Marathon crude Oil (MPC.US) will invest in a soybean plant at Archer Daniels Midland (ADM.US) to ensure the supply of raw materials for biodiesel production, the latest example of a partnership between oil and agriculture in the competition to reduce carbon emissions.
Marathon will hold a 25 per cent stake in Archer Daniels Midland's Spiritwood plant, which will supply raw materials to Marathon's renewable diesel plant near North Dakota when completed in 2023, the two companies said in a joint statement on Thursday. The amount of investment has not been disclosed.
Us refineries are investing in renewable fuel projects as more investors call on the fossil fuel industry to contribute to tackling climate change.
Spiritwood expects to produce about 600 million pounds of refined oil a year, which is enough to produce about 7500 million gallons of renewable diesel a year.