Renewable Energy Group (REG) has officially broken ground on its $24 million expansion project at its biorefinergy in Ralston, Iowa. Once complete, the biodiesel plant will expand from 12 million to 30 million gallons nameplate production capacity per year. Special guests at the event included Iowa Governor Terry Branstad along with Lieutenant Governor Kim Reynolds.
”REG Ralston has been an efficient biorefinery with an ample supply of lower cost, lower carbon intensity feedstock next door connected by a pipe, and the original nameplate capacity was tied to the output of soybean oil from the adjacent crush,” said Daniel J. Oh, President. “This expansion matches the greater output volume from the newly expanded soy crush at Landus Cooperative.”
The project also includes logistics improvements as well as other site enhancements. Up to $20 million of the funding for the expansion project is to be provided by long-term debt financing.
Branstad recalled the history behind the Ralston facility. “I was here in the 1990’s when biodiesel was just a dream,” he said. “I am honored to participate in the expansion of Iowa’s first continuous flow biodiesel plant. REG has demonstrated an ongoing commitment to investing in Iowa and building a future for this state in home grown, advanced biofuel.”
When the project is completed, REG’s total annual company nameplate capacity from its 11 biodiesel plants will be 470 million gallons.