US glycerine-to-glycol plant in start-up - ADM

21 March 2011 17:36  [Source: ICIS news]

HOUSTON (ICIS)--Archer Daniels Midland’s (ADM) glycerine-to-monopropylene glycol (MPG) plant at Decatur, Illinois has entered start-up mode, the company said on Monday.

An ADM representative said the plant was into the start-up process and was expected to be completely online and operational within a month.

The plant is designed to manufacture 100,000 tonnes of MPG from renewable sources (glycerine from vegetable or animal fat), according to ADM. The glycol produced at the plant can be purified to industrial grade or pharmaceutical grade (USP), depending upon customer specifications, sources said.

Refined glycerine is the renewable feedstock at the plant, allowing ADM to produce “green” MPG, as compared to the petroleum-derived product.  

US glycerine market participants were watching for the start-up of the ADM plant because its consumption is expected to make ADM a net-buyer of refined glycerine.

ADM also has glycerine refining capabilities at the Decatur facility, but did not comment about its glycerine.

“I don’t think ADM’s plant is going to have an immediate effect on the glycerine market,” one glycerine buyer said.  

Refined glycerine prices firmed in 2011, as demand improved with the US economic recovery. Contracts moved from lows of about 28 cents/lb ($617/tonne, €432/tonne) FOB (free on board) midwest in early March 2010 to about 35 cents/lb FOB midwest at the same time this year.

Industrial-grade MPG contracts averaged 77 cents/lb in early March 2010, hitting $1.23/lb by the second half of March 2011. Food-grade MPG typically has a premium cost to the industrial material.

($1 = €0.70)

By: Judith Taylor
+1 713 525 2653

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