December 19, 2011


ADM diversifies a biodiesel plant expansion


As announced on November 14, Lloydminster's ADM facility is expanding its portfolio by adding a biodiesel plant with a capacity of 265-million litres.


It is estimated during the construction of the new biodiesel facility about 100 people will be employed, while there will be an additional 12 jobs created.


"It gives us an opportunity to diversify the markets we sell into," said Montalvo. "And value-add into a new market, bringing the biodiesel side of the facility alongside the crushing that allows us to hit new markets and add more value to our product."


By adding value to the base product Montalvo said it enables the rapeseed oil to move one step up the chain.


"Process it one more time and sell it in addition to just the rapeseed oil itself," said Montalvo.


He also said there is enough room on ADM's current property, near the intersection of 62 Avenue and 47 Street, for the biodiesel plant.


This has been a big year for ADM in Lloydminster as the company announced earlier in the year the doubling of seed storage capacity.


The new facility will increase ADM's North American biodiesel production capacity by 50%.


"ADM does a really good job of connecting the harvest to the home," said Montalvo. "Taking the crops producers produce and getting them into markets. This creates a new market and allows rapeseed producers in our region have their product sold into a new market too."


Part of that new market could be the new 2% federally regulated renewable fuel standard for blended gasoline. Montalvo also said eventually the market will determine where the product needs to go.


Construction on the new facility starts next year with the hopes the building is done in 2013.

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