Archer-Daniels-Midland Company (NYSE:ADM) Q1 2024 Earnings Call Transcript

Juan Luciano: Yes. So Heather, in carb solutions, we have a whole decarbonization strategy. Actually, across ADM, we have a decarbonization strategy, driven partly by our Strive 35 goals that we need to decarbonize ourselves, part driven by our customers and the need for either awaiting Scope 3 emissions from the side of our customers, but also by providing some low carbon intensity characteristics of some of our products that has also commanding a premium out there. So what are we doing? We are working on increasing our carbon capture sequestration. We’re going to go from 2 wells, 1 well and 1 experimental well, but let’s say 2 wells to 7 wells, so we’re going to be able to increase significantly our capacity. And let me remind you, we have already captured 4.5 million tons of CO2 in the last 10 years that we’ve been operating.

So that has been successful. For the dry mills specifically, what we’re doing is we are building pipelines to bring that to our carbon capture and sequestration units indicator. We have 1 pipeline that has been ongoing, the project, and we are looking for solutions for the other dry mills. So that’s what is happening. The second part of the question, Heather, I’m not remembering exactly what…

Heather Jones: I was just wondering about the region.

Juan Luciano: Oh, yes.

Heather Jones: Yes, on the region acreage, just wondering, is that doubling in anticipation of like the EU deforestation regime or more stringent carb standards? Just wondering what’s driving that. Or is it all voluntary market-driven growth?

Juan Luciano: Yes. I would say there is excitement on both sides. There is excitement on the farmer side to adhere to all these practices, but there’s also a lot of demand pull from the customer side in terms of we continue to sign contracts for more of these as people need to, again, have an answer to their Scope 3. So we have been setting goals, and we have been beating those goals and increasing those goals. Now we have expanded that to Europe and Latin America, and we continue to see demand for these activities around the world. And to be honest, the team has been doing an excellent job. So I think that this program is perceived as the leading program in the world there.

Operator: Thank you. At this time, we currently have no further questions. So I’ll hand back to Juan Luciano for any further remarks.

Juan Luciano : Okay. Thank you. Thank you, everyone, for joining us today and for your interest in ADM, and have a great day.

Ismael Roig: Thank you.

Operator: Thank you for joining today’s call. You can now disconnect your lines.