VeraSun Energy is planning on adding another renewable fuel to its portfolio. The nation's second-largest ethanol producer announced plans today for a biodiesel facility that will produce fuel from oil extracted from distillers grains.

The Brookings, S.D.-based company said it's evaluating locations for a 30 MMgy biodiesel plant with plans to commence construction in 2007 and begin production in 2008. Lurgi PSI has been contracted for design and engineering services. Minneapolis-based Crown Iron Works is tabbed to supply corn oil extraction equipment.

VeraSun's plans call for removing corn oil from distillers grains. The oil would then be used as biodiesel feedstock. "This opportunity is a natural extension to our business and is consistent with our objective to be a leader in the production of renewable fuels," said Don Endres, VeraSun chairman and CEO. "This technology is particularly strategic to VeraSun because it allows us to extend our large and low-cost producer strategy from ethanol to include biodiesel."

VeraSun has applied for a provisional patent application with the U.S. Patent Office for the production process. In 2005, VeraSun detailed similar plans to produce biodiesel from corn oil at the International Fuel Ethanol Workshop & Expo. The initial plans called for a group of partner ethanol plants to install corn oil extraction technology and ship corn oil to a centrally located biodiesel facility.

VeraSun has operating ethanol plants in Aurora, S.D., and Fort Dodge, Iowa, with a combined capacity of 230 MMgy. A third plant is under construction in Charles City, Iowa. Two more facilities are being planned in Welcome, Minn., and Hartley, Iowa. Upon completion of the new factilities, VeraSun will have an annual production capacity of approximately 560 MMgy.

"We have been conducting research and development in the biodiesel area for years, testing and evaluating various technologies," said Matt Janes, VeraSun's vice president of technology. "We're confident this process will allow for large-scale, low-cost and high-quality biodiesel production."

Another company is planning a similar project. GS CleanTech is installing corn oil extraction systems at multiple ethanol plants. In early October the company said the first of two stages of installation was complete at Little Sioux Corn Processors LLC in Marcus, Iowa.

According to the company, GS CleanTech's patent-pending corn oil extraction technology intercepts the stillage flow in the evaporation stage prior to drying the distillers grains. The stillage has a concentrated syrup-like consistency after evaporation. GS CleanTech heats the concentrated stillage and then uses advanced centrifuge technology to spin crude corn oil out of the heated concentrated stillage. The crude corn oil is then routed to storage for use as a raw material for biodiesel production.

GS CleanTech subsidiary GS Agrifuels Corp. announced in September plans for an integrated multi-feedstock, multi-fuels production facility in Memphis, Tenn. Construction on the project was expected to begin later this year. The plant is expected to have 10 MMgy of biodiesel capacity and 5 MMgy of ethanol, methanol and/or biomass-derived synthetic diesel capacity.

Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at dnilles@bbibiofuels.com or (701) 373-0636.

Posted: 9:45 a.m. CST Friday, November 3, 2006