Mansfield Oil to aid Permeate expansion

By Luke Geiver | February 09, 2010
Posted Feb. 24, 2010

Mansfield Oil Co. and C&N Co. have signed with Permeate Refining Inc. to market and advise the Hopkinton, Iowa, based advanced biofuel and fuel additive producer. Permeate processes waste byproducts, mainly de-lactose permeate, but currently plans to develop the capability to use waste streams from the citrus, sweetened beverage and beet pulp industries. C&N, an ethanol marketing and consulting company based in Bloomington, Minn., represents over 500 MMgy of ethanol produced in the U.S., and 150 MMgy of biodiesel. Jon Bjornstad, founder of C&N, feels the Hopkinton plant shows the ethanol industry's efforts to produce higher volumes. "I'm excited about the technology approach proven by Permeate's current production and believe that their success is a testament to the progress being made today by the ethanol industry to produce greater volumes of the advanced biofuels required under RFS2," said Bjornstad.

Based on yeast strain technology that's able to ferment a wide variety of waste stream feedstock, the facility currently produces 3 MMgy of ethanol with plans for expansion. "This is our first relationship with an advanced biofuel plant that produces fuel ethanol from non-food feedstock, which also meets the new categories defined in the RFS2 guidelines," said Douglas Haugh, executive vice president of Mansfield Oil. Haugh also noted that he believes more plants will soon be capable of producing biofuels from non-food feedstock and said, "We are excited about Permeate's current production capabilities, as well as their plans to expand their technology to plants nationwide that leverage local access to a wide range of feedstock."

With the plan for future expansion in mind, Permeate chose C&N based on the Bloomington company's diverse and broad coverage area. Randy Less, general manager for Permeate Refining said, "We are very pleased to have selected C&N. Their transparent approach gives us the ability to manage and forecast our costs and margins and their access to a nationwide market consists of refiners and blenders in every region of the country. This gives us great confidence in their ability to secure the best customers for our products and ensure our access to nationwide markets as we continue to expand our network of production facilities."