ADM, POET May Bolster Ethanol, Other Biofuel Capacity with USDA Support

June 7, 2022--Researched by Industrial Info Resources (Sugar Land, Texas)--Archer Daniels Midland Company (NYSE:ADM) (Chicago, Illinois) and POET LLC (Sioux Falls, South Dakota) each are expected to receive $50 million from the U.S. Department of Agriculture (USDA) to cover losses at a combined 45 facilities that were negatively affected by market trends during the COVID-19 pandemic. The aid is part of a $700 million package to support 195 U.S. biofuel facilities that had to cut production or fully close.

Industrial Info is tracking more than $1.2 billion worth of active projects from ADM and POET, including activity at plants involved in the production of ethanol and other biofuels. Both companies are cautiously pursuing expansions and improvements at some of their biofuel production facilities. ADM and POET also are building and expanding plants that produce material commonly used as feedstocks for ethanol and other biofuels.

The $700 million program doubles what the USDA gave to the biofuel industry last year as part of another aid package, also aimed at helping farmers recover from COVID-19's demand destruction.

Other companies featured: Marathon Petroleum Corporation (NYSE:MPC)