Brian Engel, GM of Vegetable Oil Trading | Green Plains 

EPA RFS Hearing 

June 25, 2015

Good afternoon and thank you for this opportunity to testify this 

afternoon. My name is Brian Engel and I’m the General Manager of 

Vegetable Oil Trading for Green Plains at its headquarters in Omaha, 

Nebraska. 

I have over 25 years of experience in agriculture commodity 

marketing, trading, and processing and have made career, marketing 

and investment decisions based on the very first passage of 

Renewable Fuel Standard. 

Needless to say those decisions have not been easy to make with the 

constant delays, changes, and lack of clarity through the EPA’s 

proposal to change the law from what Congress had established.

In 2000, I started a company that launched the first biodiesel plant in 

the state of Indiana in 2005. The plant was located in Hammond, 

which is in the furthest northwest corner of the state near Chicago, 

and was also located adjacent to a large petroleum refinery. The 

investment created jobs in a very high unemployment and 

economically depressed area. Unfortunately with the uncertainties 

around RFS, that facility has closed and employees were laid off.

I bring this up, because within Green Plains, I am responsible for the 

group that markets and trades corn oil extracted from the ethanol 

process. Along with corn oil, my group also trades other fats and oils, 

both domestically and internationally.

In 2007, I developed markets for some of the first production of corn 

oil recovered from the ethanol process. Thus as a group, we can 

closely relate to what our corn oil biodiesel customers have been 

going through year after year.
Within Green Plains we continually develop markets for corn oil, as 

well as other fats and oils, across fuel, feed, food, and industrial 

applications.

Thus I wanted to relay my thoughts on the impact of the proposed RFS 

RVO from the perspective of a supplier to each of these industries. 

As a feedstock for biodiesel fuel, corn oil has been one of the key 

supplies that has helped generate investments in new biodiesel 

processing technologies, driving efficiencies and capacity in the 

industry.

One of the key aspects of the proposed RVO is not only the volumes 

themselves, but the fact that the volumes for biodiesel will be set 

through 2017.

Having firm volumes established at least 2 years out is very helpful for 

our corn oil biodiesel customers. This gives our customers the ability 

to make better forecasts and thus make longer term investments. In 

return, giving the fuel industry a consistent biodiesel supply. In 

addition to consistent supplies, California recognizes a very low carbon 

index value for corn oil. Thus generating a good alternative to meet 

there carbon reduction target. We expect other west coast states will 

follow California’s lead.

One of the major concerns for our biodiesel customers is the 70 to 75 

cents per gallon export incentive that Argentina has for biodiesel 

relative to soybean oil. We are starting to see the very negative 

impact to our customers caused from Argentine biodiesel vessels 

arriving at United States ports. Another on-going concern for our 

biodiesel customers has been the very slow response from the EPA 

regarding requests for clarification and guidance on many issues. 

Some requests, for what would appear be strait forward points of 

clarification, have taken up to one year to receive guidance on. And 

many times the guidance generated more requests for clarification.
Feed – In regard to our feed customers, the meat industry is starting 

to recognize the benefits and customer preference for meat produced 

from all natural or all vegetable based diets. Corn oil from the ethanol 

industry has been a go to replacement for animal fats in feed rations. 

Without a viable biodiesel market, the animal fats produced in the 

meat industry would struggle to find a ready market.

Food – In regard to food customers, corn oil from the ethanol industry 

is competitively priced into the biodiesel and feed market, thus 

replacing soybean oil as a biodiesel feedstock and making it available 

for the food market.

Industrial – In regard to our industrial customers, corn oil gives them 

more pricing certainty for the products they produce. Corn oil is 

priced and traded out to 12 months or longer in comparison to animal 

fats which price 30 to 45 days forward .

As I have quickly outlined, it is easy to see that corn oil from the 

ethanol industry is bringing value to consumers across fuel, feed, food 

and industrial applications. It also outlines how creative, resourceful, 

and flexible we have been in developing new markets and uses. So 

why can’t they be as creative, resourceful, and flexible in utilizing the 

fuels we produce?

On behalf of myself, and Green Plains, I would like to thank you for 

taking my testimony and for your attention this afternoon.