Archer Daniels Midland Company (NYSE: ADM) Chairman and CEO Patricia
Woertz offered the following comment on the Obama Administration’s
proposed rulemaking and other comments regarding the Renewable Fuel
“Yesterday, the Obama Administration made clear that ethanol and
biofuels will continue to be an important part of America’s fuel supply.
By reaffirming the role biofuels will play in our energy future, the
Administration provided the direction and policy consistency the
industry needs to continue vital investments in infrastructure, capacity
“Two years ago, Congress passed the Energy Independence and Security Act
of 2007, which expanded an existing Renewable Fuel Standard (RFS) — the
guideline that mandates the use of ethanol and other biofuels in the
U.S. fuel supply. Yesterday, in accordance with the Act, the EPA put
forth a proposed rule that would determine how the environmental impacts
of biofuels will be calculated.
“The proposed rule is an important step toward the implementation of the
expanded RFS — which will increase the ethanol mandate from 10.5 billion
gallons today to 12 billion gallons in 2010, and 15 billion gallons in
“To help meet this expanded demand, ADM continues our construction of
large, highly efficient ethanol plants in Cedar Rapids, Iowa, and
Columbus, Nebraska. Each plant is permitted to 400 million gallons per
year; we are currently building each to 275 million gallons per year.
“In addition to its support for traditional corn-based ethanol, the
Administration clearly envisions a biofuels future that continues to
rely on corn. Beyond the 15 billion gallons mandated in 2015, the RFS
calls for adoption of advanced biofuels. Of the 16 billion gallons of
cellulosic biofuel mandated by 2022, the government estimates that
nearly half of this production will come from corn stover — the stalks
and leaves left behind when corn is harvested. In the coming months, ADM
expects to make a final technology decision regarding a pilot plant that
will convert corn stover into a renewable biocrude that can be processed
into gasoline in a traditional petroleum refinery.
“As the EPA’s rulemaking process moves forward, we will be working to
help ensure that the agency’s formula for calculating indirect land use
change — which estimates biofuels’ impact on conversion of nonfarm land
into farm land — is based on sound science. The concept of indirect land
use change is quite new and rather imprecise, so we hope the
Administration will move carefully as it determines whether and how to
use it in environmental impact calculations.
“In addition to the proposed rule, the Administration demonstrated its
commitment to biofuels as Agriculture Secretary Tom Vilsack and Energy
Secretary Stephen Chu laid out more than $1.8 billion in government
investments to help advance homegrown, renewable fuels.
“Two years ago, Congress worked in a thoughtful and bipartisan manner
when they passed the Energy Independence and Security Act of 2007. It is
because of that deliberate effort that President Obama can continue to
support the RFS as a cornerstone of America’s energy policy.
“Biofuels are good for the environment, for energy security and for the
American economy. We at ADM are proud of the role that our current
ethanol and biodiesel, as well as our advanced biofuels will play in
America’s and the world’s energy future.”
Every day, the 27,000 people of Archer Daniels Midland Company (NYSE:
ADM) turn crops into renewable products that meet the demands of a
growing world. At more than 230 processing plants, we convert corn,
oilseeds, wheat and cocoa into products for food, animal feed, chemical
and energy uses. We operate the world’s premier crop origination and
transportation network, connecting crops and markets in more than 60
countries. Our global headquarters is in Decatur, Illinois, and our net
sales for the fiscal year ended June 30, 2008, were $70 billion. For
more information about our Company and our products, visit www.adm.com.
ADM Media Relations