American agribusiness Archer Daniels Midland (ADM) said Thursday that it has struck a deal to shed its dry mill and ethanol production facility in Peoria, IL to commodities trader and supplier BioUrja Group. The company said the potential sale comes after it carried out a strategic review of its dry mill ethanol assets.
“By reducing our ethanol capacity by 135 million gal and redeploying the resulting capital into other strategic growth investments, we’re continuing the dynamic transformation of ADM’s business portfolio that we began a decade ago,” Juan Luciano, CEO of ADM, said in a release. “We continue to execute on our strategic priorities, and we are excited about the opportunities ahead of us as we drive sustainable growth.”
The parties anticipate that the deal will conclude in the next few weeks. About 150 workers at the Peoria plant will join BioUrja.
“As a leading supplier of biofuels, we are excited to enter into the bio-ethanol production sector and become more vertically integrated. We are enthused about the growing beverage-grade and highly-distilled industrial alcohol markets, which are the focus of the Peoria plant, and are glad to absorb supplemental fuel ethanol into our existing supply capabilities,” said Amit Bhandari, CEO and chairman of BioUrjp, in a statement. “This is an opportunity for us to continue our growth in the renewables sector and participate in the global energy transition.”
BioUrja is based in Houston.