Glossary

Crude Glycerin is an impure form of Glycerin and is primarily made as a by-product. Recently the reinvention of biodiesel has created much of the crude glycerin as it is a by-product from the manufacture of biodiesel. This supply has created market disruptions as it typically has many impurities in it including methanol, water, and salts. A saleable grade of crude glycerin is generally at least 80% glycerin with less than 1% methanol in it. Crude Glycerin that has lower levels of glycerin or higher levels of methanol often has little or no value.

Glycerol; also called glycerin, is a simple polyol compound. It is a colorless, odorless, viscous liquid that is sweet-tasting and non- toxic. The glycerol backbone is found in all lipids known as triglycerides. It is widely used in the food industry as a sweetener and humectant and in pharmaceutical formulations. Glycerol is generally obtained from plant and animal sources where it occurs as triglycerides. Triglycerides are esters of glycerol with long-chain carboxylic acids. The hydrolysis, saponification, or transesterification of these triglycerides produces glycerol as well as the fatty acid derivative. Typical plant sources include soybeans or palm. Animal- derived tallow is another source.

The biodiesel industry has created a glut of glycerin in the United States since the industry first became commercially viable in 2006. Many new uses and trade avenues for the material have been invented over the years. Biodiesel plants who do not have the proper glycerin refining systems in their process, will make a very crude glycerin. This material can run in the 40-70% range. This material typically has little to no value as it holds in its remaining percentages hazardous methanol, water, salts, and fats.

Glycerin USP and food grade glycerin meet the requirements mandated by US Food & Drug Administration (FDA) regulations for use in foods, drugs, medical devices and certain other products requiring ingredients of the highest purity. Most of the glycerin marketed today is manufactured to meet the stringent requirements of the United States Pharmacopeia (USP) and the Food Chemicals Codex(FCC). However, technical grades of glycerin that are not certified as USP or FCC are available.

The fatty acid or fatty esters produced by these methods may be transformed. For example, hydrogenation converts unsaturated fatty acids into saturated fatty acids. The acids or esters can also be reduced to the fatty alcohols. For some applications, fatty acids are converted to fatty nitriles. Hydrogenated of these nitriles gives fatty amines, which have a variety of applications.

The splitting (or hydrolysis) of the triglycerides produces fatty acids and glycerol: RCO2CH2–CHO2CR–CH2O2CR + 3 H2O → 3 RCOOH + HOCH2–CHOH–CH2OH. The addition of base helps the reaction proceed more quickly, the process being saponification.

Oleochemicals are important raw material for polymeric resins specially alkyd based because of possible functional group modifications. These modifications are based on reaction of vegetable oil with excess glycerol to obtain monoglyceride, which is then converted into polymeric resins i.e. alkyd by reacting with dicarboxylic acids or anhydrides. Recently polyesteramide resins are also prepared using vegetable oil as an oleochemical. Important processes in oleochemical manufacturing include hydrolosis and transesterification, among others.

Fats react with alcohols (R’OH) instead of with water in hydrolysis) in a process called transesterification. Glycerol is produced together with the fatty acid esters. Most typically, the reaction entails the use of methanol (MeOH) to give fatty acid methyl esters: RCO2CH2–CHO2CR–CH2O2CR + 3 MeOH → 3 RCO2Me + HOCH2–CHOH–CH2OH. FAMEs are less viscous than the precursor fats and can be purified to give the individual fatty acid esters, e.g. methyl oleate vs methyl palmitate.

refers to a test to find out whether tallow is mixed in with lard. A number less than 73 indicates that contamination has occurred.

is the name of a test conducted by gas chromatograph y used to detect chemicals found in herbicides that cause abnormal accumulation of body fluid in connective tissue (edema) in chickens.

is quantified by comparing a sample of filtered liquid fat to the Fat Ana lysis Committee (FAC) standard and assigning it a number from 1 (lightest) to 45 (darkest). Other tests are also commonly used.

is the relative amounts of the 16 possible fatty acids as deter- mined by gas chromatography.

(FFA), the amount of fatty acids split from the triglyceride or fat molecule and dissolved in the fat, are a measure of the hydro lysis that has taken place within the fat molecule. Time, temperature, and the presence of moisture, bacteria, and enzymes influence the hydrolysis of fat into free fatty acids and glycerol.

(IV) is a measure of the chemical unsaturation of the fat. It is expressed as the number of grams of iodine absorbed by 100 g of fat sample.

(MIU) should not exceed 1 to 2%, depending on how the fat is to be used. Moisture in fat arises from slight emulsification during processing and is determined by distillation with toluene or by heating; it should be 0.5 to 1%. Unsaponifiables are any material that will not form soap when mixed with caustic, including sterols, pigments, and hydrocarbons. They are soluble in ordinary fat solvents, however, because the animal cannot digest them, they lower the energy value of the fat. These particles are inherent in all fats, both animal and vegetable, and may arise from contamination.

