Aventine Renewable Energy installs corn oil system at Nebraska ethanol plant

Ethanol producer Aventine Renewable Energy has installed a $2.4 million (€2 million) Valicor corn-oil separation system at its Nebraska Energy plant in Aurora, Nebraska.

'By investing in this system we are adding to our revenue stream and diversifying beyond ethanol production in Nebraska,' says Mark Beemer, Aventine president and CEO.

The system began operations in early January. Since corn oil has a higher market value, removing the oil improves dried distillers grain processing properties.

'High production levels and excess inventories nationally have led to tight margins, particularly in Nebraska,' Beemer adds. 'Until supply and demand are more in line, we are working to maximise profitability by better aligning our costs with our product mix and output levels. Steps we're taking include initiating a 20% cost-cutting program and a 20% system-wide reduction in total corn grind.'

The grind reduction affects the two plants in Aurora, Nebraska, including a 30% reduction at the NELLC facility and a 50% reduction at the Aurora West facility. No change is in effect at Aventine's two ethanol plants in Pekin, Illinois.

'We expect the grind reduction to be temporary, largely caused by winter storms lowering demand,' Beemer notes. 'A robust ethanol export market continues for US ethanol and with consumers purchasing $2 gasoline [petrol], domestic demand is expected to be very strong from April through October.'