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.

Archer Daniels Midland Company plans to begin construction on the plant in March of 2011 and hopes to complete the work during the first half of 2012.

ADM chairman, CEO and president Patricia Woertz said that the 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.

“By locating the plant adjacent to our Joaçaba soy operations, we’re able to leverage our origination, transportation and processing assets,” Woertz said.