AMES, Iowa--(BUSINESS WIRE)-- Renewable Energy Group (NASDAQ: REGI) leaders voiced support for EPA’s increase in the Advanced Biofuel Renewable Volume Obligation (RVO) released today.
EPA increased the total Advanced Biofuel RVO above its proposed 4.0 billion ethanol-equivalent gallons to 4.28 billion gallons, a 670 million gallon increase over 2016. Biomass-based diesel supplied the vast majority of fuel used to meet the Advanced Biofuel RVO in 2016. This increase in the Advanced Biofuel RVO should provide increased demand for the clean, low-carbon intensity biomass-based diesel produced by REG.
EPA also confirmed the Biomass-Based Diesel RVO of 2.1 billion gallons for 2018, which is 100 million gallons over the final 2017 level and 200 million gallons above the 2016 minimum volume.
“While our industry has shown that higher volumes of biomass-based diesel can and will be produced and consumed, this final rule elevates the growth trajectory for our cleaner, lower carbon intensity advanced biofuel,” said Daniel J. Oh, President and Chief Executive Officer. “Biomass-based diesel will continue to lead the way. We appreciate the support of those at the EPA, many others throughout the Administration and our bi-partisan champions on Capitol Hill who all helped make this possible.”
REG is North America’s largest biomass-based diesel producer and marketer with 11 active biomass-based diesel refineries across the U.S. that have a combined nameplate production capacity of 452 million gallons.
About Renewable Energy Group
Renewable Energy Group, Inc. is a leading provider of cleaner, lower carbon intensity products and services and is North America’s largest producer of biomass-based diesel. 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 12 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 potential continued growth for the biomass-based diesel that we produce and increased demand for REG’s products.
These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially. Factors that could cause actual results to differ materially include, but are not limited to, potential changes in governmental programs and policies and federal and state governmental tax credits and incentives requiring or encouraging the use of biofuels, including RFS2, and biomass-based diesel production; changes in the spread between biomass-based diesel prices and feedstock costs; the future price and volatility of feedstocks, petroleum, and products derived from petroleum; risks associated with fire or explosion at our facilities, including potential losses associated with the fires at our Geismar facility; 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 our development stage life sciences technologies to produce renewable chemicals, fuels and other products on a commercial scale and at a competitive cost, and customer acceptance of the products produced; the significant capital expenditures required to produce commercial quantities of renewable chemicals; 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, 2015, quarterly reports on Form 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
Anthony Hulen, 703-822-1972
Source: Renewable Energy Group
Released November 23, 2016