All across the United States, oilseed crushers are being faced with some tough decisions; whether to refine oil for food or fuel.
On one hand, only a quarter of the current production capacity of these refineries is being used, and the numbers of new plants coming up has slowed down drastically.
On the other hand, Biodiesel sales volume continues to increase exponentially, with government mandates in the US and around the world calling for even more Biodiesel in the coming years.
Currently, about 80 percent of the Biodiesel manufactured in the United States is made from soybean oil. And the demand for Soybean oil based Biodiesel has dropped due to the escalating prices.
One such company, Northwood Mills LLC in Northwood is not giving up on refining vegetable oil, but it is drastically changing its focus. Instead of crushing soybeans for the Biodiesel market, it’s switching to canola for the food market.
In his interview with the Associated Press’ Blake Nicholson, Northwood Mills LLC’s General Manager Clarence Leschied said the company has soured on soybeans.
“The demand (for vegetable oil) from the Biodiesel sector has just about disappeared, whereas canola going into the food market still has good demand,” he said. “We’ve just seen the margins on soybeans deteriorating.”
Leschied said that his is not the only company making this decision, as other plants also might switch from the energy sector to the food sector. “U.S. Biodiesel capacity is only running at about 25 percent,” he said.
According to the National Biodiesel Board, Biodiesel producers are going through “a rough patch” because of rising vegetable oil prices. But they believe many of the nation’s 171 plants were built large — accounting for much of the unused production capacity — in anticipation of growth sure to come.
More passenger vehicles are being made with engines that can burn Biodiesel, an alternative to petroleum-based fuels, Pearson said. A new federal law also sets a biofuels standard of 36 billion gallons per year by 2022, a sevenfold increase from the current standards.
All in all, Biodiesel demand is set increase sharply in the US, and its traditional feedstocks like corn and soybean will be too expensive and unable to meet this demand.
Judging by the way the Biodiesel markets are moving in America, Biodiesel producers will soon move away from Soybeans as their primary feedstock for Biodiesel, and choose other more commercially viable options like Jatropha.
This chart clearly shows that the cost of Corn Biodiesel is expensive, at almost $83 per barrel of fuel, placing it almost on par with Crude Oil. In comparison Jatropha is only $43 per barrel of fuel.
It remains critical for Americans to know about second generation feedstocks like Jatropha, which is now being planted in California and Florida. Brazil, Mexico and Argentina have already established successful Jatropha cultivation.
With the American Biodiesel industry poised at such an important stepping stone for growth, we at the JatrophaWorld 2008 team believe that JatrophaWorld 2008-Miami is perhaps the best platform for investors to tap into this potential giant, uncovering alternative sustainable revenue streams for your Jatropha investments in the world’s largest energy economy.
JatrophaWorld 2008-Miami will be give you boundless opportunities to expand your business interests through networking, meeting the right people, and hearing from the industry on the upcoming developments in the United States.
Do you believe in the potential for Jatropha in the American markets? Drop us a line telling us about your beliefs and opinions.
#1. Refiners in America Decide: Biodiesel or Food? Why America Needs Jatropha!, March 17th, 2008
[...] Clayton B. Cornell wrote an interesting post today onHere’s a quick excerpt All across the United States, oilseed crushers are being faced with some tough decisions; whether to refine oil for food or fuel. On one hand, only a quarter of the current production capacity of these refineries is being used, and the numbers of new plants coming up has slowed down drastically. On the other hand, Biodiesel sales volume continues to increase exponentially, with government mandates in the US and around the world calling for even more Biodiesel in the coming years. Currently, [...]
#2. John McGillivray, March 17th, 2008
The interest in the USA in jatropha is interesting, but surely this is purely academic until such time as mechanical harvesting can be achieved? What efforts to develop mechanical harvesting are being made?
#3. divyasangam, March 27th, 2008
Hi John,
I do agree that Jatropha’s success in the USA is heavily dependent on mechanical harvesting.
And the people I’ve spoken to also agree on this.
In fact, in our upcoming JatrophaWorld 2008 Miami event, we’ve arranged for an Interactive Panel Discussion on Making Mechanical Harvesting a reality, where we will feature organisations that are saying that they have ‘found the solution’.
Right now, there are prototypes being built based on the hydraulic shakers currently utilised in harvesting olives and citrus fruits. The biggest limitation to overcome will be the year long fruiting which means that the crop is not uniform when harvested.
The panel at JatrophaWorld 2008 in Miami will be sharing on these prototypes and their success, so the best place to find out about the commercial potential of Jatropha in the US will be JatrophaWorld 2008 in Miami.
Drop me a line at divya@cmtsp.com.sg if you require more information about this event, or wish to register! (We’ve not opened our registration page yet)
Sincerely,
Divya
The JatrophaWorld 2008 Team
#4. daniel, April 15th, 2008
hi there, i am wondering, for oil extraction, do we have to harvest the fruit once it has turned yellow? or could we leave it till it changes to brown black colour then harvest? does that affects the oil content of the fruit? then again, can we press the seed when just removed from the fresh fruit? or do we need to wait for it to dry then we can proceed with the oil extraction? could anyone give me some information on this? your advice will be much appreciated. thank you.
regards,
daniel yeh
#5. charles asemota, August 1st, 2008
We are company dedicated in the Importation -Exportation y Distribution of Oil and Biodiesel in Valencia-Spain.
We need from you to give us prices of Oil from different seeds, mainly from Jatropha in FOB o CIF.
Firstly for test,we are ordering two container of 20″ with plastic type of Flexitank. Later we are going to make order of important quantities.
Also we are interested in buying Biodiesel of good quality
Waiting for your reply
Greetings
ASEMOTA CHARLES
DEPARTMENT OF PURCHASE
ALEXPA,S.L
E-mail……………Bio@Alexpa.com
Tel………………..+34-961564171
Tel mobil…………+34-659680777
Fax………………..+34-961559007
#6. rosemary peshe, September 14th, 2008
It is no arguments that jatropha is going to be the best source bio diesel.But we hve to take into reconigtion of the effect to the economy of the oil producing countries e.g Nigeria,saudi arabia e.t.c .
But that can change the love charles has for Rosemary.thanks
#7. Dr.James Idieta, December 18th, 2008
The Department of Minerals & Energy South Africa invites reputable
Companies to send Expression of Interest letter to participate in Project
LIMP/DME/2008.
The supply of infrastructures to produce grid electricity and Bio Diesel
through Biomass and energy plants.
Contact: Dr James Idieta (Head of Project )
Tel: +27-731877670
Fax: +27-865390124
Email: idietaroyaltygov@gmail.com
idietaroyal@engineer.com