AMES, Iowa -- Renewable Energy Group, Inc. (NASDAQ: REGI) announced today that the Company’s Danville, Illinois operation now has more than 14 million gallons of tank capacity to store both biodiesel and feedstocks.
REG Danville, LLC recently purchased the tank complex at the adjacent Bunge Milling, Inc. facility for approximately $1.5 million. The tanks are being connected to REG Danville’s existing infrastructure and will increase the biorefinery’s storage capacity for feedstock by at least 950,000 gallons and biodiesel by up to 12 million gallons.
“This is another strategic investment into REG Danville that gives us greater flexibility for moving and storing feedstocks and our high quality biodiesel,” said Brad Albin, Vice President, Manufacturing. “This and the ongoing upgrades will allow us to better serve our customers and vendors along the value chain.”
In July 2015, REG began a separate $31 million upgrade project at the multi-feedstock 45-million gallon nameplate capacity biorefinery that will add other logistics enhancements along with biodiesel distillation capabilities. Through this expansion and the purchase of the Bunge tanks, REG Danville has expanded its footprint around the original facility and now sits on nearly 30 acres. The upgrade project is scheduled to be completed later this year.
About Renewable Energy Group
Renewable Energy Group, Inc. is a leading North American advanced biofuels producer and developer of renewable chemicals. REG utilizes a nationwide production, distribution and logistics system as part of an integrated value chain model to focus on converting natural fats, oils and greases into advanced biofuels and converting diverse feedstocks into renewable chemicals. With 12 active biorefineries across the country, research and development capabilities and a diverse and growing intellectual property portfolio, REG is committed to being a long-term leader in bio-based fuels and chemicals.
For more than a decade, REG has been a reliable supplier of advanced biofuels which meet or exceed ASTM quality specifications. REG sells REG-9000 biomass-based diesel to distributors so consumers can have cleaner burning fuels that help diversify the energy complex and increase energy security. REG-9000 biomass-based diesel is distributed in most states in the US. REG also markets ultra-low sulfur diesel and heating oil in the northeastern and midwestern US. For more information on REG visit our website at www.regi.com.
Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding the effect of the investment on our ability to serve our customers and the timing for completion of our upgrade projects. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to: the effect of excess capacity in the biomass-based diesel industry; unanticipated changes in the biomass-based diesel market from which we generate almost all of our revenues; potential changes in governmental programs and policies requiring or encouraging the use of biofuels, including RFS2; the future price and volatility of feedstocks; and other risks and uncertainties described from time to time in REG's annual report on Form 10-K for the year ended December 31, 2015, which is on file with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release and REG does not undertake to update any forward-looking statements based on new developments or changes in our expectations.