Renewable Energy Group Inc. (REG), Ames, Iowa, is undertaking a 250-million gal/year capacity expansion of its existing 90-million gal/year renewable diesel refinery in Geismar, Ascension Parish, La.
The proposed expansion, which will require a minimum $825-million capital investment, will more than triple the Geismar biorefinery’s capacity to 340 million gal/year, REG and Louisiana Economic Development (LED) said on Oct. 6.
Alongside increasing renewable diesel production capacity at the site, the planned expansion also will include marine and rail infrastructure upgrades that will allow for supplementary shipping methods, reducing the number of trucks on local roadways, according to Clint Cointment, president of Ascension Parish.
With construction on the project scheduled to begin in mid to late 2021, the expansion is targeted for mechanical completion in late 2023, REG and LED said.
To support the project, Louisiana provided a competitive incentive package to offset infrastructure costs that includes a $5-million performance-based grant, as well as comprehensive workforce support and tax incentives.
“Louisiana is recognized as a global leader in energy,” said Louisiana Gov. John Bel Edwards. “That’s an accomplishment we take great pride in, especially as we pursue lower greenhouse gas emissions through our Climate Initiatives Task Force. Attracting investments like REG’s low-carbon project shows Louisiana can be both an energy leader and a climate leader.”
After purchasing the Geismar biorefinery—the first renewable diesel plant built in the US—from Dynamic Fuels LLC in 2014, REG expanded capacity of the then 75-million gal/year plant to its current 90-million gal/year capacity.
In June 2017, REG spent $20 million to acquire about 82 acres of land in Geismar—including land the biorefinery previously leased for its operations as well as more than 61 adjacent acres—as part of the operator’s plan to support its existing production capacity and future expansion opportunities, REG said in its latest annual report to investors.
REG, which uses an integrated procurement, distribution, and logistics network to operate 13 biorefineries in the US and Europe, produced 495 million gal of cleaner fuel in 2019 to deliver more than 4.2 million tonnes of carbon reduction, the operator said.
REG uses its proprietary BioSynfining technology for production of renewable diesel fuel, with planned feedstocks to include a mix of waste fats, oils, and greases, including regionally sourced vegetable oils, animal fats, and used cooking oil.
Announcement of the Geismar renewable diesel plant expansion follows REG’s cancellation earlier in the year of a joint project with Phillips 66 for a proposed 250 million-gal/year diesel plant in Ferndale, Wash. (OGJ Online, Jan. 21, 2020).
