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REG breaks ground on REG Geismar renewable diesel expansion project

In the United States (US), Renewable Energy Group, Inc. (REG) has hosted a groundbreaking ceremony to celebrate the start of construction on the company’s improvement and expansion project at REG Geismar in Louisiana (LA). The project will take total site production capacity from 90 million (US) gallons (≈ 340.7 million litres) per year to 340 million gallons (≈ 1.29 billion litres) per year, and bring more than 60 permanent jobs and up to 500 construction jobs to the area.

On October 13, 2021, Renewable Energy Group (REG) broke ground on the improvement and expansion of its renewable diesel production facility in Geismar, Louisiana (LA). The groundbreaking event included state and local lawmakers, as well as project partners and community members including Melody Lockwood (left), Lynn Tomlinson, Bryan Christjansen, Representative Ken Brass, Governor John Bel Edwards, Cynthia (CJ) Warner, Senator Ed Price, Derek Winkel, Neville Fernandes, Chad Stone, and Steve Drennan (photo courtesy REG).

REG Geismar was the first renewable diesel production facility in the US and was acquired by REG in 2014. Since that time, REG has been investing in the facility to improve safety, logistics, and operational capabilities.

REG first announced their 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 the construction phase.

This groundbreaking, which was held on October 13, 2021, marks the formal start of construction on the project.

This improvement and expansion project is a strategically advantaged growth project and will position REG to continue our leadership in the renewable fuels industry. 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. REG is helping lead the transition to cleaner, greener energy and this project is an exceptional example of that, said Cynthia (CJ) Warner, President and CEO of REG.

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 will enable global trading of feedstocks and fuel.

The company announced that the estimated project cost is US$950 million, and is expected to be mechanically complete by 2023 with full operability in 2024.

Upon completion, the fuel produced at REG Geismar will annually reduce carbon dioxide (CO2) emissions by up to 2.8 million tonnes based on the life cycle analysis of REG-produced fuels versus petroleum diesel.

REG also received an incentive package from the State of Louisiana that contains comprehensive workforce support and tax incentives.

It’s an honor to have such a forward-thinking business like Renewable Energy Group right here in the state of Louisiana. REG has been an exceptional partner for this community and our state, and we were proud to be able to provide an incentive package for this improvement and expansion. This team is helping our world achieve lower-carbon goals, all while providing a great benefit to our local economy, said Louisiana Governor, John Bel Edwards.

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