DECATUR, Ill. -- Archer Daniels Midland Company today announced plans to build a biodiesel production facility in Rondonopolis, Mato Grosso, Brazil, with an annual capacity of 180,000 metric tons.



The plant will use soybean oil as its feedstock and is competitively positioned to meet the large anticipated demand from soybean producing farmers as well as from the Brazilian road and rail transport industries. Additionally, it will be strategically located adjacent to ADM's existing soybean crushing plant in Rondonopolis to maximize synergies between ADM's Brazilian origination, transportation and processing capabilities.



"ADM is a leader in the production of biodiesel in Europe, and we are pleased to use that extensive experience to help meet the demand for this biofuel in Brazil," stated Matthew Jansen, President-South American Operations. "As a world leader in soy processing and biofuel production, our participation in the Brazilian biodiesel market is a complementary fit for our business."



This biodiesel 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% biodiesel beginning in 2008, and 5% biodiesel beginning in 2013.



"The Government of the State of Mato Grosso recognizes the importance of renewable fuels, and we are pleased that ADM, a world leader in bio-based fuels, has chosen our state to build its first Brazilian biodiesel plant," stated Blairo Maggi, Governor-Mato Grosso. "This plant will contribute significantly towards reducing agricultural production costs, as well as having a very positive economic and environmental impact on the citizens of Mato Grosso and all of Brazil."



Biodiesel is a vegetable oil-based fuel made from renewable crops that burns cleaner than traditional petroleum-based diesel fuel. Biodiesel works in diesel engines, improves air quality by reducing greenhouse gas emissions and is a growing fuel source for the world.



Construction on the plant is dependent on final engineering and permit approval.



Archer Daniels Midland Company is a world leader in agricultural processing and fermentation technology. ADM is one of the world's largest processors of soybeans, corn, wheat and cocoa. ADM is also a leader in the production of soybean oil and meal, ethanol, corn sweeteners and flour.



SOURCE: Archer Daniels Midland Company via PR Newswire.