Renewable Energy Group approves Geismar plant expansion
Renewable Energy Group, Inc. (REG), an international producer of sustainable fuels, announced that its Board of Directors approved moving forward with construction that will enable both expansion of and improvements to the company’s renewable diesel biorefinery in Geismar, Louisiana, U.S.A.
The project is on track to be mechanically complete in 2023 with full operations in early 2024.
“Continuing our drive to accelerate the transition to sustainable energy, we have moved into the construction phase of the Geismar improvement and expansion project. Expanding our renewable diesel offering and advancing this project continues to be a key pillar of our growth strategy and is a significant milestone for us,” said Cynthia (CJ) Warner, president and chief executive officer.
The Geismar project brings together the planned expansion with an improvement project for the existing site. This joint project will take total site production capacity from 90 million to 340 million gallons, enhance existing operations, and improve operational reliability and logistics.
The capital cost for the entire Geismar project, which now includes both the expansion as well as operational and logistics enhancements to the current plant, is estimated at USD950 million. Renewable Energy Group has received all required permits to proceed, and has secured funding necessary for the project. In addition, Renewable Energy has agreed on a long-term lease for marine terminal and logistics services.
Renewable Energy Group also announced its financial results for the quarter ended June 30, 2021. Revenues for the second quarter were USD816 million on 163 million gallons of fuel sold. Net income available to common stockholders was USD79 million in the second quarter of 2021, compared to net loss of USD2 million for the second quarter of 2020. Adjusted EBITDA was USD103 million in the second quarter of 2021, compared to USD6 million for second quarter 2020.
“Our flexible feedstock capabilities, diverse production fleet, and commercial optimization systems helped us to manage through the volatile market conditions of the second quarter and deliver strong financial results,” said Warner. “This solid performance, alongside our successful navigation of the many external challenges of the past year, reinforces our optimism about the future.”