Processing arrangements for biomass byproducts and biomass derivative products

• US 20090043686A1
• Filed: 08/10/2007
• Published: 02/12/2009
• Est. Priority Date: 08/10/2007
• Status: Abandoned Application

• Current Assignee: Archer Daniels Midland Company
• Original Assignee: Archer Daniels Midland Company
• Inventors: Matsumoto, Yoshimasa
• Application Number:
  US11/891,412
• Publication Number:
  US 20090043686A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 50/02 Agriculture; Fishing; Forestry; Mining
• CPC Class Codes: Y02E 50/10 Biofuels, e.g. bio-diesel

Abstract

Various arrangements are disclosed wherein biomass processing services are provided to a producer of an agricultural product. One such arrangement may include the producer paying a fee or offering biomass related products to a buyer in exchange for receiving the biomass processing services. At least a portion of the fee for providing the biomass processing services may be paid by delivery of a quantity and/or quality of agricultural products, biomass byproducts, or biomass derivative products. In certain embodiments, arrangements between the producer and the buyer may also involve establishing vendor credit accounts or providing other financing programs to the producer.

Claims

1. A method comprising:

offering a biomass processing service to a producer of an agricultural product;

in exchange for offering the biomass processing service, receiving a promise from the producer to pay a fee for performing the biomass processing service, at least a portion of the biomass processing service fee to be paid by delivery of at least one of;

a quantity of the agricultural product,

a quantity of a biomass byproduct derived from the agricultural product, or

a quantity of a biomass derivative product derived from the agricultural product or the biomass byproduct.

2. The method of claim 1, further comprising the portion of the biomass processing service fee to be paid by delivery of at least one of:

a quantity and quality of the agricultural product,

a quantity and quality of a biomass byproduct derived from the agricultural product, or

a quantity and quality of a biomass derivative product derived from the agricultural product or the biomass byproduct.

3. The method of claim 1, wherein the biomass processing service includes transporting at least one of the biomass byproduct or the biomass derivative product from a production site to a collection site.

4. The method of claim 1, wherein the biomass processing service includes combining at least one of the biomass byproduct or the biomass derivative product.

5. The method of claim 1, wherein the biomass processing service includes chemical or thermal conversion of a biomass related product to produce a gas, liquid, or solid product.

6. The method of claim 1, wherein the biomass processing service includes chemical or thermal conversion of at least one of the biomass byproduct or the biomass derivative product.

7. The method of claim 1, wherein the biomass processing service includes pelletizing at least one of the biomass byproduct or the biomass derivative product.

8. The method of claim 1, wherein the biomass processing service includes shredding at least one of the biomass byproduct or the biomass derivative product.

9. The method of claim 1, wherein the biomass processing service includes hydrothermally processing at least one of the biomass byproduct or the biomass derivative product.

10. The method of claim 1, wherein the biomass processing service includes refining at least one of the biomass byproduct or the biomass derivative product.

11. The method of claim 1, wherein the biomass processing service includes baling at least one of the biomass byproduct or the biomass derivative product.

12. The method of claim 1, wherein the biomass processing service includes storing at least one of the biomass byproduct or the biomass derivative product.

13. The method of claim 1, wherein the biomass processing service includes providing access to a piece of biomass processing equipment to the producer.

14. The method of claim 13, wherein the biomass processing equipment includes at least one of a transporter, a pyrolysis unit, a combine, a gasifying unit, a burner, a combustor, a pelletizer, a shredder, a hydrothermal processor, a refinery, a hydrocracker, a baler, or a storage tank.

15. The method of claim 13, wherein the biomass processing equipment includes mobile equipment.

16. The method of claim 1, wherein the biomass processing service fee includes a fee associated with use of or access to biomass processing equipment by the producer.

17. The method of claim 1, wherein the biomass derivative product includes at least one of pyrolysis oil, synthetic gas, methane gas, hydrogen gas, mixed alcohol, ethanol, propanol, butanol, pentanol, wax, green diesel, olefins, propylene, ethylene, green gasoline, C3 carbon chain chemicals, aldehydes, formaldehyde, MTBE, acetic acid, methanol, polyols, tar, or biomass-containing animal feed.

18. The method of claim 1, further comprising receiving delivery of one or more of the agricultural product, the biomass byproduct, or the biomass derivative product at a predetermined time and location.

19. The method of claim 18, further comprising pricing at least one of the delivered agricultural product, the delivered biomass byproduct, or the delivered biomass derivative product at a local market price.

