Use of corn oil in US biodiesel relieving pressure on tallow supply

23 October 2013 11:02  [Source: ICIS news]

PRAGUE (ICIS)--Increasing use of distiller’s dried grains (DDG) corn oil in biodiesel is relieving pressure on the supply of tallow, Mike Sabatelli, business director of Vantage Oleochemicals said on Wednesday.

Increasing mandates and tax incentives for biodiesel in the US were expected to result in higher demand for tallow as a feedstock, according to Sabatelli, but growing use of corn oil as a feedstock has eased pressure on tallow supply to some extent.

1bn pounds of DDG corn oil are being used in biodiesel and it’s taking the pressure off tallow. This could grow to 3bn pounds in future," Mr Sabatelli said.

"This is good for tallow in the US as it’s taking pressure off tallow as biodiesel," he added.

"Corn oil has the technology to make a major dent in biodiesel so we don’t see tallow use in biodiesel increasing significantly in future," he said.

($1 = €0.73)

By: Sarah Trinder
+44 20 8652 3214

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