Renewable Energy Group (NASDAQ: REGI) marked the completion of $34.5 million in upgrades and enhancements of its Danville, IL biorefinery Tuesday with a ribbon cutting ceremony and visit by Congressman John Shimkus (R-IL).
The upgrades include the addition of biodiesel distillation and other manufacturing upgrades, which will allow the 45 million gallon nameplate capacity biorefinery to use a wider array of lower carbon intensity feedstocks. The project also included logistical improvements such as an additional truck loadout, new warehouse and office space, and the acquisition and integration of approximately 13 million gallons of biofuel and feedstock storage from the neighboring Bunge facility, which will significantly improve year-round production and storage capabilities at REG Danville and within REG’s logistics system. Additionally, REG acquired property surrounding the plant complex to increase its footprint from 8 acres to nearly 30.
“This is a culmination of more than two years of work not just within REG, but also with our contractors, our longtime lending partner Fifth Third Bank, the city of Danville, Vermillion County, and local residents,” said Daniel Oh, REG President and CEO. “We now have a stronger REG Danville that can produce high quality, lower carbon intensity biofuel from a wider variety of crude raw materials in a part of the country where they are abundant.”
Area civic and business leaders and contractors involved in the project joined REG leadership and staff for the ribbon cutting ceremony. Among the speakers was Illinois Congressman John Shimkus, a senior member of the House Energy & Commerce Committee and long-time biodiesel advocate.
“Biodiesel adds value to the economy and it helps improve the environment, supports jobs throughout the supply chain and strengthens our energy security,” said Shimkus.
REG acquired the Danville biorefinery in 2010 from Blackhawk Biofuels, LLC. It is one of the company’s 11 biomass-based diesel refineries across the U.S. that have a combined nameplate production capacity of 452 million gallons annually, making REG the leading producer of advanced biofuels in North America.
A video on the Danville upgrades, part of a series celebrating REG’s 10-year anniversary as an independent company, can be viewed at the company’s website, www.regi.com or by clicking here to view the video on REG’s YouTube channel.
About Renewable Energy Group
Renewable Energy Group, Inc. is a leading North American advanced biofuels producer and developer of renewable chemicals. REG utilizes a nationwide production, distribution and logistics system as part of an integrated value chain model to focus on converting natural fats, oils and greases into advanced biofuels and converting diverse feedstocks into renewable chemicals. With 12 active biorefineries across the country, research and development capabilities and a diverse and growing intellectual property portfolio, REG is committed to being a long-term leader in bio-based fuels and chemicals.
For more than a decade, REG has been a reliable supplier of advanced biofuels which meet or exceed ASTM quality specifications. REG sells REG-9000 biomass-based diesel to distributors so consumers can have cleaner burning fuels that help diversify the energy complex and increase energy security. REG-9000 biomass-based diesel is distributed in most states in the US. REG also markets ultra-low sulfur diesel and heating oil in the northeastern and midwestern US. For more information on REG visit our website at www.regi.com.
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 relating to the economic, environmental and other benefits of biodiesel production and how modifications to REG’s Danville facility will affect production, distribution and storage capabilities, the types of feedstock that can be utilized in biodiesel production, and the quality of the biodiesel produced.
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; 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; availability of federal and state governmental tax credits and incentives for biomass-based diesel production; risks associated with fire or explosion 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; 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 from time to time in REG's most recent quarterly report on Form 10-Q and 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.