Archer Daniels Midland announced the construction of a new Brazilian biofuel plant on Tuesday. The biodiesel plant, ADM’s second in Brazil, will be located in Joacaba, Santa Catarina next to an existing soybean plant and will increase ADM’s biodiesel capacity in Brazil by 50%.

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In a press release, Patricia Woertz, chairman, chief executive officer and president of ADM, commented on the news:

“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. By locating the plant adjacent to our Joacaba soy operations, we’re able to leverage our origination, transportation and processing assets.”

However, Barron’s noted in the US, the election results  could mean ADM and other companies will lose their ethanol subsidies.