2007 annual meeting of the national institute for animal agriculture biofuels energy: animal...
TRANSCRIPT
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2007 Annual Meeting of the National Institute for Animal Agriculture
BioFuels Energy:
Animal Agriculture at the Crossroads
April 2, 2007
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2007 Annual Meeting of the National Institute for Animal Agriculture
BIOFUELSAND RENDERING PARTNERSHIPS
ADDRESSING POTENTIAL SOLUTIONS
David J. Kaluzny, IIChairman, National Renderers Association
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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?
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Rendering is Cooking and Drying.
Rendering is Recycling.
Rendering is Essential to Public Health.
What is Rendering?
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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.
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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
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• 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
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Raw Materials
• Offal• Bones and fat• Blood• Animals dead on
arrival, in transit or on farms
• Restaurant grease• Feathers
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“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.
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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
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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.
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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
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• 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
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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
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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.
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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.
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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).
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Transesterification
Oil
Crude Glycerin
Reactor 1 Reactor 2
Biodiesel
GlycerinWaterEvaporation
WashColumn
Methanol
Catalyst
MethanolRecovery
GlycerinWater
Catalyst
GlycerinCROSS-FLOW
(Patented)
Closed WASH-WATER loop
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Biodiesel Production is Increasing
0
50
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Mill
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Gal
lons
1999 2000 2001 2002 2003 2004 2005 2006 est.
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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.
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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
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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.
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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
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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