SAF Grand Challenge Landscape

The United States has put in motion the Sustainable Aviation Fuel (SAF) Grand Challenge, which seeks to expedite the development of alternative fuel pathways that offer a minimum of a 50% reduction in life cycle greenhouse gas emissions compared to conventional jet fuel. The SAF Grand Challenge also establishes ambitious domestic production volume targets of 3 billion gallons of SAF per year by 2030 and a stretch goal of meeting 100% of the projected domestic aviation fuel demand of approximately 35 billion gallons per year by 2050.

In 2023, the United States consumed approximately 23 million gallons of SAF collectively across various small-scale operations. To hit the 2030 target of 3 billion gal/yr, this means about a 100% compound annual growth rate (CAGR) in volumetric SAF production (about 130-times scale-up).

In March 2024, the National Renewable Energy Laboratory (“NREL”) published a study describing the technical challenges that need to be addressed in order to comply with the SAF volume targets.

They concluded that independent of the chosen feedstock and conversion technology to produce SAF, numerous challenges persist across production in seeking to drive down fuel cost and CI. Arguably one of the greatest near-term challenges to achieving the SAF Grand Challenge goals is technology scaling.

NREL makes a compelling argument that one possible avenue for rapid expansion would leverage existing assets from the first-generation bioethanol industry. In 2023, the nameplate capacity for the U.S. bioethanol industry was more than 18 billion gallons of ethanol annually. However, due to mandated EPA renewable identification number volume blend limits, U.S. production was only 15 billion gallons. In other words, the refineries operated at an average capacity of about 87%. If these assets were utilized to their full potential and leveraged the additional 2+ billion gallons per year of bioethanol within existing infrastructure, combined with carbon capture and storage or other strategies to minimize the CI footprint, it could present a near-term opportunity to help reach the 2030 Grand Challenge goals via ASTM-approved ATJ pathways. In addition, other high-technology-readiness-level strategies such as HEFA must continue to expand with diversifying FOG-type petroleum refinery feedstocks, with lipids or other compatible intermediate streams from energy crops, algae, and lignocellulosic biomass.

To achieve the goal of 35 billion gallons of SAF per year by 2050, volumetric production must increase by a factor of 12 from the 3-billion-gal/year 2030 target. In terms of CAGR, this increase represents an annual growth rate of about 13% over 20 years (2030– 2050). However, when viewed from the current 2023 production numbers, this represents an average CAGR of about 31% that will need to be sustained over the next 27 years to hit this target. While lower than the CAGR required to achieve the 2030 target, maintaining such a growth rate over a long period remains ambitious, and every year that new projects are delayed, the more difficult the achievement becomes. Industry and policymakers must act swiftly and decisively to keep these targets within grasp.

However, if the 35-billion-gal/yr target were met entirely with e-fuels, estimates show that nearly 3,500 TWh of electricity would be required, representing a more than 5-times increase from current wind and solar generation levels and about 85% of the total electricity consumed in the United States.

Production of SAF from CO2 also has its challenges. On the surface, CO2 could not be more different than conventional petroleum feedstock; CO2 has no intrinsic energy content, is nearly 73% oxygen by mass, and is completely devoid of hydrogen. Therefore, whereas petroleum starts from a place of molecules with high molecular weight and high energy that are cracked down to size, CO2 must be reconstructed molecule by molecule via energy-intensive processes to establish new carbon-carbon and carbon-hydrogen bonds to create fuels and products. While the precise energy demand depends on the conversion process utilized, estimates suggest an energy intensity on the order of 100 kWh required per gallon of CO2-derived SAF.

It is our company’s opinion that irrespective of the SAF production pathway chosen, it is critical for the scaling of production, to develop a large supply of COST-EFFECTIVE hydrogen.

Many technical challenges remain warranting additional R&D for lower unit capital expenses, improved stability and durability, higher energy efficiencies and cost per gallon management, including temporary federal tax incentives.

For additional information, please contact the company.

The Case for Higher Ethanol Blends in Automoviles

When the waiver petition to use E15 year-around was filed, the U.S. Department of Energy’s Mid-Level Ethanol Blends Program conducted a study for 2 years, led by Oak Ridge Lab, to assess the impact of E15 and E20 on internal combustion engines used in automobiles.

