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Distillers Corn Oil and the Low Carbon Fuel Standard

Posted on Apr 26, 2016 in Biodiesel, Vegetable Oil, and Grain, News

Ryan Standard

With the LCFS in full swing and California’s goals of offsetting carbon continuing to intensify into 2020, so has the demand for low CI feedstocks for bio and renewable diesel production. This has been especially apparent in the distillers corn oil market, which has seen both price and usage increases over the last few months.

Initially, bio and renewable diesel producers saw an opportunity for additional feedstock from the distillers’ corn oil production, and ethanol producers saw an additional revenue stream. Assuming an annual biodiesel production capacity of 2.1 billion gallons, as reported by the EIA, that translates loosely into 16 billion pounds of feedstock needed to make said fuel. The combined production of US recycled products, excluding distillers corn oil, is 9 billion pounds. That 7 billion pound gap left a lot to be filled with higher priced virgin vegetable oils, and the addition of corn oil into the feedstock stream over the last few years has been a big benefit to the industry.

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On The Road To 2030 – First Stop: 2020

Posted on Apr 21, 2016 in News, U.S. and International Animal Fats & Protein

Joe Gershen – California Biodiesel Industry Commentary April 18, 2016

Governor Brown’s 2030 greenhouse gas reduction goals include a 50 percent reduction in petroleum use, preferably by 2030. The California Air Resources Board (ARB) has a sample path towards meeting this goal that includes reducing growth in vehicle-miles travelled (VMT) to four percent; increasing on-road fuel efficiency of cars to 35 mpg and heavy-duty trucks to about seven mpg; and at least doubling use of alternative fuels like biofuels, electricity, hydrogen, and natural gas (see graph).

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