VeraSun to Extract Corn Oil for Biodiesel at SD Ethanol Biorefinery

“This is a great example of the innovation that will continue to develop as the (biofuels) industry matures.”
Pete Atkins, VeraSun vice president, corporate development

VeraSun Energy Corporation (NYSE: VSE) is one of the largest ethanol producers in the country. The company recently announced that it has begun work on an oil extraction facility at its 120 million-gallon-per-year (MMGY) ethanol biorefinery located near Aurora, S.D. The facility will utilize a technology designed to extract corn oil from distillers grains, a co-product of the ethanol production process.

The capital investment will allow this facility to capture an estimated 7-8 million gallons per year of corn oil from their distillers grains which will then be made available to the biodiesel market.

"The production of two biofuels from one kernel of corn makes economic and environmental sense,” said Pete Atkins, VeraSun vice president, corporate development. “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.”

Following installation at the Aurora facility, VeraSun plans to implement the technology at its Fort Dodge and Charles City, Iowa, biorefineries by the end of 2009. The company originally announced its oil extraction technology in November 2006.

Read the entire press release here