VeraSun Energy announces plans to produce biodiesel, a clean-burning renewable fuel, from oil extracted from distillers grains Co announced plans to produce biodiesel, a clean-burning renewable fuel, from oil extracted from distillers grains, a co-product of the ethanol production process.

VeraSun would be the first company to develop a large-scale, commercial facility for biodiesel production from a co-product of the ethanol production process, creating two biofuels from the same feedstock.