The study concluded that using E20 as a phase-in to higher blends would be compatible with virtually all vehicles in the road today.

Oak Ridge Lab took it a step further and tested a modified Ford 150 light truck using a 98 RON E25 blend. They validated that the E25 blend increased power, improved efficiency in the range of 6% and reduce CO2 emissions.

While aromatics were not a component of the testing at Oak Ridge Lab, work at the Clean Fuels Development Coalition (“CFDC”) and EPA’s own data shows that clean, high-octane ethanol also replaces aromatic compounds which fall under EPA regulation of air toxics. General Motors, among others, has concluded aromatics are the source of 98% of the fine particulates from gasoline combustion.

According to Brian West, an automotive engineer who led the vehicle testing for the U.S. Department of Energy’s Mid-Level Ethanol Blends Program, “we should be talking about much higher volumes of ethanol in terms of blend rates”

Mr. West notes that vehicles today are safer, more durable, have more power and better fuel economy, and dramatically lower emissions due to the robust systems and the calibrators’ ability to micromanage the powertrain. They can handle blends well in excess of the current E10-E15 and in so doing provide substantial emission reductions.

West said, “I felt that bioethanol could do so much more. Bioethanol boosts octane and allows improved engine efficiency.”

For additional information, please contact the company.

2023 Ethanol Industry in Numbers

According to the annual economic impact analysis conducted by the Renewable Fuels Association and ABF Economics, low carbon fuel ethanol and its co-products contributed to the U.S. Economy as follows:

JOBS: 72,400 direct jobs / 328,000 indirect and induced for a total of 400,000 JOBS

GDP:the industry contributed $54.2 billion to the nation’s gross domestic product.

TAXES: $10.4 billion was generated in tax revenue for federal, state and local governments.

RAW Materials: $39 billion. ($32 billion in corn purchases)

The ethanol industry is the original creator of “Green Jobs” and with new technologies being deployed, it shall continue to support energy independence, reduce greenhouse gas emissions, and continue further wealth creation in agriculture and rural economies.

New Testing Confirming SAF Attributes

A new study from The University of Manchester tested the emissions of an aircraft using SAF finding a large reduction when compared to regular jet fuel.

They concluded that SAF has the potential to reduce climate-changing greenhouse gas emissions in aviation by up to 80% compared to hydrocarbon standard jet fuel. Extensive testing was carried out in the FAAM Airborne Laboratory Bae-146 aircraft.

In addition, on October 13, 2023, Boeing announced it is partnering with the National Aeronautics and Space Administration (NASA) and Chicago-based commercial airline United Airlines for in-flight testing to measure how SAF affects contrails and non-carbon emissions.

Boeing's second ecoDemonstrator Explorer, a 737-10 destined for United Airlines, will fly with 100% SAF and conventional jet fuel in separate tanks and alternate fuels during testing. NASA's DC-8 Airborne Science Lab will fly behind the commercial jet and measure emissions produced by each type of fuel and contrail ice particles. NASA satellites will capture images of contrail formation as part of the testing.

Corval’s Robert Weir and Juan Briceno from Benchmark attended the recently held SAF Conference in Minneapolis and learned of new SAF projects and technologies moving forward to fulfill commercial/general aviation goals and SAF requirements.

New USDA Support for Camelina Crops to Produce SAF

The USDA announced June 30 that it will expand crop insurance for camelina crops in direct response to the anticipated increase in demand for camelina as feedstock to produce SAF.

Only camelina grown under contract with a biofuel processor is eligible for insurance coverage.

Camelina is a nonfood crop that will provide a very low carbon feedstock to produce SAF and will produce a high protein animal feed as a by-product.

Benchmark is developing a grain sorghum farming program in North Carolina that will include designing a crop rotation strategy with camelina.

CAMELINA AS A ROTATION CROP

Camelina (Camelina sativa) is considered a beneficial rotation crop when farming grain sorghum. It offers several potential advantages as part of a rotation strategy.

