U.S. Department of Energy - Energy Efficiency and Renewable Energy
Vehicle Technologies Office
Corn Oil Extraction Yields New Benefits for Ethanol Producers
April 12, 2006
Several ethanol producers have recently placed orders with Veridium
Corporation for the use of a technology that extracts corn oil from
distiller's dried grain, an ethanol by-product. The ethanol plants
sell the extracted corn oil back to Veridium for additional revenue.
Veridium, in turn, sells the corn oil to Mean Green Biofuels, Inc.,
which is currently selling the corn oil on the open market, but
eventually plans to convert the corn oil into biodiesel. Veridium has
received five orders for its Corn Oil Extraction Systems, which it
installs at no cost in exchange for buying back the corn oil at below-market costs. The company has installed a system at an ethanol plant
in North Dakota, and plans to install systems at ethanol plants in
Illinois, Minnesota, and Wisconsin later this year.
Veridium estimates that the five Corn Oil Extraction Systems now under
order could produce as much as 9.7 million gallons of corn oil per
year, which the company will sell for more than $1 per gallon.
According to the company, the distiller's dried grain produced by
today's ethanol industry contains roughly 300 million gallons of corn
oil, 75 percent of which can be removed by the extraction process.
Once extracted, the corn oil can be converted gallon for gallon into
biodiesel. The company says the corn oil extraction process also
increases ethanol plant efficiencies, since it reduces the energy
required for drying the distiller's grain, which is sold as cattle
feed. See the Veridium press releases and the description of the technology on the Mean Green BioFuels Web site.