ADM plans more ethanol expansion

By EPM Staff Writer Nicholas Zeman | May 01, 2006
Making bold moves to advance its position as the U.S. leader in ethanol production, Archer Daniels Midland Co. (ADM) announced in May that it has selected Cedar Rapids, Iowa, as the second site for its dry-grind expansion plans. The company will build a dry-mill facility with an initial capacity of 275 MMgy next to its existing ethanol wet mill.

These specific plans follow a September announcement from ADM that it planned to increase its ethanol production by 500 MMgy, starting with a similar 275-gallon expansion in Columbus. "ADM is significantly expanding its ethanol production with new dry mills in Cedar Rapids, Iowa, and Columbus, Neb.," said Edward Harjehausen, ADM senior vice president of corn milling and bioproducts. "Biofuels are an important part of America's current and future energy mix, and we believe it is important to invest in expanded ethanol production to meet growing demand."

Both the Columbus and Cedar Rapids plants will be equipped with cogeneration capabilities, which lower gross energy costs and lessen the impact of energy market price fluctuations, according to ADM. This expansion capacity alone would represent nearly one-eighth of last year's total ethanol output in the United States, which topped 4 billion gallons. Construction of the Cedar Rapids plant, expected to be complete in the second half of 2008, is subject to government approval.

ADM announced its third quarter earnings in May. The company saw a 46 percent increase in corn processing operating profit "principally due to improved ethanol and sweetener selling prices."