In Chicago, agribusiness giant ADM and LG Chem have cancelled the planned lactic acid and polylactic acid joint venture projects they planned for Decatur, IL. First announced in 2022, ADM said in a press release that construction costs have since “skyrocketed.”
The project was expected to produce 150,000 metric tons per year of high-purity corn-based lactic acid and 75,000 metric tons per year of PLA.
“We looked at a variety of options, but when the time came to make final investment decisions, it had become clear that these projects no longer represented a prudent use of our investors’ capital that would meet our returns objectives,” Chris Cuddy, president of ADM’s Carbohydrate Solutions business said in a press statement. “ADM remains committed to leading in the decarbonization of the industries in which we participate, and we continue to expand our biosolutions portfolio to meet growing demand for sustainably sourced solutions.”
The project structure included two joint ventures—GreenWise Lactic, of which ADM was to be majority owner, and LG Chem Illinois Biochem, which would be majority-owned by LG Chem.
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Category: Chemicals & Materials
