Web exclusive posted Dec. 20, 2007, at 10:40 a.m. CST

VeraSun Energy Corp., the nation's largest dry-mill ethanol producer, has begun work on an oil extraction facility at the 120 MMgy VeraSun Aurora plant in South Dakota. The oil extraction facility will extract corn oil from distillers grains, one of the coproducts from the corn starch-to-ethanol process. The company made the announcement this morning that the facility is targeted to be on line in the fourth quarter of 2008 and is expected to produce 7 MMgy to 8 MMgy of corn oil from 390,000 tons of distillers grains. That corn oil could be used by the biodiesel industry as a feedstock. The company said the addition of that corn oil to the market could result in additional biodiesel production without increasing feedstock demand.

"The production of two biofuels from one kernel of corn makes economic and environmental sense," VeraSun Vice President of Corporate Development Pete Atkins said. "This is a great example of the innovation that will continue to develop as the industry matures. We are pleased to contribute to the commercialization of this technology."

VeraSun has plans to build similar facilities at its plants in Fort Dodge, Iowa, and Charles City, Iowa, when construction at Aurora is complete. VeraSun's plants have been designed with similar footprints so as to make replication of new technologies and processes such as the oil extraction facility. The company recently merged with U.S. BioEnergy to form the nation's largest dry-mill ethanol producer and noted that the U.S. BioEnergy plants will also facilitate replication of technologies and processes.

VeraSun announced its corn oil extraction technology in November 2006.