20. The method of claim 18, further comprising pricing at least one of the delivered agricultural product, the delivered biomass byproduct, or the delivered biomass derivative product using at least one of an energy market index or a futures price.

21. The method of claim 1, further comprising paying the producer for delivery of the agricultural product, the biomass byproduct, or the biomass derivative product, wherein the payment to the producer includes a discount applied to the biomass processing service fee.

22. The method of claim 1, further comprising paying the producer for delivery of only the agricultural product, and accepting a predetermined extra quantity of agricultural product in lieu of delivery of the biomass byproduct or the biomass derivative product.

23. The method of claim 1, further comprising paying the producer for delivery of the agricultural product, the biomass byproduct, or the biomass derivative product, wherein at least a portion of the payment to the producer includes at least one bartered good.

24. The method of claim 23, wherein the bartered good includes at least one of an agricultural product, food, energy, loan interest rate reduction, loan payment reduction, loan principal balance reduction, greenhouse gas credit, grain basis, or energy basis.

25. A method comprising:

offering a biomass processing service to a producer of an agricultural product;

in exchange for offering the biomass processing service, receiving a promise from the producer to deliver at least one of;

a quantity of the agricultural product,

a quantity of a biomass byproduct derived from the agricultural product, or

a quantity of a biomass derivative product derived from the biomass byproduct; and

,

offering a credit arrangement to the producer in association with offering the biomass processing service, wherein use of the credit arrangement by the producer is limited to agriculturally related purposes.

26. The method of claim 25, further comprising receiving a promise from the producer to deliver at least one of:

a quantity and quality of the agricultural product,

a quantity and quality of a biomass byproduct derived from the agricultural product, or

a quantity and quality of a biomass derivative product derived from the agricultural product or the biomass byproduct.

27. A method of trading agricultural products and biomass related products, the method comprising:

offering a contract to a producer from a buyer to purchase at least one biomass related product at a price and for delivery of the products at a future delivery date; and

offering a credit arrangement to the producer with terms providing for repayment of debt against the credit arrangement to be paid to the buyer being linked to settlement of the contract.

28. A method for facilitating a commodity contract between a producer and a buyer, the commodity contract being for delivery of a commodity at a price at a future date, the method comprising:

establishing a credit arrangement for the producer, a credit limit of the credit arrangement being a function of the value of the commodity contract, wherein at least one commodity under the contract includes a biomass related product;

permitting the producer to draw funds against the credit limit; and

,

wherein the credit arrangement requires payment by the producer in association with settlement of the commodity contract for at least a portion of amounts drawn against the credit limit of the credit arrangement.

29. A method of trading a commodity, the method comprising:

forming a cash commodity contract between a producer and a commodity buyer for purchase of a commodity to be delivered in a future delivery period, wherein the commodity includes at least one biomass related product;

selling a short call option contract for a corresponding futures contract for the commodity and realizing a financial gain from the sale of the option;

allocating a financial credit for the benefit of the producer in an amount based on the financial gain realized from sale of the option;

establishing an agreement with a vendor of at least one of goods and services to the producer to accept payment from the commodity buyer to offset a debt owed by the producer to the vendor for purchasing the goods or services from the vendor, provided that the goods or services are for an agricultural purpose;

if the producer purchases the goods or services from the vendor, applying a payment on behalf of the producer by the buyer to the vendor, in an amount at least up to the credits allocated for the producer.

30. The method of claim 29, wherein the vendor includes a biomass service provider.

31. The method of claim 29, further comprising establishing the agreement with a plurality of different vendors to form a set of alliance partners with the commodity buyer from which the producer can obtain goods or services by use of the allocated credits.

32. The method of claim 29, wherein the commodity contract comprises an agreement to buy the commodity from the producer over multiple delivery periods and a basis offered to the producer for at least a first one of the multiple delivery periods that is greater than a basis offered to the producer for a commodity contract covering a single delivery period.

33. The method of claim 29, wherein the commodity contract includes a reference futures price range in relation to the expiration date of the option used to determine a price the commodity buyer will purchase the commodity from the producer.

34. The method of claim 29, wherein the option contract is settled by the commodity buyer on the expiration date by at least one of:

entering a futures contract to buy a corresponding amount of the commodity at the futures price current on the date of expiration for the delivery period;

buying an offsetting options contract;

or

doing nothing while allowing the option to expire.