(AMES, Iowa) Dec. 16, 2010’With tonight’s approval of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 by the U.S. House of Representatives, the biodiesel blenders’ tax credit will be reinstated for 2011 and be retroactive for all B100 gallons sold in 2010.
‘The reinstatement and retroactivity of the biodiesel blenders’ tax credit provides a more predictable and stable market for our company and our customers,” said Daniel J. Oh, President and Chief Operating Officer of Renewable Energy Group® (REG®), the nation’s largest biodiesel producer and marketer.
‘With President Obama’s signature as the final step for this bill, the biodiesel blenders’ tax program restores competitive pricing for biodiesel in the distillate marketplace, puts green collar workers back to work and supports the future of this advanced biofuel industry in the coming months.”
Reinstatement and retroactivity means greater market certainty for REG’s customers, the petroleum industry and RFS2 obligated parties.
‘We believe reinstatement for 2011 will allow petroleum distributors and obligated parties to make biodiesel purchasing decisions which will increase demand for REG-9000TM biodiesel, ‘ said Oh. ‘With the combination of blending requirements under RFS2 and the competitive pricing model offered by the tax credit, REG expects a significant increase in biodiesel demand for our five facilities in Iowa, Illinois and Texas.”
Historically, REG has maintained approximately a 25 percent market share in the U.S. biodiesel industry. The company acquired six strategic businesses in 2010, including three commercial -scale biodiesel refineries in production mode and one facility under construction. Today, the REG network includes more than 180 million gallons of owned/operated production capacity.
With an 800 million gallon market under RFS2, REG anticipates doubling biodiesel sales in 2011 to meet national demand. ‘Additional demand will improve job security for our green collar workers,” said Oh who estimates REG could increase its nationwide workforce by 30 percent in 2011 as a result of the demand created by the combined RFS2 and blenders’ tax credit programs.
‘We are very pleased with the reinstatement and retroactivity of the biodiesel blenders tax credit passed by the Senate and the House,” said Oh who is looking forward to a longer term program. ‘During the next year, REG looks forward to working with our elected officials in a bi-partisan effort to develop a long-term tax program that promotes the growth, expansion and green collar jobs created by the biodiesel industry which is our country’s only commercial, widely-available advanced biofuel available today,” he said.
About Renewable Energy Group®
Renewable Energy Group® is North America’s largest biodiesel manufacturer and marketer. Utilizing an integrated supply chain model, Renewable Energy Group is focused on converting triglycerides into advanced biofuels. With more than 180 million gallons of owned/operated annual production capacity’ which meets or exceed ASTM quality specifications’REG® is a proven biodiesel partner in the distillate marketplace.
REG owns/operates biodiesel facilities in Ralston, Iowa (REG Ralston, LLC); Newton, Iowa (REG Newton, LLC); Danville, Ill. (REG Danville); Seneca, Ill. (REG Seneca, LLC) and Seabrook, Texas (REG Houston, LLC). In addition, the company has commercial-scale biodiesel plants under construction in New Orleans (REG New Orleans, LLC); Emporia, Kans. (REG Emporia, LLC) and Clovis, New Mexico (REG Clovis, LLC).