Renewable Energy Group (NASDAQ: REGI) held a groundbreaking ceremony Tuesday to formally launch a $24 million expansion of its Ralston, IA biorefinery from 12 million to 30 million gallons of annual nameplate production capacity.
Iowa Governor Terry Branstad and Lieutenant Governor Kim Reynolds were the featured guests at the event attended by several business leaders and elected officials.
”REG Ralston has been an efficient biorefinery with an ample supply of lower cost, lower carbon intensity feedstock next door connected by a pipe, and the original nameplate capacity was tied to the output of soybean oil from the adjacent crush,” said Daniel J. Oh, President. “This expansion matches the greater output volume from the newly expanded soy crush at Landus Cooperative.”
In addition to the capacity expansion, the project will include logistics improvements and other site enhancements. Up to $20 million in long-term debt financing is expected to be provided for this project.
“The decision by Landus Cooperative to expand their soy crush facility presented REG with an excellent, efficient opportunity,” said Brad Albin, Vice President, Manufacturing. “With a greater, adjacent feedstock supply and our history of continuous improvements, this capacity expansion is a logical investment.”
Branstad recalled the history behind the Ralston facility. "I was here in the 1990’s when biodiesel was just a dream,” he said. “I am honored to participate in the expansion of Iowa’s first continuous flow biodiesel plant. REG has demonstrated an ongoing commitment to investing in Iowa and building a future for this state in home grown, advanced biofuel.”
Once completed, the Ralston expansion will increase REG’s cumulative nameplate capacity from its 11 active biomass-based diesel plants across the US to 470 million gallons annually.
A video on the REG Ralston expansion and the plant’s history, 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 provider of cleaner, lower carbon intensity products and services and is North America’s largest producer of biomass-based diesel. 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 opportunity for future growth, expansions in adjacent feedstock supply, the expected availability of financing to finance the Ralston expansion project, and expected increases to REG’s cumulative nameplate capacity.
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; availability of capital sources to finance the Ralston expansion project; 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 annual report on Form 10-K for the year ended December 31, 2015, quarterly reports 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.