PONDs u ,I ~"

IIm11"1'~D
I,II'I, u r~ I I ~„ I I . .~,

August 17, 1970

TO : S . A. Angotti P . E. Geiser K. W . Kirby C . M . Sawyer
W. C . Black L . K. Holmes C . G. Phei I eZ O. H. Tousey
R . V . Cronin L . L . Huston E. C . Ritchell E . A . Vassallo .
M, Senkus C . M, Widmer
R. E . Broui I lard

Task Fo rce Meetng,ugust

fi A 5, 1970
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Attached'is a copy of the minutes covering the Task Force Meeting held in
Cedar Rapids August 5 .
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7
 MI NUTES
PENSWEET TASK . . . .. FORCE
. . . ..MEETING
. . . . .... . . . . . .
Cedar Rapids, August 5, 1970

,
. , .,, . ., ~ . ..,
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R. E . Broui l lard
L. K . Ho l mes
K. W. Ki rby
C . G . Phei 1
C . M . Sawyer
O. H . Tousey
C . M. Widmer. ~, . ,11111 : 111,,,,, 1~U11~i ~ ,Ili,"" !!ISVN"",i,i il,il i,I lYifu'If` i,,~ . ~, ~iM1u°~i uV~il ~1i4"~fl',li I
W C . Black (part time)
, :pul q, , p ~ ~1r, " 1 " liI
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, ~ ., . ., ., .. . .
Dr. C . G . Pheil has replaced Dr . Nielson as a permanent member of the Task Force .
/~A -
Mr_L,-K-,-ii:flmes has been added to the Task Force to aid in the financial planning
which wi1! be an integrai part of the work to be done .

. Pensweet, Task Force

A. Purpose
rpose

The purpose of the Pensweet Task Force is to provide a detailed plan of

action for future Pensweet operations based on a complete study of the
`,background, present status, and options for further action .

B. Authority

The Pensweet Task Force has no authority beyond the preparation of a

report with recommendations for submission to the Technical Steering
Committee .

C. Method of Operation

1 . Mi nuteswi l l„ be prepared by R . E . Broui l lard . These wi l l be

presented to the full committee for additions, deletions, or correc-
tions . If no reacti on is received within one week, the minutes will
be issued as-is or appropriately modified with copies to S . A .
Angotti, W. C . Black, R . V . Cronin, P . E . Geiser, L . L . Huston,
E . C . Ritchell, M . Senkus, and E .,A. Vassallo,
, , . as . well.as,members
.. . . .
of the Task Force .
~ ,„
: .. , . , , ~~,„ N
I CO
 2 . (ndtviduals
' or groups with the Task Force will be given specific
assignments
` volve . This wi l l i n reports and substantiating
written
ek before a
m
data eefi n g 5e Th s wt 11 la low ~fi~me fort stu an
dys done
analysis
we .
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3 . A formal report will be submitted to the Technical Steering
} In the event that unanimous
ot be reached, agreement can , a minority report wi l l be written .
~
4 . The second and subsequent meetings will be scheduled as develop-
ments warrant but at intervals no longer than one month .

5 . u l as,~C F~ orcemem„ ~~ bllers v~t l I a d vtse a,l l me,mbers, of sign tfi-

cdn t" ~
develop ents as they occur .
a „„ „m

Background
ll
. ,
The potential of fructose containing syrups derived from starch has long be n recognized
. The economic value of such products lies dn sweetness levels higher
than those of conventional corn syrup and costs of production which would make
the product cheaper than sucrose .

t A, Alternate Processes

The presently available processes for conversion of starch to fructose con-

.
. E, syrup,
followed by~ somer zation y by ql~ conversion of starch
al't or enzymes . to 95 D
. . .. .
The old alkali `som,,}.r,,,~,,~ ti,C
„ „process as modified by Suzuki and Kainuma
lone has been pi lot by CPC in Europe and by RJR-P&F in Cedar Rapids
.. . . ..1Al~thevso.u(28-the3°0)rocandsi.fegabltiond'pa.e-fr,itgvslowerfuct.
products which make it difficult to
- - - --
purify to adequate color and flavor stability . The enzyme isomerized
product gives fructose levels of 40-42% and minimal degradation . At the
higher fructose levels, the product has approximately the sweetness of
sucrose .

