Ethanol Blog

LINCOLN, Neb. (DTN) -- Chevron Inc. plans to lay off 70 employees from its Renewable Energy Group biofuel production plant in Ames, Iowa, effective on June 18, 2025, according to a Worker Adjustment and Retraining Notification Act warning from the Iowa Department of Workforce Development on Tuesday.

Chevron acquired REG in 2022 in a $3.15 billion transaction.

According to the Iowa Biodiesel Board, REG operates 12 biorefineries in the U.S. and Europe and employs about 900 people. More than half of those employees are in Iowa.

REG produced about 519 million gallons of biodiesel in 2020, according to the Iowa Biodiesel Board. In addition, the company also produces renewable diesel at a biorefinery in Geismar, Louisiana.

Chevron did not respond to DTN's request for comment at press time.

In a statement published in the Des Moines Register on Tuesday, however, the company said it was "taking action to simplify our operating model, execute work faster and more effectively and position the company for long-term competitiveness."

The company told the Register that the layoffs were a "difficult decision" that Chevron did not make "lightly."

Chevron said it understands the "impact this news may have on our employees, their families and the communities where we operate." The company said its priority was to "support our employees through this transition." Chevron said it was offering severance benefits and other support to the employees affected by the layoffs, according to the Register.

In a Feb. 28, 2022, news release announcing the purchase of REG, Chevron Chairman and CEO Mike Wirth said this about REG: "REG was a founder of the renewable fuels industry and has been a leading innovator ever since. Together, we can grow more quickly and efficiently than either could on its own.

The biodiesel industry has faced economic pressure as the $1 blenders tax credit expired at the end of 2024, as producers expected to transition to the 45Z Clean Fuels Production tax credit in 2025.

Industry officials have warned that biodiesel production has been slowing because of the uncertainty.

National groups including Clean Fuels Alliance America had been asking federal lawmakers to extend the credit as uncertainty abounds about the future of the 45Z, https://www.dtnpf.com/….

An extension of the 45Z is part of a massive tax bill currently working its way through Congress, https://www.dtnpf.com/….

Read more on DTN:

"Ethanol Mergers at 5-Year High in 2021," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on social platform X @DTNeeley

(c) Copyright 2025 DTN, LLC. All rights reserved.