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Released April 26, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Archer Daniels Midland Company (NYSE:ADM) (ADM) (Chicago, Illinois) reaped the rewards of heavy demand and tight global supply of grain and oilseeds in the first quarter of 2023. As its Ag Services and Oilseeds segments benefited from these global trends, ADM weighed its role in the ongoing markets for soybean-based products and ethanol. Industrial Info is tracking $1.6 billion worth of active projects from ADM, more than $1.27 billion of which is dedicated either to plant expansions or projects to be built at previously developed sites.
Click on the image at right for a graph detailing the top 10 states and provinces across the U.S. and Canada for active ADM investments.
ADM executives expect the company's 2023 capital expenditures to total about $1.3 billion, unchanged from 2022. One of its largest projects under development is a $350 million expansion of the Green Bison Soybean Processing Plant in Spiritwood, North Dakota, which it co-owns in a partnership with Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio). A new building and new equipment will allow the facility to process up to 600 million pounds of refined vegetable oil annually, which will be supplied to Marathon as a feedstock for up to 75 million gallons of renewable diesel annually.
ADM hopes to have the facility operational in time for the harvest later this year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Food & Beverage Project Database can learn more from Industrial Info's project report.
Much of ADM's corn products go toward the ethanol market, which offered mixed results for ADM in the first quarter. Although the Biden administration is renewing efforts to allow year-round sales of higher-ethanol gasoline in eight states across the central U.S.--including Illinois, Iowa, Minnesota, Missouri and Nebraska, where ADM has major active projects--North American ethanol margins were down relative to the same quarter last year, pressured by high industry stock levels. Vantage Corn Processors, ADM's stand-alone ethanol subsidiary, reported weaker overall results.
ADM expects to finish construction in the third quarter on the $40 million expansion of its wet corn mill and ethanol production plant in Marshall, Minnesota, which currently produces 50 million gallons per year of ethanol. Minnesota--which, like the seven other states, aggressively lobbied the U.S. Environmental Protection Agency (EPA) to change its policy on higher-ethanol gasoline--awarded ADM $1.87 million via last year's Minnesota Rail Service Improvement program to help construct the Marshall plant's new loadout-building and rail connection, a key part of the expansion. Subscribers can learn more from Industrial Info's detailed project report.
ADM also is partnering with Wolf Midstream (Calgary, Alberta) on the Mt. Simon carbon-capture and sequestration (CCS) pipeline, which would carry 12 million tons of carbon dioxide (CO2) per year from ADM's corn-and-ethanol mills in Clinton and Cedar Rapids, Iowa, to ADM's CCS site in Decatur, Illinois, and eventually to several Wolf-owned sites. The project's owners are seeking permits from federal, state and local authorities.
Wolf would be responsible for the construction and management of the pipeline. ADM says Wolf is in the process of negotiating with local businesses and third-party customers across the U.S. Midwest and Ohio River Valley that might be interested in using the pipeline to lower their own carbon emissions. If the project is approved, the pipeline and CCS unit additions at ADM's corn-and-ethanol mills could begin as early as next summer. Subscribers can read detailed reports on the Mt. Simon pipeline and ADM's expansions in Clinton and Cedar Rapids.
On the chemicals side of the business, ADM is constructing a brownfield polymers plant in Clinton, Iowa, which will produce an unspecified amount of "Brewed Protein" polymers. ADM and biotech startup Spiber Incorporated (Tsuruoka, Japan) say the product is a plant-based alternative to petroleum-derived materials widely used in everyday consumer products, including textiles. Brewed Protein is a structural protein-fermentation technology developed by Spiber. Subscribers can learn more from Industrial Info's detailed project report.
The company also expects to finish a $20 million expansion of its alternative protein production plant in Decatur, Illinois, to be called the Protein Innovation Center, in the coming months. The project began construction in the summer of 2022. Subscribers can learn more from Industrial Info's project report.
"The array of opportunity areas for alternative proteins in foods and nutrition solutions is continuing to grow at 10% [compound annual growth rate], with alternative meat and dairy sales alone expected to grow by 14% a year and reach $125 billion in 2030," said Leticia Goncalves, the president of ADM's Global Foods division, in a press release last year. "Our sales in this space have been growing at rates much faster than the industry's, and our work to expand our leadership position with new innovation and capacity is an important driver of future growth for our nutrition business."