of ~t a ey ove ed by the CPC Marshal l patenttwh ch art, an 1960 . cCommer-

cial feasibility was demonstrated in Japan in 1963-1965 . The processes
evolved in Japan were those of Takasaki, Sato, and Yamanaka . All of
these systems require Xylan or Xylose as a nutrient for enzyme production .
~ The Takasaki process was licensed to Clinton for the United States in 1966 Ln
a wqr,Ad,
sr therexcept t of the Japan in 1969 . The Sato 0
p roces
n has lt bee,
cen sed to Mtles The Yamanaka process is available ~
~'
., i I
.

. .
.

. ..
., . • +
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f 9 bu , t is bel i~eved to be uneconomical be of or (icensin cause o,,,,poor enzyme

yields . All other .available known processes are believed to be imprac-
tical, because necessary ingredients would make the final product
unacceptable for food use .

RJR-P&F Activity
I . . ,., J .
The Biochemical Division in Winston-Salem Research began working on
the glucose isomerase in 1966 . An effective enzyme has been developed
which does not fall within the scope of the C PC Marsha ( i patent and does
not require expensive Xylose or Xylan as a nutrient .
,',,, q~ , ~.
'"u

In 1969, a highly satisfactory glucose-fructose syrup (Pensweet) has been

prepared in the Cedar Rapids pilot operations from the Winston-Salem
is, . ., ..
glucose isomerase Economic evaluation„ which , resulted f romth pi lot
study indicated that it would be e ssential to find means „ to„ reuse the
enzyme to improve the economics. Published work on the Clinton Taka-
saki process indicates that they can reuse their enzyme based on a heat
stabilization process . Such a stabilization is not effective with the
"" Winston-Salem enzyme .

.~ .
~. . . ... . . . . ~ .
The Winston-Salem glucose isomerase is the subject of a United States
patent application . Various foreign applications will also be filed . The
enzyme and the process for glucose-fructose fall outside the scope of the
CPC Marshall patents . This is an exceedingly important consideration,
s ince there are strong indications that CPC will sue Clinton for. patent
infringement.

Present planning on the Fructose Project involves use of sucrose as the raw
material for initial production . This approach will enable us to enter the
market most quickly . Although economics are favorable with a sucrose
base, they are improved considerably if Pensweet is substituted and eventual
plans call for this change . Since there a„re many Marketing and Technical
considerations yet to be settled, the Fructose Project will not enter into
Task Force considerations on Pensweet :

III . Marketing Considerations

A. General

,T e gfucose-fru ctose product introduced by Clinton in 1968 and now reach-

ing the marketplace in limited quantities has a very large market potential .
It represents the greatest development ever achieved in the corn refining ,

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industry . The sugar market is under attack by glucose fructose

. products .
° . ., . United
nited Statesi consumption is over 20,000,000,000 pau .nds in total
ou 000 ~ 00 the industrial area where glucose-
k ' fructose Produ e as0a substtute ;'
,, „ . r . . . . ., , . . . .. . ..
B. Competitive Activity "

nitroduce(sm 30and1ito 1968

. . ., a. 15% and 40-42% -42I. ~ se, res ectivel
° fructo .. . . e ryaccepao nce has .
been excellent,, particularly for isomerose 100 . Initial capacity is
30, Oo OOdO ound. . s ear . Ex pn
ans i on now
t y
Y .
~ well eprov de,b10 0 000
~ OOO p /y
p ear . lndicati
.s ons are that h' is nex
p ra
n-a
s/Y
f . •~ sion wi'I I be at the ex p ense of some
p of th e~'r res ent corn syrup 1 i ne .
, .