Potential benefits of using Camelina as a rotation crop for grain sorghum:

1. Diversification: Including camelina in the rotation can help diversify the cropping system, which can have positive effects on pest and disease management. Different crops attract different pests and pathogens, so rotating crops can disrupt pest life cycles and reduce the buildup of specific pests and diseases that may affect grain sorghum.

2. Weed suppression: Camelina has shown some potential for weed suppression due to its ability to form a dense canopy. It can compete with and suppress weeds, potentially reducing the weed pressure in subsequent grain sorghum crops.

3. Nutrient cycling: Camelina has a deep taproot system that can access nutrients from deeper soil layers. When grown as a rotation crop, it can scavenge nutrients that may have accumulated at different soil depths, making them available for subsequent crops like grain sorghum.

4. Soil health improvement: The deep root system of camelina can also help improve soil structure and increase organic matter content. Its residues, when incorporated into the soil after harvest, contribute to organic matter accumulation, enhancing soil fertility and moisture retention.

5. Biofuels Market potential: Camelina has gained attention as an oilseed crop with various potential uses, including biofuels and livestock feed. Growing camelina as a rotation crop may provide additional revenue streams for farmers, diversifying income sources.

Note: The by-product (cake) of Camelina after oil processing is rich in protein suitable for animal feed.

Key considerations regarding growing Camelina in North Carolina:

1. Climate: Camelina is adaptable to a wide range of climates, including temperate regions. In North Carolina, it can generally be grown as a cool-season crop. It prefers cool temperatures during its early growth stages, typically germinating and establishing well in temperatures between 40°F (4°C) and 60°F (15.5°C). However, it can tolerate higher temperatures during its flowering and seed development stages.

2. Growing Season: In North Carolina, camelina can be sown in late winter or early spring, depending on the specific location and climate conditions. It requires a growing season of approximately 90-100 days from planting to harvest.

3. Soil Requirements: Camelina can adapt to various soil types, including sandy loam, loam, and clay loam soils. Well-drained soils with good fertility and organic matter content are generally favorable for camelina cultivation.

4. Crop Management: Proper crop management practices are crucial for successful camelina cultivation. Adequate soil preparation, including seedbed preparation and weed control, is important. Irrigation may be necessary during dry periods, especially during the establishment phase. Additionally, it's essential to select suitable camelina cultivars adapted to the local climate and to follow recommended planting and harvesting techniques.

For additional information, contact the company.

Benchmark Raeford North Carolina (Update)

FOR IMMEDIATE RELEASE

Benchmark Renewable Energy LLC (www.brenewable.com) an advanced biofuel developer out of Clearwater Florida, has reached an agreement with Tyton NC Biofuels LLC to acquire Tyton’s ethanol plant and related assets in North Carolina.

The plant located in Raeford, North Carolina, is a 1st generation corn to ethanol plant that will have, when completed, a low carbon annual production capacity of 60 million gallons.

Benchmark business plan includes modifying the plant to advanced biofuels, eliminating the use of hydrocarbons, improving production yields, improve digestibility of the co-products distillers dry grains and allowing the plant to process multiple feedstocks including sorghum.

Benchmark Design LLC is responsible for the new process design and Corval Group of Minnesota will undertake the modifications of the plant under an EPC Contract. Once the modifications are completed, PIC Inc. will operate the plant under an O&M Agreement.

Benchmark Design LLC CEO said:

“We are delighted to have the opportunity to improve and operate the Raeford plant. We intend to use our experience in deploying the latest available technology and commercial best demonstrated practices in other food processing industries, fuel ethanol distilleries in Brazil, rum distilleries in Central and South America and fuel ethanol plants in California and North Dakota.

We expect Raeford to be a showcase for low carbon operations and biofuel production in the United States. The plant is ideally located to take advantage of the Low Carbon Fuel Standards legislations emerging in the East Coast.”

The grain feedstock required for operations will be provided by CHS.

The acquisition is anticipated to be finalized third quarter of 2024, while construction and modifications will have the plant back in operations in early 2026.

For additional information, please contact Benchmark Renewable Energy.

• See virtual tour of the plant below
  

PRODUCTION OF SAF FROM BIODIESEL

The process of producing SUSTAINABLE AVIATION FUEL “SAF” from biodiesel involves a series of steps. following a general overview of the process:

1. Biodiesel production: Biodiesel is typically produced through the transesterification of vegetable oils or animal fats. This process involves reacting the oils or fats with an alcohol (such as methanol) and a catalyst to produce biodiesel and glycerol as a byproduct.

2. Hydrodeoxygenation (HDO): The next step is to convert biodiesel into a hydrocarbon feedstock suitable for SAF production. HDO is a common method used for this purpose. In this process, the biodiesel is reacted with hydrogen under specific temperature and pressure conditions, typically using a catalyst, to remove oxygen and reduce the oxygen content in the fuel.

3. Isomerization and hydrogenation: The hydrocarbon feedstock obtained from HDO is then subjected to isomerization and hydrogenation processes. Isomerization involves rearranging the molecular structure of the feedstock to improve its cold-flow properties and stability. Hydrogenation is a process where the feedstock is further reacted with hydrogen to enhance its energy density.

4. Distillation and purification: The resulting hydrocarbon mixture is then distilled to separate different fractions based on their boiling points. The desired fraction, suitable for use as SAF, is isolated and purified to remove any impurities or remaining oxygen content.

5. Blending with conventional jet fuel: The final step involves blending the purified SAF with conventional jet fuel, typically in certain proportions specified by aviation fuel standards (currently 50:50) This blending process ensures that the resulting SAF meets the required specifications for use in aircraft engines.

Steam Methane Reformers (“SMR”)

SMR that utilize natural gas are proven commercially. It’s an effective pathway to source the hydrogen required for manufacturing SAF.

Other sources for sourcing hydrogen, although more sustainable, are difficult to produce at a reasonable cost given the high sustainable energy required.

HYFROGEN SOURCES

The hydrogen required for SAF production from biodiesel can come from various sources. Here are a few common methods for sourcing hydrogen:

1. Steam Methane Reforming (SMR): The most widely used method for hydrogen production is steam methane reforming. In this process, natural gas (methane) reacts with steam at high temperatures to produce hydrogen and carbon monoxide. The carbon monoxide is then further reacted to produce additional hydrogen. SMR is a well-established and cost-effective method for large-scale hydrogen production.

2. Electrolysis: Electrolysis is a process that uses electricity to split water molecules into hydrogen and oxygen. If the electricity used for electrolysis comes from renewable sources like solar or wind power, the hydrogen produced is considered renewable as well. This method is known as "green hydrogen." Electrolysis can also utilize electricity from the grid, which may come from a mix of renewable and non-renewable sources, making the resulting hydrogen less sustainable.

3. Biomass Gasification: Biomass gasification is a thermochemical process that converts biomass, such as agricultural waste or wood, into a mixture of gases, including hydrogen. This process involves heating the biomass at high temperatures with a controlled amount of oxygen or steam. The resulting syngas (synthesis gas) can be further processed to extract hydrogen.

4. Other Renewable Sources: Hydrogen can also be produced from other renewable sources, such as solar or wind power, through innovative technologies like solar water splitting or wind electrolysis. These methods directly use renewable energy to generate hydrogen without intermediate steps.

ISOMERIZATION

This step is probably the most important to control in order to have an efficient production and conversion yields when making SAF.

Isomerization plays a crucial role in the production of SAF from biodiesel.

Isomerization involves rearranging the molecular structure of the hydrocarbon feedstock derived from biodiesel to improve its cold-flow properties and stability. This process helps ensure that the SAF meets the necessary specifications for use in aircraft engines. Here's a closer look at the isomerization process:

1. Purpose of isomerization: The hydrocarbon feedstock obtained from the hydrodeoxygenation (HDO) step of biodiesel conversion may contain straight-chain hydrocarbons that have poor low-temperature properties, such as high pour point and cloud point. These properties refer to the temperature at which the fuel begins to solidify or form waxy deposits, which can cause issues in cold weather or at high altitudes. Isomerization is employed to transform these straight-chain hydrocarbons into branched-chain isomers, which have improved cold-flow properties.

