Xcelplus International, Inc. (XLPI)

[nez]

HD,
Ethanol IMHO is where we are going and when all is said and done, what comes out of the production facilities will be ETHANOL. Ethanol will go into and run internal combustion engines which can be engines equiped with XLPI devices and treated with XLPI products.
If I am not mistaken, we (the US) has not built a new refinery in some time and at the same time we have lost a few outright, from the recent unusally strong storms in the Gulf. Imo, it would be smarter to build new ethanol refineries rather than just oil. As far as your "More data, different opinion" goes, this is just the start of the anti Ethanol drum beat. It is a threat to what has been a huge source of wealth to a relatively small number of people. Any threat to that bottom line will be attacked but at the same time, as the articles below indicate, a very large number, probably more, IMHO, people and nations are willing to put up the money to make the change-over, which, again IMHO, is already well underway. I believe you can find as many scientists that will endorse the ability of the existing gasoline infra-structure to DELIVER the Ethanol as you will find who disagree. Production obviously is not the same as "cracking" crude oil and therefore crude oil refinarys won't work for the process of fermentation used in Ethanol production, as they are completely different processes. That is why the President spoke of the building of additional Ethanol production facilities, IMHO.
IMHO, we are just starting to see the refinement of the ethanol production process. Also, IMHO, Ethanol will not be mainly produced from corn and glucose containing materials as was tried in Brazil, a good example of why we won't focus on one source of feedstock and the reason it failed was its attempt to do so, but many different sources for the Ethanol. However, Brazil, imo, was a needed step to perfecting the overall process. Whether the source is corn, sugar, sugar beet, cellulose bearing material or fatty acids, the result is the same....Ethanol, period and strictly IMHO.
The Brazilian failure to become oil free was at best, one step in the process of isolating the highest yeilding Ethanol from the most efficient feedstock or biomass. Research I did for a science paper recently, seems to indicate that the source will come from many different biosources. For instance biomass or feedstocks with a high cellulose content and as I mentioned fatty acids. Below are two examples.

HDHICK, the negative will roll in all on its own. Unless you are short or a day trader or threatened by Ethanol in some other way, why not let those people provide the negative data and opinions and let's have the investors in XLPI focus our attempts on educating the public on the positive. Ethanol hasn't been selling in the midwest for "false advertising reasons" alone. I mean no offense and these are my personal opinions. I like a debate as much as the next guy but I think the situation with the US reliance on oil is a national security risk as well as an ecological one. The timing of investment in XLPI is great for those wishing to be involved in some way. The benefits may apply to more than just those invested in Ethanol and its different subparts, like XPLI and it's formulas and products but also to the entire nation, IMHO. Check out some data and opinions.....

CELLULOSE ETHANOL IS READY TO GO
Iogen producing world’s first cellulose ethanol fuel

