ADM Outlines Strategy for BioEnergy Growth; CARD Report Projects 31.5B Gallons of Corn Ethanol Possible by 2015
|ADM sees the potential demand for ethanol (E10 nationwide) outstripping current and announced production capacity. Click to enlarge.|
Archer Daniels Midland Company (ADM) outlined its strategy to be the global leader in bioenergy while expanding its premier position in the agricultural processing value chain during its Analyst Day Meeting today in Chicago.
According to ADM CEO Patricia Woertz, the company has identified three strategic areas offering the highest potential for significant financial growth: expansion of its geographic scope, diversification of its feedstocks and growth of the bioenergy business.
Woertz announced that ADM is considering expanding its origination presence in palm in Indonesia, sugar in Brazil and other carbohydrates around the world for the production of biofuels.
ADM reaffirmed its commitment to the future of ethanol and to investment in research and development surrounding feedstocks like biomass crops. The company projects that one out of every 12 pounds of vegetable oil production will go to biodiesel production by 2015 and that world oilseed crush will have to grow 50% by 2015 to meet demand for food and fuel.
Already announced plans include expansion of biodiesel production capacity in the United States, Brazil and Germany, as well as a 50% increase in US ethanol production capacity. ADM also previously announced plans to open a PHA natural plastics plant and a polyols facility.
Separately, a report by the Center for Agricultural and Rural Development (CARD) at Iowa State University projects that US corn-based ethanol production could potentially reach 31.5 billion gallons annually—about 20% of projected US fuel consumption—by 2015, given the current incentives to invest in corn-based ethanol plants. Ethanol production in 2006 is tracking to 4.7 billion gallons. (Earlier post.)
To reach 31.5 billion gallons of corn ethanol, 95.6 million acres of corn would need to be planted. Total corn production would be approximately 15.6 billion bushels, compared to 11.0 billion bushels today. Most of the additional corn acres would come, in the CARD scenario, from reduced soybean acreage.