Damage to the Renewable Energy Group (REG) Geismar, Louisiana biorefinery from an April 2 fire will take 2-4 months to repair, according to the company.
“While preliminary damage assessments are still ongoing, the damage appears to be contained to a limited area of the production facility,” REG reports in an update this week. “The Company plans to incorporate a one-month maintenance shutdown that was previously scheduled for this summer to bring filtration and other upgrades online during the restoration time period.”
Our highest concern is the continuing recovery of the two employees who were injured last Thursday. We also appreciate the cooperation and understanding of our customers, vendors and service providers during this time.
REG expects to be able to resume loadout operations for Renewable Hydrocarbon Diesel in inventory later this week.
A Geismer, Louisiana renewable hydrocarbon diesel (RHD) refinery owned by Iowa-based Renewable Energy Group (REG) is closed after a fire on April 2 which injured two people, according to the company.
REG reports that the fire was contained within a few hours and the two injured employees were in fair condition. “An assessment and investigation into the cause of the fire and the damage to the facility is ongoing,” said a company statement. “The biorefinery will remain shut down until such assessment is complete and repairs can be made.”
REG just held a ribbon cutting in November for the facility which produces RHD using a process which converts a wide range of feedstocks, such as animal fat, inedible corn oil, used cooking oil and vegetable oils, into renewable fuel.
Students at Iowa State University will get to class a little smarter… and not just because of good study habits. The school and the university’s hometown of Ames, Iowa have inked a deal with Iowa-based Renewable Energy Group (REG) that will see CyRide, the transit agency serving the City of Ames and Iowa State University, to supply biodiesel blended fuel in 2015.
REG Energy Services, LLC began providing 350,000 gallons of fuel with biodiesel blends of up to 20 percent for CyRide’s 78 buses January 1. The agreement is REG’s first with a municipality.
“We want to thank CyRide for choosing REG Energy Services as its 2015 fuel partner,” said Don Nelson, REG Director, Regional Sales. “As REG Energy Services expands, we look forward to the opportunity to work with municipalities to provide a high-quality product that provides for energy and food security, job creation and environmental stewardship.”
Ames will increase its use of biodiesel from previous years under the agreement, which provides buses with higher blends of the advanced biofuel during the summer months. The CyRide fleet serves an average of 40,000 riders daily and operates approximately 1.2 million miles a year. The city will see carbon dioxide emission reductions of as much as 658 metric tons in 2015 with the increased biodiesel blends.
The REG biodiesel will come from the company’s Magellan terminal, just down the rode in Des Moines. City officials say with the environmental benefits of the sustainable biodiesel, everyone wins with this deal.
Biodiesel giant Renewable Energy Group has added an international business veteran to its board of directors. This company news release says Peter J. M. Harding was elected to the post.
Harding has served in leadership roles for international businesses involved in commodities trading and asset management. Most recently, he was the Chief Executive Officer and a member of the Board of Directors of Westway Group, Inc. (“Westway”), a liquid storage and liquid animal feed business, from May 2009 until his retirement in June 2010.
“Peter Harding has had a distinguished career where he gained expertise in the different industries that are part of the REG supply chain,” said Jeff Stroburg, Chairman of the Board. “His diverse skillset and business know-how will be a great asset to our board and our company.”
Harding has also served as a member of the Board of Directors of New Orleans College Prep since 2008 and was appointed Chairman of the Board in July 2013. From 2003 until joining Westway, Mr. Harding served in various roles at ED&F Man, including as member of their Executive Committee, Board of Directors and Managing Director of their Molasses & Palm Oil Trading, Feed Products, Third Party Storage, and Biofuels Division. He also served as Chief Executive Officer of Westway Holdings Corporation from 1997 to 2006. Concurrent with his service as Chief Executive Officer, he served as President of Westway Terminal Company, Inc. from 2001 to 2004. From 1995 to 1997, Mr. Harding also served as Chief Executive Officer of ED&F Man’s North American Cocoa Processing Group and prior to that as Chief Executive Officer of Savannah Cocoa, Inc. from 1992 to 1995. Mr. Harding served as Vice President of Sales & Marketing of Refined Sugars, Inc. from 1985 to 1989. Additionally, Mr. Harding owned and managed an asset management firm and commodity fund during the late 1980’s and early 1990’s. Mr. Harding attended the Harvard Business School program for Management Development in 1985.
