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Vegetable Oils Forum. AFOA 2013. Brian Engel Tenaska Commodities, LLC Omaha, NE. Distillers (DDG’s) Corn Oil update Rail car situation Renewable documentation Mineral Oil. Distillers (DDG’s) Corn Oil Recovery Process. Grind corn Cook corn Fermentation
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Vegetable Oils Forum AFOA 2013
Distillers (DDG’s) Corn Oil update • Rail car situation • Renewable documentation • Mineral Oil
Distillers (DDG’s) Corn Oil Recovery Process • 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/traderrulesmain/
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 • Bengel@Tenaska.com • Mobile (402) 680-9472 • Time for Biofuels FORUM