Inedible corn oil that comes from ethanol production is one of the feedstocks in Renewable Energy Group's biodiesel plant in Newton, Iowa, said David Elsenbast, REG's vice president of supply-chain management. "We've been working for several years now with the ethanol industry to create a market ... that has good value for the ethanol producer, to provide them a reason to separate the oil out of the [distillers dried grains] and sell that to the biodiesel industry," said Elsenbast.

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