In a joint announcement made by Marathon Petroleum Corp. and Archer-Daniels-Midland Co. it was revealed that the companies will be entering into a joint venture to produce soyabean oil which will be exclusively sold to Marathon as a Biodiesel feedstock. 

The proposed Joint venture will have a soyabean processing facility in Spiritwood, North Dakota. The facility is expected to produce around 600 million pounds of refined soyabean oil per year which would be enough feedstock for about 75 million gallons of Biodiesel per year which is roughly 40% of Marathon’s need which can produce about 180 million gallons at it manufacturing site in Dickinson, North Dakota. The project is expected to complete by 2023. 

Biodiesel is a renewable fuel made from vegetable oil feedstock. The Biodiesel demand growth is driven by the increasing demand for environmentally-friendly fuels that reduce carbon emissions and ensure complete burning. Government support world-wide for Biodiesel production and higher blending targets by providing subsidies and imposing mandates are indications for continued growth of the market. 

As per ChemAnalyst, “the proposed joint venture between Marathon Petroleum and Archer-Daniels is aimed at capturing the increasing global demand of Biodiesel. As countries are looking forward towards are lesser carbon future, Biodiesel will be increasing in demand during the next five to ten years with a healthy growth rate.”