Renewable Energy Group has acquired a New Mexico biodiesel plant in an agreement that will see a California company invest in the Iowa-based biodiesel maker and distributor.
REG has announced that ARES Corporation will become a strategic investor, putting in an additional $8 million into REG in return for control of ARES’ 15-million-gallon-a-year Clovis, New Mexico plant:
“In support of RFS2, REG continues to expand its national footprint of production facilities and related logistics to better serve our growing customer base of regional and national businesses. We consider this position in the Southwest to be a long-term, strategic move for our company,” said Daniel J. Oh, President and Chief Operating Officer of Renewable Energy Group. “ARES’ strategic investment provides REG access to ARES’ world class engineering, risk management and government contracting expertise.”
“REG has proven its leadership in the biodiesel industry and is exceptionally well placed to lead the industry recovery,” said Richard (Dick) Stuart, ARES Corp. Chief Executive Officer.
“Renewable Energy Group has shown strong biodiesel industry leadership when it comes to creating green collar jobs at its industry leading biodiesel production facilities,” said Clovis Industrial Development Corporation Executive Director, Chase Gentry. “We look forward to REG’s involvement in this ongoing green economy project as the City of Clovis, State of New Mexico and the Southwest region look to reduce our dependence on imported oil and improve our air quality.”
REG is the nation’s largest largest biodiesel producer and marketer.