Renewable Energy Group, Inc. (NASDAQ: REGI) said it plans to expand the capacity of its Geismar, Louisiana biorefinery by 250 million gallons to 340 million gallons per year.
Construction will begin in mid- to late 2021. The mechanical completion target date is in late 2023.
“REG Geismar has proven to be a tremendous asset for our company and is a natural site for increasing production of our lower carbon renewable diesel,” said Cynthia (CJ) Warner, president and CEO of Renewable Energy Group. “The state of Louisiana and Ascension Parish have been great partners who encouraged us every step along the way as we developed our expansion plan. They truly understand the broad economic and environmental benefits that renewable fuels provide, and we look forward to our continued partnership with them as we undertake this project.”
Renewable Energy Group expects the expansion will require approximately USD825 million in capital investment. Louisiana Governor John Bel Edwards announced his support for this project with the inclusion of an incentive package that contains comprehensive workforce support and tax incentives. “Attracting investments like REG’s low-carbon project shows Louisiana can be both an energy leader and a climate leader.”
REG Geismar was the first renewable diesel plant built in the U.S.A. and was acquired by REG in 2014. REG made additional improvements to the plant, taking its initial 75-million gallon nameplate capacity up to 90-million gallons per year.
“This is an exciting milestone for our business as we continue to advance our drive to produce low carbon fuels at significant scale,” said Warner. “We are developing this project with our proprietary process technology, and are proud to continue to deliver sustainable fuel solutions to our customers and accelerate the transition to cleaner energy.”
Renewable diesel is a 100% renewable, drop-in alternative to diesel fuel. Renewable diesel has seen strong demand particularly in regions focused on lowering carbon emissions in transportation fuels.
REG is North America’s largest producer of biodiesel and an industry leading producer of renewable diesel fuel. REG utilises a global integrated procurement, distribution and logistics network to operate 13 biorefineries in the U.S. and Europe. In 2019, REG produced 495 million gallons of cleaner fuel delivering more than 4.2 million metric tons of carbon reduction.