AMES, Iowa--(BUSINESS WIRE)--Renewable Energy Group, Inc. (REG) (NASDAQ: REGI) hosted a groundbreaking ceremony on Wednesday to celebrate the start of construction on the company’s improvement and expansion project at REG Geismar. The project will take total site production capacity from 90 million gallons per year to 340 million gallons per year, and bring more than 60 permanent jobs and up to 500 construction jobs to the area.
REG Geismar was the first renewable diesel production facility in the U.S. and was acquired by REG in 2014. Since that time, REG has been investing in the facility to improve safety, logistics and operational capabilities. REG first announced their plans for expansion of REG Geismar in 2020, and announced earlier this year that the project was being combined with an original plant improvement project, with both being advanced to construction phase. This groundbreaking marks the formal start of construction on the project.
“This improvement and expansion project is a strategically advantaged growth project, and will position REG to continue our leadership in the renewable fuels industry,” said REG President & CEO, Cynthia (CJ) Warner. “The push from investors and regulatory leaders for lower-carbon solutions is being met with greater pull from sustainability-minded consumers who want to reduce their carbon profiles NOW. REG is helping lead the transition to cleaner, greener energy and this project is an exceptional example of that.”
The project will involve upgrades to the existing site, as well as an expansion that will be located adjacent to the existing site. Improvements will include enhanced marine logistics that will enable global trading of feedstocks and fuel. The company announced that the estimated project cost is $950 million, and is expected to be mechanically complete by 2023 with full operability in 2024. Upon completion, the fuel produced at REG Geismar will annually reduce harmful CO2 emissions by up to 2.8 million metric tons,1 or the equivalent to greenhouse gas emissions from 7.1 billion miles driven by an average passenger vehicle.2 REG received an incentive package from the state of Louisiana that contains comprehensive workforce support and tax incentives.
“It’s an honor to have such a forward-thinking business like Renewable Energy Group right here in the state of Louisiana,” said Louisiana Governor, John Bel Edwards. “REG has been an exceptional partner for this community and our state, and we were proud to be able to provide an incentive package for this improvement and expansion. This team is helping our world achieve lower-carbon goals, all while providing a great benefit to our local economy.”
The groundbreaking event included state and local lawmakers, as well as project partners and community members.
1Carbon reduction based on life cycle analysis of REG-produced fuels versus petroleum diesel.
About Renewable Energy Group
Renewable Energy Group, Inc. is leading the energy and transportation industries’ transition to sustainability by transforming renewable resources into high-quality, sustainable fuels. Renewable Energy Group is an international producer of sustainable fuels that significantly lower greenhouse gas emissions to immediately reduce carbon impact. Renewable Energy Group utilizes a global integrated procurement, distribution and logistics network to operate 12 biorefineries in the U.S. and Europe. In 2020, Renewable Energy Group produced 519 million gallons of cleaner fuel delivering 4.2 million metric tons of carbon reduction. Renewable Energy Group is meeting the growing global demand for lower-carbon fuels and leading the way to a more sustainable future.
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 number of jobs that will be created, the growing demand for certain fuels, the expected capacity of our Geismar, Louisiana renewable diesel production facility, Geismar being a strategically advantaged project, REG’s ability to position itself as a leader in the industry, the growth of the renewable diesel and biodiesel industries, and enhancements to Geismar’s logistics, estimated capital costs, time of project completion and incentives. 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, the success of our business plan, market factors and progress on the construction of our Geismar, Louisiana renewable diesel production facility, and other risks described in REG's annual report on Form 10-K for the year ended December 31, 2020, quarterly reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021, and from time to time in REG's other periodic filings with the SEC. All forward-looking statements are made as of the date of this press release and we do not undertake to update any forward-looking statements based on new developments or changes in our expectations.