AMES, IA - Renewable Energy Group (REG) said it has completed the asset purchase and consolidation agreements with commercial-scale biodiesel plants in Newton, Iowa, and Danville, Ill.
Shareholders in Central Iowa Energy LLC and Blackhawk Biofuels LLC voted in late February to an all-stock transaction making their facilities wholly owned by REG. The consolidation brings REG's wholly owned manufacturing capacity to 122 MGY.
Now named REG Newton and REG Danville, the facilities represent an additional 75 million gallons per year (MGY) of wholly owned production capacity.
REG's Chairman and CEO Jeff Stroburg cited demand by major petroleum distributors and oil refiners as a key factor in the decision to move forward with plant consolidation.
"With the Renewable Fuels Standard (RFS) now in effect, the distillate market is demanding technical expertise, dependable supply, more efficient distribution and creative pricing options from major biodiesel partners," Stroburg said.
The consolidation transactions were originally announced by REG in May 2009. REG's SEC registration took effect Jan. 19, 2010.
"This process has been a complex, integrated process bringing together the Central Iowa Energy LLC and Blackhawk Biofuels LLC boards of directors, legal teams, accounting teams, financial partners and shareholders to consolidate these two facilities under the REG umbrella during some of the industry's most difficult times," said Daniel J. Oh, REG's president and chief operating officer.
Originally posted on Green Fleet Magazine