2. Catalysts: Isomerization reactions typically require the use of catalysts to facilitate the rearrangement of molecular structures. These catalysts are often based on metals, such as platinum, palladium, or zeolites, which can selectively promote the desired isomerization reactions.

3. Reaction conditions: The isomerization process is carried out under specific temperature and pressure conditions to maximize the yield of desired isomers. The exact conditions can vary depending on the specific feedstock and catalyst used. Elevated temperatures and pressures are typically employed to achieve better conversion rates and isomer selectivity.

4. Reaction mechanism: Isomerization reactions involve breaking and reforming carbon-carbon bonds within the hydrocarbon molecules. The catalyst facilitates these bond rearrangements, leading to the formation of different isomers. The specific mechanisms can vary depending on the feedstock and catalyst used, but generally involve the migration of carbon atoms within the molecule to form branched isomers.

5. Product separation: After the isomerization reaction, the mixture is typically subjected to further separation processes, such as distillation, to isolate the desired isomers with improved cold-flow properties. This helps remove any unconverted feedstock or byproducts from the final SAF product.

By undergoing isomerization, the hydrocarbon feedstock derived from biodiesel is transformed into a mixture of branched-chain isomers that exhibit better low-temperature properties and increased resistance to solidification. This enhances the overall performance and suitability of the SAF for use in aviation applications.

For additional information, please contact the company.

SAF CONUNDRUM

Airlines have committed to carbon-neutral growth by reducing carbon dioxide (CO2) emissions by 50% in 2050. Reducing carbon growth will require non-fossil-sourced fuels, referred to as sustainable aviation fuel (SAF)

The domestic jet fuel market size (JET A) is about 26 billion gallons per year. The global market size exceeds 81 billion gallons. Passenger demand is projected to double over the next 20 years (IATA 2016).

 Airlines are very price-sensitive because jet fuel accounts for approximately 30-40% of their operating costs.

The cost of SAF production can vary widely depending on the feedstocks and production technologies used.

IATA estimates the cost of SAF is between two and four times higher than Jet A, although a recent announcement by Air France-KLM implied that the cost differential may be more like four to eight times the costs of kerosene.

For Air France, the way to square the circle of increased costs for using SAF is to introduce a SAF surcharge. The new fuel levy, voluntary for the moment, will see a charge of between €1 and €12 added to ticket prices depending on the flight length and the cabin class.

SAF production and use reached only 15.8 million gallons in 2022, or about 0.1 % of the fuel used by the airlines.

As of January 2019, six fuels pathways are approved as annexes to ASTM D7566 for the production of SAF:

1. Fischer-Tropsch [FT]-SPK was approved in June 2009 for up to a 50% blend with petroleum-derived jet fuel. FT-SPK is a mixture of iso- and n-alkanes derived from synthesis gas using the FT process. Syngas can be produced from reforming natural gas or from gasifying coal or biomass.

2. HEFA-SPK was approved in July 2011 for up to a 50% blend with petroleum-derived jet fuel. The molecular composition of HEFA-SPK is similar to FT-SPK, consisting of iso- and n-alkanes. The alkanes are the product of hydrotreating esters and fatty acids from fats, oils, and greases and from oilseed crops or algae.

3. SIP, hydro processed fermented sugar-synthetic iso-paraffins was approved in June 2014 for up to a 10% blend with petroleum-derived jet fuel. Unlike SPK from HEFA or FT, this is a single molecule, a 15-carbon hydrotreated sesquiterpene called farnesane, produced from fermentation of sugars. Today, the fermentation is done commercially from sugar cane juice and is used in higher-value applications, most commonly in personal care.

4. Alcohol-to-jet [ATJ]-SPK was approved in April 2016 for SPK from iso-butanol (30% blend with petroleum) and expanded in April 2018 for SPK from ethanol and for fuel blends up to 50% with petroleum. ATJ-SPK consists of iso-alkanes of 8, 12, or 16 carbons when starting from iso-butanol. The iso-alkanes are highly branched and have lower DCNs than FT or HEFA, based on data from Gevo, Inc. Sustainable Aviation Fuel: Review of Technical Pathways 20 The carbon number is broadened, and the branching level can be significantly reduced, leading to a DCN similar to FT and HEFA when starting from ethanol.

