Patriot Holdings LLC announced that its board of directors approved formation of a new subsidiary—Patriot Fuels, Biodiesel LLC—to build a 5 MMgy biodiesel production facility adjacent to the Patriot Renewable Fuels LLC (“PRF”) ethanol plant in Annawan, Ill. The plant will use distillers corn oil from the 40 million bushels of corn PRF processes annually.

“PRF began corn oil extraction in 2011 and this is a natural extension of that business,” said vice president and general manager Rick Vondra. “We have been extracting increasing volumes of corn oil and selling it to other biodiesel producers, or for inclusion into livestock feed. By processing corn oil on-site we can reduce transportation, and marketing costs making Patriot’s biodiesel one of the most cost competitive producers in the biodiesel industry today.”

Funding and development assistance is provided by the Illinois Department of Commerce and Economic Opportunity New Generation Biofuels Production Program.

Concrete and foundation work are expected to begin in December and the plant is scheduled to begin operation by third quarter 2014. The plant will utilize the trademarked SUPER Process production system designed by Jatrodiesel out of Miamisburg, Ohio. Rahul Bobbili, Jatrodiesel’s vice president, said, “Jatro has built more than 15 biodiesel plants and is excited that Patriot will use this new technology.”

The new technology being offered is a single-stage, catalyst-free, supercritical process technology that will process feedstock with free fatty acids up to 100 percent with minimal or no loss in yield. It will completely eliminate the use of a homogenous catalyst such as sodium methylate, or a heterogeneous catalyst, providing a substantial savings.

“Today, we are a producer of 120 million gallons of ethanol per year,” Vondra added. “With the previously announced addition of ICM Inc.’s Selective Milling Technology, PRF will see increased ethanol and corn oil recovery yields, resulting in higher revenues. Five million gallons of biodiesel will further increase our revenues.”