Cargill Gets into the Biodiesel Business
8 June 2005
Cargill, the nation’s third-largest ethanol producer, announced plans to build a 37.5-million-gallons-per-year biodiesel plant and 30-million-pounds-per-year glycerin refinery in Iowa Falls, adjacent to its existing soybean crush facility. Pending regulatory permitting approvals, construction will begin this summer, with biodiesel production commencing in April 2006.
Initially, the plant will produce biodiesel and USP-grade glycerin exclusively from soybean oil, but Cargill officials expect to have the capability for using animal fat or waste grease for biodiesel production in the future.
The price volatility of the soybean oil and petroleum markets can be challenging for biodiesel producers. However, we believe that we are uniquely positioned to manage this volatility and make this enterprise a success by leveraging Cargill’s experience with other renewable fuels, utilizing our expertise in processing, logistics and risk management, as well as accessing our production of multiple feedstocks.
While this is a wholly owned Cargill investment, we have and will continue to actively pursue opportunities to align our capabilities with other strategic partners. Our biodiesel initiative reflects ongoing government support for renewable fuels and our broader commitment to invest in the U.S. renewable fuels industry, while generating new markets and applications for American farmers.—Wayne Teddy, president, Cargill Grain & Oilseed Crush Supply—North America
Cargill Grain & Oilseeds Supply Chain—North America is a business unit of Cargill, a US $63 billion (revenue) international provider of food, agricultural and risk-management products and services.
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