The Andersons: Innovations for Renewable Diesel Feedstock

For a company like The Andersons, Inc. (The Andersons) to evolve from a single, family-run grain elevator founded 75 years ago into a publicly traded Fortune 500 company, it takes more than timely innovation—it requires strong guiding principles. Since its inception, The Andersons has prioritized the human side of business, a core value that continues to shape its future. This commitment is captured in The Andersons’ Statement of Principles, which expresses the company’s fundamental beliefs and serves as the foundation for its operating philosophy: to recognize our concurrent responsibilities to our customers, our employees, our communities, and our shareholders.

“We have a deeply people-oriented culture,” says Rod Harris, Vice President of Renewables. “Without our people, we are nothing. Our founders created the Statement of Principles, and it still defines how we operate today. It reflects our culture, beliefs, and responsibilities, and it’s something we train on and hold each other accountable to.”

Expansion Through Supply Chain Expertise

By leveraging its deep knowledge of the grain industry and fostering strong relationships with farmers nationwide, The Andersons has significantly expanded beyond its original grain elevator model. What started in the 1940s as a terminal with nine truck bays has now grown into a diverse portfolio spanning multiple sectors of North America’s agricultural supply chain.

“Today, we operate more than 120 locations across the US, Canada, the UK, Puerto Rico, Singapore, and Switzerland,” explains Bill Krueger, President of The Andersons’ Trade and Processing division. “Our business is divided into three primary segments: plant nutrients, which supplies fertilizers to growers; renewables, which includes ethanol production and renewable diesel feedstock; and trade, our largest segment, which manages our grain elevators across North America.”

While the company’s plant nutrient business began in the 1950s, its renewables segment has seen the most rapid growth in recent decades. In 2021, The Andersons repositioned itself for expansion, rebranding its operations as The Andersons Trade and Processing. Its most recent plant, located in Colwich, Kansas, began operations in late 2019. Bill highlights how the company’s foresight in creating new sales channels for farmers led to its initial ethanol investments: “We quickly moved to build ethanol plants in 2006 and 2007, giving farmers better destinations for their corn and establishing ourselves as an industry leader.”

Driving Sustainability Through Renewable Energy

The Andersons’ five ethanol plants transform corn into ethanol, a cost-effective, renewable, and high-octane fuel. Discussing ethanol’s current 10% blend in US gasoline, Rod says, “We’ve been working to increase that to 15% for an even cleaner-burning fuel.”

Beyond ethanol, The Andersons ensures that byproducts from its production process are repurposed, reinforcing its sustainability commitment. “In addition to ethanol, we produce a range of feed products,” Rod explains. “We manufacture both wet and dry distillers’ grains, as well as high-protein feed products for livestock.” The company also generates distillers’ corn oil, which serves as both animal feed and a renewable diesel feedstock. Additionally, it captures and sells CO2 produced during fermentation, supplying it to the food and beverage industry through a business partnership.

Innovating Renewable Diesel Feedstocks

Perhaps the most promising aspect of The Andersons’ sustainability efforts lies in its growing presence in renewable diesel feedstock production. Jacob Eberhart, Vice President of Diesel Feedstocks, explains: “The renewable energy push gained momentum with RFS2, which drove the US energy transition. The Low Carbon Fuel Standard (LCFS) in California further incentivized not just ethanol but also other decarbonization platforms.”

In just two and a half years, The Andersons has made significant strides in renewable diesel feedstock, leading the way with groundbreaking technology. A strategic partnership with Trucent Separation Technologies, LLC has enabled the company to refine crude distillers’ corn oil, removing unwanted metals so it can be used directly as a renewable diesel feedstock without additional processing. This innovation reduces costs and processing time for fuel producers. “We are certainly early movers in this space,” Jacob says. “We have competition, but we were the first to commercialize and push this technology into the industry.”

The Future of The Andersons

While grain remains at the heart of The Andersons’ business—with 77 grain facilities handling over 36 million tons of traded product annually—the company’s future is increasingly focused on sustainable solutions.

“I see enormous potential in the renewable feedstock business,” Jacob concludes. “It has been a major growth driver for us over the past two and a half years, and we believe it will be a key pillar of our long-term strategy. We’re committed to providing innovative, sustainable solutions that benefit both our business and the planet.”

https://www.andersonsinc.com