(Bloomberg) — Marathon Petroleum Corp. will invest in an Archer Daniels Midland Co. soybean plant to ensure feedstock for biodiesel production, the latest marriage between the oil and farm industries in the race to cut carbon emissions.
The U.S. oil refiner will take a 25% stake in Chicago-based ADM’s Spiritwood facility, which will supply Marathon’s nearby renewable diesel plant in North Dakota exclusively when it’s complete in 2023, the companies said in a joint statement Thursday. The value of the investment wasn’t disclosed.
U.S. refiners are investing in renewable fuel projects as investors increasingly call on the fossil fuels industry to do its share in fighting climate change.
Spiritwood is expected to produce around 600 million pounds of refined oil annually, enough feedstock for about 75 million gallons of renewable diesel a year.
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