ADM's net income for first-quarter 2023 totaled $1.4 billion, compared with $1.27 billion in first-quarter 2022.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects from ADM.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing the top 10 states and provinces across the U.S. and Canada for active ADM investments.ADM executives expect the company's 2023 capital expenditures to total about $1.3 billion, unchanged from 2022. One of its largest projects under development is a $350 million expansion of the Green Bison Soybean Processing Plant in Spiritwood, North Dakota, which it co-owns in a partnership with Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio). A new building and new equipment will allow the facility to process up to 600 million pounds of refined vegetable oil annually, which will be supplied to Marathon as a feedstock for up to 75 million gallons of renewable diesel annually.
ADM hopes to have the facility operational in time for the harvest later this year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Food & Beverage Project Database can learn more from Industrial Info's project report.
Much of ADM's corn products go toward the ethanol market, which offered mixed results for ADM in the first quarter. Although the Biden administration is renewing efforts to allow year-round sales of higher-ethanol gasoline in eight states across the central U.S.--including Illinois, Iowa, Minnesota, Missouri and Nebraska, where ADM has major active projects--North American ethanol margins were down relative to the same quarter last year, pressured by high industry stock levels. Vantage Corn Processors, ADM's stand-alone ethanol subsidiary, reported weaker overall results.
ADM expects to finish construction in the third quarter on the $40 million expansion of its wet corn mill and ethanol production plant in Marshall, Minnesota, which currently produces 50 million gallons per year of ethanol. Minnesota--which, like the seven other states, aggressively lobbied the U.S. Environmental Protection Agency (EPA) to change its policy on higher-ethanol gasoline--awarded ADM $1.87 million via last year's Minnesota Rail Service Improvement program to help construct the Marshall plant's new loadout-building and rail connection, a key part of the expansion. Subscribers can learn more from Industrial Info's detailed project report.
ADM also is partnering with Wolf Midstream (Calgary, Alberta) on the Mt. Simon carbon-capture and sequestration (CCS) pipeline, which would carry 12 million tons of carbon dioxide (CO2) per year from ADM's corn-and-ethanol mills in Clinton and Cedar Rapids, Iowa, to ADM's CCS site in Decatur, Illinois, and eventually to several Wolf-owned sites. The project's owners are seeking permits from federal, state and local authorities.
Wolf would be responsible for the construction and management of the pipeline. ADM says Wolf is in the process of negotiating with local businesses and third-party customers across the U.S. Midwest and Ohio River Valley that might be interested in using the pipeline to lower their own carbon emissions. If the project is approved, the pipeline and CCS unit additions at ADM's corn-and-ethanol mills could begin as early as next summer. Subscribers can read detailed reports on the Mt. Simon pipeline and ADM's expansions in Clinton and Cedar Rapids.
On the chemicals side of the business, ADM is constructing a brownfield polymers plant in Clinton, Iowa, which will produce an unspecified amount of "Brewed Protein" polymers. ADM and biotech startup Spiber Incorporated (Tsuruoka, Japan) say the product is a plant-based alternative to petroleum-derived materials widely used in everyday consumer products, including textiles. Brewed Protein is a structural protein-fermentation technology developed by Spiber. Subscribers can learn more from Industrial Info's detailed project report.
The company also expects to finish a $20 million expansion of its alternative protein production plant in Decatur, Illinois, to be called the Protein Innovation Center, in the coming months. The project began construction in the summer of 2022. Subscribers can learn more from Industrial Info's project report.
"The array of opportunity areas for alternative proteins in foods and nutrition solutions is continuing to grow at 10% [compound annual growth rate], with alternative meat and dairy sales alone expected to grow by 14% a year and reach $125 billion in 2030," said Leticia Goncalves, the president of ADM's Global Foods division, in a press release last year. "Our sales in this space have been growing at rates much faster than the industry's, and our work to expand our leadership position with new innovation and capacity is an important driver of future growth for our nutrition business."
ADM's net income for first-quarter 2023 totaled $1.4 billion, compared with $1.27 billion in first-quarter 2022.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects from ADM.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
