Bioenergy

Biodiesel Company Gains $100 M Financing and Partnerships

Renewable Energy Group, Inc. (REG) completed a $100 million private equity financing arrangement and formed two new strategic partnerships in the biodiesel industry. NGP Energy Technology Partners, L.P., an affiliate of NGP Energy Capital Management, led the Series A preferred stock financing.

Strategic partners, Bunge North America and E D & F Man Holdings Ltd., also invested in the Series A financing. In addition, Natural Gas Partners VIII, L.P., the Sargents, West Central Cooperative, and other Iowa investors participated. REG expects to increase its biodiesel production to approximately 640 million gallons by 2009, including third-party plants. REG will use the new capital and strategic partnerships to expand its network of wholly owned and third-party managed biodiesel plants. “With the completion of this financing, REG becomes the first independent, biodiesel platform company offering a comprehensive set of management, procurement, marketing and construction services, and the expertise to present outstanding leadership in the biodiesel industry,” explained REG Chairman and CEO Jeff Stroburg. “Producing high quality biodiesel is only the first step; getting biodiesel to our customers when and where they need it is a key factor in creating a successful distribution channel,” said Stroburg.