REG Experts Testify at EPA Hearing on How Biomass-Based Diesel Volumes Should Continue to Grow

WASHINGTON, Aug. 01, 2017 (GLOBE NEWSWIRE) -- Three leaders from Renewable Energy Group (NASDAQ:REGI) told EPA officials at a public hearing Tuesday that ample feedstocks, technology and quality advances and subsidized imported biofuel are three reasons why the agency should increase the biomass-based diesel and advanced biofuel minimum volumes.

Doug Lenhart, Vice President, Procurement & Logistics was joined by Derek Winkel, Executive Director, Manufacturing and Paul Nees, Executive Director of REG’s Operations Control Team to give testimony at a public hearing on EPA’s proposed Renewable Volume Obligations (RVO) for 2018 total advanced biofuel and 2019 biomass-based diesel.

“The amount of feedstock or oleo lipids that my team purchases for production of renewable fuel is approaching 4 billion pounds on an annual basis,” said Lenhart, who gave a dual perspective, also being a life-long grain and livestock farmer in addition to his position at REG.  “The new sources of feedstock continue to grow.  The sustainable growth of renewable fuels is supported in several ways, including a growing livestock industry.”

Winkel focused his testimony on the technological and quality advancements that REG and other biomass-based diesel producers have made, including greater utilization of trap grease and other waste lipids.  “Using the lowest quality lipids creates a fuel that has at least 86 percent less GHGs than the diesel it is replacing,” Winkel said.  “These investments would not have been made without increasing demand for biodiesel and renewable diesel.  This demand, in part, is supported by a strong, growing and consistent RVO and RFS.”

Nees, who is one of the industry’s top market analysts, focused his testimony on the proposal’s misguided claim that reducing the total advanced biofuel category was in the interest of energy independence and security.  “The domestic biodiesel industry is ready and able to fulfill demand gaps with low-cost, high-quality fuel with no market disruption,” Nees said.

The proposed rule would hold the biomass-based diesel minimum volume for 2019 at the same 2.1 billion gallon level as the final 2018 RVO.  The proposal also calls for a 40 million gallon reduction (ethanol equivalent gallons) in the 2018 total advanced biofuel, calling for 4.24 billion gallons, down from the 4.28 billion gallons in the final 2017 rule.  REG will submit official comments on the proposal by the August 31 deadline. 

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.

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Source: Renewable Energy Group, Inc.

Released August 1, 2017