REG plans major expansion of Geismar, Louisiana, renewable diesel production facility
Renewable Energy Group Inc. announced Oct. 6 that it plans to undertake a capacity expansion of its Geismar, Louisiana, biorefinery by 250 million gallons annually to 340 MMgy.
This announcement follows a thorough review and site selection process. Construction should begin in mid- to late 2021 with target mechanical completion date in late 2023.
"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 and CEO of REG. "The state of Louisiana and Ascension Parish have been great partners who encouraged us every step along the way as we developed our expansion plan. They truly understand the broad economic and environmental benefits that renewable fuels provide, and we look forward to our continued partnership with them as we undertake this project."
REG expects the expansion will require approximately $825 million in capital investment and is committed to supporting jobs and economic development in the communities in which it operates. Louisiana Gov. 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," 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 MMgy of demonstrated capacity.
"This is an exciting milestone for our business as we continue to advance our drive to produce low carbon fuels at significant scale," Warner said. "We are developing this project with our proprietary process technology, and are proud to continue to deliver sustainable fuel solutions to our customers and accelerate the transition to cleaner energy."
Renewable diesel is a 100 percent renewable, drop-in fuel alternative to diesel fuel. Renewable diesel has seen strong demand particularly in regions focused on lowering carbon emissions in transportation fuels.