5. Applied Research Associates Catalytic Hydro thermolysis Jet, or ARA CHJ was approved in January 2020 as a 50% blend. The fuel is produced from lipids using a supercritical hydrothermal process, creating a blend stock that contains all four hydrocarbon families: n-, iso-, and cyclo-alkanes and aromatics.

6. HC-HEFA synthesized paraffinic kerosene from hydro processed hydrocarbons, esters, and fatty acids was approved in 2020 as a 10% blend. This is specifically for lipids from a B. brauni algae that have been hydrocracking/hydro isomerization to remove all oxygen and saturate double bonds. The product is rich in iso-alkanes. This is the first approval through the fast-track process.

For the purpose of this article, we will concentrate in number 2 and 4 approved pathways which we believe to have currently the most potential to scale up the SAF volume in a commercially viable way.

Benchmark Background:

Benchmark group of companies are well known for successfully developing technology and industrially scaling processes in a commercially effective manner.

Benchmark had the experience of the citrus industry, where new processes and new by-products extractions was necessary to “squeeze” more margins in a highly competitive market.

Benchmark has consistently turned down working on projects and trechnologies that in our view were not commercially ready.

Pathway Number 2:

Jet fuel properties fall within the light end of the diesel envelope and hence biofuels companies could sell to either market. Diesel fuel (ground transportation) is a significant competitor for lipids, including fats, oils, and greases.

Due to perceived lack of available feedstocks, SAF supporters believe that the lipid routes are not likely to meet the SAF volume demand.

However, the step up from biodiesel to SAF is simple, requiring only further refining and cleaning.

A hydrotreating process could be included to help eliminate impurities, reduce the oxygen and increase the energy content (5-10% more) to match the energy content of petroleum diesel.

We believe the feedstock supply can be augmented by promoting high oil rotational, non-human crops that can provide the lipids required. Sample of these crops include Camelina (mustard seeds), Hemps, Pennycress and others. Even the lipids of algae can be utilized to manufacture SAF.

As an example, 37,750 acres of Camelina (In a rotation program with grain sorghum) can provide enough oil to feed a 10 million gallons of SAF per year plant.

Benchmark owns a patent for removing oil from fibrous material that has proven very effective across different processes and applications. We are confident that by promoting cultivation of rotational crops we can industrially extract the lipids necessary for a biodiesel-SAF plant.

We estimate that SAF cost per gallon utilizing Pathway 2 can be commercially competitive with JET A fuel.

Pathway Number 4 - Alcohol to JET Fuels (ETJ)

We continue to review the potential different technologies available to convert fuel ethanol into SAF.

However, thus far, there are costs that need to be managed to commercially develop an SAF processing plant utilizing fuel ethanol as a feedstock.

Amongst factors of production difficult to control we find:

• High Energy requirements to produce the Syngas. As an example, there is demand of 90 MW of electricity on a 10 MGY ethanol to SAF plant.

• High CAPEX on the Syngas Plant in addition to the CAPEX to produce ethanol.

• Use of renewable green hydrogen anticipated.

• Expensive rare metals are required for the reformers that will have a limited useful life and will need frequent replacement.

• Technical challenges in fuel conversion: The conversion of ethanol to jet fuel requires a complex series of chemical reactions that can be challenging to optimize. One potential issue is the formation of unwanted byproducts during the conversion process, which can reduce the overall efficiency of the process, ethanol to SAF yield and increase emissions.

• Cost competitiveness: The production cost of ethanol-based jet fuel is currently higher than conventional jet fuel. The cost of production remains higher due to the complexity of the fuel conversion process.

Proponents of the ethanol to jet fuel pathway generally include the utilization of “Green Hydrogen” to reduce the carbon score in the production of SAF.

Green hydrogen is produced from the electrolysis of water using renewable electricity, such as solar or wind power, and is considered a promising pathway for decarbonizing the energy sector. However, there are some potential shortcomings associated with the production of green hydrogen:

• High cost: The production of green hydrogen can be expensive due to the high capital costs associated with building and operating large-scale electrolysis facilities, as well as the cost of renewable electricity. This can make green hydrogen less competitive than conventional hydrogen produced from fossil fuels.

