New Approach Melds Ethanol, Biodiesel Production

"This is exciting new technology. We believe this breakthrough will improve the economics of ethanol production by creating another product revenue stream."

- Don Endres, CEO of VeraSun Energy.

[ReneweableEnergyAccess.com] Ethanol and biodiesel production are rarely under the same roof, but that could change. A new corn oil extraction technology is now available to the ethanol industry, thanks to a recently developed partnership between a group of ethanol producers and a technology firm.

The technology enables ethanol producers to extract crude oil from the dry mill process. By extracting the oil, producers have the opportunity to increase plant income and improve handling characteristics of distillers dry grains.

Named SunSource BioEnergy, LLC, the team consists of VeraSun Energy, Glacial Lakes Energy, KAAPA Ethanol, Golden Grain Energy and Ethanol Oil Recovery Systems.

"This is exciting new technology. We believe this breakthrough will improve the economics of ethanol production by creating another product revenue stream," explains Don Endres, CEO of VeraSun Energy.

SunSource BioEnergy hopes to extend the benefits industry-wide by offering producers extraction units and oil purchase agreements. The company plans to build a 50 million gallon biodiesel production facility that will purify the corn oil and convert it to biodiesel fuel.

"We believe the oil separation technology is innovative and unique," said David Cantrell, Chairman and founder of Ethanol Oil Recovery Systems. "After considerable research and development, we are pleased to contribute the technology to this industry partnership."

VeraSun Energy, a renewable energy company, is headquartered in Brookings, SD. The company owns and operates a 120-million-gallon ethanol plant in Aurora, SD, and will complete construction of a 110-million-gallon plant in Fort Dodge, IA, later this year. When completed, VeraSun will become the second largest ethanol producer in the country.

Glacial Lakes Energy, is a 50+ million gallon per year ethanol production facility located in Watertown, SD. KAAPA Ethanol currently operates the largest farmer-owned ethanol plant in Nebraska. Golden Grain Energy, is a producer of ethanol and distiller grain co-products. Golden Grain Energy, is majority owned by local farmers and business persons. Ethanol Oil Recovery Systems, a technology development company located in Clayton, Ga.

More information on SunSource BioEnergy, the company will be describing its approach at the Fuel Ethanol Workshop in Kansas City on Thursday, June 30.