CHICAGO, ILLINOIS, USA – Archer Daniels Midland Co. (ADM) announced on October 21 that it had entered into an agreement to sell its Peoria, Illinois ethanol production complex to BioUrja Group, a Houston, Texas, US-based company. has met.
Juan Luciano, ADM’s chief executive officer, said the sale of the Peoria facility is a key element in the strategic review of its ethanol dry mill facilities.
“By reducing our ethanol capacity by 135 million gallons and reallocating the resulting capital into other strategic growth investments, we are continuing the dynamic transformation of ADM’s business portfolio that we began a decade ago,” said Luciano. “We continue to implement our strategic priorities and appreciate the opportunities that we have in promoting sustainable growth.”
Amit Bhandari, Chairman and CEO of BioUrja, said the acquisition of the facility is an important step for the energy and agricultural commodity trader and supplier.
“As a leading provider of biofuels, we are excited to enter the bioethanol production sector and become more vertically integrated,” said Bhandari. “We are excited about the growing markets for beverage quality beverages and highly distilled industrial alcohols, which are the focus of the Peoria plant, and look forward to adding ethanol as a supplementary fuel to our existing delivery capacities.
“This is an opportunity for us to continue our growth in the field of renewable energies and to participate in the global energy transition. It is a double win for us given the strong financial performance of the plant and its contribution to our ESG strategy. “
The transaction is expected to be completed in the coming weeks. ADM said it will work closely with BioUrja to ensure a smooth transition of the 150 or so employees at the Peoria plant.
In 2017, ADM reconfigured the Peoria facility to focus on what Luciano called “the more profitable, higher quality industrial and beverage alcohol and export fuel” at the time.
The transition reduced the company’s ethanol capacity by more than 100 million gallons at the time.
ADM put the Peoria plant up for sale in 2016, but took it off the market after it couldn’t find a buyer.
The company has switched to investing in green diesel in recent months. In July, ADM announced plans to build a dedicated $ 350 million soybean mill and refinery in Spiritwood, North Dakota, USA.
“We expect that the demand for US green diesel will continue to ensure a higher growth rate, increasing by about 1 billion gallons per year and reaching up to 5 billion gallons by 2025,” Luciano said during a conference call on July 27th. “Vegetable oils will be a key commodity to meet this growing demand, and when you consider that it takes around 7.5 pounds of soybean oil to produce 1 gallon of renewable green diesel, you can see the great potential and why we do it our stake in North Dakota as well as our expanded oil refining capacity in Quincy, Illinois will invest in growth. “