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ADM to Build First Crush Plant in ND
By Todd Neeley
Monday, May 10, 2021 2:18PM CDT

LINCOLN, Neb. (DTN) -- Archer Daniels Midland announced on Monday plans to build the first soybean-crushing plant in North Dakota after previous attempts by another company to launch a similar project fell through.

ADM announced in a news release plans to build a $350 million crush and refining complex in Spiritwood, North Dakota, expected to be online by the first quarter of 2022. In addition, ADM announced plans to launch a $25 million expansion of refining and storage capacity at its crush and refining plant in Quincy, Illinois, also expected to come online in the first quarter of next year.

North Dakota soybean farmers faced a tough situation during the recent trade war with China, with nowhere to send their crop.

North Dakota soybeans are shipped to the Pacific Northwest, where they are typically exported to China, Taiwan, the Philippines and Bangladesh. According to the North Dakota Soybean Council, farmers produced 4.14 billion bushels of soybeans last year, with just 4% of production remaining in state.

DTN Lead Analyst Todd Hultman said a plant that crushes 150,000 bushels per day would process a total of about 37.5 million bushels per year.

"North Dakota produced 191 million bushels of soybeans in 2020, so 20% of the state's production is significant business and saves a lot of transportation cost for farmers," he said, noting it's too soon to tell how the plant might affect soybean prices in the state.

North Dakota Gov. Doug Burgum said the ADM facility will change everything for the state's farm economy.

"This soybean processing plant is a gamechanger for North Dakota farmers, adding value and expanding the market for this important crop closer to home while also supporting the production of products such as renewable green diesel right here in North Dakota," he said in a statement.

Sen. John Hoeven, R-N.D., said the new facility will provide new markets for the state's farmers.

"We've been working to bring this new soybean-crushing facility to North Dakota and met with key leaders from ADM over two years ago to develop this plan," Hoeven said in a news release.

"We're pleased that this new plant will be open in 2023, as it will provide a significant new market for North Dakota soybean growers, while creating good jobs and economic growth."

In February 2020, North Dakota Soybean Processors announced it was abandoning plans to build a soybean crushing plant in the state. In July 2019, Spiritwood Energy Park east of Jamestown terminated NDSP's site contract. The North Dakota Soybean Processors originally announced plans in 2017, including financing and construction permits.

The group sued Spiritwood Energy Park and eventually reached a settlement.

"ADM's commitment to preserving and protecting our planet's resources stretches from the farm gate to the food on our tables and the renewable fuel we put in our vehicles," Greg Morris, president of ADM's ag services and oilseeds business, said in a news release.

"This exciting new project allows us to partner with North Dakota farmers to further advance the role of agriculture in addressing climate change through the production of low-carbon feedstocks for products such as renewable diesel. ADM has an unparalleled opportunity to lead our industry in this area, and thanks to our extensive operational and commercial expertise, we are well-positioned to add these shovel-ready projects to our network and meet the fast-growing needs of customers worldwide for lower-carbon, plant-based solutions."

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on Twitter @toddneeleyDTN


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