Archer Daniels Midland (ADM), a biodiesel production company, plans to construct a second biodiesel plant in Joacaba, Brazil, adjacent to its existing soybean crushing and refining facilities.

The Joacaba biodiesel plant will take the supply of soybeans from the nearby soybean crushing facility and vegetable oil refinery that can currently process nearly 475,000 metric tons of soybeans and can refine approximately 73,000 metric tons of soybean oil annually.

The new biodiesel plant, which will have an annual production capacity of 164,000 metric tons, is expected to increase ADM’s biodiesel capacity in Brazil by more than 50% and raise its oil refinery capacity to nearly 110,000 metric tons per year.

Construction of the plant will begin in March of 2011 and is expected to be completed during the first half of 2012.

ADM chairman, CEO and president Patricia Woertz said that ADM sees exciting opportunities for within the Brazilian biodiesel industry, and with strong support from the government, biodiesel is poised to play an increasing role in meeting Brazil’s growing demand for renewable fuels.