Second Illinois Soy-Based Biodiesel Production Plant

Prepared by: Judy Smith, Program Support Assistant, Illinois Soybean Association, 1605 Commerce Parkway, Bloomington, IL 61704, tel: 309-663-7692, fax: 309-663-6981, www.ilsoy.org

A second Illinois soy-based biodiesel plant is slated to begin production soon. Incobrasa Industries, Ltd., a privately owned corporation which operates a soybean processing facility near Gilman, Illinois, will go online this month with a 30-million gallon biodiesel production plant. The plant will crush and use the oil from up to 20 million bushels of soybeans annually in the production of biodiesel.

“Biodiesel production in Illinois makes sense because Illinois is the largest biodiesel consumer,” says Craig Kief, head of research and business development for Incobrasa. “We have the facility in place, the expertise from our connections in Brazil and easy access to Illinois soybeans. We use nearly 100 percent Illinois soybeans.”

Incobrasa currently produces 36 million gallons of soybean oil per year. The oil not used in biodiesel production will continue to be contracted as private-label bottled oil.

“We will be able to produce oil for either market. Most biodiesel producers purchase crude oil for production, but we will continue to refine and bleach our soybean oil for our biodiesel feedstock. A better quality input oil will produce a better quality biodiesel,” he says.

While Kief is uncertain of the exact economic impact the plant will have on local soybean prices, he does expect the soybean basis to firm. The plant will move to full capacity in mid-November, and Incobrasa will be purchasing more soybeans. In addition, recruitment efforts have been made the last few months to meet employment needs for full production.

“Our technology is the best on the market. We are confident we will produce a high quality product that will continue to grow in demand,” says Kief.

“We commend Incobrasa for helping advance our state’s soy-based biodiesel industry,” says George Dixon, Illinois Soybean Association chair from Colchester. “Illinois offers the most attractive biodiesel tax incentives of any state – incentives to build plants and incentives for sales, which increase demand for biodiesel. New plants also increase economic activity and jobs in Illinois and decrease our dependence on foreign oil.”

Incobrasa’s roots in the soybean industry go back 50 years in Brazil. The company began investing in U.S. farmland in 1982, and opened its crushing facility near Gilman in 1997 with a daily capacity of more than 60,000 bushels of soybeans per day. A soybean oil bottling and packaging facility was added in 2003, and fills approximately 24,000 bottles per hour of consumer ready-to-use soybean oil.

ISA is the statewide organization for Illinois soybean farmers. The 24 farmers on its board administer soybean checkoff funds to support research, promotions and educational programs designed to increase demand for Illinois soybeans and administer legislative and membership programs.