Co-located Biodiesel Production at Ethanol Facilities

The concept of co-locating biodiesel at ethanol plants has been a natural evolution of corn ethanol facilities that extract corn oil. Today, as biodiesel production requirements are becoming more stabilized, integrating biodiesel at an ethanol facility can be a highly effective means to improve profits associated with corn oil extraction.

GreenShift offers its services to assist in facilitating the integration of such facilities. GreenShift is available to provide oversight of a particular project or provide turn-key biodiesel installations.

While the biodiesel industry gains strength and has demonstrated consistent profitability, one can further improve margins through the integration of onsite biodiesel production. Below are a few of the advantages of to those that integrate biodiesel production:

  • No Incoming Freight
    • Oil Produced On-Site will only require minimal amount of energy to pump the oil to the co-located biodiesel facility. Generally speaking, about the same amount of energy otherwise required to fill an outbound corn oil truck.
    • Should additional volumes of corn oil be purchased from nearby ethanol facilities there would however be incoming freight costs however there could be freight advantageous as one may be closer in proximity than other potential buyers.
  • Reduced Outgoing Freight
    • Large Scale Biodiesel production facilities generally have to ship biodiesel greater distances as local communities cannot consume their full production volumes. Smaller co-located production facilities however, generally have greater opportunities to sell a higher percentage of their production locally and can have reduced outgoing freight costs on a volumetric basis. A significant amount of corn oil biodiesel can be sold back the local farming community who farms and transports its corn to the facility on a regular basis.
  • Infrastructure is already in place to support renewable fuel production and distribution
    • Facilities management, sales and accounting staff are already in place and can effectively manage the additional fuel produced.
    • Rail and trucking infrastructure also exists, thus minimizing the capital requirements of the project.
  • Technology advances allow for improved conversion rates and efficiencies over much of the infrastructure in place.

GreenShift welcomes the opportunity to assist ethanol producers maximize returns for corn oil.