Bismarck  (Sen. Hoeven’s Office) – Senator John Hoeven Friday issued the following statement after ADM and Marathon Petroleum announced a joint venture using North Dakota-processed soybean oil for renewable diesel production. Under the venture, Marathon will invest in ADM’s announced soybean crushing plant near the Spiritwood Energy Park, with the refined soybean oil being exclusively supplied to Marathon’s renewable diesel facility in Dickinson.

This follows Hoeven’s efforts with the Jamestown/Stutsman Development Corporation (JSDC) and ADM for more than two years to redevelop the site of the former barley malting facility at Spiritwood. Following ADM’s announcement, the senator has been working to tie the new crushing plant to North Dakota’s agriculture and energy industries, having highlighted the potential partnership between ADM and Marathon during a recent meeting with the JSDC and local leaders.

“This new partnership between ADM and Marathon will build and strengthen the tie between North Dakota’s robust agriculture and energy industries,” said Hoeven. “We made the case to ADM to open a soy crushing plant in North Dakota and outlined the tremendous opportunities for partnerships like this that will directly benefit not only the local economy and farmers, but the entire state for many years to come. This partnership is part of our efforts to make the soy crushing plant a four-for-one project that ties together North Dakota’s agriculture and energy industries in new and innovative ways.”

In addition to the partnership with Marathon, Hoeven has been working to leverage the ADM facility to build on North Dakota’s leadership in agriculture and energy. This means realizing opportunities to:

  • Directly benefit farmers and the local economy.
  • Make good use of waste steam from GRE’s Spiritwood station.
  • Tie into carbon capture, utilization and storage (CCUS) projects and sequester CO2 off the Dakota Spirit ethanol plant at the ag-energy park.

Earlier…

Jamestown  (ADM-Marathon Petroleum)  Announcements from ADM and Marathon Petroleum say, the $350 million soybean crushing plant at Spiritwood, is going to be operated jointly by them, with the goal, producing renewable diesel fuel.

ADM, which has the lead in the project, will own 75% of the plant.  Marathon will have a 25% ownership. The plans call for 100% of the soy oil produced at the plant at the Spiritwood Energy Park, to be processed at Marathon’s renewable diesel-fuel facility at Dickinson, North Dakota.

The on site demolition of a portion of the former Cargill Malt plant at Spiritwood is continuing, with the remainder of the facility to be utilized as a $350 million soybean processing facility capable of handling 150,000 bushels per day.

Jamestown/Stutsman Development Corp., (JSDC)  CEO Connie Ova says, this is the initial announcement making the deal official, and confirms that all of the soy oil produced at the Spiritwood facility would be processed into biodiesel, adding that change in corporate structure for the plant is not changing the incentive package offered  to the plant, by the JSDC and Stutsman County, of about $2.5 million from JSDC which will make a payment in lieu of taxes of $225,000 for 15 years under the agreement with Stutsman County.

The completion of the plant is anticipated in 2023, to be able to process this fall’s soybean crop.

 

Gov. Doug Burgum Friday  issued the following statement after Marathon Petroleum Corp. and ADM announced that Marathon will invest in ADM’s recently announced $350 million soybean processing plant at Spiritwood, N.D. The soybean crushing plant will provide soybean oil exclusively to Marathon’s renewable diesel facility in Dickinson.

 

Under the agreement, ADM will own 25% of the joint venture and Marathon will own 25%. When completed in 2023, the Spiritwood facility will source and process local soybeans and supply the soybean oil exclusively to Marathon – enough feedstock for about 75 million gallons of renewable diesel per year, the companies said.

 

“This agreement will add even more value to North Dakota-grown soybeans, providing benefits to our farmers, consumers and the economy and creating the potential for additional opportunities for ag feedstock to support renewable fuels,” said Burgum, who worked with Lt. Gov. Brent Sanford, ADM and local officials to help secure the state’s first soybean crush at Spiritwood and continues to promote opportunities for value-added partnerships between the agriculture and energy sectors. “We’re grateful to ADM and Marathon Petroleum Corp. for forming this partnership and to all the partners helping to bring this important project to fruition.”

 

The soybean crush will create 70 permanent jobs and process up to 150,000 bushels of soybeans per day, according to ADM.