Marathon Petroleum Corp. has signed an agreement to buy a biodiesel production plant in Cincinnati from Felda Iffco Sdn Bhd, Malaysia.
The plant currently produces several products including biodiesel and glycerin. Its production capacity is 4,100 barrels per day. The transaction is expected to close in April 2014. Further details of the purchase are not being disclosed.
“MPC has been a producer and large blender of ethanol for many years, and this acquisition will broaden our renewable fuels portfolio with a quality asset,” said Mike Palmer, senior vice president for supply distribution and planning for Marathon Petroleum. “We continue to grow our biodiesel blending volumes and this acquisition will be a natural value chain fit. Also, the facility is located in the heart of MPC’s Midwest assets, providing efficiencies in our product supply logistics.”