Ground Broken on REG’s Sixth Upgrade Project in Less than Three Years
DANVILLE, Ill.--(BUSINESS WIRE)-- Renewable Energy Group, Inc. (NASDAQ:REGI) announced Friday that it will invest $31 million to upgrade and enhance the Company’s Danville, Illinois biodiesel refinery.
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Construction work already under way at Renewable Energy Group's 45-million gallon biodiesel refinery in Danville, Illinois. The improvements will include distillation capabilities along with storage, logistics and transportation enhancements. (Photo: Business Wire
REG officials gathered in Danville with local and area leaders to break ground on the project. The most notable upgrade will be the addition of biodiesel distillation capabilities to the 45-million gallon nameplate capacity biorefinery. Other planned upgrades include pretreat capacity improvements, along with storage, logistics and other optimization enhancements.
“REG Danville already has a proven record of success as part of our network of multi-feedstock biorefineries,” said Daniel J. Oh, President and CEO. “Enhancing the capabilities here, as we have done at several of our other plants, can allow REG to provide greater volumes of lower cost, lower carbon, higher quality advanced biofuel to our customers that increases energy security, food security and environmental benefits for North America.”
The distillation process removes impurities and leaves behind a pure form of biomass-based diesel that far exceeds industry quality standards, while meeting REG’s more rigorous REG-9000™ specifications. The fuel also performs better in colder temperatures.
“These upgrades increase this biorefinery’s strong and healthy appetite for lower cost, waste feedstocks which are sourced locally and regionally from our supply chain partners,” said Brad Albin, Vice President, Manufacturing.
Fifth Third Bank will reinvest in the REG Danville facility by financing up to $12 million of the cost of the project. The existing loan facility, which was nearly paid off, will provide additional funds and the term will be extended to December 2017.
REG acquired the Danville biorefinery in 2010. The plant currently employs 34 full-time workers and the upgrade project will utilize an additional 80-100 full-time contract workers.
“REG has been a dedicated partner to the City of Danville and we are excited by the additional investment they are making in our community,” said Danville Mayor Scott Eisenhauer. “We are very pleased by the jobs and economic develop this expansion brings.”
The Danville project marks the sixth major biorefinery enhancement REG has undertaken since late 2012, following completed upgrades at their Albert Lea, MN, Seneca, IL, Mason City and Newton, IA biodiesel plants and ongoing improvements at the Company’s renewable hydrocarbon diesel biorefinery in Geismar, LA.
About Renewable Energy Group
Renewable Energy Group, Inc. is a leading North American advanced biofuels producer and developer of renewable chemicals. REG utilizes a nationwide production, distribution and logistics system as part of an integrated value chain model to focus on converting natural fats, oils and greases into advanced biofuels and converting diverse feedstocks into renewable chemicals. With 10 active biorefineries across the country, research and development capabilities and a diverse and growing intellectual property portfolio, REG is committed to being a long-term leader in bio-based fuels and chemicals.
For more than a decade, REG has been a reliable supplier of advanced biofuels which meet or exceed ASTM quality specifications. REG sells REG-9000™ biomass-based diesel to distributors so consumers can have cleaner burning fuels that help diversify the energy complex and increase energy security. REG-9000™ biomass-based diesel is distributed in most states in the US. REG also markets ultra-low sulfur diesel and heating oil in the northeastern and midwestern US. For more information on REG visit our website at www.regi.com.
Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding the expected benefits, timing and funding of the upgrade at the Company’s Danville, Illinois biodiesel refinery.. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, final rulemaking by the EPA with respect to the RVO, which is not expected to occur prior to November 2015, potential changes in governmental programs and policies requiring or encouraging the use of biofuels, including RFS2; changes in the spread between biomass-based diesel prices and feedstock costs; the future price and volatility of feedstocks; the future price and volatility of petroleum and products derived from petroleum; availability of federal and state governmental tax credits and incentives for biomass-based diesel production; the effect of excess capacity in the biomass-based diesel industry; unanticipated changes in the biomass-based diesel market from which we generate almost all of our revenues; seasonal fluctuations in our operating results; competition in the markets in which we operate; our dependence on sales to a single customer; technological advances or new methods of biomass-based diesel production or the development of energy alternatives to biomass-based diesel; our ability to successfully implement our acquisition strategy; our ability to use the technology acquired from LS9 to produce renewable chemicals, fuels and other products on a commercial scale and at a competitive cost, and customer acceptance of the products produced; ; whether REG Geismar will be able to produce renewable hydrocarbon diesel consistently or profitably; and other risks and uncertainties described from time to time in REG's annual report on Form 10-K for the year ended December 31, 2014, quarterly reports on Forms 10-Q and other periodic filings with the Securities and Exchange Commission.
All forward-looking statements are made as of the date of this press release and REG does not undertake to update any forward-looking statements based on new developments or changes in our expectations.
Renewable Energy Group, Inc.
Anthony Hulen, 703-822-1972
Executive Director, Corporate Affairs
Source: Renewable Energy Group, Inc.
Released July 17, 2015