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 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