• Energy requirements: The production of green hydrogen requires a significant amount of renewable energy, which can be challenging to produce in sufficient quantities, especially during periods of low renewable energy generation. This may require the installation of additional renewable energy capacity or energy storage systems to ensure a reliable supply of green hydrogen.

• Water use: The production of green hydrogen requires a large amount of water, and in some regions, water scarcity may be a constraint on the scalability of green hydrogen production. However, the use of wastewater or seawater for electrolysis can help to mitigate this issue.

• Production scale: The production of green hydrogen is currently limited by the availability of renewable electricity, as well as the availability of water and electrolysis equipment. Scaling up green hydrogen production to meet the needs of SAF production will require significant investment and infrastructure development.

• Supply chain challenges: The production and distribution of green hydrogen will require the development of new infrastructure, such as hydrogen storage and transport systems. This can be challenging and costly, especially in regions with limited existing infrastructure.

Benchmark is currently evaluating green hydrogen for the production of renewable fertilizer (Ammonia).

A competitive comparison of SAF vs. JET A utilizing projected revenues between a fuel ethanol plant vs. utilizing the ethanol as a feedstock for JET A / SAF will look as follows:

Note: Platts reported the retail price of SAF during Q4, 2022 in California at $8.28 per gallon. SAF Tax Credit according to new Inflation Reduction Act legislation.

From the above analysis, one can conclude that currently there is not enough of a step up in revenues when utilizing ethanol to SAF, to support commercially competing with JET A.

Overall, the ethanol to jet fuel pathway has the potential to be a promising pathway for the production of SAF, but there are shortcomings that must be addressed in order to ensure that this pathway can be implemented in a sustainable and cost-effective manner.

We continue investigating the different SAF pathways, however we need more testing including developing new production processes (utilization of super-heated steam) to affect a breakthrough in the costs of SAF production.

 For additional information, please contact the company.

Raeford NC Project Sustainable Development Goals UPDATE

The Raeford Advanced Biofuel project (“The Project”) complies with several of the SDG goals as stated by The United Nations.

The Project has received a “Green” designation by Kestrel Verifiers for the issue of corporate bonds to fund the execution of the advanced renewable biofuel construction and start-up.

Kestrel Independent Report confirmed that The Project meets the eligibility criteria of reduced air emissions compared to conventional processing plants. In addition, the use of grain sorghum as feedstock in combination with the biogas for energy, reduces the carbon footprint of the operations, granting the company a lower Carbon Index as compared to conventional ethanol plants.

The direct compliance of The Project with The United Nations Sustainable Development Goals (SDG) as confirmed by Kestrel Verifiers are the following:

SDG 6: Clean Water and Sanitation, which includes targets to ensure availability and sustainable management of water and sanitation for all.

SDG 7: Affordable and Clean Energy, which includes targets to ensure access to affordable, reliable, sustainable, and modern energy for all.

SDG 9: Industry, Innovation, and Infrastructure, which includes targets to upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.

Benchmark Managements anticipates that once The Project is in operations it will further comply with the following SDG’s:

SDG 8: Decent Work and Economic Growth, which includes targets of promoting economic growth and sustainable employment. In addition, it contains goals to promote youth employment, education, and training.

Raeford’s Hoke County in North Carolina is currently classified as Tier One, ranking among the most economically distressed counties in North Carolina. Hoke County will benefit from the new sustainable jobs created by The Project.

The collaboration with North Carolina State University with the anticipated internship program at the Raeford plant will promote youth employment, advanced biofuels education and training.

SDG 12: Responsible Consumption and Production, which include targets for implementing a 10- year sustainable production plan and encourage the adoption of sustainable production practices.

Benchmark development of local sorghum cultivation includes agricultural supervision of farming practices. The promotion of sustainable farming practices will contribute to reduce GHG emissions in the production lifecycle of the advanced biofuel and comply with SDG 12.

