Soybean handler Ag Processing Inc. says it has shipped out the first-ever U.S. unit train of soy oil, the latest sign of fast-expanding biofuel supply chains across America’s heartland.
The unit train loaded at AGP’s newest soybean processing facility in David City, Nebraska, heads to the West Coast. The soy oil will be used for producing biofuel, the company said in an email to Agri-Pulse.
Unit trains carry long-haul bulk cargo, like grain or coal, directly to a single destination, avoiding stops in between.
AGP’s milestone stems from its 11th soy crushing plant that began operations last year in the east-central part of Nebraska. It includes 13 miles of track for both soy oil and soy meal. Historically, there’s been a lack of infrastructure for rail cars to haul soybean oil long distances. Instead, the farm commodity used for fuel and food is typically sent by truck or shorter rail trains.
Agribusinesses including AGP are collectively investing billions of dollars to ramp up U.S. capacity for processing oilseed crops amid booming demand for biofuels, like renewable diesel and sustainable aviation fuel, that can be made from renewable materials like soybeans and canola.
The new AGP plant also means Nebraska can crush about 75% of the soybeans it grows as opposed to shipping them out of state, saving time and money.
"This isn't simply about moving more product," Courtney Lawrenson, Senior Vice President of Oils & Energy for AGP, said in a statement. "It's about building a stronger domestic supply chain that supports American agriculture, American energy, and long-term value for our cooperative owners."
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