AMES, Iowa--(BUSINESS WIRE)--Renewable Energy Group, Inc. (NASDAQ:REGI) President and CEO Daniel J. Oh issued the following statement after EPA’s release of the proposed rule for Renewable Volume Obligations (RVO) biomass-based diesel for 2014-2017 and overall advanced biofuels for 2014-2016:
“We are positive about today’s EPA announcement related to proposed biomass-based diesel volumes for 2014-2017 and overall advanced biofuels for 2014-2016. This proposal reduces uncertainty and points towards continuing growth for the near future and beyond. We are very appreciative of our champions on Capitol Hill and within the administration who worked tirelessly over the last several months to move RVO numbers upward to where they are now. It is complicated to manage policy and politics and we believe the numbers show that federal policy is heading in the right direction. This is a significant improvement over the original 1.28 billion gallon 2014 D4 proposal. Considering a potential 20% RIN carry-over, the proposed RVO suggests biomass-based diesel usage levels at over 2 billion gallons per year.”
“We believe this proposal leaves room to grow D4 (biomass-based diesel category) and D5 (general advanced biofuel category) final RVOs as REG and our industry continue to deliver increasing amounts of high-quality, cleaner and lower carbon advanced biofuel. When the EPA and OMB next look towards market performance, they should have every reason to believe that the biomass-based diesel category will continue to grow and support ever greater usage throughout the country.”
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 10 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 certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding our financial results and trends in our market. 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, final rulemaking by the EPA with respect to the RVO, which is not expected to occur prior to November 2015, potential changes in governmental programs and policies requiring or encouraging the use of biofuels, including RFS2; 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; the effect of excess capacity in the biomass-based diesel industry; unanticipated changes in the biomass-based diesel market from which we generate almost all of our revenues; seasonal fluctuations in our operating results; 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; our ability to successfully implement our acquisition strategy; our ability to use the technology acquired from LS9 to produce renewable chemicals, fuels and other products on a commercial scale and at a competitive cost, and customer acceptance of the products produced; our ability to successfully integrate Syntroleum and Dynamic Fuels and their employees into our existing business; whether REG Geismar will be able to produce renewable hydrocarbon diesel consistently or profitably; 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, 2014, quarterly reports on Forms 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.