How the BioDiesel Industry sees it

Here is today's S-1 for RENEWABLE ENERGY GROUP, INC., a biodiesel producer.  This is not about them.  It is about how they look at corn oil extracted from ethanol production - called inedible corn oil here.  The SkunK thinks their view is independent of us corn oil extractors - yet typical of BioDiesel producers - and therefore very relevant.

Traditional Feedstock too Expensive
Since 2009, we have principally used inedible animal fats, used cooking oil and inedible corn oil as our feedstocks for the production of biodiesel. Our decision to shift to these feedstocks resulted from the reduction in profit caused by a significant increase in soybean oil prices, which rose from $0.1435 per pound in February 2001 to $0.7040 per pound in March 2008, based on the closing nearby futures prices on the CBOT, and soybean oil having generally remained at high levels since that time.

Good Cloud Point
Our operating results are influenced by seasonal fluctuations in the price of biodiesel. Our sales tend to decrease during the winter season due to perceptions that biodiesel will not perform adequately in colder weather. Colder seasonal temperatures can cause the higher cloud point biodiesel we make from inedible animal fats to become cloudy and eventually gel at a higher temperature than petroleum-based diesel or lower cloud point biodiesel made from soybean, canola or inedible corn oil.

Some in competing fields may still dismiss corn oil extraction - but the biodiesel industry sees it as the answer!
While the commercial supply for inedible corn oil is growing as ethanol producers are installing corn oil extraction technology in their ethanol plants, it is not generally available in quantities sufficient to cover all our operations. At present, there are a limited number of ethanol plants with the equipment necessary to extract inedible corn oil that can be used in biodiesel production. If more ethanol plants do not acquire and utilize corn oil extraction equipment or if ethanol plants are idled, we may not be able to obtain additional amounts of inedible corn oil for use in our production of biodiesel and may be forced to utilize higher cost feedstocks to meet increased demand, which may not be economical.
Above quotes page 10 and 11

Safer and Cleaner
According to studies by the EPA and the California Air Resources Board, biodiesel reduces lifecycle greenhouse gas emissions by approximately 57% for biodiesel produced with soybean oil to 93% for biodiesel produced with inedible corn oil compared to petroleum-based diesel. Furthermore, biodiesel offers significant safety benefits over petroleum-based diesel because it is much less combustible, with a flash point greater than 260°F, compared to 125°F for petroleum-based diesel. Accordingly, pure biodiesel and blends of biodiesel with petroleum-based diesel are safer to store, handle and use than conventional petroleum-based diesel fuel.  p.75


SEE HERE
 
SkunK