Renewable Energy Group, Inc. ® (NASDAQ:REGI) broke ground Tuesday on a $13.2 million improvement project at its Newton biodiesel refinery that will increase the plant's ability to produce an even higher purity biodiesel from a wider array of raw materials.
REG leaders were joined by state and local officials, as well as community members and project partners, in a groundbreaking ceremony that featured Iowa Rep. Dan Kelley as the keynote speaker.
'This investment shows our continuing confidence in biodiesel for the long-term,' said Daniel J. Oh, President and CEO of Renewable Energy Group, Inc. 'It furthers our efforts to enhance our lower-cost, multi-feedstock biodiesel business by continuing to broaden our customer base and provide more options for our customers to choose from.'
REG Newton refinanced its original loan through a banking syndicate led by AgStar Financial Services to extend the term and help pay for the project. The refinancing provides for an additional $5 million to fund the capital project and extends the maturity date by five years.
The upgraded process, including distillation, removes impurities and leaves behind the purest form of the fuel. The final product far exceeds quality standards set by the biodiesel industry, while meeting the company's more rigorous REG-9000® quality specifications.
'This is a great investment for Newton,' Rep. Kelley said. 'I couldn't be more pleased with the commitment that REG is showing our community. Biodiesel production is important to Iowa. By making biodiesel here in Newton, REG is providing quality jobs while contributing to energy security.'
'These upgrades will allow us to utilize a broader spectrum of lower-cost raw materials,' said Brad Albin, REG Vice President, Manufacturing. 'It also advances our efforts to produce the highest quality product for our customers.'
REG, based in Ames, Iowa, is a leading North American biodiesel producer, with eight active refineries in four states that have a combined nameplate production capacity of 257 million gallons.
About Renewable Energy Group
Renewable Energy Group® is a leading North American biodiesel producer with a nationwide distribution and logistics system. Utilizing an integrated value chain model, Renewable Energy Group is focused on converting natural fats, oils and greases into advanced biofuels and on converting diverse feedstocks into renewable chemicals. With 257 million gallons of annual nameplate production capacity at biorefineries across the country, REG is a proven biodiesel partner in the distillate marketplace.
For more than a decade, REG has been a reliable supplier of biodiesel which meets or exceeds ASTM quality specifications. REG sells REG-9000® biodiesel to distributors so Americans can have cleaner burning fuels that help diversify the energy complex and increase energy security. REG-9000® branded biodiesel is distributed in most states in the U.S.
Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding the expected effects of the plant improvement project being announced. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, potential changes in governmental programs requiring or encouraging the use of biofuels; government policymaking and mandates relating to renewable fuels; the future price and volatility of feedstocks; the future price and volatility of petroleum and products derived from petroleum; expected future financial performance; our liquidity and working capital requirements; availability of federal and state governmental tax credits and incentives; anticipated trends and challenges in our business and competition in the markets in which we operate; our ability to estimate our feedstock demands and biodiesel sales; our dependence on sales to a limited number of customers and distributors; technological obsolescence; our expectations regarding future expenses; our ability to successfully implement our acquisition strategy; and other risks and uncertainties described from time to time in REG's annual report on Form 10-K, quarterly reports on Forms 10-Q and other periodic filings with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this press release and REG does not undertake to update any forward-looking statements based on new developments or changes in our expectations.