VeraSun Energy Corporation (NYSE: VSE), the nation’s second-largest ethanol producer, announced it will begin producing biodiesel from oil extracted from distillers grains, a co-product of the ethanol production process.
VeraSun would be the first company to develop a large-scale, commercial facility for biodiesel production from a co-product of the ethanol production process, creating two biofuels from the same feedstock. Removing the oil from distillers grains both increases the value of the oil for fuel use, and enhances the resulting distillers grains as a livestock feed by concentrating protein and reducing fat content.
Said Don Endres, Chairman and CEO of VeraSun, “This technology is particularly strategic to VeraSun because it allows us to extend our large and low-cost producer strategy from ethanol to include biodiesel.”
VeraSun is currently evaluating locations for a 30-million-gallon-per-year biodiesel production facility, with plans to commence construction in 2007 and begin production in 2008. The Company has contracted with Lurgi PSI, Inc. for design and engineering services for the biodiesel facility and with Crown Iron Works Company for oil extraction equipment. As a result of the exclusivity provisions in these contracts, VeraSun expects to be the first to develop large-scale facilities using this technology. The Company has also filed a provisional patent application with the U.S. Patent Office for the production process.
“We have been conducting research and development in the biodiesel area for years, testing and evaluating various technologies,” said Matt Janes, Vice President of Technology at VeraSun. “We’re confident this process will allow for large-scale, low-cost, and high-quality biodiesel production.”
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