Harding’s term will expire in 2017.
Renewable Energy Group has finished upgrades to its Newton, Iowa biorefinery. This company news release says the 30-million gallon nameplate plant in Newton, Iowa, will produce an even higher purity biomass-based diesel from a wider variety of raw materials.
“Enhancing REG Newton’s distillation and processing capabilities strengthens our lower-cost, multi-feedstock biomass-based diesel business and provides customers with more fuel options both in the Midwest and nationwide,” said Daniel J. Oh, REG President and CEO. “This plant was already a high performing facility that deserved additional investment and I am confident the return on investment will be rapid.”
The project provides Newton with production capabilities similar to those at the REG Albert Lea biorefinery. The upgraded process, including distillation, removes impurities and leaves behind a very pure form of biomass-based diesel. The final product far exceeds industry quality standards, while meeting REG’s more rigorous REG-9000™ specifications. The fuel also performs better in colder temperatures.
“These improvements allow REG Newton to provide customers with the highest quality end product at a full 30 million gallons a year utilization rate for a wide array of raw materials, including inedible corn oil,” said Brad Albin, REG Vice President, Manufacturing. “This increased feedstock flexibility drives demand for local feedstock suppliers, enabling them to keep their products in the region.”
REG broke ground on the $13.2 million project last February and completed it just last month, four months ahead of schedule and on budget.
REG now has 10 operational biorefineries in six states, making the company the North American leader in advanced biofuel production.
Iowa-based Renewable Energy Group, Inc. (REG) is expanding into Europe with its majority ownership buy of Germany’s Petrotec AG Biodiesel. This REG news release says deal is expected to be closed by the end of this month.
ICG, Israel Corporation’s vehicle for investing in the alternative energy market, today formally accepted an offer from REG European Holdings B.V. to purchase ICG’s 69 percent equity ownership in Petrotec AG for US $20.9 million, or US $1.235 per share, to be paid in newly issued REG shares valued at the 30 trading day volume-weighted average for the day prior to signing. The REG subsidiary will also purchase ICG’s loan to Petrotec AG in the amount of approximately US $15.4 million. In the next several weeks, REG European Holdings B.V. intends to make a cash tender offer for all other Petrotec shares at a price no less than the value per share to be received by ICG.
“REG’s investment in Petrotec is a natural extension of our business strategy which should enable us to better capture value from international trade flows and to participate in European biofuel markets,” said Daniel J. Oh, REG President and CEO. “Petrotec’s people, culture, business model and technology are similar to ours at REG. We look forward to working with the Petrotec team as REG expands its business into Europe and further delivers the key benefits of our international industry: energy security and diversity, environmental stewardship and food security.”
Petrotec collects used cooking oil and other waste feedstocks from more than 15,000 points to produce biodiesel at its two biorefineries in Emden and Oeding, Germany, with a total nameplate production capacity of 55.5 million gallons per year.
Iowa-based Renewable Energy Group celebrated this week the grand opening of its renewable diesel plant in Louisiana. This company news release says the Geismar biorefinery is now producing renewable hydrocarbon diesel (RHD) in commercial-scale quantities.
The event marked the successful start-up of the 75-million gallon nameplate capacity plant that REG acquired in June. Beginning production on October 14, REG Geismar, LLC has already produced more than 4.7 million gallons of renewable fuel. REG-9000™/RHD produced at the plant meet or exceed ASTM D975 standards.
“REG Geismar strengthens our core biomass-based diesel business, allowing us to further expand our product offering to our customers,” said Daniel J. Oh, REG President and CEO. “It reinforces our commitment to advanced biofuels and demonstrates our confidence in this market.”
