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Released November 20, 2015 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Louis Dreyfus Commodities LLC (Cordova, Tennessee), a division of Louis Dreyfus SAS (Paris, France), is preparing to start up the second-largest glycerin refinery in the U.S. at its 275-acre soybean and biodiesel products processing complex in Claypool, Indiana.
The company is putting on the finishing touches, testing equipment, and completing the punch list in anticipation of starting up the new plant later this month. Currently, the complex processes more than 50 million tons of soybeans annually into 1 million tons per year of soybean meal and 90 million gallons per year of biodiesel; it now adds 80 million pounds per year of glycerin to the product list.
The nameplate 80 million-pound-per-year capacity plant is second only to Archer Daniels Midland Company's (NYSE:ADM) (Chicago, Illinois) 110 million-pound-per-year plant in Decatur, Illinois.
Construction began on the estimated $10 million refinery back in early 2015. The company is also looking into installing a 7.7-megawatt combined heat and power unit next year, to move away from purchasing power from utility producers and to provide electricity and steam to the plant.
Biodiesel manufacturers suffered a lot from last year's plunge in crude-oil prices, and crude glycerin demand is on the rise and may be the Holy Grail for biodiesel producers. Personal and oral care products are the largest part of the refined glycerin market in the world, with about 29% of total consumption; followed by food and beverage consumption, with more than 12% of the market; and pharmaceuticals, with more than 9%.
Oleochemical products also produce a glycerin crude by-product. Analysts say glycerin is expected to be the most lucrative product segment and is expected to witness the highest growth rate over the next six years.
New applications for crude glycerin have emerged due to a large oversupply in the market, such as bulk material deicing, dust suppression, grain storage and recreational vehicle fluid applications. Refined glycerin also is being used in the production of propylene glycol and epichlorohydrin, as well as fatty acids, fatty alcohol and glycerol, in an effort to reduce reliance on petrochemical feedstocks.
Other large glycerin refiners include P&G Chemicals (Cincinnati, Ohio), a division of Proctor and Gamble Company (NYSE:PG) (Cincinnati); Cargill (Iowa Falls, Iowa); Vantage Oleochemicals (Chicago, Illinois); and VVF Limited (Montgomery, Illinois).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The company is putting on the finishing touches, testing equipment, and completing the punch list in anticipation of starting up the new plant later this month. Currently, the complex processes more than 50 million tons of soybeans annually into 1 million tons per year of soybean meal and 90 million gallons per year of biodiesel; it now adds 80 million pounds per year of glycerin to the product list.
The nameplate 80 million-pound-per-year capacity plant is second only to Archer Daniels Midland Company's (NYSE:ADM) (Chicago, Illinois) 110 million-pound-per-year plant in Decatur, Illinois.
Construction began on the estimated $10 million refinery back in early 2015. The company is also looking into installing a 7.7-megawatt combined heat and power unit next year, to move away from purchasing power from utility producers and to provide electricity and steam to the plant.
Biodiesel manufacturers suffered a lot from last year's plunge in crude-oil prices, and crude glycerin demand is on the rise and may be the Holy Grail for biodiesel producers. Personal and oral care products are the largest part of the refined glycerin market in the world, with about 29% of total consumption; followed by food and beverage consumption, with more than 12% of the market; and pharmaceuticals, with more than 9%.
Oleochemical products also produce a glycerin crude by-product. Analysts say glycerin is expected to be the most lucrative product segment and is expected to witness the highest growth rate over the next six years.
New applications for crude glycerin have emerged due to a large oversupply in the market, such as bulk material deicing, dust suppression, grain storage and recreational vehicle fluid applications. Refined glycerin also is being used in the production of propylene glycol and epichlorohydrin, as well as fatty acids, fatty alcohol and glycerol, in an effort to reduce reliance on petrochemical feedstocks.
Other large glycerin refiners include P&G Chemicals (Cincinnati, Ohio), a division of Proctor and Gamble Company (NYSE:PG) (Cincinnati); Cargill (Iowa Falls, Iowa); Vantage Oleochemicals (Chicago, Illinois); and VVF Limited (Montgomery, Illinois).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
