A Archer Daniels Midland informed on Thursday that it will resume production at two power plants ethanol from corn US USA this year, as it expects demand for biofuel recover from the fall caused by the pandemic.
The company had decided, in April last year, to temporarily hibernate ethanol production at its plants in Cedar Rapids, Iowa, and Columbus, Nebraska, due to lower demand for gasoline.
The demand for corn ethanol, which is mixed with gasoline, is expected to increase as people start to drive more, with the vaccination against Covid-19 gaining momentum in the country, and China imports more volumes, ADM said in a statement posted on its website.
The commodities trading firm also said that ethanol sales should also be driven by a steady reduction in global stocks and the support of the US Environmental Protection Agency to a firm renewable fuel policy, under which refineries need to mix biofuels with gasoline and diesel or acquire credits.
“We have carefully monitored a wide variety of conditions in the ethanol sector, and in the past few weeks we have seen consistent signs pointing to an acceleration in demand for domestic ethanol,” said ADM.
The company expects the first deliveries of ethanol to customers to take place in mid-April, and said it will increase production to maximum capacity at both facilities by the end of the local spring to meet the demand for the spring-summer travel season.
Get the latest news delivered to your inbox
Follow us on social media networks