Archer Daniels Midland adding 550 Mgy in ethanol capacity in 2010 as corn processing unit swings to loss in Q4

In Illinois, Archer Daniels Midland told analysts in a conference call to discuss the company’s earnings that it is the company’s expectation that approval by the EPA of E12 ethanol is a likely outcome of the petition by Growth Energy to approve up to 15 percent ethanol content in non flex-fuel vehicles.

ADM Chief Executive Officer Patricia Woertz told Reuters that “All of the data we’ve seen says that it can be safely and effectively done without adding additional infrastructure costs.” Meanwhile, the company reported an 83 percent drop in earnings in its fourth quarter, including an $11 million loss in its corn processing unit, which includes the results for ethanol.

According to Reuters, the company will become the largest ethanol producer in the US following the opening of new 275 Mgy plants in Columbus, Nebraska and Cedar Rapids, Iowa. Both plants are expected to commence operation by the third quarter of 2010.

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