One of North America's largest biodiesel and renewable diesel producers, Renewable Energy Group, Inc. (REG), has announced that is closing its 35 million (US) gallon (≈ 132.5 million litre) per year nameplate capacity facility located near Houston, Texas (TX). 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. 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, said Cynthia ‘CJ’ Warner, President and CEO of REG.
The company is currently working with plant employees on relocation opportunities within the production network. The company will completely shut down the Houston plant in November 2021.
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. 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, Warner said.
The REG Geismar renewable diesel plant in Geismar, Louisiana (LA) returned to normal operations in mid-September 2021, following the impact of Hurricane Ida. Operations at the plant had been wound down at the end of August 2021 in a controlled and secure manner in advance of Hurricane Ida’s landfall.
Including REG Houston, REG operates 12 biorefineries in the United States (US) and Europe with an effective annual production capacity (2020) of 643 million gallons (≈ 2.43 billion litres) of biodiesel and renewable diesel fuels.