~ „ e,
. Trade
thatrumorsCl~n
pr planning
., . a West Coast facility ty for ., , .~. .
.
Isomerose 100 . w . I , ,i,i ,. , 1
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Union and CPC have indicated that they will be in the market in 1971 orl II
. . 1972 .
. . . . .... early
: Clinton has sublicensed Staley in 1969 to produce Isomerose 100 on the
`. ~ast Coast. Plant construct~on ~s now under wa y.
, , °°, 11i 11111111111'
; 1IAmen 'can Sugar is promoting an invert syrup of ap roximately the sam e
percentage of fructose as the Clinton product and selling same on a liquid
" basis with emphasis to the baking trade on fermentability . This could
represent growth of a glucose-fructose product
F ' manufactured
lufactured from
corn,
' aornbut
g we tt anticipate
wou{d this competition to exist
ma i nl on the eastern sea b ora d and the G an has
refine
neries . This view ew o f the freight fac tor~ volvede in de( ver ng such .,. . ,..
product to the Middle West . In like terms, the Midwest manufacturers of
' glucose-fructose face similar difficulties in moving to the East or South
with the exception of Staley which is building a plant for the sPecific Pur-
pose of supp1yi ng the Eastern market . It is feasible that the Western beet
people might be able to provide competition in the Midwestern marketing area .
.
RI' C . Market Potential
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' Prior to the ad v ent of the Ameri cn Sugar approach, and I,we sti 1 f have no
, d successful the may be, we estimated .. the national pofien-
' tial of glucose-fructose at 1,000,000,000pounds
th and the
Central
Nor . .
. area, which wo u be t e referre _ market ffrom the corn refiner's standpoint,
_- at 350 000 OOO pounds . As a matter of comp arison the entire corn syrup
~: mar k et l ast yearthe
was 3dextrose
, 200 , 000 , 000 and 1,100, 000, 000 pounds .
_ Assuming that we would want to limit our distribution to the Midwestern
~ . high
e return area,
fo we would estimate
l 1 1 1 1 1 ourl
potential ows m
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One year -- 15, 000, 000 pounds

Two years -- 30, 000, 000 pounds
Three y ea rs -- 60, 000, 000 pounds
Five years -- 100, 000, 000 pounds

In main this orec ast . it is not be any adverse

g overnment reaction to the p g n Senet af on of the su a ' r market o the part of
the corn refiners such as the .elimination of the sugar processing charge
or the placing of a similar processing charge on the corn refining industry .

Another area of great potential involves conversion of regular corn

syrups into fructose containing products . Successful application of
e nzyme reuse in columns sfiud t ' es now, under way is necessary for achieving
this objective .

Present RJR--P&F Position

A . 95 D . E . Syrup Process

The 95 D. E . Syrup for Total Sugar is identical to that required for Pensweet .
Production of this product has given difficulties in sludge levels and filtra-
tion rates . It has, therefore, been under study .

The syrup production process is now reasonably stabilized, and no diffi-

culties are bein It has
been demonstratedg that
encountere
an im roved ~it quality
resproduct
It r when the
hydrolysate from the saccharification step is used promptly after the desired
t' be . If used
it tion steppromptly,
annot similar effects
are obtained by a hea t'inactiva tep to minimize production of reversion
products . The use of increased calcium levels during liquefaction and
saccharification has been found to reduce the residue levels, improve the
filtration rates from 50 to 75 per cent, and also improve the resulting final
D. E . obtained . Confirmatory runs are now in progress . The operation of
the ion-exchange columns has not been stabilized to the point where we have
been able to establish the impact of the extra .calcium on their operation .
, . .. .:. . .: , , , :
A pilot operation in the Pensweet pilot plant is now under way to evaluate
a cook revised seprior s arc q to addition t of the in which the starch slurry is pressure
' he liquefying enzyme and the liquefaction .
Preliminary work in the laboratory indicates increased yields, D . E . `s, and
filtering rates will result .

