AMES, Iowa, June 20, 2017 (GLOBE NEWSWIRE) -- Renewable Energy Group (NASDAQ:REGI) announced today it has completed the $20 million acquisition of approximately 82 acres of land at and in close proximity to its Geismar, Louisiana biorefinery from Lion Copolymer.
The purchase includes land REG previously leased for its Geismar operations and approximately 62 additional acres in parcels adjacent to and near the facility. The company plans to improve and utilize the new acreage to support existing production capacity and future expansion opportunities. The purchase of the previously leased property will save REG approximately $35 million in future lease payments through 2033.
“Owning the land at REG Geismar saves money and provides longer term certainty while the additional acreage opens up a wide range of opportunities to optimize and potentially expand our proven renewable hydrocarbon diesel platform,” said Daniel J. Oh, President and CEO.
Some of the expansion and optimization projects REG is currently exploring include:
- Increasing the plant’s nameplate capacity by 37 million gallons through upgrades;
- Increasing the plant’s nameplate capacity by 10 million gallons through the installation of new equipment;
- Improving rail logistics at the site to reduce transloading and storage fees and increase access to growing west coast LCFS markets; and
- Providing maritime access for greater volume shipments to premium markets.
A video highlighting the current and potential future optimizations at REG Geismar can be viewed on the company’s YouTube Channel at https://youtu.be/z9eq7R1VJVk.
REG is also evaluating a number of other sites for expansion of the company’s renewable hydrocarbon diesel production capacity, including on or near REG’s plants in Seneca, Illinois and Grays Harbor, Washington, in addition to other locations.
REG Geismar is a 75 million gallon nameplate capacity biorefinery that produces renewable hydrocarbon diesel, along with renewable naphtha and LPG. The plant had been running on average at or above nameplate capacity since October 2016, which is a record for the facility. REG recently announced that it will begin changing the catalyst bed this week. During that turnaround, REG will perform additional upgrades and improvements that are expected to extend the catalyst lifespan up to a year.
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 potential optimization and expansion projects at the company’s Geismar, Louisiana biorefinery and expansion of renewable hydrocarbon diesel production capacity at other REG facilities or locations.
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, including RFS2; availability of federal and state governmental tax incentives and incentives for biomass-based diesel production, including possible reinstatement of the BTC;; 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; risks associated with fire, explosions, leaks and other natural disasters 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; 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 generate revenue from the sale of renewable chemicals, fuels and other products on a commercial scale and at a competitive cost, and customer acceptance of the products produced; whether our Geismar biorefinery will be able to produce renewable hydrocarbon diesel consistently or profitably; and other risks and uncertainties described in REG's annual report on Form 10-K for the year ended December 31, 2016, quarterly report on Form 10-Q for the quarter ended March 31, 2017 and from time to time in the company’s 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 video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/96ee29da-8669-4b4b-82e7-834d33d24602
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9bd3160c-bf42-4c91-9c98-3b2384e22586
Media Contact Anthony Hulen Executive Director, Corporate Affairs + (703) 822-1972 [email protected]
Source: Renewable Energy Group, Inc.
Released June 20, 2017