FINDLAY, Ohio & CHICAGO--(BUSINESS WIRE)--Marathon Petroleum Corp. (NYSE: MPC) and ADM (NYSE: ADM) announced today an agreement to form a joint venture for the production of soybean oil to supply rapidly growing demand for renewable diesel fuel. Under the terms of the agreement, the joint venture will own and operate ADM’s previously announced soybean processing complex in Spiritwood, North Dakota, 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. The Spiritwood complex is expected to produce approximately 600 million pounds of refined soybean oil annually, enough feedstock for approximately 75 million gallons of renewable diesel per year.
In addition to the Spiritwood joint venture, the companies anticipate working together to explore other opportunities for agriculture to support renewable transportation fuels.
“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,” said Ken Campbell, ADM’s president of North America Oils, Biodiesel and Renewable Chemicals. “We already provide MPC with soybean oil for renewable diesel production, but this agreement will significantly expand our collaborative relationship. 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.”
“At MPC, we are challenging ourselves to lead in sustainable energy,” said Dave Heppner, MPC’s senior vice president of Strategy and Business Development. “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.”
When complete, the approximately $350 million complex in Spiritwood will feature state-of-the-art automation technology and have the capacity to process 150,000 bushels of soybeans per day. The construction of the new complex is supporting hundreds of jobs in the region, and the facility will employ approximately 75 people once operational. The Spiritwood complex is expected to begin production for the 2023 harvest.
Some of the above statements constitute forward-looking statements. ADM and MPC’s respective filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, neither ADM nor MPC assume any obligation to update any forward-looking statements.
At ADM, we unlock the power of nature to provide access to nutrition worldwide. With industry-advancing innovations, a complete portfolio of ingredients and solutions to meet any taste, and a commitment to sustainability, we give customers an edge in solving the nutritional challenges of today and tomorrow. We’re a global leader in human and animal nutrition and the world’s premier agricultural origination and processing company. Our breadth, depth, insights, facilities and logistical expertise give us unparalleled capabilities to meet needs for food, beverages, health and wellness, and more. From the seed of the idea to the outcome of the solution, we enrich the quality of life the world over. Learn more at www.adm.com.
About Marathon Petroleum Corporation
Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation's largest refining system. MPC's marketing system includes branded locations across the United States, including Marathon brand retail outlets. MPC also owns the general partner and majority limited partner interest in MPLX LP, a midstream company that owns and operates gathering, processing, and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure. More information is available at www.marathonpetroleum.com.
Source: Corporate release