Riley, the next speaker, said about 80 percent of ethanol plants are now extracting corn oil. Although soy is still the most predominate feedstock for biodiesel production, looking at the first seven months of this year, corn oil is gaining in popularity. “There has been a 30 percent increase in usage of corn oil in the biodiesel market to date, so there’s a lot of biodiesel plants figuring out how to use it and it’s continuing to become accepted more readily as a feedstock,” he said. Still, there’s clearly room to increase its use as a biodiesel feedstock as, overall, it only makes up 11 percent of the total feedstock mix.
. . . a quarter of the revenue coming back to the plant is based on the coproducts . . .
“One of things that is fairly remarkable about this, with the onset of plants coming on, starting to produce corn oil in 2008, 2009, even thought there was all of this influx of oil into the market, you still saw the prices increase,” Emberland said. “The netbacks were still substantial for the p[l]ants and we haven’t really seen that taper off.”
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SkunK
Saturday, November 16, 2013
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7 comments:
Diamond Green Diesel processes 10,000 barrels a day of renewable diesel using corn oil and used cooking oil. This is 3,150,000 pounds per day and has helped stabilize the markets since they started up during July, 2013. In two days they suck up the total annual corn oil production of an average ethanol plant.
Anony,
You are absolutely right. The many people who hoped that Valero ending its relationship with ICM meant good things for GERS need to do a little reading on the DGD web site. Another nail in the proverbial GERS' coffin?
We have had a little "up-tick" here for two days (BID 0.0003). Historically such "up-ticks" have been met with a large bolus of dilution shares fired into it, resulting in driving down the "up-tick". This has happened every time in the past and one of the reasons the PPS has not advanced, leading to 99.99999% losses. Stand by, dilution cannons loaded?
that Valero ending its relationship with ICM ? got a link?
You will need to ask Slash for that, he provided several within the last 18 months. Or at least documentation that this relationship was on hold.
no info on dgd site
"To meet our nation’s growing demand – and government mandates – for renewable energy, our company began exploring opportunities for mass-scale production of renewable diesel. The result: a 50/50 joint venture with Valero Energy Corporation to transform our innovative ideas into revolutionary renewable energy solutions. "
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