ADM forms JV with Marathon to operate North Dakota soybean processing complex
The soybean processing complex, located in Spiritwood, North Dakota, will supply soybean oil for Marathon’s renewable diesel plant in that state.
ADM will own 75% of the joint venture it and MPC have established to run the soybean facility, with Marathon owning the remainder.
When operational, the Spiritwood site will source and process local soybeans and supply the resulting soybean oil exclusively to MPC.
Ken Campbell, ADM’s president of North America Oils, Biodiesel and Renewable Chemicals, said: “We already provide MPC with soybean oil for renewable diesel production, but this agreement will significantly expand our collaborative relationship."
ADM announced in May it would build the plant, which is set to cost around US$350m to construct.
Strategically located in a major soybean producing area, the agribusiness giant said then the facility would use state-of-the-art automation technology and will have the capacity to process 150,000 bushels of soybeans per day.
The complex, which is expected to be completed prior to the 2023 harvest, is also being set up to produce approximately 600 million pounds of refined soybean oil annually, enough feedstock for approximately 75 million gallons of renewable diesel per year.
In terms of soybean production in the US in 2020, North Dakota came in at 9th in the rankings, as per US National Agricultural Statistics Service (NASS).
Greg Morris, president of ADM’s ag services and oilseeds business, commented at the time: “This exciting new project allows us to partner with North Dakota farmers to further advance the role of agriculture in addressing climate change through the production of low carbon feedstocks for products such as renewable diesel.”
ADM also previously announced plans to invest around US$25m to expand refining and storage capacity at its crush and refining facility in Quincy, Illinois. That project will align the location’s refining capabilities with its crush capacity. The expanded capacity is expected to be online by Q1 2022.