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Extract Brewing with Specialty Grains

I recently started homebrewing using the Extract method with specialty grains, and I had a few questions about using steeping grains properly. I have read in quite a few sources, including How To Brew by John Palmer, that it is not a good idea to have a water to steeping grain ratio beyond 1 gallon/pound. I was recently fiddling with BeerSmith and researching a lot on beer recipes, as I hope to start attempting to create my own recipes soon, and I was running into a little bit of confusion.

When using BeerSmith for example, I selected Extract Brewing for the brewing method, I selected the 2 Gallon Pot / Extract set-up (as I have thus far only done one-gallon batches), and I selected 1 gallon as the batch size. Using these parameters I run into what seems like it could be a problem, but I am unsure:

If I follow the aforementioned advice of John Palmer (water:steeping-grain < 1), then in a one gallon batch (pre-boil vol. of ~1.25 gallons) I should be using MORE THAN a pound of steeping grains. However, if I use more than one pound of steeping grains, the steeping grains end up taking up a substantial proportion of my grain-bill (often times between 30-40%).

Is this problematic? Is the water:steeping-grain ratio of < 1 gallon/pound unnecessary?

Or perhaps is it a problem with extraction calculations in BeerSmith? So, for example, it says never to exceed 10% Black Barley in a batch. Is this 10% MAX IN BATCH restraint assuming that you are doing a full-hour long mash?

In other words, is it problematic to have 35% of your grain bill as steeping grains? Or, is this seemingly large percentage not that big of a deal as you are only soaking the grains for 30 minutes as opposed to the full hour?

Any ideas?

Steeping of specialty grains can be done in the full volume of water you will have in your boil. The water to grain ratio you are indicating is for mashing grains to convert starches to fermentable sugars.
Steeping of grains is for color and flavor extraction. In some specialty grains there may be some sugars, but it is a negligible addition to the wort.
The main thing in steeping grains is not to exceed 170°. At that temperature tannins can be extracted from the husks.

That makes sense. I try to keep my steeping temperature around 155 F so that is a good sign. Thank you for your help.

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