(PV) (also referred to as initial peroxide)is a measure of the amount of oxidation that has occurred in the fat.

must not exceed defined levels for certain chemicals that are toxic to animals- dichlorodiphenyltrich loroethane (DDT) 0.5 ppm, dichloro-diphenyldichloroethane (ODD) 0.5 ppm, and dichlorodiphenyldichloroethylene (DOE) 0. 5 ppm; dieldrin 0.3 ppm; polychlorinated biphenyl (PCB) 2.0 ppm.

(PE) is a foreign material in tallow, which finds its way into the rendering plant as meat wrappers mixed in with raw material

(refined and bleached) color defines tallow grade. For example, the specification for extra fancy tallow is usually 1 red, but is sometimes specified at 0.5 red.

is an analytical method in which a given volume of liquid fat will filter in a specified time under standard conditions. Filtration is slowed by the presence of fine particles and glue substances; the rate of filtration indicates whether a batch of fat will give processing difficulties.

(SV) is an estimate of the mean molecular weight of the constituent fatty acids in a fat sample. It is defined as the number of milligrams of potassium hydroxide required to saponify 1 g of fat. The higher the SV, the lower the mean chain length of the triglycerides.

is the solidification point of the fatty acids, an important characteristic in fats used to produce soap or fatty acids.Trade practice is to designate animal fats with titers of 40°C (104°F) and up as tallow, and those below 40°C as grease.

(TFA)- both free fatty acids and those combined with glycerol (intact glycerides)- should exceed 90%. Fat is composed of approximately 90% fatty acids and 10% glycerol. The calorie content for glycerol is about 4.32

is determined on a scale of 0 to 14: 7 is neutral, below 7 is acid, above 7 is alkaline.

Produced from recycled animal processing waste streams and used restaurant fats, oil and grease (FOG), feed grade fats and oils provide a cost-effective alternative to vegetable oils in animal and pet rations. These concentrated ingredients allow global feed producers to increase product energy levels, and offer meat producers decreased feed intake, increased feed efficiency and improved growth rates. Using Feed fats provide a well-balanced amino acid profile and are an excellent source of linoleic acid for improved animal health.

Biodiesel is a renewable, clean-burning diesel replacement that is reducing U.S. dependence on foreign petroleum, creating jobs, and improving the environment. Made from a diverse mix of feedstocks including recycled cooking oil, soybean oil, and animal fats, it is the first and only EPA-designated Advanced Biofuel in commercial-scale production across the country and the first to reach 1 billion gallons of annual production. Meeting strict technical fuel quality and engine performance specifications, it can be used in existing diesel engines without modification and is covered by all major engine manufacturers’ warranties, most often in blends of up to 5 percent or 20 percent biodiesel. It is produced at plants in nearly every state in the country. | Biodiesel; refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl (methyl, ethyl, or propyl) esters. Biodiesel is typically made by chemically reacting lipids (e.g., vegetable oil, soybean oil, animal fat with an alcohol producing fatty acid esters. Biodiesel is meant to be used in standard diesel engines and is thus distinct from the vegetable and waste oils used to fuel converted diesel engines. Biodiesel can be used alone or blended with Petro-diesel in any proportions. Biodiesel blends can also be used as heating oil.

Ethanol is a domestically produced alternative fuel most commonly made from corn. It is also made from cellulosic feedstocks, such as crop residues and wood—though this is not as common. U.S. ethanol plants are concentrated in the Midwest because of the proximity to corn production. Plants outside the Midwest typically receive corn by rail or use other feedstocks and are located near large population centers. Most ethanol in the United States is produced from starch-based crops by dry- or wet-mill processing. Nearly 90% of ethanol plants are dry mills due to lower capital costs. Dry-milling is a process that grinds corn into flour and ferments it into ethanol with co- products of distillers grains and carbon dioxide. Wet-mill plants primarily produce corn sweeteners, along with ethanol and several other co-products (such as corn oil and starch). Wet mills separate starch, protein, and fiber in corn prior to processing these components into products, such as ethanol.

An Oleochemical is any chemical that has been derived from fats and oils. Widely used in the home and personal care industries, oleochemicals can also be used as a raw material or as an intermediary for the pharmaceutical, rubber, plastic, paint and lubricant industries. Oleochemicals are an effective high-quality substitute for many petroleum-based products. We produce fatty acids, fatty alcohols, glycerin, and other derivatives. | Oleochemical Application: Pharmaceuticals, Food Industry, Soaps and Laundry Detergent, Candles, Waxes, Lubricants, and Paints and Coatings.