1
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. Pensweet Process

The pilot plant demonstration of the Pensweet Process using whole ce~ls
( once) g y The syrup used was untreated
95 D . EncSyrup was hEconomic evaluation showed that enzyme reuse was
essential for satisfactory economics .

C . Enzyme Production

Pilot plant work on production of the Winston-Salem glucose-isomerase

at Dawe's has been started . Results are expected in about two weeks .
Unless there are unexpected diff`iculties, this will I l owe beb foof
scale-
up to 1,800 gallon batc e . This program should result in a suPPlY
whole cells g. .. . . , for
tose pilot .operations
l ucose fruc ~

Dr . Pheil and Mr . Hayes wi 11 be involved in the Dawe's work . This will

sfer of a 1 . .tec nologY evelope
assure adequate.. transfer . . during this
.,activit
,,
Y .
D . Enzyme Reuse

Enzyme reuse is a critical factor in determining the over-all economics

of Pensweet operations Winston Salem activity to date is as follows .

1 . Whole Cell Reuse

It has been shown that the use of wh ole cells too produce Pensweet
' partial c e~sup tio o the enzyme in the system .
Th sind cates them~d e ' recovery y use may be possible .

2 . Enzyme Reuse after Lysing

a.' Lysing

Present lysing techniques used to free the enzyme from the

sonification operations which are
~
im~acticlal,o
p for large escale production . A Premier Colloid
Mi I I and Manton
a~obal
Gaulin Mill will be tried shortly to
4 overcomestce
th .

. FixngofLysedEzmb l '1 '

I
(1) DEAE Cellulose

Column work with enzyme fixed on DEAE Cel lulose ~

woll be abandoned because of impractical flow
o,,rates
, . ~,

Satck operation with enzyme fixed on

~ ,. . . . ' .
~ .
 I dIV yv II'Ipr

Ceiluls oel iss still under investigation but does not

p. . . . . .
PP earP romising because of processing pro~lems .
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(2) Resi ns

ra resins for r i ndo g c iues

II he only resin fo. nd c,~ves satisfacg y 6tnd. " ."
ng, .' i . o '•
. 4 ~ g .~
Y, a 15X enzme
reuse is Indicated, l and Qesin costs are reasonable .,~
($1 . I~b. )Probl®
ly
15/msunder
currently study are ~-
resin reuse and batch to batch resin variation . A.
x 2" column
,, nto
i s bei~ng puto i peration .
~ ~ I . . ,. .,
Problem Areas
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.
A. Expedi ti ng Work on Enzyme Reuse

6ec„use
a of tica
the cri~ty
I ~l' of enzyme reuse, .~ mea .
. . wa. . sY an .means t, o
ex. edi„te
P
th e work was discussed in the following categories :
. ~ ~ 1 ., 0 1,
r, ~ . • 1~
1 . Expansi on of Winston-Salem M~a nIIower Commitments was not
consi ere to be necessary because of the attention necessary
for training of new personnel .

2. Cedar Rapids Involvement should be limited to whole cell reuse

as efine in, Vt, A below . .
. . .. . ,. . ,. . ..I, , .
. r„;
III,, ~ III ,° : I ;
. NSK volyemntwasrc3 In mmended . This based on the following
considerations:
. .. ,I. . I . . , .., ~ .h
. I , . I.
a . ''NSK has experience in the glucose-isomerase field .
. . .. . . . . . , . .. I. , .. : .... „I,,.
.. .,.. ;, I
p eviously expressed a desire for a cooperative
progiramson'"glucose-fructose .

c . NSK--P&F joint activity in Japan is under discussion . .

. d. , NSK is willing to commit

. manpower to the project .

e. SK in . in. activity in„ the Japanese

.
I I4
.cademic
. , vo„ `e
and Govrnm,,
l tlaorator
'b i es where all major
developments in the field have occurred .

f. A long-term relationship with NSK will provide a means

to stay at least competitive technically with the P&F inan-
p ower which can be committed as RJR phases out of this
activity . "

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g. NSK activity in the field would be noncompetitive

because of Iimita,t!„on t°"Jlapa n .

t was recommended that the NSK involvement be based on an

RJR license to NSK which would involve complete exchange of
technology and developments with United States patent rights
to any new developments belonging to RJR . Further, that no
movo be made until the Japanese patent is filed,

~ Dr . Phei 1 wi l l check the status of Japanese patent application .i V /v

IVs vI 7i t 5 70 . , .~
( %
Dr . BrouillarTwill discuss the recommendation with Dr . Ritchell .

