POET LLC of the US has become the world’s largest fuel ethanol producer, dethroning grain trader Archer Daniels Midland Co (ADM), which had been the leader since the US introduced biofuel mandates more than 10 year ago, Reuters reported last week.

ADM has reduced its biofuel capacity to about 1.6 billion gallons (6.1 billion litres) a year, and POET has increased its capacity to 1.9 billion gallons and will bring it to 2 billion by 2019, the news agency said, citing figures by the companies. The capacities of both companies previously were at about 1.8 billion gallons.

Reuters said the change illustrates the different approaches large biofuel producers are taking in response to low profits, oversupply and the oil lobby’s opposition to the US biofuels policy. While ADM is lowering its exposure, POET wants to improve profits via efficiency and scale.

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