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REG Geismar Expanding

Renewable Energy Group Begins Improvement, Expansion Project at REG Geismar

OAKHURST, N.J. (DTN) -- Renewable Energy Group Inc. on Wednesday celebrated the start of construction on the improvement and expansion project at REG Geismar, which will take total site production capacity from 90 million gallons per year to 340 million gallons.

The estimated project cost is $950 million and is expected to be mechanically complete by 2023, with full operability in 2024. REG received an incentive package from the state of Louisiana that contains comprehensive workforce support and tax incentives.

The project will involve upgrades to the existing site, as well as an expansion that will be located adjacent to the existing site. Improvements will include enhanced marine logistics that enable global trading of feedstocks and fuel.

REG Geismar was the first renewable diesel production facility in the United States and was acquired by REG in 2014. Since that time, REG has invested in the facility to improve safety, logistics and operational capabilities. REG first announced plans for expansion of REG Geismar in 2020 and announced earlier this year that the project was being combined with an original plant improvement project, with both being advanced to construction phase. Wednesday's groundbreaking marks the formal start of construction on the project.

"This improvement and expansion is a strategically advantaged growth project, and will position REG to continue our leadership in the renewable fuels industry," said REG President and CEO Cynthia Warner. "The push from investors and regulatory leaders for lower-carbon solutions is being met with greater pull from sustainability-minded consumers who want to reduce their carbon profiles NOW."

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