Big Oil Buys Into Biodiesel

If you listen closely, you’ll hear a cry from the heartland of America. It’s coming from the farmers, Willie Nelson, and lobbyists for Archer Daniels Midland (NYSE: ADM). It rings out, “Biodiesel, save us from imported oil.” This week, that cry hit home with Big Oil.

Motiva Enterprises — a joint venture between Royal Dutch Shell (NYSE: RDS-A) and Saudi Aramco — has begun blending biodiesel with petroleum-based diesel at its terminal in Dallas. This is the first time that a major oil company has worked directly with the biodiesel industry, and it may indicate that biodiesel has finally arrived.

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