ADM: 2011 biodiesel production up 300%
Driven by government regulations requiring greater use of renewable fuels and concern over pollution, there will be an “unprecedented” 300% increase in global biodiesel production in the next five years, said Mark Zenuk, a vice president at ADM at the company’s analyst day conference last week.
He said the largest driver of the expansive growth would be a European Union
directive of 2003 that set targets for renewable fuel content by certain target
dates.
One benefit of biodiesel over traditional “fossil fuel” diesel is
that biodiesel reduces carbon dioxide emissions by 75% from regular diesel
fuel.
The company will “leverage and expand” its market position, by
increasing capacity Zenuk said. Already demand is greater than its oil seed
“crush” capacity, Zenuk said, and biodiesel margins will
grow.
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