Cheap Corn Oil...How much Longer?
Making biodiesel is simple. My question to you is what happens if the flow of cheap corn oil stops flowing to REGI? Corn oil is allowing them to make it profitably and without it, they're losing money.
I say this because the inventor of corn oil extraction, GERS, has long been pushing the ethanol producers to add on GERS' patented biodiesel production systems inside of the ethanol plants where the corn oil is extracted.
GERS said ethanol producers are starting to move on this technology upgrade. Method for continuous production of biodiesel fuel, 7,935,840
Talk of co-locating biodiesel processing units onsite of ethanol plants has been around since these oil extraction technologies emerged, but the model of selling the oil to offsite users through marketers has predominated the scene. Now Winsness says he thinks a number of ethanol companies will finally come around to processing their corn oil into biodiesel onsite.
One big reason is because, as he said, “There’s plenty of opportunity to sell 100 percent of the biodiesel locally,” unlike ethanol, which is sold, transported, blended and anonymously integrated into on-road transportation fuel supplies. With biodiesel, the combined on- and off-road local demand would soak up locally available biodiesel with ease. He said Greenshift has a pending patent application for a blender pump so ethanol producers with biodiesel manufacturing onsite could maximize sales of biodiesel locally, and with the high price of biomass-based diesel RINs and the $1 per gallon federal blenders tax credit in play, they can pass the higher blend savings to the customer locally. “The first movers have the advantage here,” he said.
