Renewable Energy Group announced that it plans to expand production at its Geismar, Louisiana, biorefinery by 250 million gallons annually to 340 million gallons per year.
Construction should begin in mid to late 2021 with completion expected in late 2023, REG said in a statement issued Oct. 6.
“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 (C.J.) Warner, president and chief executive officer.
REG expects the expansion will require approximately $825 million in capital investment. Louisiana Gov. John Bel Edwards announced his support for the project with the inclusion of an incentive package that contains comprehensive workforce support and tax incentives, REG said.
The plant in Geismar was the first renewable diesel plant built in the U.S., REG said. After acquiring the plant in 2014, REG increased its capacity to 90 million gallons per year, from 75 million gallons per year.
“This is an exciting milestone for our business as we continue to advance our drive to produce low carbon fuels at significant scale,” said Warner. “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% renewable, drop-in fuel alternative to diesel fuel, REG said. Renewable diesel has seen strong demand particularly in regions focused on lowering carbon emissions in transportation fuels, the company said.
Based in Ames, Iowa, REG maintains a procurement, distribution and logistics network to operate 13 biorefineries in the U.S. and Europe.