Ottawa – Iogen Corporation announced today that it is producing the world’s first cellulose ethanol fuel for commercial use. Cellulose ethanol is an ultra-low CO2 emission fuel that can be blended with gasoline and used in cars today.
“Today marks the first concrete signal of a major change coming in the fuel market,” said Iogen President, Brian Foody. “We have always looked to better and more efficient vehicles to reduce fossil fuel consumption. Now, new advanced fuels are ready to play a role too!”
“Canada is on the cusp of a new energy era and companies such as Iogen are showing the way,” said the Honourable Paul Martin, Prime Minister of Canada. “Our technological expertise in clean energy will be one of the pillars of our economic and environmental prosperity in years to come.”
“This milestone would not have been possible without the commitment, support and vision of Shell, Petro-Canada, and the Government of Canada,” said Foody. “These organizations have shown that they are committed to bringing forward technologies that really can make a difference.”
Iogen’s cellulose ethanol technology is a result of more than 25 years of research and development. Iogen and its partners have committed over C$110 million, and the company owns and operates the world’s only cellulose ethanol demonstration scale facility.
“Iogen has demonstrated that clean, renewable fuels are no longer a dream, they are a reality,” said Duncan Macleod, Portfolio Manager of Shell Global Solutions International B.V. “We believe that the global market for bio-fuels such as cellulose ethanol will grow to exceed $10 billion by 2012. Cellulose ethanol is a great fit with Shell’s commitment to leadership in fuels technology and sustainable development.”
“All of us at Petro-Canada are pleased to see Iogen bringing its leading-edge cellulose ethanol technology to fruition,” said Petro-Canada Vice-President Andrew Stephens. “We made our first investment in this technology over five years ago, so it's fitting that Petro-Canada will be the first user of cellulose ethanol, and will be receiving the first shipment at our Montreal refinery.”
“GM Canada welcomes Iogen’s introduction of cellulose ethanol as a very significant product development that could make a considerable contribution to the reduction of greenhouse gas emissions,” said David Paterson, Vice-President, General Motors of Canada. “GM’s entire portfolio of vehicles is already capable of running on a blend of 10 per cent ethanol. We are pleased to see a leading-edge Canadian company like Iogen develop the next generation of ethanol and we encourage its adoption in the marketplace.”
“All vehicles can use a standard blend of up to 10 per cent cellulose ethanol mixed with gasoline, with no changes required.
“Iogen’s cellulose ethanol demonstration facility is the final proving stage prior to the rollout of full-scale commercial plants. The company is working with its partners to finalize plant locations.
“Cellulose ethanol has two unique advantages over conventional ethanol. First, the greenhouse gas emission reductions from cellulose ethanol are three times greater than those from grain based ethanol on a life cycle basis. Second, cellulose ethanol is made from a plentiful and renewable resource, the non-food portion of agriculture crops (e.g. straw, corn stalks and corn cobs).”
See related article on Iogen, Shell, & Daimler Chrysler.
http://www.alcohol4fuel.com/id37.html
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Or from high free fatty acid (FFA) materials as with the efforts by the Canadians shows.

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The CETC SuperCetane Technology

The production of diesel fuel from renewable sources is being pursued because of climate change, a desire to develop new markets for agricultural products and increasing petroleum prices. The production of biodiesel from vegetable oils and yellow grease via esterification processes has generated the most interest and business development. However, other technologies are nearing commercialization that can convert vegetable oils, waste greases, animal tallow and other feedstocks containing triglycerides and fatty acids to value added energy and chemical products. The CANMET Energy Technology Centre (CETC), Natural Resources Canada, has developed a novel technology that can convert these materials into a high cetane, low sulphur diesel fuel blending stock called SuperCetane.

Process

The CETC process adapts a hydrotreating process using conventional petroleum refinery hardware and under proprietary operating conditions generates its cetane-enhancing product. See process schematic below.



Several reactions occur in the process including hydrocracking (breaking apart of large molecules), hydrotreating (removal of oxygen), and hydrogenation (saturation of double bonds). The process employs a conventional commercial refinery hydrotreating catalyst and hydrogen.

The CETC technology has been used to successfully process a number of feedstocks including canola oil, soya oil, yellow grease, animal tallow and tall oil (a by-product of the kraft pulping process). Yields of 75 – 80% were achieved.

The process has been successfully scaled up in a one-barrel/day hydrotreating pilot reactor at the CETC research facilities using depitched tall oil as the feedstock. Approximately 3800 litres of SuperCetane was produced for emission testing at Environment Canada in Ottawa, Ontario and for road tests with Canada Post in Vancouver, BC.

Product

The CETC process generates a hydrocarbon liquid with co products being burner gas and water.

The hydrocarbon liquid can be distilled into three basic fractions: naphtha, middle distillate (CETC SuperCetane) and waxy residues. When yellow grease, animal tallow and vegetable oils are used as feedstocks, negligible amounts of naphtha and small volumes of waxy residues are produced. Since the naphtha fraction is so small it is usually not necessary to remove it from the SuperCetane. The waxy residue is paraffin-rich and can be used as refinery feedstock or power boiler fuel.

