North America's largest biodiesel producer, Renewable Energy Group, Inc. (REG), has announced that is closing its New Boston, Texas biorefinery due to "challenging business conditions" and "continued federal policy uncertainty", most notably the long-lapsed federal Biodiesel Tax Credit.
According to a statement on July 24, 2019, the company acquired the 15-million (US) gallon (≈ 56.7 million litre) per annum biodiesel plant near Texarkana, Texas (TX) in October 2012 and began producing biodiesel there several months later.
The facility is capable of running both high and low free fatty acid feedstocks and has truck and rail access.
We truly appreciate all the efforts of our team and those that support our New Boston plant. They significantly improved safety, demonstrated capacity, yield, quality, and costs. However, these improvements could not overcome the unfavorable economics of the plant relative to our other options for ongoing focus and forward investment, said Brad Albin, Vice President of Manufacturing.
The company is currently working with plant employees on relocation opportunities within the production network.
This closure comes today as a result of the poor economics over the last 18 months resulting in large part from the uncertainty surrounding the Biodiesel Tax Credit. Despite significant bipartisan support, Congress’ inaction on this value-added incentive has led to unsustainable market conditions, said Cynthia J. Warner, President, and CEO of REG.