Grain trader ADM to sell its Illinois ethanol plant to BioUrja

Oct 21 (Reuters) - U.S. grains merchant Archer-Daniels-Midland Co (ADM) will sell its Peoria, Illinois ethanol plant to commodity trader BioUrja Group, the companies said on Thursday.

The sale is part of ADM's review of its dry ethanol mills that started in 2016 here following a plunge in oil prices. Ethanol is by far the most widely used biofuel.

The sale, whose terms were not disclosed, will reduce the company’s ethanol capacity by 135 million gallons.

“We are a nutrition company, not a fuel company so ethanol is not our main thrust,” ADM Chief Executive Officer and Chairman Juan Luciano had told Reuters in 2019.

The Illinois plant had helped ADM meet a surge in demand for industrial alcohol used in hand sanitizers at the height of the COVID-19 pandemic.

Reporting by Ruhi Soni in Bengaluru; Editing by Aditya Soni