As the demand for biodiesel has grown, so has the demand for animal fat used to make it. There is not enough fat to fill everyone's needs, reports the Des Moines Register. Over the last year, the price of animal fat has doubled thanks to the rising cost of corn brought on by the ethanol boom, writes Paula Lavigne. "Today's higher prices for feed corn, fueled by increased ethanol production, are causing livestock producers to supplant more of their animals' diets with fat. Fats and greases also can be used to make biodiesel, and can be cheaper than making the fuel with soybean oil."
Two plants in Iowa, and five others around the nation, are using fat to make biofuels. With the rise in demand, hog farmers and poultry breeders stand to profit. The demand won't spark them to make more fat, but it has led to some interesting partnerships. Lavigne highlights the example of meat processor Tyson Foods and its deal with ConocoPhillips oil company, and Syntroleum, a Tulsa fuel technology company, to make a combined 250 million gallons of renewable diesel per year. (Renewable diesel is not the same as biodiesel, since it is made using a different process.)
While the demand fat can mean more money for livestock owners, it is not changing the industry completely. "It probably isn't going to drive the market the way that demand for meat products can, but it can help maintain strong prices at a time when we're facing high operating costs," said Joe Schuele, spokesman for the National Cattlemen's Beef Association. (Read more)
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