09 February 2011 22:37 [Source: ICIS news]
HOUSTON (ICIS)--Archer Daniels Midland (ADM) will invest in palm production and processing for biodiesel feedstock in the state of Para, Brazil, the company said on Wednesday.
ADM said its five-year investment would include 12,000 hectares of palm production and the construction of a palm processing plant.
Construction of the processing plant near Sao Domingos do Capim would begin in 2012 and operations would start in 2016, ADM said.
“This investment adds a new crop to our value chain in Brazil and diversifies our feedstock options for biodiesel production there, while at the same time supporting our commitment to sustainability in terms of both agricultural production and the livelihoods of farm families in Brazil,” said ADM chief executive Patricia Woertz.
ADM said it would make use of Brazil’s Social Fuel Stamp programme, which provides incentives for biodiesel producers to buy feedstock from small family farms. As part of the programme, ADM said it would contract with about 600 family farms for 6,000 hectares of palm production.
ADM did not disclose the investment cost.
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|