Renewable Energy Group® (NASDAQ:REGI), the nation’s leading biodiesel producer and marketer, today announced the latest addition to its business.
With the acquisition of a 15 million gallon per year biorefinery located in New Boston, Texas, REG’s nameplate biodiesel production capacity is expected to increase to more than 225 million gallons annually. REG paid $300,000 in cash and issued 900,000 shares of its common stock to North Texas Bio Energy for the multi-feedstock biorefinery located about 22 miles west of Texarkana. It is REG’s second Texas biodiesel production facility, following its 2008 acquisition of its Houston-area plant.
“Bringing New Boston into the REG family grows our solid, proven business model of using lower cost feedstock and providing cleaner energy solutions for American consumers,” said REG President and CEO, Daniel J. Oh.
“Our customers across the southern U.S. demand more REG-9000® biodiesel, and this is a long-term plan to respond to our customers’ needs. We remain focused on strategic growth by increasing the availability of biodiesel in high distillate demand regions throughout North America,” Oh added.The New Boston facility began production in June 2008 and has been idled for approximately four years. Brad Albin, REG Vice President of Manufacturing, said the plant will undergo some construction and minor upgrades prior to the facility’s start-up, which is expected in the first quarter of 2013. REG plans to utilize animal fats and other high free fatty acid feedstocks to produce biodiesel at the refinery. The company has initiated RFS2 registration through the EPA. “The REG technology team will soon be on-site in New Boston to re-start the biodiesel process with a plan to have high quality, REG-9000® biodiesel available in the market upon the completion of the EPA registration process,” said Albin. The company expects to hire nearly 20 full-time, green-collar employees at the REG New Boston site. Renewable Energy Group® is a leading North American biodiesel producer with a nationwide distribution and logistics system. Utilizing an integrated value chain model, Renewable Energy Group is focused on converting natural fats, oils and greases into advanced biofuels. With more than 225 million gallons annual production capacity at biorefineries across the country, REG is a proven biodiesel partner in the distillate marketplace.
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