Iowa, United States [RenewableEnergyWorld.com] Renewable Energy Group (REG) this week said that it has completed asset purchase and consolidation agreements with commercial-scale biodiesel plants in Newton, Iowa and Danville, Illinois. The consolidation transactions were originally announced by REG in May 2009. REG’s SEC registration took effect January 19, 2010.
Shareholders in Central Iowa Energy LLC, a 30 million-gallon-per-year (MGY) facility in Newton, Iowa, and Blackhawk Biofuels LLC, a 45 MGY facility in Danville, Illinois, voted to move ahead with the transactions in late February. Both deals are all-stock transactions, meaning the facilities are now wholly-owned by REG The consolidation brings REG’s wholly-owned manufacturing capacity to 122 MGY.
REG’s Chairman and CEO Jeff Stroburg cited demand by major petroleum distributors and oil refiners as a key factor in the decision to move forward with plant consolidation.
“With the Renewable Fuels Standard (RFS) now in effect, the distillate market is demanding technical expertise, dependable supply, more efficient distribution and creative pricing options from major biodiesel partners,” Stroburg said.
An outline of REG’s portfolio is below.
Ownership of the Central Iowa Energy LLC and Blackhawk Biofuels LLC operations is now consolidated within REG. The consolidated company is owned by the former shareholders of the two acquired companies and current REG investors; including Bunge North America, ED&F Man, Natural Gas Partners, NGP Energy Technology Partners, US Renewables Group and West Central Cooperative.