Corn oil production provides an important revenue source for ethanol plants with tight margins, according to a report from the Energy Information Administration. "Ethanol plants with corn oil recovery units are able to earn more revenue, so they usually have higher profit margins than plants without corn oil recovery, even if their production costs are slightly higher," the report said. Other strategies ethanol producers are using to improve their bottom lines include switching from corn to sorghum and replacing natural gas with biomass, the EIA said.

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