Leading biodiesel producer and marketer Renewable Energy Group (REG) announced a couple of major acquisitions today that will improve the company’s access to used cooking oil supply for biodiesel production.
The Ames, Iowa company is acquiring Tellurian Biodiesel of California and American BDF, a joint venture owned by Tellurian, Golden State Service Industries and Restaurant Technologies Inc. (RTI) that focused on building small biodiesel plants to convert used cooking oil into biodiesel.
The acquisition connects RTI’s national used cooking oil collection system —with more than 16,000 installations —with REG’s national network of proven, commercial‐scale biodiesel manufacturing facilities in order to produce high performing, clean liquid fuel. “Turning used cooking oil into biodiesel at REG’s network of manufacturing facilities is another good outlet for our customers’ waste products to power a simple, green, and safe solution for fueling our nation’s progress toward clean energy goals,” explained RTI Chief Executive Officer, Jeff Kiesel.
Analysts have long looked to used cooking oil as an excellent low‐carbon feedstock source for the biodiesel industry. “Just by gaining access to this nationwide system of used cooking oil collection depots, REG has the potential, over time, to replace more than a half million barrels of imported crude oil with sustainable, domestically produced biodiesel,” explained REG Vice President, Supply Chain Management, Dave Elsenbast.
Used cooking oil will augment REG’s current national, multi‐feedstock procurement program that supplies the company’s commercial‐scale biodiesel facilities. The REG network has a combined annual production capacity of more than 200 million gallons. Finished biodiesel will be marketed and distributed under Renewable Energy Group’s REG‐9000TM branded biodiesel platform to petroleum distributors and refiners nationwide.