Another good reason to consider investing in ADM :
Last year, fellow fool Brian Gorman noted that ADM was placing a large bet on biodiesel. Specifically, he pointed out that the company was planning to build a large production facility that would have the capacity to produce 50 million gallons of biodiesel -- more than double the estimated amount sold in the United States in 2005.
Well, it now appears that bet is about to be rewarded. On Sunday, a new Environmental Protection Agency (EPA) regulation mandating ultra-low-sulfur diesel fuel took effect. The rule immediately lowers by 97% the amount of sulfur content permitted in diesel fuel. Biodiesel, which is nearly sulfur-free, is well-positioned to meet the requirements of the new diesel regulations.
Furthermore, the new regulations will dramatically reduce soot emissions, which should help us all breathe a little easier.
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In fact, DaimlerChrysler (NYSE: DCX) is introducing a new Mercedes diesel vehicle next week, and a Jeep Grand Cherokee next year. After that, Honda (NYSE: HMC) is expected to have a diesel Accord on the U.S. market by 2009, while GM (NYSE: GM) has announced that it will have a diesel-powered light truck by 2010.
As a result of this increased production, diesel vehicles are expected to represent 10% of all the vehicles sold in the U.S. by 2015. This is great news for ADM; thanks to its new plant, it will be one the leading suppliers of the biodiesel fueling these vehicles.



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