LINCOLN, Neb. (DTN) -- Archer Daniels Midland and Solugen Inc. broke ground Thursday on a 500,000-square-foot biorefinery in Marshall, Minnesota. The plant is expected to use corn syrup as a feedstock to produce low-carbon acids for use in agriculture and other applications.

The plant will be built on a 34-acre parcel adjacent to ADM's corn-processing plant. It is expected to come online in 2025.

The plant is expected to employ up to 100 temporary workers during construction and offer more than 50 manufacturing jobs once the facility reaches full production.

Solugen will use ADM-sourced dextrose to manufacture organic acids to also be used in water treatment, energy and home and personal care products, according to an ADM news release.

The Solugen process used at the plant is estimated to cut emissions compared to fossil fuels and fermentation-based processes up to 18 million kilograms of carbon dioxide per year, according to the news release.

The facility will house three modular trains, or production lines, boasting a total production capacity of up to 120,000 tons annually. Dextrose is expected to be used as the primary feedstock, with an estimated 150 million pounds converted annually at full production.

The companies said the plant will feature two dextrose pipelines connecting directly to the adjacent ADM plant, boosting production, and lowering the cost and emissions associated with transportation.

"We are excited to be taking the next step in our partnership with Solugen and to help meet the increasing demand for sustainable products," said Chris Cuddy, ADM senior vice president and president of ADM's carbohydrate solutions business.

"Sustainability is core to ADM's purpose and one of the enduring global trends powering our strategic growth. Our partnership with Solugen offers another avenue in which ADM can diversify the products made from our corn stream and continue to support plant-based solutions for use in a wide variety of consumer and industrial products."

Marshall Mayor Bob Byrnes said in a statement the plant fits with the community's profile.

"As a community deeply rooted in agriculture and innovation, we warmly welcome Solugen to Marshall," Byrnes said.

"We appreciate Solugen's commitment to sustainable development, job creation and diversifying our industrial base. ADM's continued investment in Marshall has made opportunities like this possible."

Solugen received about $760,000 in financial incentives from the Minnesota Department of Employment and Economic Development's job creation fund, according to the news release.

The company said it plans to collaborate with local educational institutions and workforce development groups, including Marshall Public Schools, Minnesota West Community and Technical College, Southwest Minnesota State University, Southwest Minnesota Private Industry Council and the Marshall Chamber of Commerce.

Todd Neeley can be reached at todd.neeley@dtn.com

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