4 . Outside Sources of expertise was discussed . The availability

of Dr . John , Pazur , of Penn, State asconsu
a m ltant c
„ reated„ no ~ntere„s
in spite of his expertise in the enzyme field . This negative reaction
was due to Pazur's lack of experience in glucose-isomerase and
the fear that he woulddissipate confidential information .
. .. .. .. .
B . Transfer,of Laboratory Activity to Cedar Rapids

It is recognized that because of divestiture considerations and a reorienta- .

tion in RJR research activities Winston-Salem activity on Pensw eet wiI I
be phased
. out at some time. before. P&F is. divested
. . . . .. .

It is also recognized that P&F must have sufficient Cedar Rapids technical
capability to support the Pensweet program and enable us to remain com-
petitive, as the inevitable technological changes occur . Such changes
are charac teristic of any, new field in the stage of initial development .
~ . . . . .'. : : . I ~
Because P&F has not been actively involved in Research and Development
in the field, we are presently deficient in knowledgeable manpower,
necessary specialized equipment, and laboratory space .

P&F efforts to transfer experienced Winston-Salem manpower is now reduced

'to an outstanding offer to Dr . Paul Benko . He is considering this in the
light of other offers and wi l! advise us short ly . Efforts are also being
made to find suitable outside talen t.

ui. Dr. Pheil and Dr . Kirby were assigned the task of resolving the issues
Involved and of making g suitable recommendations with reference to man,-
power, space, and equipment .

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Nl . Specific New Action Programs

A. Use of Whole Cells from Dawe's

It was the judgment of the Task

. . 'Force
. ~~ that
. .. the
.. whole cel Is
ed produc~ during
the pilot plant and scale-up operations at Dawe's should be transferred
to Cedar Rapids for use in Pensweefi Pilot Plant Studies .

The primary purpose of the Cedar Rapids pi '

lot study
to willdetermine
be
` . efeasibi lity and economics involved
.. in the reuseeil s ..lt
lo _
is probable that such cells will be avatlable
. .n . wtth . one month . . . pt . . .. . . .
work wi ! I be s tarted as soon as possible .
. I~
I I lI i
Sin ~ ~ ce the ortgg e i nal whole cel! (one us ) p lot plant Pensweet operationas
w
based on syrupwhicr syupr' exchanged, to filter the . ..
II ti on wi ( I be based ona si mil a ly teafied The nes
syrup will also be determined .

The p y of a pilot ~ostbil whole cell reuse study based on the glucose-
avaiiable in I1l Winstonl lem was considered
; ~~,,'II I I ' .,I Iand
I ~"lu','I IIIII
ca ded as deficie t in terms of th~ l~~I~ 'll "e oll
difference
I',lll which would exist in the„
Winston-Salem a ates„ particularly to the fi Iter aid
which h will be preenjtin the s~CelDawe
's cells, l

Mr. Black was assigned the responsibility of seeing that the Pilot Plant
was operable for the above described operation based on process details
to be provided by Dr. Phei 1 .
,:
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B. Use of Total Sugar Syrup Capacity

placed
out at eve eol mi at ontonttheepromofi'on'of TotalPCusao
,g Rr ~ the 1 T Dext
compressed
candy field at premium prices . As a result, if we continue to limit pro-
motions to premium price markets we project 1971 sales at 5-7, .000,000
pounds .

