Chevron Renewable Energy Group Completes $32 Million Ralston Biodiesel Expansion
RALSTON, Iowa, May 10, 2018 (GLOBE NEWSWIRE) -- Chevron Renewable Energy Group celebrated with local, state and industry leaders the completion of upgrades at its Ralston, Iowa biorefinery increasing the production capacity from 12 to 30 million gallons per year. Chevron Renewable Energy Group invested $32 million dollars to expand the production capacity as well as significant upgrades to logistics and storage capabilities.
Chevron Renewable Energy Group Ralston, first built in 2002 as a 12 million gallon per year biodiesel plant has expanded and can produce 30 million gallons per year.
"Chevron Renewable Energy Group is positioned for long-term growth along with the entire biodiesel industry. We are proud of the project's completion as it shows our ability to deliver more high quality products to meet market demand," said Randy Howard, CEO. "The investment to further expand production was an easy decision for our company with the growth of our feedstock provider (Landus Cooperative) and the state of Iowa's support of incentivizing higher biodiesel blends."
Chevron Renewable Energy Group broke ground on this expansion in November of 2016 with an initial $24 million commitment. As the project developed, Chevron Renewable Energy Group invested $8 million for additional improvements. First Midwest Bank provided $20 million to partially finance the expansion.
In total, the project included 150,000 man hours and onsite peak manpower was up to 160 workers. The project was completed with zero recordable injuries.
"The Ralston plant was first built in 2002, as we moved forward with the expansion, we also took the time to improve key safety items including a fire protection system and a storm shelter," said Derek Winkel, Executive Director, Manufacturing Operations. "Our new load out system enhances our ability to efficiently load and unload products for our transportation suppliers and customers."
Chevron Renewable Energy Group Ralston is one of the company's 13 biomass-based diesel refineries. Chevron Renewable Energy Group has a combined effective production capacity of 565 million gallons per year.
About Chevron Renewable Energy Group
Chevron Renewable Energy Group 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. Chevron Renewable Energy Group 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, Chevron Renewable Energy Group is committed to being a long-term leader in bio-based fuel and chemicals.
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 Chevron Renewable Energy Group Ralston being positioned for long-term growth along, the growth of the biodiesel industry, and Chevron Renewable Energy Group's ability to deliver more high quality products to meet market demand. 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, Chevron Renewable Energy Group's ability to successfully operate the Ralston facility, potential 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; changes in the spread between biomass-based diesel prices and feedstock costs; the future price, availability, 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; 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; and other risks and uncertainties described in Chevron Renewable Energy Group's annual report on Form 10-K for the year ended December 31, 2017. All forward-looking statements are made as of the date of this press release and Chevron Renewable Energy Group 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://ml.globenewswire.com/Resource/Download/58c23800-6aff-4e01-8a84-cb68c0cd6505
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