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Cargill to invest $90m to build biodiesel plant in Kansas, US

CTBR Staff Writer Published 22 September 2017

American food grain trading major Cargill is investing $90m to build a biodiesel plant in Wichita, in the US state of Kansas.

The biodiesel plant is scheduled to start its operations in early 2019 and is expected to produce at least 60 million gallons per year.

Opening the plant in Wichita is expected to strengthen the company’s biodiesel operations in the Midwest, where it already has biodiesel plants in Iowa Falls, Iowa, and Kansas City, Missouri.

Cargill's Agricultural Supply Chain business biodiesel commercial leader Pat Woerner said: "This new facility will enable Wichita to be a competitive supplier in the biofuels market, bringing value to the suppliers and customers we work with, and connecting farmers with industrial customers by supplying quality biomass-based diesel.

"Biofuels are good for the US farm economy and can bring capital investment to agriculture while boosting economic development in farm communities."

Cargill’s biofuels are produced from a wide range of renewable resources such as corn, soybeans, sugar cane, palm oil, and biogas. It produces ethanol and biodiesel in the US and the EU, ethanol in Brazil and biodiesel in Argentina.

The new facility’s construction is expected to begin this December. The 42,000ft2 facility is expected to create about 35 jobs, once operational.

The plant will be located next to an oilseed processing plant and will replace the existing oil refinery, which is also being managed by Cargill’s Global Edible Oil business. The oil business will transfer its existing edible oils production to other of Cargill facilities.

Cargill's Agricultural Supply Chain business oilseed managing director Warren Feather said: "We are excited to bring this new facility to our farmers and customers in Wichita.

"At Cargill, we're prepared to handle demand for biofuels while balancing it against the need to nourish a growing global population."