The Andersons Inc. has announced it will make a $60 million capital investment in its Clymers, Ind., ethanol plant, increasing its annual production by 30 million gallons to bring its yearly production capacity to 170 million gallons.
Mark Simmons, executive vice president of renewables at The Andersons, told Processing Journal that the investment will improve the plant’s processing capabilities and debottleneck production, with a focus on reducing the plant’s energy consumption and lowering its carbon intensity.
“We continue to see favorable demand for ethanol within the United States and beyond, with potential for expanded use through higher blends, as well as increased industrial usage,” Simmons said. “Expanding the production capacity of our Clymers, Ind., ethanol plant will enable us to help meet this rising market demand.”
Planning for the Clymers expansion project has begun, Simmons said, with an expected completion in mid-2027. The Clymers plant’s strategic advantages include a nearby and abundant supply of corn, access to two Class I railroads, and the ability to reach export markets for its dried distillers grains (DDGs) via Chicago, which is approximately 150 miles northwest of the plant.
Carbon capture and sequestration
In addition to its expansion project at the Clymers plant, a carbon capture and sequestration project is being planned for the location. The proposed project would compress the carbon dioxide produced by the ethanol production process and inject it underground.
Sequestering the carbon dioxide produced by the plant will lower its carbon intensity score and make its ethanol more valuable in low-carbon fuel markets. The carbon dioxide produced by the ethanol plant currently is captured and sold for use in food, beverage or industrial applications, the company said.
DTE Vantage, a Detroit-based subsidiary of DTE Energy, will be responsible for the engineering, design and construction of the compression and storage equipment and process.
The application for the carbon capture and sequestration project is currently under review by the Environmental Protection Agency.
45Z tax credit
As the company noted at its Investor Day event, each of its four ethanol plants qualified for 45Z tax credits in 2025, and it expects total credits in 2025 to be in the $30 million to $35 million range.
On Feb. 18, the company’s renewables segment reported pretax income of $54 million in the fourth quarter of 2025, compared with pretax income of $26 million the previous year and pretax income attributable to the company of $17 million in the fourth quarter of 2024.
The Andersons attributed the renewables group’s strong fourth-quarter 2025 results to efficient plant operations and record production, as well as improved ethanol crush margins of 15 cents a gallon compared with the previous year. A firmer corn basis and higher natural gas expense partially offset the favorable crush margin, the company said. Fourth-quarter 2025 results also included $15 million in 45Z tax credits, bringing total year-to-date 45Z tax credits to $35 million.
45Z Clean Fuel Production tax credits were part of the Inflation Reduction Act and took effect Jan. 1, 2025. The credits aim to incentivize the production of transportation fuels that have a lower carbon footprint by offering biofuel producers a tax credit on a per-gallon basis.
In addition to its Clymers ethanol plant, The Andersons operates ethanol plants in Albion, Mich.; Greenville, Ohio; and Denison, Iowa. The four plants produced a total of more than 500 million gallons of ethanol in 2024, making it the fifth-largest ethanol producer in the United States. The four plants also produced more than 1.1 million tons of DDGs for feed products, and the company merchandised more than 1.6 billion pounds of vegetable oils used as a feedstock for biofuels or as an addition to animal feed in 2024. Final production numbers for 2025 have not yet been released.
Average plant revenues by product for the four plants were ethanol, 77%; DDGS, 15%; corn oil, 7%; and carbon dioxide, 1%.
The company said it also merchandised 335 million gallons of ethanol and 1.6 billion pounds of renewable feedstocks and handled 2.5 million tons of feed products.
Plants acquired
In August 2025, The Andersons announced it had acquired full ownership of the four ethanol plants from The Andersons Marathon Holdings LLC (TAMH), a subsidiary of Marathon Petroleum Corp., for $425 million, inclusive of $40 million of working capital, for a net purchase price of $385 million.
The transaction closed July 31, 2025, The Andersons said in its second-quarter 2025 earnings report and was funded with cash on hand and debt from existing credit facilities.
Upon completion of the transaction, TAMH was renamed The Andersons Renewables LLC.
The Clymers, Ind., ethanol plant expansion and the carbon capture and sequestration proposal are included in several projects that the company outlined at its Investor Day 2025 presentation as a framework for its long-term growth potential.
Those projects include:
- Completing the expansion of the export terminal at the Port of Houston in 2026, which will enable the export of soybean meal to international markets and lead to further enhancing the efficient export of western grains.
- Continuing to strengthen geographic presence and expand merchandising capabilities by leveraging opportunities provided through the Skyland Grain acquisition and integration.
- Enhancing customer loyalty and value by providing customized solutions that meet the evolving needs of the market.
- Remaining focused on running efficient, low-carbon-intensity ethanol plants and maximizing 45Z tax credits.
- Utilizing a disciplined, long-term capital investment strategy to drive growth that provides strong margins and cash flow.
- Returning capital to shareholders through a balanced approach, including the continuation of the more than 25-year track record of consecutive dividend payments and opportunistic share repurchases.
“The Andersons is well-positioned to capitalize on the favorable macro trends that are driving growth within the agriculture and renewable fuels markets,” said Executive Vice President and Chief Financial Officer Brian Valentine. “Our strategy enables us to continue delivering strong shareholder value throughout the ag cycle.”
By the numbers
The Andersons was founded in 1947 and has headquarters in Maumee, Ohio. The company has 2,600 employees at approximately 180 locations. It has 275 million bushels of grain storage capacity.
The company is one of the top five grain and ingredients merchandisers in the United States, purchasing and merchandising grains and grain products, providing value-added risk management services to growers and customers, and providing a broad mix of food, feed and lightly processed ingredients for CPGs, such as cleaned and color-sorted grains.
It traded 33 million tons of commodities and sold 1.9 million tons of fertilizer in 2024, in addition to operating full-service farm centers and offering agronomy services. It also manufactures and distributes specialty liquids.