In the United States (US), Marathon Petroleum Corporation (MPC), a leading, integrated, downstream energy company and compatriot Archer Daniels Midland Company (ADM), one of the world’s largest agricultural processors and food ingredient providers, have announced a feedstock partnership agreement and form a joint venture for the production of soybean oil to supply the rapidly growing demand for renewable diesel fuel.
Under the terms of the feedstock partnership agreement, the joint venture will own and operate ADM’s previously announced new soybean processing complex currently under development in Spiritwood, North Dakota (ND), with ADM owning 75 percent of the joint venture and MPC owning 25 percent.
When complete in 2023, the Spiritwood facility will source and process local soybeans and supply the resulting soybean oil exclusively to MPC, primarily to Marathon’s recently revamped refinery in Dickinson, ND that has begun to produce renewable diesel.
ADM has always been at the forefront of innovative fuels made from nature, and we are uniquely positioned to take action to reduce the carbon intensity of our business and lead our industry as we live our purpose. We already provide MPC with soybean oil for renewable diesel production, but this agreement will significantly expand our collaborative relationship said Ken Campbell, ADM’s President of North America Oils, Biodiesel, and Renewable Chemicals.
Operational in 2023
The approximately US$350 million soybean complex in Spiritwood will feature state-of-the-art automation technology and have the capacity to process 150 000 bushels (≈ 4 083 tonnes) of soybeans per day.
The Spiritwood complex is expected to produce approximately 600 million pounds (≈ 272 155 tonnes) of refined soybean oil annually, enough feedstock for approximately 75 million (US) gallons (≈ 284 million litres) of renewable diesel per year.
The construction of the new complex is supporting hundreds of jobs in the region, and the facility will employ approximately 75 people once operational which is expected for the 2023 harvest.
At MPC, we are challenging ourselves to lead in sustainable energy. This joint venture marks another step in advancing our ability to optimize and source logistically advantaged feedstock for our nearby Dickinson facility, and also creates a platform for further collaboration with a world-class partner as we continue to invest in a sustainable, energy-diverse future, said Dave Heppner, MPC’s SVP of Strategy and Business Development.
In addition to the Spiritwood joint venture, the companies anticipate working together to explore other opportunities for agriculture to support renewable transportation fuels.
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 vehicles — and in this case, supporting renewable diesel demand that we believe may be as much as 5 billion gallons by 2025. And what’s even more exciting is that we see the opportunity to work together to do more to support sustainable solutions, concluded Ken Campbell.
