CountryMark Refinery Expansion to Increase Diesel Fuel Supply

By Countrymark - Posted on April 3rd, 2008

CountryMark is nearing completion of a $20-million renovation to its Mount Vernon, Ind. refinery. When the work is finished in mid-May, the facility will produce an additional 45 million gallons of fuels per year. This will be an increase of 12 percent or 3,000 barrels per day, with the additional volume being mostly in diesel fuel. Through state-of-the-art technologies and enhanced efficiencies, that increase will also be produced with no additional expenditure of energy.

“We’re committed to increasing the supply of diesel fuel, since there’s a real, growing need,” stated Matt Smorch, CountryMark refinery manager. “At CountryMark, diesel fuel is a big part of our business, especially our ag and off-road business. Anything we can do to get more diesel fuel into the marketplace benefits everyone.”

The expanded refining capacity will allow the company to better meet the rapidly-growing demand for its premium branded diesel fuel, CountryMark Super Dieselex-4. Super Dieselex-4 is unique in that it is made exclusively from domestically-produced Illinois Basin crude oil, a very high-quality, light, sweet crude with low sulfur content and excellent diesel qualities. CountryMark’s Mount Vernon refinery is one of the few in the U.S. to be fed entirely by American crude oil, and is the nation’s only refinery that uses 100 percent Illinois Basin crude. Correspondingly, it is the only refinery to manufacture Super Dieselex-4.

“Our refinery is built around Illinois Basin crude,” stated Smorch. “It is well suited to process that crude and maximize its value.”

Smorch reported that the new construction, which is being done by local contractors, has gone very well despite a challenging winter. He also said that the project is on schedule, and that the work has gone safely thus far. He is looking forward to the opportunity to add to the nation’s diesel fuel supply in a little over a month.

“U.S. refining is not really set up for diesel fuel—it’s always been driven by gasoline,” noted Smorch. “But diesel fuel drives this country—trucking, construction, and agriculture. CountryMark is a diesel-driven company, and this expansion will be a direct benefit to our branded dealer network and their customers.”

A central part of the renovation project was the purchase and installation of a new vacuum tower. The new tower, which was erected in February, will enable the plant to pull more diesel fuel out of the crude oil than is currently possible. A key component of that enhanced process will be the recovery of heat from the various distillation stages used in refining, recycling that energy for further use.

“The only way to gain the extra throughput (production) and the extra diesel yield while using the same amount of fuel is to gain more heat recovery, which we have increased by 20 to 30 percent,” explained Smorch. “This will be a much more energy-efficient system.” CountryMark began the construction phase of this renovation this past fall, though the planning and logistics for this project had been on-going for much longer. Getting the vacuum tower ordered and delivered was especially time consuming, according to the Indiana-based energy company.

“Over the last several years, the availability of metals on the world market has decreased, and the prices have increased,” Smorch pointed out. “It took us over a year from the time we ordered the tower until we received it. Even so, we were fortunate. I know that some refinery expansion projects around the country have been put on hold, just because it’s so hard to get the necessary materials.”

About CountryMark: Based in Indianapolis, CountryMark is Indiana’s only American-owned oil refining and marketing company and it is recognized as a nationwide leader in the distribution of biofuels such as soy biodiesel and ethanol. In addition to its corporate offices in Indianapolis, it operates a refinery in Mount Vernon and terminal locations in Mount Vernon, Switz City, Jolietville, and Peru, Ind; as well as Henderson, Kentucky.. Nineteen individual banded cooperatives distribute CountryMark fuel in and around Indiana. In addition, these 19 co-ops operate 90 fuel stations located primarily in Indiana, but also in Ohio, Illinois, and Michigan. To find the nearest CountryMark dealer, go to CountryMark.com.