July 28, 2006

ADM to build biodiesel plant in Brazil

Archer-Daniels-Midland Co (ADM) said Thursday (Jul 27) it plans to build a biodiesel production facility in Rondonopolis, Brazil, with an annual capacity of 180,000 tonnes.

The 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 percent biodiesel beginning in 2008, and 5 percent biodiesel beginning in 2013, the Decatur, Illinois, company said.

Biodiesel is a vegetable oil-based fuel made from renewable crops that burns cleaner than traditional petroleum-based diesel fuel.

Construction of the plant, which will be located adjacent to the ADM's existing soybean crushing plant in Rondonopolis and use soybean oil as its feedstock, is dependent on final engineering and permit approval, the company noted.