Company Considers Optimizing & Expanding Renewable Hydrocarbon Diesel Advanced Biofuel Platform
AMES, Iowa, May 04, 2017 (GLOBE NEWSWIRE) -- Renewable Energy Group (NASDAQ:REGI) announced today its agreement to acquire approximately 82 acres of land at its Geismar, Louisiana biorefinery from Lion Copolymer.REG has agreed to purchase the land it has leased for its Geismar operations, as well as more than 61 adjacent acres, which the company plans to improve and utilize to support existing production capacity and future expansion opportunities. REG Geismar, LLC will pay Lion Copolymer $20 million for the acquisition. The lease will be terminated at closing.
The transaction is expected to reduce REG’s operating costs and create opportunities for expansion at Geismar, a 75-million gallon annual nameplate capacity renewable hydrocarbon diesel biorefinery that also produces renewable naphtha and renewable liquefied petroleum gas.
“This acquisition is consistent with REG’s tactic of expanding the footprint of its biorefineries in preparation for complementary activities,” said Daniel J. Oh, President and CEO. “With the recent increase in production at REG’s Geismar site and the growing market demand for renewable hydrocarbon diesel, we believe now is the right time to evaluate capacity expansion opportunities.”
REG is evaluating a number of other sites for expansion of the company’s renewable hydrocarbon diesel production capacity, including REG’s plants in Seneca, Illinois and Grays Harbor, Washington, in addition to other West Coast locations.
“We expect the evaluation process for renewable hydrocarbon diesel expansion to proceed according to our strategic decision-making process,” said Brad Albin, REG Vice President, Manufacturing. “This includes an analysis of economic viability, logistics, feedstock availability, market demand, financing options and state and local support.”
About Renewable Energy Group
Renewable Energy Group, Inc. (NASDAQ:REGI) is a leading provider of cleaner, lower carbon intensity products and services. We are an international producer of biomass-based diesel, a developer of renewable chemicals and are North America's largest producer of advanced biofuel. REG utilizes an integrated procurement, distribution, and logistics network to convert natural fats, oils, greases, and sugars into lower carbon intensity products. With 14 active biorefineries, a feedstock processing facility, research and development capabilities and a diverse and growing intellectual property portfolio, REG is committed to being a long-term leader in bio-based fuel and chemicals.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to growth opportunities at the company’s Geismar, Louisiana biorefinery and other facilities, the effects of the company’s strategy on profitability, and expectations regarding demand for renewable hydrocarbon diesel.
These forward-looking statements are based on current expectations and assumptions, are subject to change, and actual results may differ materially. Factors that could cause actual results to differ materially include changes in governmental programs and policies requiring or encouraging the use of biofuels; 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; risks associated with fire or explosion at our facilities; the effect of excess capacity in the biomass-based diesel industry; unanticipated changes in the biomass-based diesel market; competition in the markets in which we operate; technological advances or new methods of biomass-based diesel production or the development of energy alternatives to biomass-based diesel; 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, 2016, 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.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2039e490-9eec-4602-8a76-3eb918ebf826
Media Contact Anthony Hulen Executive Director, Corporate Affairs + (703) 822-1972 [email protected]
Source: Renewable Energy Group, Inc.
Released May 4, 2017