Marathon Petroleum Corp has reached an agreement to form a joint venture for the production of soybean oil to supply rapidly growing demand for renewable diesel fuel.
Under the terms of the agreement, the joint venture will own and operate ADM’s previously announced soybean processing complex in Spiritwood, North Dakota, with ADM owning 75 percent of the joint venture and MPC owning 25 percent.
When complete in 2023, the Spiritwood facility will source and process local soybeans and supply the resulting soybean oil exclusively to Marathon.
The Spiritwood complex is expected to produce approximately 600 million pounds of refined soybean oil annually, enough feedstock for approximately 75 million gallons of renewable diesel per year.
“ADM has always been at the forefront of innovative fuels made from nature, and we are uniquely positioned to take action to reduce the carbon intensity of our business and lead our industry as we live our purpose,” said Ken Campbell, ADM’s president of North America Oils, Biodiesel and Renewable Chemicals. “We already provide MPC with soybean oil for renewable diesel production, but this agreement will significantly expand our collaborative relationship. Together, MPC and ADM have the expertise, scale and capabilities to deliver sustainable outcomes that start on the farm and go all the way to the fuel in millions of commercial and personal vehicles — and in this case, supporting renewable diesel demand that we believe may be as much as 5 billion gallons by 2025. And what’s even more exciting is that we see the opportunity to work together to do more to support sustainable solutions.”
“At MPC, we are challenging ourselves to lead in sustainable energy,” said Dave Heppner, Martahon’s senior vice president of Strategy and Business Development. “This joint venture marks another step in advancing our ability to optimize and source logistically advantaged feedstock for our nearby Dickinson facility, and also creates a platform for further collaboration with a 2 world-class partner as we continue to invest in a sustainable, energy-diverse future.”
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