Soybeans Hit the Road: New use paving the way for improved demand

SOYBEANS HIT THE ROAD

BY LAUREN HOUSKA

NEW USE PAVING THE WAY FOR IMPROVED SOYBEAN OIL DEMAND

Beep beep — a new use for soybean oil is coming through! Iowa State University (ISU) researchers are closing in on the commercialization of a new product that could help increase demand for soybean oil — and soon. This bio-based polymer can replace the petroleum-based polymers currently used as the binding agent in asphalt.

“Soybeans are highly dependent on international markets,” says Rolland Schnell, an Iowa Soybean Association (ISA) district director. “Any time we can use our product domestically, it gives farmers a little more certainty.”

The Newton soybean farmer has served on ISA's board of directors for eight years. He was serving when ISA and the United Soybean Board each invested $125,000 in checkoff funds in bio-polymer research at ISU several years ago. To date, more than $13 million in private, state and federal funds have been leveraged to bring this technology to market.

“Like the hard-fought growth of the biodiesel industry over the years, soybeans need a real boost from something right now,” Schnell says. “I can really see this new use as being that next big, high-volume use to really give us that boost.”

It’s more important than ever to make investments to improve demand for U.S. soybean oil, Schnell says, as excess supplies continue to dampen soybean prices.

A biodiesel study shows a 12.9-cent increase in the price of soybean oil per pound, which equates to a 74-cent per bushel increase in soybean prices. It also equates to a $25-per-ton decrease in the cost of soybean meal, which is advantageous for Iowa’s livestock farmers, Schnell says.

Soybean oil shines

ISU Chemical and Biological Engineering Professor Eric Cochran and the team of experts working on this project expect demand for soybean oil to soar once commercial sales take off.

Cochran, the project lead, says there are about 1.6 billion pounds of oil used in the polymer binders annually from three market segments combined — polymer-modified pavements, pavement rejuvenation and road maintenance products. Given the durability and environmental advantages over more expensive petroleum-based polymers, he says it’s not unrealistic that hundreds of thousands of tons of soybean oil could be utilized annually.

“We’re competing against petroleum-based polymers that cost between $2-$4 per pound and whose key ingredient, butadiene, is largely imported from Asia,” Cochran says. “We’re offering a domestically produced soy-based alternative that performs as well or better and will cost about $1 per pound.”

Researchers discuss recent findings of their soy-based asphalt at the ISU BioCentury Research Farm near Boone.

Photo: Joseph L. Murphy/Iowa Soybean Association

Testing the tech

After years of research-scale development and testing at ISU’s Bio-Polymer Processing Facility at the BioCentury Research Farm, the product entered the testing phase in November at the National Center for Asphalt Technology (NCAT) Test Track.

A 1.7-mile oval in Opelika, Alabama, the track is comprised of 46 main test sections sponsored on threeyear cycles. The track is circled by a fleet of heavily loaded trucks resulting in 10-million-equivalent single-axle loads of traffic. The performance of each test section is closely monitored over two years.

Participating in NCAT are 22 state departments of transportation — including the Iowa Department of Transportation — as well as 20 national companies. If tests go well, it could launch a broader reach and market for the product, Cochran says.

“Commercial sales come after the testing and regulatory hurdles have been addressed,” he says. “If the NCAT demo goes well, you’ve essentially got 22 states that aren’t worried about allowing your product to be used, plus you could have companies that could be interested in buying the product. It’s good public relations if things go well.”

Next steps

“We have taken what we learned from plant operations and identified bottlenecks and processing steps that would add costs and figured out how to eliminate those things,” Cochran says.

He says the next steps are to scale up and sell, which is what they are working toward this year. Potential manufacturers of the product want to see if there is real demand for this product before they commit to largescale production. Potential customers want to see how well the product works before buying. This all requires real-world demonstrations.

“This summer, we will be working on paving demonstrations across several states,” says Cochran. “Local demo projects get other state agencies on board and familiarize potential customers, like regional contractors and terminal suppliers, with the benefits of the product.”

The first project will be in Cedar Rapids in July. They will also soon have projects in Tennessee, Minnesota, Alabama, Wisconsin, Nebraska and Kansas.

This progress is encouraging, Schnell says.

“It’s taken longer to get this product off the ground than we originally hoped, which can be frustrating as farmers are searching for new revenue opportunities,” Schnell notes. “But it seems that the stars have really started to align for this checkoff investment to start paying off.”

He believes ISA should continue to support the development and promotion of this new opportunity.

“We have supported the development of the biofuel industry for years, which has paid off,” Schnell says. “We need that same energy when it comes to new use projects like this one.”

Contact Lauren Houska at lhouska@iasoybeans.com.