The Geismar biorefinery, REG’s largest, is the company’s first plant to produce RHD using Bio-Synfining™ technology developed by REG Synthetic Fuels, LLC in Tulsa, Okla. The process converts a wide range of feedstocks, such as animal fat, inedible corn oil, used cooking oil and vegetable oils, into renewable fuel.
REG officials say their teams in Iowa, Louisiana and Oklahoma worked hard to get the plant online, producing near its nameplate capacity already.
Biodiesel behemoth Renewable Energy Group (REG) reports an increase in the amount of biodiesel it sold, but revenues for the Iowa-based company are down. The latest financial report from REG shows the company sold 14.4 percent more gallons of biomass-based diesel, while revenues decreased by 16.2 percent and Adjusted EBITDA decreased by 77.7 percent.
“Our third quarter results reflect a very solid financial performance despite weak market conditions, while we worked to bring REG Geismar online and continued to invest in product development,” said Daniel J. Oh, President and Chief Executive Officer. “Our traditional biodiesel business saw double digit volume growth of gallons sold and produced, compared to the third quarter of last year. The Mason City upgrades, which now allow that biorefinery to use lower cost feedstocks, were completed on time and within budget, and reflect our continued investment and focus on the biomass-based diesel business.”
REG officials say the revenue decline comes as the average sales price has been reduced and lower Renewable Identification Number (RIN) prices, more than offsetting the approximately 14 percent increase in gallons sold. The average price per gallon of biodiesel sold during the third quarter was $3.54, nearly 30 percent lower than in the same quarter of 2013.
Biodiesel giant Renewable Energy Group is adding to the locations that will be selling its green fuel. This company news release says REG Energy Services will be offering additional biofuel blends in New York, Minnesota and Iowa.
REG Energy Services, LLC will offer ultra-low sulfur heating oil and diesel (ULSHO/ULSD) blended with up to 20 percent biodiesel at its New Hyde Park, NY terminal. In addition, ULSD blended with biodiesel will be offered at Minnesota terminals in Alexandria, Mankato, Roseville and Rochester and Iowa terminals in Mason City and Des Moines. This adds ULSD to REG’s existing biodiesel offerings at those locations.
This is the first time REG Energy Services will offer biodiesel fuel blends along the Magellan Midstream Partners terminal system in Iowa and Minnesota. Iowa has a 4.5 cent per gallon incentive for retailers utilizing blends of 5 percent and above. Minnesota has a B5 requirement in the winter when using ULSD and B10 during the summer months.
“This expansion of REG Energy Services provides further access to our fuel portfolio in the Northeast and Midwest markets where we will now offer biodiesel fuel blends in addition to REG-9000™ biodiesel,” said Gary Haer, REG Vice President, Sales and Marketing. “Biodiesel blended fuel provides a convenient solution that further improves REG’s ability to better meet our customers’ needs and growing demand, while enhancing America’s energy and food security, and our environment.”
Iowa-based REG now offers fuel at 34 locations across the US.
Biodiesel behemoth Renewable Energy Group, Inc. (REG) rolled out the first commercial-scale quantities of renewable diesel from its Geismar, Louisiana biorefinery. This company news release says that fuel is now available for sale.
The first truckloads of REG-9000™/RHD produced at the 75-million gallon nameplate biorefinery since REG acquired it in June left the plant October 23. The advanced biofuel from REG Geismar, located south of Baton Rouge, meets or exceeds ASTM D975 specifications.
“We are pleased to be offering REG-9000/RHD for sale,” said Daniel J. Oh, REG President and CEO. “REG-9000/RHD is a new addition to our fuel product line-up designed to serve our customers’ needs for great fuel that also delivers towards our nation’s energy diversity, environmental and food security goals.”
Iowa-based REG is one of the nation’s biggest producers of biofuels, with 10 active biorefineries across the country and a developer of renewable chemicals.