It can be used in wet or dry form as a protein source in livestock rations, which fits well with the Kansas cattle feeding industry, Coltrain said. For that reason, the groups who are investigating getting into ethanol production are for the most part, affiliated with or working with feedlots or dairies around the state, Krissek said. The drying process in the production of distillers grain, however, eats into a plant s profits, Coltrain added. There are drawbacks to the wet product, however. Wet distillers grain must be used within about three days if it s to be used as livestock feed, which means that only feedlots near the plant are likely to be regular buyers.
Some state legislators are also optimistic about the future of ethanol in Kansas.
The Senate Utilities Committee endorsed two bills in early February that would require state agencies to buy gasoline containing 10 percent ethanol. The committee made amendments limiting the mandate to bulk purchases and providing an exception for when an ethanol blend costs 10 cents more a gallon than regular unleaded gasoline. The bills would apply to all state agencies and state vehicles. The committee s actions could be a first step toward keeping more ethanol in the state. That would curb transportation costs that also cut into a plant s profits, Barton said.