Completion of Geismar Land Purchase Gives REG Ability to Optimize And Potentially Expand Its Renewable Hydrocarbon Diesel Ope...
June 20 2017 - 12:28PM
NOTE: A video on this
topic can be viewed at: https://youtu.be/z9eq7R1VJVk
Renewable Energy Group (NASDAQ:REGI) announced today it has
completed the $20 million acquisition of approximately 82 acres of
land at and in close proximity to its Geismar, Louisiana
biorefinery from Lion Copolymer.
The purchase includes land REG previously leased for its Geismar
operations and approximately 62 additional acres in parcels
adjacent to and near the facility. The company plans to
improve and utilize the new acreage to support existing production
capacity and future expansion opportunities. The purchase of
the previously leased property will save REG approximately $35
million in future lease payments through 2033.
“Owning the land at REG Geismar saves money and provides longer
term certainty while the additional acreage opens up a wide range
of opportunities to optimize and potentially expand our proven
renewable hydrocarbon diesel platform,” said Daniel J. Oh,
President and CEO.
Some of the expansion and optimization projects REG is currently
exploring include:
- Increasing the plant’s nameplate capacity by 37 million gallons
through upgrades;
- Increasing the plant’s nameplate capacity by 10 million gallons
through the installation of new equipment;
- Improving rail logistics at the site to reduce transloading and
storage fees and increase access to growing west coast LCFS
markets; and
- Providing maritime access for greater volume shipments to
premium markets.
A video highlighting the current and potential future
optimizations at REG Geismar can be viewed on the company’s YouTube
Channel at https://youtu.be/z9eq7R1VJVk.
REG is also evaluating a number of other sites for expansion of
the company’s renewable hydrocarbon diesel production capacity,
including on or near REG’s plants in Seneca, Illinois and Grays
Harbor, Washington, in addition to other locations.
REG Geismar is a 75 million gallon nameplate capacity
biorefinery that produces renewable hydrocarbon diesel, along with
renewable naphtha and LPG. The plant had been running on
average at or above nameplate capacity since October 2016, which is
a record for the facility. REG recently announced that it
will begin changing the catalyst bed this week. During that
turnaround, REG will perform additional upgrades and improvements
that are expected to extend the catalyst lifespan up to a year.
About Renewable Energy Group
Renewable Energy Group, Inc. (NASDAQ:REGI) is a leading provider
of cleaner, lower carbon intensity products and services. We are an
international producer of biomass-based diesel, a developer of
renewable chemicals and are North America's largest producer of
advanced biofuel. REG utilizes an integrated procurement,
distribution, and logistics network to convert natural fats, oils,
greases, and sugars into lower carbon intensity products. With 14
active biorefineries, a feedstock processing facility, research and
development capabilities and a diverse and growing intellectual
property portfolio, REG is committed to being a long-term leader in
bio-based fuel and chemicals.
Note Regarding Forward-Looking StatementsThis
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements related to potential optimization and
expansion projects at the company’s Geismar, Louisiana biorefinery
and expansion of renewable hydrocarbon diesel production capacity
at other REG facilities or locations.
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,
including RFS2; availability of federal and state governmental tax
incentives and incentives for biomass-based diesel production,
including possible reinstatement of the BTC;; 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; risks associated
with fire, explosions, leaks and other natural disasters 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; 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
generate revenue from the sale of renewable chemicals, fuels and
other products on a commercial scale and at a competitive cost, and
customer acceptance of the products produced; whether our Geismar
biorefinery will be able to produce renewable hydrocarbon diesel
consistently or profitably; and other risks and uncertainties
described in REG's annual report on Form 10-K for the year ended
December 31, 2016, quarterly report on Form 10-Q for the quarter
ended March 31, 2017 and from time to time in the company’s 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.
A video accompanying this announcement is available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/96ee29da-8669-4b4b-82e7-834d33d24602
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/9bd3160c-bf42-4c91-9c98-3b2384e22586
Media Contact
Anthony Hulen
Executive Director, Corporate Affairs
+ (703) 822-1972
anthony.hulen@regi.com
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