The partners
The biodiesel project is one of MLA’s Plant Initiated Projects. The project is underway at The Midfield Group one of the largest capacity meat processing plants in Australia. The Midfield group also operate a rendering plant, a pastoral company, and a transport business. Midfield processes beef, veal, lamb, mutton and offal derivatives.
The project
The project is investigating opportunities for value adding to its rendered products and opportunities to restructure its energy usage. It is investing in renewable energies including biodiesel from their own tallow and possible co-generation using this biodiesel as a fuel source. The opportunities to fit biodiesel production with the existing rendering plant provides benefits in terms of shared facilities, labour and resources.
How biodiesel compares
Biodiesel has been established throughout the world as a proven fuel with a favourable emission profile. It also has a positive energy balance nearly four times greater than petroleum distillate. 3.24 units of energy are gained for every unit of input energy compared to petroleum distillate with a net loss of 1.08 units of energy per unit of input energy.
The production of biodiesel from tallow would not only link the value of tallow to international oil prices but also give a financial return greater than current average prices. In addition it would give energy positive, environmental benefits to the Australian fuel industry. There is a long-term demand for biodiesel. The Australian diesel market is approximately 12 billion litres/year. If 50% could be sold as B20 biodiesel blend (20% biodiesel 80% fossil fuel diesel) then the market is 1.2 billion litres per year of tallow based biodiesel.
Consideration
The Australian rendering industry suffers from the instability of tallow prices. Ongoing uncertainty of tallow prices makes some rendering operations of marginal viability and prevents many from forward planning for investment in the industry. A tallow-based value-added commodity of high value linked to international pricing structures would provide the necessary stability.