As a result of the abo ve, i f c u rrent po l i cy on Total Suga r is not changed

in 1971, we shall have unused capacity for approximately 20,000,000
pounds of 95 D. E . Syrup which could be allocated to Pensweet .
. I
It was the Task Force's recommendation that this excess capacity be used
sin the- whole cei 1 pro if the economics
.. . . . .on
. pi lot. opera-
t . , ons on whole cel reuse prove sat sfactor, y .
m
Alter~late uses for the 95 D . E . capacity
captY was considered .l l Thesel
. wer
.e, w
00
w
~ ~
p I~ al'~ ~ Ir~ , . I m
, u I. dit l0

I
 1 . 95 D . E, . Syrup

Althoug tri b for thi sdp rt~cn t'o does not

. . :, g sstructure
a tctveecause o fanun t tract~e cp
PP @pr' ' r@ .

I wl, Ii u i mi,p'N'
95 D E . Dried Corn. Syrup Solids
, I II , . .
„
Such a product could be made which would have the chemical
composition of Total Sugar but not its physical form . Considerable
development work would be necessary to determine equipment
modification necessary .
, ~ ~~, "
~ d~~ i .,, .,,,I iR ~';

. . . ... . .. . . .
3. Corn Syrup
rU p Solids
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'
Available Total Sugar tower capacity also presents opportunities
for preparing corn syrup solids of D. E . lower than 42 from normal
refinery stocks .
. . .,. .
T ese a ternatives .
~n+ ~i I,,,,
~ dered
beconsi in greatersubsequent
detai I in subs
meetings .
. . .. .. . . ..
I~ , .
Messrs . Black and Widmer will analyze the ramification of using the avail-
able Total Sugar 95 D . E . Syrup capacity for Pensweet operations .

Dr . Brouillard will investigate the use of a Total Sugar Tower for corn
syrup solids .

C . Make or Buy Decision on Enzymes

,Il . II V
Since enzyme manufacture by P&F has a very significant potential economic
advantage over custom manufacture by Dawe's, this matter was discussed
In detail .

The potential difficulties involved in our, own enzyme manufacture are :

1 . Lack of experience in the field .

~• .
2, The time sary to establish II a complete op eration versus that
which could be anticipated in building syrup facilities for Pensweet
nl' ~ and using existing plant for enzyme
, product'!on
;
3. Our present inability to size such a plant since successful completion
of current, work,,on,,,enzyme reuse is a critical factor in requirements . ®
., . . , . . . 00
w
 ~-1 1

:., „ . 11111
.. .
pp , would be
to was initi te operations based on cu t m,producedbenzymew with plans t o
eventually make our own .

Dr,. Pheil, Dr. Kirby, Mr. ~dmer, and possibly Mr . Geiser wi11 visi t
Dawe's plant at Harbor Beach, Michigan to evaluate magnitude o f
enzyme operations . Dr. Goldsmith of Dawe's has already approved suc h
a visit .

D . Potential Use of Dry Mi l led Corn as Raw Materia l

, Work in aw ma the feasibility of using dry milled par

corn as a has d e laborator
pfierial for t y ory preparation of 95 D . E. Syru
which could serve b s for Pe A1 process has
potential for lower o er-al l operati gc e sts, ithhas~never been carried to
pilot scale because of the urgency of other projects and the fact that
adequate long term starch capacity was available in Cedar Rapids i f
marginal profit items were eliminated from the product line .

It was reported that recent information seems to indicate a dry milli n

process may be in operation at GPC .

A joint project has been proposed to BMA on a modified. . .and

. . simplified
. .
wet mi l l ing process for syrup production .

A source of dry milled corn with oil levels of 1 .8-2.1°lowassaidtobe avail-

able in quantity from a Midwest brewery .
.
Dr . Broui 1 lard will
pursue
pa,. gather
detail for further consideratio
. . n . . .
.
E. Pert Analysi s

Mr . Sawyer will prepare a Pert Analysis as soon as sufficient data is

avai lable .

F. Pensweet Commercial Development Activit y

. .~ , .
No Commercial, Development Activity on Pensweet p isla
nnesince
,d the
product has already been established in ;the market place . It will be
released to Sales as soon as it beco i

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