Archer-Daniels-Midland, ConocoPhillips, to produce “bio-crude” from biomass which can be refined into gasoline, diesel

September 28, 2007

Archer-Daniels-Midland announced a partnership with ConocoPhillips to produce “biocrude,” a hydrocarbon fuel made from biomass with similar properties to crude oil, which can be refined into gasoline or diesel. ConocoPhillips had previously announced a partnership with Tyson foods to develop chicken-fat based biodiesel. ADM had indicated previously its strategy to diversify beyond its base in corn ethanol.

ADM currently earns 25% of its profits from biofuels, but corn ethanol margins have dropped a reported 75% due to corn price increases coupled with a 30% drop in the price of ethanol.