Vegetable Oils Forum

AFOA 2013

Brian EngelTenaska 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/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