(Reuters) — United States grain handler CGB Enterprises Inc. and farmer co-operative Minnesota Soybean Processors are building a soybean processing plant in North Dakota, the second new crushing facility announced in the state last year.
The plant, which is planned for near Casselton, North Dakota, is expected to crush 42.5 million bushels of soybeans in the first year of operation, according to a statement posted on CGB’s website.
The facility will also produce soymeal livestock feed and soybean oil to be used for food and renewable fuel. Construction is set to begin next spring and is expected to be finished and begin operations in 2024, CGB said.
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The new plant comes amid booming demand for vegetable oils for use in biofuels, most notably renewable diesel, which can be used interchangeably with fossil fuel-based diesel in engines. North American capacity to produce the fuel is projected to surge over the next three years, and demand for feedstocks is likely to be brisk.
Renewable diesel can be made from used restaurant grease and animal fat, but soybean oil is expected eventually to be the primary feedstock for the fuel.
Archer-Daniels-Midland said in May it would build a $350 million crushing and refining complex in Spiritwood.
North Dakota, ranked third among all states in U.S. soybean acreage, has traditionally been a major exporter of soybeans to China. The new crushing plants are expected to consume a significant share of the state’s production once completed.
“It is a unique opportunity to add value right here, provide a local market for North Dakota soybeans and boost economic growth in our state,” said North Dakota Agriculture Commissioner Doug Goehring.
