Archer Daniels Midland Company (ADM)—the largest producer of fuel ethanol in the US—has selected Cedar Rapids, Iowa as the second location for its previously announced ethanol capacity expansion (earlier post).
The Company will build a dry corn milling plant with an initial annual capacity of 275 million gallons adjacent to the existing corn processing plant. Construction on the Cedar Rapids expansion, expected to be complete in the second half of 2008, is subject to applicable governmental approvals.
This 275 million gallon expansion plus the previously announced 275-million gallon expansion in Columbus, Nebraska represents a 550-million gallon capacity expansion for ADM.
According to the Renewable Fuels Association, ADM currently has a 1,070-million gallons per year fuel ethanol production capacity, which these two expansions will increase by 50%. Factoring in expansions and new plant construction in the US, ADM will represent about 22% of total US fuel ethanol production.