The Project has been calculated to commence operations with a very efficient Carbon Index (“CI”) of 44.7 g CO2e/MJ.

The initial low carbon index is accomplished mainly by utilizing biogas to produce thermal energy, thus eliminating the use of hydrocarbons in the production process.

However, the company anticipates reducing the CI to ZERO or even negative by applying further technology to the lifecycle of the production process.

Among the initiatives to be undertaken upon re-starting operations are the following:

1. CO2 Sequestration:

Benchmark is preparing to start the permitting and test drilling immediately after initiating construction and modifications at Raeford.

Benchmark has experience in developing geological work for CO2 well-injection sequestration and has designed and installed methane CO2 cleaning equipment in the past.

We have confirmed the presence of a saline aquifer in Eastern North Carolina suitable for CO2 injection-permanent sequestration.

2. Local production of Grain Sorghum

Benchmark development of local sorghum cultivation includes agricultural supervision of farming practices. The company will promote and demonstrate No Till planting, new water management practices for sorghum, use of renewable fertilizers (renewable ammonia), use of biodiesel in farming machinery and others. These practices once fully implemented will have a significant impact on the carbon index score of the production lifecycle.

For additional information, please contact The Company

Biogas Digesters for Ethanol Production

Benchmark’s ethanol plants re-engineering includes incorporating an Anaerobic Digester to produce renewable biogas and generate 100% of the thermal energy required for processing the ethanol and the by-products. It eliminates the use of hydrocarbons from the process.

History of Anaerobic Digesters

The first anaerobic digester for biogas production was built in France in 1860; it was converted from a settling basin of a sewage system.

In 1925, a heated anaerobic digester was designed and built in Germany.

The first anaerobic digester in the United States was established in 1926 and the digester was operated with a temperature control system.

Significant effort was spent on aerobic digestion of organic waste materials for biogas production in Europe and the United States after World War II. However, relatively cheap petroleum had prevented anaerobic digestion for biogas production from becoming a major energy generation technology and a main source of thermal energy.

More than 5 million anaerobic digesters were built in China. Most of them small household scale and operated under ambient temperature. However, only a few anaerobic digesters in the United States and Europe were built for generating thermal energy.

In recent years, biogas production has again attracted worldwide attention and wide adoption as a renewable energy source because of sustainability goals and environmental concerns regarding fossil fuels, in addition to becoming cost competitive and enhancing domestic energy security.

More than 17,000 biogas plants were in operation in Europe by the end of 2014. These plants are producing biogas through anaerobic digestion from a variety feedstock material.

The United States currently only has 2,200 operating biogas systems, representing less than 20 percent of the total potential.

Benchmark designed Anaerobic Digester

For a 60 MGY ethanol production, Benchmark will build a 30-million-gallon Anaerobic Digester.

The new Anaerobic Digester is a proven Benchmark Design LLC technology and will operate at moderate controlled temperatures (30 C – 37 C). This temperature range is classified as a Mesophilic Anaerobic Process. These types of digesters are easy to start up, `have very stable performance and are relatively high in microbial activities.

One main feature and competitive advantage of Benchmark’s Digester is the control and uniformity of the proprietary feedstock used to generate the biogas in a mixed flow reactor. (Feedstock System and Process to Producing Biogas from an Ethanol Slurry Mix- Patent # 11,046,925)

Generally organic feedstocks used for biogas production (especially waste organic materials) may contain inhibitory chemical compounds that, at certain concentration, can cause anaerobic digestion upsets. Among the undesirable compounds commonly found in waste materials are ammonia, sulfide, and other metals.

Benchmark formulated feedstock is free of any of these inhibitory compounds, which constitute an additional level of safety for the uniform production of biogas. In addition, the proprietary feedstock to be utilized has been thoroughly tested in a variety of concentrations and optimization of performance and will result in a state-of-the-art Digester, with significant margins of safety in terms of biogas production volume required for full and continuous operation.

For additional information, please contact the company.

Note: Some of the information on biogas digesters was sourced from the book “Biomass to Renewable Energy Processes” authored by Dr. Jay J. Cheng, PhD, professor at NCSU Biological & Agricultural Department.