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Technology may converge biodiesel, ethanol markets New technology would transform corn oil into biodiesel Devona Walker Associated Press Writer
The biodiesel and ethanol markets may converge with new technology that promises to transform corn oil into biodiesel, possibly resulting in substantial growth in supply for both fuels, industry experts say.
SunSource BioEnergy LLC, a partnership of four ethanol producers — VeraSun Energy, Golden Grain, KAAPA Ethanol and Glacial Lakes Energy — and one technology company — Ethanol Oil Recovery Systems — joined to make the technology available throughout the ethanol industry. The technology will be the focus of an annual ethanol workshop July 30 in Kansas City, Mo.
“This is exciting new technology,” said Don Endres, Vera Sun’s chief executive officer. “We believe this breakthrough will improve the economics of ethanol production by creating another product revenue stream.”
Ethanol Oil Recovery Systems developed the technology that allows biodiesel to be made from the ethanol process, by using the oil from corn that has traditionally been an unwanted addition to feed grains.
The technology already is being used at a few plants in the Midwest and is expected to expand to other ethanol producers around the country.
By next year, construction will begin at a single distiller plant capable of producing about 50 million gallons of biodiesel per year. Last year, the industry produced about 35 million gallons of biodiesel fuel. New facility would be largest Though the industry is rapidly growing, the new facility would be the largest of its kind in the nation.
There are currently 85 ethanol plants nationwide, producing about 3.8 billion gallons. Another 15 are under construction.
“The ethanol industry is the fastest growing industry in the state of Iowa,” said Lucy Norton, a spokeswoman for the Iowa Corn Growers Association. “We’ve seen that the industry has been setting record production levels.”
Norton said the new technology will offer a very attractive alternative to existing ethanol producers.
“This will significantly diversify the market and give them a greater opportunity of seeing a return on their investment,” she said. “And it will keep more of that income in the state of Iowa.”
VeraSun Energy, headquartered in Brookings, S.D., owns and operates a 120 million gallon ethanol plant in Aurora, S.D. It will complete construction of a 110 million gallon plant near Fort Dodge, Iowa, later this year. When completed, the plant will make VeraSun the second largest ethanol producer in the country.
“The real benefit to using alternative fuels is that it reduces the emissions,” said Matt Janes, vice president of technology. “That’s the huge benefit and the main reason that it is coming on so strong right now.”
This is the first time the ethanol and biodiesel markets have merged, and advocates for both fuels say it’s a perfect blend.
Brian Jennings, executive director of the American Coalition for Ethanol, said both fuels could go a long way to help the environment and make the United States less dependent on foreign oil.
“It’s produced in the United States, so we don’t have to depend upon a foreign nation to supply this to us,” Jennings said. “It’s homegrown.”
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