2007 annual meeting of the national institute for animal agriculture biofuels energy: animal...
TRANSCRIPT
2007 Annual Meeting of the National Institute for Animal Agriculture
BioFuels Energy:
Animal Agriculture at the Crossroads
April 2, 2007
2007 Annual Meeting of the National Institute for Animal Agriculture
BIOFUELSAND RENDERING PARTNERSHIPS
ADDRESSING POTENTIAL SOLUTIONS
David J. Kaluzny, IIChairman, National Renderers Association
BIOFUELS AND RENDERING PARTNERSHIPSADDRESSING POTENTIAL SOLUTIONS
What is Rendering?
Rendering 101 Volumes Rendered
Products of ProductionRendered Product Usage
Animal Production Usage Biofuel Production with Fats
Biodiesel Production 100
Biodiesel by-productsGlycerin for feed use
Feed vs. Fuel – What Now?
Rendering is Cooking and Drying.
Rendering is Recycling.
Rendering is Essential to Public Health.
What is Rendering?
Rendering is Cooking and Drying• Continuous flow or batch
• Steam cookers
• 245º to 290º F. for 40 to 90 minutes
• Inactivation of bacteria, viruses, protozoa, and parasitic organisms.
The Rendering Industry (U.S. and Canada)• 273 Facilities in the U.S. and 29 in Canada• $3.5 billion annual revenue• 60 billion lb raw material each year• 164 million lb raw material each day
• 35 million cattle (49% of live wt. not used for human food)
• 100 million hogs (44% not used for human food)• 8 billion chickens (37% not used for human food)• 280 million turkeys (36% not used for human food)
U.S. Animal Agriculture Annual Production
Raw Materials
• Offal• Bones and fat• Blood• Animals dead on
arrival, in transit or on farms
• Restaurant grease• Feathers
“Fallen” Animals (Died On Farms)
1.91 million adult cattle/yr2.92 million calves/yr18 million swine/yr350 million lb poultry/yr
Total = 4.4 billion lb/yrApprox. 2.2 billion lb/yr (50%) is rendered.
Approx. 4.5% of rendered products come from fallen animals.
Raw Material
Tallow
Meat & Bone Meal
Soap
Oleic Acid Glycerin
Livestock Feed
Poultry Feed
Pet Food
Hides
LeatherShoes
GarmentsUpholstery
EstersLubricants
Paints
Linoleic Acid
Stearic Acid
LubricantsTextiles
ShampooEmulsifiersCleansingCreams
InksGlues
SolventsAntifreezeExplosives
RubberTires
LubricantsEsters
Greases& Oils
Fuel
The U.S. industry converts more than 54 billion pounds of animal by-products into usable
commodities annually.
• Highly valued protein supplements for livestock, poultry, pets
• Tallow for the manufacture of fatty acids and as a source of energy in feed rations.
Tallows and Greases
• Edible Tallow 1.6 billion lb/yr• Inedible Tallow 3.9• Lard and Grease 1.3• Yellow Grease 2.6• Poultry Fat 2.2• Total 11.6 billion lb/yr
• Meat Meal• Meat and Bone Meal (can be species specific)• Blood Meal (Flash/Spray/Ring/Batch Dried)
–Can be whole or only hemoglobin
• Poultry By-Product Meal• Poultry Meal• Hydrolyzed Poultry Feather Meal
Protein Meals – 9.2 billion lb/yr 125 AAFCO-defined animal by-products
Stabilized Poultry Fat
Stabilized Pet FoodPoultry Fat
Hydrolyzed Poultry Feather Meal
Stabilized Poultry Protein Meal
Low Ash Pet FoodPoultry Protein Meal Pet Food
Poultry Protein Meal
Examples of a Few Finished Products
Total U.S. Lipid Production
• Edible Tallow 1.6 billion lb/yr• Inedible Tallow 3.9• Lard and Grease 1.3• Yellow Grease 2.6• Poultry Fat 2.2
Subtotal 11.6 billion lb/.yr.
•U.S. Vegetable Oil Production 22.4 billon lbs./yr. ( Soybean, corn, canola, etc.)Grand Total Lipid Production 34 billon lbs./yr.
WHAT ARE THEY? • Edible Tallow
• Edible Lard
• Tallow, Bleachable Fancy Tallow (BFT)
• Choice White Grease (CW)
• Poultry Fat (PF)
• Yellow Grease (YG)
• Brown Grease• Listed in order of highest quality and price to lowest.
Biodiesel Production from Fats & Oils
Biodiesel is defined as mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats.
Biodiesel is made through a chemical process called transesterification whereby the glycerin is separated
from the fat or vegetable oil in the presence of methanol and a catalyst.
The process leaves behind two products -- methyl esters (the chemical name for biodiesel) and glycerin
(a valuable byproduct usually used in cosmetics, soaps and other products).
Transesterification
Oil
Crude Glycerin
Reactor 1 Reactor 2
Biodiesel
GlycerinWaterEvaporation
WashColumn
Methanol
Catalyst
MethanolRecovery
GlycerinWater
Catalyst
GlycerinCROSS-FLOW
(Patented)
Closed WASH-WATER loop
Biodiesel Production is Increasing
0
50
100
150
200
250
Mill
ion
Gal
lons
1999 2000 2001 2002 2003 2004 2005 2006 est.
Glycerin is a By-Product of Biodiesel Production
0
20
40
60
80
100
120
140
160
180
200
Mill
ion
Poun
dss
1999 2000 2001 2002 2003 2004 2005 2006 est.
Glycerin
One pound of glycerin is produced for every gallon of biodiesel refined.
– Glycerin is used in soaps, toothpaste, cosmetics, pharmaceuticals
– Glycerin is a substitute for other glycols• Antifreeze, concrete conditioner etc.
– Glycerin is a GRAS feed ingredient• High metabolizable energy source
Glycerin
Glycerin has 90% of the energy value of feed fat.
Feeding trials are going on with glycerin being used as both a energy source and a binder in feed pellets.
Just as with Dried Distillers Grains (DDG’s), numerous feeding trails are going on with cattle, hogs and poultry and
added glycerin.
FEED vs. FUEL
It is not a zero sum game.
Market dynamics do not operate in a vacuum.
Supply and demand move decision makers.
Planning for the future.
Scenarios already in play
David J. Kaluzny, II
Vice President, Kaluzny Bros., Inc.
President, K.B.I. Energy, LLC
Vice President, Lipid Logistics, LLC
1528 Mound Road
Joliet, IL 60436
815-744-1453
815-729-5069 Fax