Transcript Vegetable Oils Forum 2012 - American Fats and Oils Association

Vegetable Oils Forum
AFOA 2013
Brian Engel
Tenaska Commodities, LLC
Omaha, NE
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Distillers (DDG’s) Corn Oil update
Rail car situation
Renewable documentation
Mineral Oil
Distillers (DDG’s) Corn Oil Recovery
Process
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Grind corn
Cook corn
Fermentation
Separate solids (centrifuge), liquids, alcohol
(distillation)
• Concentrate liquids (syrup) 30 to 35% solids
through evaporators
• Centrifuge corn oil from concentrated liquids
Distillers Corn Oil Specifications
• AFOA Rule 6.e
• Online at
www.fatsandoils.org/traderrules/traderrulesm
ain/
Distillers Corn Oil Production
• 80% to 85% of ethanol plants extracting
• 2.0 to 2.2 billion lbs of annual distillers corn oil
production
• Yields improving
– Anti emulsion process aids
– Higher process temperatures
– Management focus
– Fine grind
– Enzymes
Distillers Corn Oil next steps
• Increase yields to 1.0 lb/bu approximately 5.0
billion lbs / year
• Potential 1.8 to 2.0 lbs of corn oil / bu
• Higher protein values relative to energy value
in feed
• Continued challenges with changes in
processing characteristics
• Partial refining / bleaching at ethanol plants
Rail Car Situation
• Petroleum companies bidding $1200 to $1500
per month = 1/2 this time last year
• Petroleum companies taking delivery of new
builds – returning short term leased cars
• Increased safety concerns / costs
• Increased traffic flows
• Crude producers like flexibility to markets that rail
cars provide vs pipeline
• LNG competing to replace diesel
Renewable Documentation
• Contracts specifying additional feedstock
source documentation
– RINS
– CARB / CI index
– ISCC certification
– RED certification
• Auditing
Mineral Oil Specifications
• European driven – being adopted elsewhere
• Likely added to existing specifications
• Not able to detect food grade mineral oil vs
non food grade mineral oil
• Sources
– Rail car / metal wipes
– Pumps / hydraulics
• Questions ???
• Volunteers for Vegetable Oil Committee
• Contact information
– Brian Engel
– [email protected]
– Mobile (402) 680-9472
• Time for Biofuels FORUM