Archer Daniels Midland Company announced plans to build a biodiesel production facility in Rondonopolis, Mato Grosso, Brazil with an annual capacity of 180,000 metric tons (54 million gallons US).
The plant will use soybean oil as its feedstock and is competitively positioned to meet the large anticipated demand from soybean producing farmers as well as from the Brazilian road and rail transport industries. Additionally, it will be strategically located adjacent to ADM’s existing soybean crushing plant in Rondonopolis to maximize synergies between ADM&rsquo's Brazilian origination, transportation and processing capabilities.
ADM is a leader in the production of biodiesel in Europe, and we are pleased to use that extensive experience to help meet the demand for this biofuel in Brazil. As a world leader in soy processing and biofuel production, our participation in the Brazilian biodiesel market is a complementary fit for our business.—Matthew Jansen, President-South American Operations
This biodiesel plant will be operational in the first half of 2007, ahead of the anticipated increase in demand due to the mandate that all diesel fuel sold in Brazil include 2% biodiesel beginning in 2008, and 5% biodiesel beginning in 2013.
Brazil is considering accelerating the implementation of the mandate, with B5 by 2010. (Earlier post.)
Construction on the plant is dependent on final engineering and permit approval.