The middle distillate (SuperCetane) is the primary liquid product and yields of 70-80% were achieved for yellow grease and tallow. It consists mainly of straight chain hydrocarbons in the diesel fuel boiling range with a cetane number of about 100 when yellow grease and tallow feedstocks are used (cetane number is a measure of the ignition quality).

A high cetane diesel fuel is generally recognized as a means of reducing emissions of engine pollutants and improving fuel economy. A higher cetane number is normally achieved by using commercial nitrate based cetane additives and/or by more intensive refining of petroleum in the production of diesel fuel. The CETC SuperCetane provides a new and renewable alternative. It resembles conventional diesel fuel when analyzed by GC/MS and is miscible in all proportions with diesel fuel. Its sulphur content is less than 10 ppm thus it meets the upcoming diesel fuel specifications.

Commercial alkyl nitrate cetane improvers have a non-linear impact on cetane numbers (leveling off after a limited cetane number increase). In contrast, the CETC SuperCetane has a linear impact on the cetane value of diesel fuel, directly proportional to its concentration in the blend. Also, CETC studies have indicated that when SuperCetane is blended with conventional cetane improvers, the cetane value of the final blend improves synergistically.

The CETC SuperCetane specific gravity is similar to that of regular diesel while its viscosity is similar to that of biodiesel. Biodegradability of SuperCetane was tested at the University of Sherbrooke using CEC Respirometry Test Method L-33-T-82. An esterified biodiesel soya oil sample and hydrotreated soya oil sample were tested. Both samples were 97% biodegradable compared with 45% for regular diesel.

The burner gas co product consists mostly of hydrogen with low levels of methane, ethane, propane, carbon monoxide and carbon dioxide. No glycerol is formed in this process.

Combustion and Emissions Tests

Single and multi cylinder engine combustion and emission tests were performed on the CETC SuperCetane by ORTECH in Toronto, Canada and by the Environmental Technology Centre (ETC), Environment Canada in Ottawa, Canada. In general, the CETC product and commercially available cetane improvers showed comparable gaseous emission reductions of total hydrocarbons, NOx, particulates and carbon monoxide. Emission reductions were found to be due in large part to improved combustion characteristics. As expected, the higher emission reductions occurred when the CETC SuperCetane was added to lower grade diesel fuel (cetane numbers below 40). As such, CETC SuperCetane may prove most valuable as a blending stock for lower quality middle distillates.

Fuel economy savings using the CETC SuperCetane are another benefit – in a six-month test program using a fleet of Canada Post delivery vans operating in Vancouver, Canada, fuel economy savings of 8% was achieved.

Application to Rendering Industry

A yellow grease sample from Rothsay and an animal tallow sample from West Coast Reduction were processed and the results were included as part of the patent application. U.S. Patent 5,705,722 “Conversion of Biomass Feedstock To Diesel Fuel Additive” describes the results from these test runs. In both cases, 80% yields of the middle distillate were reported.

As a result of recent developments in the rendering industry, a number of additional feedstocks provided by rendering companies have been successfully tested. A comprehensive table describing the results and product analysis is given in the Appendix.

Potential Applications

Several commercial applications for the CETC SuperCetane are being investigated:

The addition of CETC SuperCetane to diesel fuel was shown to reduce its NOx emissions. A major problem with B20 biodiesel blends is that the NOx emissions are similar to and sometimes higher than those for regular diesel. It is expected that the addition of CETC SuperCetane to B20 blends will help reduce NOx.
Certain diesel stocks do not respond well when traditional nitrate based cetane enhancers are added. The CETC SuperCetane can increase the responsiveness of these diesel fuels.
The CETC SuperCetane and the waxy residue can be sources of renewable n-paraffins for refinery and petrochemical applications.
Update

CETC has constructed a semi-pilot plant (700-mL tubular reactor) producing large volumes of cetane enhancer for performance and exhaust emission tests. This semi-pilot unit will also be used to test and optimize process parameters.

Under a contract from CETC, Calgary-based C.J. Wheeler Process Consultant Inc recently completed an engineering and economic feasibility study for the construction and operation of a commercial plant to convert biomass-derived oils (including vegetable oils and yellow grease) to a cetane enhancer and a highly paraffinic lubricant basestock (wax). Two plant sizes were considered: 400 and 800 b/d. The study included the preparation of a process flow diagram, the computer simulation of a commercial scale plant to establish mass and energy balances, the sizing and costing of all major pieces of equipment and the estimation of capital investment, operating costs and payout time. For a 400 b/d plant costing US$5.6 million, the payout time (defined as capital cost divided by net income) was estimated to be 4.6 years using a feedstock costing about US$0.018/lb. In the case of the 800 b/d plant, (US$8.5 million), the payout time is reduced to 2.7 years (32 months), due to the economy of scale.

CETC recently completed a project with Ottawa-based Advanced Engine Technology Ltd. (AET) to determine whether the addition of small amounts of SuperCetane and biodiesel to oil sands diesel can improve the quality and exhaust emissions of the fuel. Results indicated that blending these renewable fuels with low cetane fuels significantly reduced exhaust emissions of particulate matter and reduced exhaust emissions of oxides of nitrogen. Unburned hydrocarbons increased slightly but this effect can be reduced or eliminated with the use of oxidative catalytic converters. It was observed that as the concentration of SuperCetane increased, a corresponding reduction occurred in the emissions of particulates and oxides of nitrogen.

CETC will undertake two test programs. In the first, SuperCetane will be added to a conventional diesel (80%)/biodiesel (20%) blend (B20 fuel). Combustion, performance, operability and exhaust emission tests will be performed on these fuel blends. The objective is to determine whether the SuperCetane can lower the NOx emissions generated with B20 fuels.

In the second test program, CETC SuperCetane will be blended with a base fuel derived from oil sands sources as a part of another on-going study looking at various alternatives for increasing the cetane number of oil sands derived diesel fuels. The CETC SuperCetane will be compared with conventional cetane improvers (nitrate and peroxide) as well as F-T diesel and several oxygenates. The objective is to examine the cetane boost achieved by the additive as well as to the measure regulated emissions and fuel consumption in a Caterpillar 3401E diesel engine.

Advantages of the CETC SuperCetane

Production of high yield (~ 80%) CETC SuperCetane with a high cetane number (~ 100), low sulphur content and characteristics similar to those of premium diesel.
Ability to process a wide variety of feedstocks, including high free fatty acid (FFA) materials.
Production of useable hydrocarbon co products that are suited to conventional refinery streams. Limited technical risk due to the use of existing technology and refinery hardware.
Relatively low processing cost.
NOx emissions reductions resulting from higher cetane values.
For more information: SuperCetane Technology (PDF)

Contacts

Ed Hogan Dr. Jacques Monnier
CANMET
Energy Technology Centre CANMET
Energy Technology Centre
Natural Resources Canada Natural Resources Canada
[phone] [phone]
[e-mail] [e-mail]
http://www.canren.gc.ca/tech_appl/index.asp?CaId=2&PgId=1083

so you see hd, imo I feel we should leave the negative up to those who are against the Ethanol idea and have the positive investors (if you weren't positive you wouldn't put your money in it, right?)do research that is of the highest credibility and post THAT in order to help move things along. Obviously, if investors come across credible and imperical D&D that other investors need to know then let that be so. The above are just two examples some other suggestions for research may be loss of refinment capability and lack of renwal, environmental impact of use of fossil fuels, simplicity of the Ethanol process, cross utilization of pertoleum infra-structure and the benifits of XLPI's products and how they work in layman terms. This is my opinion but as a fellow investors who would like to make money as well as help our country and planet these may be some ideas for the effort we as investors can make.
GLTA,
Nez