Houston Biorefinery Closing

By DTN Staff

OAKHURST, N.J. (DTN) -- Renewable Energy Group Inc. on Wednesday announced the closing of its 35-million-gallon-per-year nameplate capacity facility near Houston, Texas, with complete shutdown slated for November.

The company acquired and commissioned the plant in 2008 and has been operating it since.

"We have made the decision not to renew the lease for our REG Houston biorefinery, which would have imposed an uncompetitive fixed cost on the plant," said REG President and CEO Cynthia "CJ" Warner. "The plant has run very well but has always been relatively challenged due to its leasing agreement coupled with a lack of REG's hallmark multi-feedstock processing capability."

The company is currently working with plant employees on relocation opportunities within the production network.

"It is never an easy decision to shut down a plant. We greatly appreciate the team at REG Houston for their dedication to safety and operational excellence," continued Warner. "Within our larger system, we remain focused on executing our growth strategy and we will continue to work with our existing customers and vendors to provide clean fuel solutions that are delivering meaningful carbon reduction today."

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