Renewable diesel is made from the same renewable resources as biodiesel but uses a different production process. The result is a renewable fuel that is chemically identical to petroleum diesel and meets the same ASTM specification. Renewable diesel is a relatively new fuel but has quickly become popular because it reduces emissions, delivers strong performance and has up to 85 percent less sulfur than ultra-low sulfur diesel (ULSD). Renewable diesel is a drop-in replacement to petroleum diesel. It also blends extremely well with biodiesel

Stabilized feed fat, or yellow grease, is a cost-effective blend of animal, poultry and vegetable oils for use in quality feed rations. Our high-energy feed fat offers a free fatty acid maximum of 15% and maximum MIU of 2%.

Developed specifically for non-ruminant animals, our stabilized feed fat is a blend of animal, poultry and vegetable fats and oils. High in natural fatty acids, this high-energy feed fat offers a free fatty acid maximum of 15% and maximum MIU of 2%. Nonruminant farm animal, which includes chickens, horses and pigs. The nonruminant animal has an uncomplicated or simple stomach as compared to the ruminant animal, which has a stomach with four compartments (cattle, sheep and goats). The nonruminant also is referred to as a monogastric.

Stabilized poultry fat, also known as poultry grease, is a premium ingredient often used in feed rations. Stabilized poultry fat is naturally high in essential fatty acids, and offers 8,220 kcal/kg ME. It is also the lowest tire animal fat available, reducing handling and heating challenges.

3CC Final Invoice Amount. The final amount billed to the Customer by Accounting. This as calculated by multiplying the Sell Rate and the Final Weight, minus any prepayment made or discounts.

Trucking/load tracking number that enables 3CC to track the when and where of delivery of each truckload. This number is created by the trader.

The number that is assigned to each truck / load by 3CC. This enables 3CC to track the when/where of each truck/load. This should be assigned by the Trader.

rade Confirmation Number given to the Vendor. This number will be generated by the trader at the contract signing. This number may be attached to multiple trucks/loads if the trader has negotiated multiple trucks to be bought at the same price. This number should always end in a B to show that we have bought from a Vendor.

Trade Confirmation Number given to the Customer. This number will be generated by the Trader at the contract signing. This number may be attached to multiple trucks/load if the trader has negotiated multiple trucks to be sold at the same price. This number should always end in an S to show that we will be selling it to a customer.

Customer responsible for signing a contract.

Date a contract is signed and returned.

Beef Tallow

Bill of Lading. A form created by Accounting that must be given to a carrier describing the details of the shipment. (where the product is being picked up from, what the product is and where it will be delivered to).

Fees associated with Banking. Fees for ACH, Wire and General Banking Transactions. ACH and Wire fees must beassigned to a particular Truck/Load.

An individual or company that arranges transactions between and buyer and seller for a commission. Brokers fees shouldbe relayed by the Trader, tracked through Accounting, and paid by the Banker.

Broker Invoice. Invoice that a Broker submits to 3CC for payment.

Broker's master record number.

The amount in dollars and cents that 3CC agrees to pay for each pound of product. Ex: The Trader may agree to pay $0.0425 for 48,000lbs of product.

Payment terms agreed upon by the Trader and the Vendor. Ex: Net INV, 50% prepay net on INV, Prepay 24 hours prior to pick up date.

Choice White Grease

Trucking company responsible for loading and delivering product from a vendor to a customer.

Carrier Invoice Number. The number that a Carrier will assign to a truck / load if applicable.

The buyer. The company/person purchasing product from 3CC.

Type of material Customer will be using delivered product for. Example: Biofuel, Animal Feed, Export, Oleo Chemical.

The number a Customer assigns to a contract. Ex: Verbal, 1234, etc.

Customer Invoice Number. The number assigned to a Customer Invoice by Accounting.

Number assigned to each truckload by the customer. For example: HERO will not accept a load without their offload number. This number must be attached to an invoice, freight PO, etc.

Type of product being sold to a Customer. Ex: Flush Oil, UCO, Crude degummed soybean oil.

Distiller’s Corn Oil

Date product actually delivers to Customer.

Date product is scheduled to deliver to the Customer.

Discounts applied to a load for Carrier / Freight / Transportation issues. Ex: Some Customers require a Carrier to have a washout prior to loading new product. Sometimes a shipment is delayed due to loading or unloading issues, etc. Who/what why discounts apply will be determined by the Trader.

Any discounts assigned to a load. Discounts may be assigned for reasons such as off-spec product, delays, light loads, etc. Discounts will be assigned by the trader.

Scheduled date that product will be picked up and shipped.

Date that a contract must be accepted or rejected.

Highest level of FFA product can test for at delivery point.

Must use Waste Vegetable Oil, not Flush oil on paperwork.

