This is an excerpt from EERE Network News, a weekly electronic newsletter.

June 22, 2005

Ethanol Partnership Plans to Produce Biodiesel from Corn

A new company plans to build a biodiesel production facility that will extract a crude-oil-like substance from corn and convert it into biodiesel fuel. The company, SunSource BioEnergy LLC, was formed by four ethanol producers—VeraSun Energy; Glacial Lakes Energy, LLC; KAAPA Ethanol LLC; and Golden Grain Energy, LLC—and one technology company, called Ethanol Oil Recovery Systems LLC. The latter company developed the oil-extraction technology, which SunSource BioEnergy plans to employ in a new facility capable of producing 50 million gallons of biodiesel per year. SunSource BioEnergy hopes to extend the benefits of the technology throughout the ethanol industry by offering producers extraction units and oil purchase agreements. See the VeraSun Energy press release.