Renewable Energy Group, Inc. based in Ames, Iowa announced it plans to undertake a capacity expansion of its Geismar, Louisiana biorefinery by 250 million gallons annually to 340 million gallons per year.
Construction should begin in mid to late 2021 with target mechanical completion date in late 2023. The announcement came after REG announced in January the cancellation of plans with Phillips 66 to construct a renewable diesel plant in the state of Washington.
“REG Geismar has proven to be a tremendous asset for our company and is a natural site for increasing production of our lower carbon renewable diesel,” said Cynthia (CJ) Warner, President & CEO of REG.
REG expects the expansion will require approximately $825 million in capital investment. Louisiana’s Governor John Bel Edwards announced his support for this project with the inclusion of an incentive package that contains comprehensive workforce support and tax incentives.
“Louisiana is recognized as a global leader in energy,” Louisiana Gov. John Bel Edwards said. “That’s an accomplishment we take great pride in, especially as we pursue lower greenhouse gas emissions through our Climate Initiatives Task Force. Attracting investments like REG’s low-carbon project shows Louisiana can be both an energy leader and a climate leader.”
REG Geismar was the first renewable diesel plant built in the U.S. and was acquired by REG in 2014. REG made additional improvements to the plant, taking its initial 75-million gallon nameplate facility up to 90-million gallons per year of demonstrated capacity.
Source: BusinessWire