Biodiesel from Corn ethanol by-product?

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MASON CITY, IA — The biodiesel partnership of Golden Grain Energy of Mason City and BEST Energies Inc. has been awarded $200,000 from Iowa’s Department of Economic Development (IDED) Board.

Funding comes from the Value-Added Agricultural Products and Processes Financial Assistance Program (VAAPFAP).

Golden Grain will partner with Madison, Wis.-based BEST Energies to use its proprietary technology in producing biodiesel from the corn oil byproduct of ethanol production.

Golden Grain will generate an additional 15 million gallons of biofuel annually from corn already consumed for ethanol production, according to information from IDED.

The partnership, known as Corn Oil Bio-Solutions LLC, expects to create 11 jobs, seven of which will pay an average wage of $20 per hour.

Enterprise Zone tax benefits also were approved. A capital investment of about $24 million will integrate the biodiesel technology at the Mason City plant.

Pioneer Hi-Bred, and manufacturing projects in Newton, Fort Madison, Maquoketa and Ottumwa also received awards from IDED to create new jobs through state-wide projects.

“Once again, we’ve worked together with several businesses to achieve our goal of creating good-quality, high-paying jobs in Iowa,” Gov. Chet Culver said. “We are pleased to offer Iowa communities, big and small, a boost in their local economies, especially during this period of challenging economic times for the rest of the country.”

Small towns that often get overlooked as smart places to do business are now on top in Iowa, IDED Director Mike Tramontina said.

“When companies look at what Iowa has to offer their business, not only do they see a strong economy, they see a low cost of doing business, a smart, hard working workforce and a safe place to invest their time, money and families,” he said.