Soybean oil is the most abundant feedstock in the U.S. at roughly 25 billion pounds per year produced, or 3.3 billion gallons. About a third of all soybean oil produced in the U.S. is used for biofuel purposes. The remaining amount is used for Food, Feed and other industrial. Other fats, oils and greases are also used to produce biofuel including animal fats, used cooking oil, yellow grease, brown grease and new/emerging cover crop oils.
New and existing facilities utilize FBA’s independent market analysis to determine availability, cost and viability of all feedstock. We have set up procurement systems from scratch and conducted trading on an interim basis for startups and existing companies.
Soybean oil comprises about 20 percent of the soybean, with 75% being meal for food and feed. Before the advent of biodiesel in the early 2000’s, soybean oil frequently traded at less than 20 cents per pound. It is now trading at more than twice that. There is significant uncertainty regarding the demand for soybean oil to produce biofuels, based on regulatory and tax related issues, but rest assured there will always be demand for all vegetable oils due to our ever-increasing population.
FBA has decades of experience in feedstock production, processing, procurement and logistics. We understand the dynamics of the fuel industry and the important role that feedstock procurement plays in plant profitability. From early planning, to execution and follow-up, we will identify the lowest cost, most sustainable feedstock strategy. Our decades of experience in oilseed processing, oils, fats and biodiesel is unmatched in the industry!
For a detailed description of feedstock procurement services, please contact FBA.