REG: Geismar RHD plant resumed operations in March

By Erin Voegele | May 05, 2016

Renewable Energy Group Inc. recently released first quarter financial results, reporting its 75 MMgy Geismar renewable diesel plant in Louisiana restarted operations in March. The plant, formerly known as Dynamic Fuels LLC, was acquired by REG in 2014 and damaged by two fires in 2015.

During an investor call, Daniel Oh, president and CEO of REG, noted the Geismar plant is currently up and running, producing and selling renewable hydrocarbon diesel (RHD). “Our primary focus was safety as we repaired and restarted the plant, and will remain our focus as we continue to operate,” he said. While gallons and revenue in the first quarter were not large, Oh said REG anticipates a very substantial production in the second quarter.

Oh also briefly discussed REG’s Life Sciences division, noting the company recently announced an expansion of its Ames, Iowa, laboratory, which expands the division’s presence in the Midwest. The division also has operations in the San Francisco Bay Area.

Overall, REG sold 98 million gallons of fuel in the first quarter, up 63.7 percent from the same period of 2015. Fuel production reached 86 million gallons, up 42.1 percent. Adjusted EBITDA for the quarter was $9.9 million compared to negative $30.2 million in the prior year period, without any adjustments for the 2015 Biodiesel Mixture Excise Tax Credit (BTC). Adjusted EBITDA for the first quarter of 2015, after giving effect to the retroactive reinstatement of the BTC, was negative $14.5 million.

In addition to the Geismar renewable diesel plant, REG also owns 11 biodiesel plants, with four additional biorefineries currently under construction.