Archer Daniels Midland Company (ADM) is increasing its biodiesel presence in Brazil with its announcement that it will be constructing a second biodiesel plant in Joaçaba, Santa Catarina. The new plant will be adjacent to the existing ADM soybean crushing and refining facilities and will more than double ADM’s biodiesel production in the country. Construction is set to begin in March 2011 and be completed sometime in the first half of 2012.

Once the biodiesel plant is completed, it will become the first in the state of Santa Catarina. The state has an ample supply of soybeans produced mainly by small family farms.

“We see exciting opportunities for ADM within the Brazilian biodiesel industry. With strong support from the government, biodiesel is poised to play an increasing role in meeting Brazil’s growing demand for renewable fuels,” said Patricia Woertz, chairman, chief executive officer and president of ADM. “By locating the plant adjacent to our Joaçaba soy operations, we’re able to leverage our origination, transportation and processing assets.”

ADM purchased the Joaçaba facility back in 1998 from Sadia. Currently, these operations process nearly 475,000 metric tons of soybeans and can refine approximately 73,000 metric tons of soybean oil annually. Once the biodiesel plant is operational, the facility is expected to increase the oil refinery capacity to nearly 110,000 metric tons per year.

“Brazil has been a global leader in creating a robust domestic renewable fuels industry that supports both social and environmental goals. And the recent implementation of 5 percent biodiesel blends in 2010 –– three years ahead of schedule–– demand for biodiesel in Brazil continues to grow,” said Domingo Lastra, president of ADM do Brasil Ltda. “With the Joaçaba biodiesel plant and our facility in Rondonópolis, ADM will play an important role in meeting that demand.”