Fees incurred for all FedEX, US Mail or UPS packages shipped through 3CC.

Final weight, determined by the weight ticket presented by the Carrier when truck/load arrives at the customer destination. Some invoices will be paid off the Final Weight Destination and some invoices will be paid off the Final Weight Origin. This is predetermined in the contract.

Final weight of the truck/load determined by the weight ticket presented by the Carrier when the truck is loaded at the vendor origin.

Freight Purchase Order. A purchase order created by Accounting, sent to the Carrier describing the freight services agreed upon by the Trader and the Carrier.

Predetermined cost established between a Trader and a Carrier specifying the amount owed to the Carrier for picking product up from and Vendor and delivering said product to a Customer.

Used cooking oils are used for the production of biodiesel. To have a traceability of the applied waste a certification of all operators is needed. To this end, the ISCC - system (International Sustainability & Carbon Certification) was set up. In this system, the waste is monitored from the origin (producer: restaurants, households ....) to the end user (oil companies). Therefor it is necessary that the users of frying oils and fats signs a self-declaration before their used frying fats and oils can enter the ISCC circuit.

Fees incurred in order to test product prior to pick up or after delivery to the customer. These fees are tracked by the Trader. Each fee should be assigned to a particular truck/load.

Moisture, Impurities and Unsaponifiables (components of an oil fat or wax that fail to form soap when blended with lye). Highest level of MIU that product can test for at delivery point.

Moisture

Master number for one complete truck transaction. This number will be linked to every form (purchase orders, sales orders, BOL's, banking fees, etc.

Some banks use a second bank to receive their payment and forward on, ie a domestic bank receives funds but then E-Deposits funds in an international bank....so in message to recipient bank ALWAYS mention the customer’s name and what bank the funds are to go to.

Purchase Order Date. The date the Purchase Order is created and send to the Vendor.

Purchase Order Number. Number assigned to each purchase order via QuickBooks. This number is generated by the Accounting Department.

The dollar amount that we have agreed to pre-pay a Vendor for a designated truck/load. This number will be designated in a contract by the Trader and the Vendor. This number should be uploaded into the Banking Out Form by the Trader for the Banker to pay.

Date that we must pre-pay a vendor for a truck/load. This number should be uploaded into the Banking Out Form by the Trader for the Banker to pay.

Estimated weight of product to be purchased or sold. This is usually the number that prepayments are based off of.

Amount in dollars or cents that will be paid for each pound of product. Ex: $0.42.

Payment terms agreed upon by the Trader and the Customer. Ex: COD, Net INV, etc.

Company and destination that we will be shipping to.

City that product will be shipped to.

Status of each transaction - EX: Complete, Pending, Cancelled, etc.

Company that 3CC will purchase product from.

Type of material Vendor will typically be selling. Ex: Biofuels, Animal Feed, Export, Oleo Chemical.

The number that a Vendor assigns to a contract.

Vendor Invoice Number. The number a Vendor assigns to an invoice for 3CC to pay. This should be recorded by the Trader or the Accounting department.

The date posted on and vendor invoice / date of invoice receipt by 3CC.

Final reconciled amount owed to the Vendor when final weights have been received and verified. This amount is calculated by multiplying the buy rate and the final weight, minus any prepayment that has already been made to the vendor.

The number that a vendor assigns to a truck/load. This will be captured by the Trador when applicable.

Type of product being purchased from a Vendor. Ex: Flush Oil, UCO, Crude Degummed Soybean Oil.

Trailer used for crane and forklift loading, freight cannot exceed 10 ft in height, or 10'4" height in a Low-pro Step Deck Conestoga.

Specialized trailer used for taller loads, height cannot exceed 11'6".

Trailers available in both 48 and 53-ft, maximum freight width cannot exceed 8'6', weight cannot exceed 46-48,000 lbs, and height cannot exceed 8'6" tall.

FLEXITANK which is a bladder or bag that can be fit into a standard ISO container and used for the transport and/or storage of a non- regulated liquid inside a cargo transport unit (container).

An ISO Tank is a tank container which is built to the ISO standard (International Organization for Standardization). ISO tanks are designed to carry liquids in bulk, both hazardous and non-hazardous. The tank is made of stainless steel and is surrounded by various types of protective layers.

used to haul non-hazardous and food-grade liquid freight. This stainless-steel tank can have a capacity between 6,200 Gallons to 7,500 gallon capacity.

Enclosed tanks, prevent outside air from entering. The enclosed tanks protect the material from moisture and contamination. Trailers can legally haul 48-50,000 lbs.

We lease Rail Cars from GATX. They can be load to approximately 25,500 lbs or 4 truckloads. When shipping in a rail car it can take 3 to 4 weeks for the rail car to be shipped, offloaded, and returned to our siding.