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Company to Make Biodiesel with Ethanol Byproduct

VeraSun Energy says they will use distillers grains to create ethanol.

An energy company says that they plan to use distillers grains, a byproduct of ethanol production, to create biodiesel.

VeraSun Energy Corp. says they will extract the oil from the byproduct to use for biodiesel. Distillers grains are currently used as a source of cheap livestock feed, and VeraSun says their process will enhance the usefulness of distillers grains as feed "by concentrating protein and reducing fat content."

A dry-mill ethanol plant typically produces 2.8 gallons of ethanol and 17 pounds of distillers grains out of each bushel of corn.

"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," says VeraSun chairman and chief executive Don Endres.

The company is looking for locations for a 30-million-gallon per year biodiesel production facility to be constructed in 2007 and start producing in 2008.

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