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How beer will help power this brewery

By | February 4, 2013, 2:49 PM PST

In Alaska, isolation and economics are leading to innovation for one brewery.

In beer-making, a waste product known as spent grain accumulates. Many breweries make money from the byproduct by selling it to farmers for animal feed. But most breweries aren’t located in Juneau, Alaska where farms are few and far between and shipping costs are high. The Alaskan Brewing Company is. For years, the company has been shipping its spent grain to farms in the lower 48 states, barely profiting from all the trouble. But now they’re working on a system to use the beer byproduct to power the brewery.

According to the Associated Press, the brewery is installing a $1.8 million boiler system that turns the company’s spent grain to steam which will power 70 percent of the brewery’s operations.

While breweries around the world use spent grain as a co-fuel in energy recovery systems, “nobody was burning spent grain as a sole fuel source for an energy recovery system, for a steam boiler,” says Brandon Smith, the company’s brewing operations and engineering manager.

It contracted with a North Dakota company to build the special boiler system after the project was awarded nearly $500,000 in a grant from the federal Rural Energy for America Program.

The system is expected to be operational in a month and save the craft brewery — which produces 150,000 barrels of beer each year — about $450,000 annually.

Beer will help power Alaska brewery [Associated Press]

Photo: Flickr/WordRidden

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Tyler Falk

About Tyler Falk

Tyler Falk is a contributing editor for SmartPlanet.

Tyler Falk

Tyler Falk

Contributing Editor

Tyler Falk freelance journalist based in Washington, D.C. Previously, he was with Smart Growth America and Grist. He holds a degree from Goshen College.

Follow him on Twitter.

Tyler Falk

Tyler Falk

Tyler does not have financial holdings that would influence how or what he covers.

He writes for SmartPlanet and is not an employee of CBS.

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+1 Vote
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Why is this a success?
Did government money need to be involved? It seems like a clear four year payback.

And if it's so expensive to ship the byproduct to farmers then how does the grain get to the brewery in the first place?
Posted by jtdavies
5th Feb
+2 Votes
+ -
Should have been a loan.
The plan had a clear ROI from the start. Why was this a grant and not a loan?

With a modest 5 year payback at just 2 % interest everybody could have been a winner. Especially the tax payers who get their investment back and a profitable company paying taxes.

The over riding question I have is this.

If the numbers really work out so well, why did they need a government grant in the first place?

When a conventional business loan should have been easy to get.
Posted by Hates Idiots
5th Feb
-1 Votes
+ -
Why should sustainable energy be any different?
The government subsidizes the oil and gas industry in far greater amounts than this loan. If it takes subsidies to make sustainable ideas like this a reality then let's do it now!

Great job Alaskan Brewing Company.
Posted by kevin_kreitz
6th Feb
+1 Vote
+ -
Odd thinking.
You are angry over one set of people getting taxpayer money so that justifies another group of people getting taxpayer money.

I like my solution better. Many people like me have been advocating it for decades, but everyone with a special interest hates us for having the guts to say it.

How about NONE of them get MY money?

Does that work for you?

If the numbers people throw around this site about oil and gas subsidies are true, I know my wallet would love to keep 10 cents more of every dollar I earn with my hard work.
Posted by Hates Idiots
7th Feb
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