16 September 2011 21:58 [Source: ICIS news]
HOUSTON (ICIS)--Valero Renewable Fuels plans to install corn oil extraction systems at four of its ethanol plants in the US midwest by the end of the first quarter of 2012, the subsidiary of US refining major Valero said on Friday.
The company did not disclose the total cost of the investment.
The four plants that will take part in the initial installation of corn oil extraction equipment are in Albert City, Charles City, Fort Dodge and Hartley, Iowa.
“The new equipment will allow us to recover corn oil so that it can be sold into higher-value markets for use in animal feed and as a feedstock for biodiesel production,” said Jim Gillingham, Valero’s senior vice president of alternative energy and project development.
The company said after its initial rollout of corn oil extraction at these plants, it will study the possibility of installing the equipment at another five plants that use a dry mill technology to produce ethanol.
The investment will allow the plants to recover more than one-half pound of corn oil per bushel of corn processed, giving the plants an additional source of revenue besides ethanol and distillers grains, the company said.
The company said it expects the corn oil extraction programme to enhance plant margins at a low cost, enabling a payback of capital expenditures in less than two years.
($1 = €0.72)
For more on corn oil and ethanol go to ICIS chemical intelligence
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections