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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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Presentation on theme: "2007 Annual Meeting of the National Institute for Animal Agriculture BioFuels Energy: Animal Agriculture at the Crossroads April 2, 2007."— Presentation transcript:

1 2007 Annual Meeting of the National Institute for Animal Agriculture BioFuels Energy: Animal Agriculture at the Crossroads April 2, 2007

2 2007 Annual Meeting of the National Institute for Animal Agriculture BIOFUELS AND RENDERING PARTNERSHIPS ADDRESSING POTENTIAL SOLUTIONS David J. Kaluzny, II Chairman, National Renderers Association

3 BIOFUELS AND RENDERING PARTNERSHIPSADDRESSING POTENTIAL SOLUTIONS What is Rendering? Rendering 101 Volumes Rendered Products of Production Rendered Product Usage Animal Production Usage Biofuel Production with Fats Biodiesel Production 100 Biodiesel by-products Glycerin for feed use Feed vs. Fuel – What Now?

4 Rendering is Cooking and Drying. Rendering is Recycling. Rendering is Essential to Public Health. What is Rendering?

5 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.

6 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

7 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

8 Raw Materials Offal Bones and fat Blood Animals dead on arrival, in transit or on farms Restaurant grease Feathers

9 Fallen Animals (Died On Farms) 1.91 million adult cattle/yr 2.92 million calves/yr 18 million swine/yr 350 million lb poultry/yr Total = 4.4 billion lb/yr Approx. 2.2 billion lb/yr (50%) is rendered. Approx. 4.5% of rendered products come from fallen animals.

10 Raw Material Tallow Meat & Bone Meal Soap Oleic Acid Glycerin Livestock Feed Poultry Feed Pet Food Hides Leather Shoes Garments Upholstery Esters Lubricants Paints Linoleic Acid Stearic Acid Lubricants Textiles Shampoo Emulsifiers Cleansing Creams Inks Glues Solvents Antifreeze Explosives Rubber Tires Lubricants Esters Greases & Oils Fuel

11 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.

12 Tallows and Greases Edible Tallow1.6 billion lb/yr Inedible Tallow3.9 Lard and Grease1.3 Yellow Grease2.6 Poultry Fat2.2 Total 11.6 billion lb/yr

13 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

14 Stabilized Poultry Fat Stabilized Pet Food Poultry Fat Hydrolyzed Poultry Feather Meal Stabilized Poultry Protein Meal Low Ash Pet Food Poultry Protein Meal Pet Food Poultry Protein Meal Examples of a Few Finished Products

15 Total U.S. Lipid Production Edible Tallow1.6 billion lb/yr Inedible Tallow3.9 Lard and Grease1.3 Yellow Grease2.6 Poultry Fat2.2 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.

16 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.

17 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).

18 Transesterification Oil Crude Glycerin Reactor 1Reactor 2 Biodiesel Glycerin Water Evaporation Wash Column Methanol Catalyst Methanol Recovery Glycerin Water Catalyst Glycerin CROSS-FLOW (Patented) Closed WASH- WATER loop

19 Biodiesel Production is Increasing

20 Glycerin is a By-Product of Biodiesel Production

21 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

22 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 (DDGs), numerous feeding trails are going on with cattle, hogs and poultry and added glycerin.

23 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

24 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 dkaluzny2@aol.com


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