REG® Continues Biodiesel Production Growth with Texas Biorefinery Acquisition
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.
For more than a decade, REG has been a reliable supplier of biodiesel which meets or exceeds ASTM quality specifications. We sell REG-9000® biodiesel to distributors so Americans can have cleaner burning fuels that help lessen our dependence on foreign oil. REG-9000® branded biodiesel is distributed in nearly every state in the U.S.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements about REG’s strategic growth, the timing of re-starting the New Boston facility and the expected benefits of the acquisition. Actual results may vary materially due to a number of factors including, but not limited to, the risk that the New Boston facility will not be able to be re-started, the risk that the EPA does not approve the New Boston facility’s registration, the risk of management distraction associated with bringing the New Boston facility back online, as well as other risks that are detailed from time to time in REG’s SEC reports. REG is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. Information contained in our website is not incorporated by reference in, or made part of this press release.