Renewable Energy Group to close biodiesel plant in Houston, Texas

The REG biodiesel plant in Houston, Texas, which it acquired in 2008, is set to close in November. (Photo: Renewable Energy Group Inc.)

Renewable Energy Group Inc. is closing its 35 million gallon per year (mgy) biodiesel production facility in Houston, Texas, the company announced Sept. 29. CJ Warner, president and CEO of REG, said the company made the decision to not renew the lease because it “would have imposed an uncompetitive fixed cost on the plant.” She added that the economics of the facility have “always been relatively challenged due to its leasing agreement coupled with a lack of REG’s hallmark multifeedstock processing capability.”

REG is working on relocation opportunities for the Houston plant employees. The plant will be completely shut down in November. REG acquired and commissioned the site in 2008.

In 2019, the company closed its biodiesel facility in New Boston, Texas. Last month, local reports indicated REG’s unfinished biodiesel project in Emporia, Kansas, was being deconstructed. Meanwhile, the company is nearly quadrupling production capacity from 90 mgy to 340 mgy at its renewable diesel manufacturing facility in Geismar, Louisiana.

“It is never an easy decision to shut down a plant,” Warner said. “We greatly appreciate the team at REG Houston for their dedication to safety and operational excellence. Within our larger system, we remain focused on executing our growth strategy and we will continue to work with our existing customers and vendors to provide clean fuel solutions that are delivering meaningful carbon reduction today.”