Incobrasa Spearheads the Biodiesel Movement
Located in Central Illinois, Incobrasa Industries Ltd (Incobrasa) specializes in soybean processing and biodiesel production. With a history spanning over 70 years, Incobrasa has become a pivotal player in delivering high-quality oilseed products and biodiesel. Originating in Brazil, the company leveraged its agricultural expertise to expand into the US in 1982, maintaining its market presence through dedicated work and a commitment to quality. Kerry Fogarty, the Quality Control Manager, shares insights into the company’s achievements.
“Founded in 1997 in Illinois by the father of our current owners, Incobrasa initially managed soybean crushing operations in Brazil before venturing into the US, selecting a prime location amid abundant soybean fields. The facility enjoys excellent connectivity to railroads and highways, enhancing logistical efficiency. Initially, our focus was on processing soybeans to extract crude oil and produce animal feed. After about 18 months, a downturn in vegetable oil prices, which had dropped to $0.15 per pound, led to the temporary closure of our plant. In 2001, we expanded by constructing an on-site oil refinery to sell refined oil in bulk to local packers. By 2002, we started packaging our oil. Although biodiesel was not in our original plan, a 2006 recommendation led us to establish a biodiesel production facility, initially capable of producing 30 million gallons annually. After several enhancements, our output has now reached 75 million gallons. This journey included seeking approval from the Illinois Environmental Protection Agency to increase throughput in our biodiesel operations. Changes in US policy and the sporadic nature of government incentives have posed challenges, affecting our planning for future expansions,” he explains.
Expanding Operations
As for current operations, Kerry elaborates on recent upgrades. “In 2019, we increased our processing capacity from 27 million to 40 million bushels annually, which not only boosts our biodiesel feedstock but also enhances our animal feed production. We’re constructing another crushing plant to further increase our capacity to between 80 and 98 million bushels annually, essentially doubling our vegetable oil output, which can be used for refining, packaging, or biodiesel production,” he updates.
Biodiesel remains a critical topic globally due to its environmental benefits. Kerry reflects on how biodiesel has impacted Incobrasa. “Initially, vegetable oil was not profitable due to low demand and prices. However, the biodiesel boom significantly raised prices and demand. The process of crushing soybeans for biodiesel also increases the production of soy meal for animal feed, helping to reduce food costs and increase food availability, with minimal impact on the supply of vegetable oil for consumer products,” he notes.
“In Illinois, where biodiesel usage is encouraged, truckers benefit from an excise tax exemption on fuel containing at least 11% biodiesel, a threshold that will rise in the coming years. This policy supports the growing demand for biodiesel, positioning Incobrasa favorably within the market,” Kerry highlights.
For the future, Kerry is optimistic about Incobrasa’s growth prospects. “We are concentrating on our new plant, expected to be operational by early 2026. This expansion will require us to source soybeans over a wider area, still focusing on local growers. We aim to keep these soybeans within the US for processing, rather than exporting them, which will benefit local poultry farms with increased soy meal availability,” he details.
Sustainability Strategy
Looking ahead, Kerry shares his long-term vision for sustainability. “Over the next five to ten years, we plan to operate from our new facility, which will include implementing solar fields to achieve electrical self-sustainability for the plant. We also aim to double our biodiesel production to 150 million gallons annually, contingent upon the new plant’s completion and its vegetable oil output,” he concludes.
In its commitment to sustainability and innovation in biodiesel, Incobrasa is poised for significant expansion and influence in the coming years.