PKM DUDA, a group of capital-linked businesses from the agricultural and food sector in Poland with a primary focus on red meat production, is diversifying into the biogas and biofuels business.
DUDA is partnering with Lurgi on the construction of a 100,000 tonne per year (33 million gallons US) bioethanol plant in southwest Poland. The two companies have established an investment company to realize the project. Construction is to begin in January 2007.
The plant will use about 330,000 tonnes of corn per year as the feedstock, and will produce 101,000 tonnes of distiller’s dried grain with solubles (DDGS) as a feed byproduct.
The EU has directed a minimum bio-component share in gasoline and diesel of 5.75% by 2010. For Poland, that works out to demand of ethanol of about 1.2 million tonnes (400 million gallons US).
DUDA opted for corn ethanol over biodiesel for several reasons, among them that corn yields more than the other feedstocks the agricultural company was examining (rye, wheat, sugar beet and potato); the supply of corn is greater than the supply of rapeseed for biodiesel feedstock; and that it has a close relationship with pig breeders from who it can purchase the corn and to whom it can sell the DDGS.
DUDA plans to pursue construction of biogas installations next to its meat processing plants and pig farms, and to build biofuel plants connected to those biogas facilities.