Bioenergy

REG Signs Agreement for Three Biodiesel Plants

Renewable Energy Group has entered into agreements to acquire three commercial-scale biodiesel plants. The first plant, operated by Western Iowa Energy, is a 30 million-gallon-per-year (MGY) in Wall Lake, Iowa. The second, operated by Central Iowa Energy, LLC, is a 30 MGY facility Newton, Iowa. The third, a 45 MGY facility in Danville, Illinois, is operated by Blackhawk Biofuels LLC. The facilities represent an additional 105 MGY of wholly-owned production capacity.

Ownership of the operations of all four companies will be consolidated in a new holding company that will be named Renewable Energy Group Inc. The consolidated company will be owned by the current members of the three acquired companies and current Renewable Energy Group (REG) investors, including Bunge North America, ED&F Man, Natural Gas Partners, NGP Energy Technology Partners, US Renewables Group and West Central Cooperative.

Under the 2007 Energy Independence and Security Act, the RFS calls for 500 million gallons of domestic biodiesel consumption ramping up to 1 billion biodiesel gallons in 2012.

“As the Renewable Fuels Standard (RFS) takes effect and our nation moves toward energy reform, the distillate market is demanding technical expertise, dependable supply, more efficient distribution and creative pricing options from major biodiesel partners,” said Jeff Stroburg, REG’s chairman and CEO.