San Antonio, Texas – U.S. ethanol producer Valero Renewable Fuels will install a new corn oil extraction system at four of its plants in the Midwest in 2012.

The patent-pending process, called Advanced Oil System, recovers more than half a pound of corn oil per bushel of corn processed, giving the processing plants an additional source of revenue besides ethanol and distillers grains. Following the initial rollout, Valero will study the possibility of installing the equipment at five more plants that use a dry mill technology to produce ethanol.

“In the basic dry mill ethanol process, all of the corn oil ends up in distillers grains, which is used as livestock feed,” said Jim Gillingham, senior vice-president of alternative energy and project development. “The new equipment will allow us to recover corn oil so that it can be sold into higher-value markets for use in animal feed and as a feedstock for biodiesel production.”

The company expects that the added value will pay back the cost of the system in less than two years.

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