Aventine Renewable Energy has launched a $2.4 m Valicor corn-oil separation system at its Nebraska Energy LLC plant in the United States.
Corn oil has a high market value, while removing it improves dried distillers grain processing properties.
“By investing in this system we are adding to our revenue stream and diversifying beyond ethanol production in Nebraska,” said Mark Beemer, Aventine president and CEO.
"High production levels and excess inventories nationally have led to tight margins, particularly in Nebraska. Until supply and demand are more in line, we are working to maximize 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.”
Mr Beemer added the grind reduction was expected to be temporary while the ethanol export market was robust with domestic demand expected to be strong from April to October.
“Aventine's management will continue to focus on risk management, disciplined hedging and margin management in response to national and international market conditions,” he added.
