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ADM, B.C. fuel firm eye biodiesel plant

Archer Daniels Midland and Canadian Bioenergy Corp. are studying a possible joint-venture canola biodiesel facility at ADM’s Lloydminister, Alta. crush plant.

ADM, the Illinois-based multinational ag processing firm, and Vancouver-based Canadian Bioenergy said in a release Tuesday that they have entered negotiations on such a joint venture.

The two firms are now “in the process of undertaking a full feasibility analysis of the project,” they said.

The facility in question would be a 265 million-litre per year (70 million gallon) biodiesel production plant.

According to ADM, much of its Lloydminster facility’s canola oil is shipped to Asia for food applications and to Europe for use as a biodiesel feedstock, with the canola meal is used “principally for livestock feed.”

The facility, the company said, is served by ADM elevators in the “neighbouring communities” of Watson, Sask., about 150 km east of Saskatoon, and Carberry, Man., about 50 km east of Brandon.

ADM in late 2006 announced it would expand the capacity of its canola crush plants at Lloydminster and at Velva, N.D., though it didn’t specify by how much. The facility at Velva, about 35 km southeast of Minot, feeds ADM’s biodiesel facility there.

An ADM spokesperson at Decatur, Ill. said Tuesday that the company would not comment on the Lloydminster facility’s current crush capacity, nor whether a biodiesel plant would require any further expansion.

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