Biofuels

Current Usage

Because of their chemical composition, fats release concentrated amounts of energy when burned. This energy can be used as a biofuel. Current usage of rendered fats in the biofuels is estimated at 3 – 8% of the approximate 11 billion pound annual production of rendered fats (yielding 43 million to 116 million gallons of biodiesel). Existing biodeisel technology yields a gallon of fuel for each 7.6 lbs of fat.

Capacity and Infrastructure

The current method of splitting the methyl esters from fat molecules yielding biodiesel and glycerin is somewhat limited by plant capacity and infrastructure to handle the special fuel, but many plants are coming on line. Other methods of manufacturing “renewable diesel” from rendered fats are in development that blend fats directly into the oil refining process (ConocoPhillips/Tysons) or use catalysts to produce hydrocarbons from fat will avoid the infrastructure problem because they can be blended directly with diesel fuel of fossil origin.

Feed vs Fuel

The food versus fuel debate has many variables and political forces. For most rendered products the debate becomes feed versus fuel with most of the same variables and moral arguments. While many people believe rendered fats are far too valuable as animal feed to be burned as fuel; commodity prices will ultimately determine how much of the total rendered fats volume is converted to fuel.

Growth of the Rendering Base

During the last 30 years, the rendering industry has consolidated and the number of active plants has decreased from 724 to 273. At the same time, the amount of raw material rendered increased from 30 billion pounds annually to 54 billion pounds (Essential Rendering, page 25). With trends of production growing, meat in the U.S., increased case-ready retail meat products, and increased restaurant business (increasing collection of used cooking oil for yellow grease), it’s probably safe to assume a continued 1% annual growth in raw materials available to rendering (annual growth of animal fats and greases of approximately 1% annually is supported by USDA/ERS predictions).

Share of Biodiesel for Rendered Products

The upper practical limit will be ultimately determined by markets. Renderers will sell their product for the highest price, and fats have many uses for oleochemicals, pet food, and livestock feed. Many also have the option of burning fats directly in their own boilers without converting to biodiesel if market conditions are favorable to do so. With most reasonable assumptions on the cost of crude oil, the price of corn, the value of livestock, and the pet food market; it is difficult to imagine more than 30% of rendered fats entering the biofuels market over a long period of time.