ADM Expands Hamburg Oil Facility with Palm-Oil Refinery
15 May 2006
Archer Daniels Midland Company is expanding its Hamburg, Germany, facility with the addition of a palm-oil refinery that will have an annual capacity of 350,000 metric tons per year.
The expansion will also add 50,000 metric tons of additional storage capacity allowing the facility to receive Panamax-size vessel shipments. A Panamax-size ship is the largest vessel that can transit the Panama Canal, and has a deadweight (cargo plus fuel, stores, and so on) of at least 60,000 tons but not more than 80,000 tons.
With the addition of the palm-oil refinery, the facility will have a capacity of over one million metric tons per year of rapeseed, soy and palm oils making it Europe’s largest vegetable oil refinery capable of simultaneously refining these oils, intended for both food and industrial use. The Hamburg facility also includes Europe’s largest soy and rapeseed crushing plants.
ADM is the largest biodiesel producer in Germany and one of the leading producers in Europe. Within Germany, ADM has one biodiesel facility in Hamburg and one in Leer. The Hamburg facility last year announced an expansion in capacity expansion. (Earlier post.)
Construction is dependent upon applicable governmental approvals, and the plant is expected to be operational in early 2007.
Increased demand for palm oil—used directly for biodiesel refining as well as to offset higher usage of rapeseed for biodiesel—will push prices up 8.5% to 15% on various global exchanges, according to a quick survey by the Malaysia Star.
Global palm oil consumption may climb 6.5% to 35.4 million tonnes in the year ending September, from 33.23 million a year ago, according to the US Department of Agriculture (USDA). The USDA also notes that the industrial use of palm oil has risen 54% in the last three years.
Palm oil is increasingly used as a fuel, especially in the European Union. The European Union became the second largest importer of palm oil last year just behind China, almost exclusively on the basis of its use as a fuel.
TrackBack URL for this entry:
Listed below are links to weblogs that reference ADM Expands Hamburg Oil Facility with Palm-Oil Refinery: