP demonstrated the technical feasibility incorporating wastewater and reject malt barley into barley based ethanol production. MMP also demonstrated the technical feasibility of a process to produce Barley Protein Concentrate and ethanol in an integrated process. The BPC has potential as a high value protein ingredient in aquaculture feeds, specifically in the farmed trout industry in South Idaho which significantly improves the economics compared to conventional ethanol, distillers grains. The project effectively addressed constraints of feedstock economics and water supply creating the potential for sustainable economic development in a rural community. MMPs approach is to focus on barley as the primary feedstock combined with available low value and waste carbohydrate. MMP utilizes the companys fungal culture and enzyme technology to enhance protein/feed value of plant based protein for use as aquaculture feed ingredients. In the course of the Buhl ethanol project, MMP adapted plant protein enhancement technology to barley, developing a process producing BPC and ethanol as co products. Initial trout feeding trials indicated that the BPC has potential as a protein ingredient in trout feeds, replacing a significant portion of fishmeal and soy meal now used in farmed trout feeds. The BPC has significantly higher market value in trout feeds than conventional ethanol distillers grains sold into cattle feed markets. The phase 1 project demonstrated the technical feasibility of a process using locally grown barley to produce ethanol and a protein ingredient for the local trout industry. The phase 1 project was also successful in integrating wastewater from a local cannery as the process water and reject malt barley in ethanol production
