ADM, Marathon Partner on Renewable Diesel Venture
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Marathon Petroleum Corp. and ADM announced plans to form a joint venture for the production of soybean oil to supply what they referred to as rapidly growing demand for renewable diesel fuel.
Under the terms of the agreement, the joint venture will own and operate Chicago-based ADM’s previously announced soybean processing complex in Spiritwood, N.D., with ADM owning 75% of the joint venture and MPC owning 25%.
When complete in 2023, the Spiritwood facility will source and process local soybeans and supply the resulting soybean oil exclusively to Findlay, Ohio-based MPC. It is expected to produce 600 million pounds of refined soybean oil annually, enough feedstock for approximately 75 million gallons of renewable diesel per year.
Coming together to tackle climate change: @ADMupdates and @MarathonPetroCo agree to collaborate on renewable diesel, explore other ways to support sustainability together: https://t.co/RqX8jgo1xe pic.twitter.com/g05BzHG6RG — ADM (@ADMupdates) August 19, 2021
“We already provide MPC with soybean oil for renewable diesel production, but this agreement will significantly expand our collaborative relationship,” Ken Campbell, ADM’s president of North America oils and biodiesel, said in a release.
“Together, MPC and ADM have the expertise, scale and capabilities to deliver sustainable outcomes that start on the farm and go all the way to the fuel in millions of commercial and personal vehicle, and in this case, supporting renewable diesel demand that we believe may be as much as 5 billion gallons by 2025," he added.
In addition to the Spiritwood joint venture, the companies noted they anticipate working together to explore other opportunities for agriculture to support renewable transportation fuels. — Transport Topics
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