REG to expand Geismar capacity by 250 MMgy

By Erin Voegele | October 06, 2020

Renewable Energy Group Inc. on Oct. 6 announced plans to expand the annual production capacity of its biorefinery in Geismar, Louisiana, to 340 MMgy. The 250 MMgy expansion project is expected to be complete by late 2023.

REG said the announcement follows a through review and site selection process. Construction is expected to begin in mid-2021 with mechanical completion expected to be in late 2023.

The expansion project is expected to require approximately $825 million in capital investment. Louisiana Gov. John Bel Edwards has announced his support for the project with the inclusion of an incentive package that contains comprehensive workforce support and tax incentives.

“REG Geismar has proven to be a tremendous asset for our company and is a natural site for increasing production of our lower carbon renewable diesel,” said Cynthia (CJ) Warner, president and CEO of REG. “The state of Louisiana and Ascension Parish have been great partners who encouraged us every step along the way as we developed our expansion plan. They truly understand the broad economic and environmental benefits that renewable fuels provide, and we look forward to our continued partnership with them as we undertake this project.”

The Geismar facility is the first renewable diesel plant built in the U.S. Dynamic Fuels LLC, a joint venture between Tyson Foods and Syntroleum Corp., broke ground on the 75 MMgy facility in 2008. The facility began operations in 2010. REG completed acquisition of the plant in mid-2014 and celebrated the facility’s grand opening in November of that year.

In 2017, REG acquired 82 acres of land near the Geismar plant from Lion Copolymer. The purchase included land REG previously leased for its Geismar operations and approximately 62 additional acres in parcels adjacent to and near the facility. At that time, the company said the land purchase would support existing production capacity and future expansion opportunities.