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Renewable Energy Group completes acquisition of Sanimax’s Madison plant

US biofuels producer Renewable Energy Group (REG) has completed its acquisition of Sanimax Energy’s 20 million gallon nameplate capacity biodiesel refinery.

REG paid Sanimax $11 million (€9.7m) in cash and issued 500,000 shares of REG common stock in exchange for the biorefinery, located in DeForest, Wisconsin, and related assets.

REG may also pay Sanimax up to an additional $5 million in cash over a period of up to seven years after closing, based on the volume of biodiesel produced at the plant, which is now called REG Madison.

“We are very pleased to have successfully closed this transaction in a short amount of time and are already producing REG-9000 biodiesel at the plant,” said Brad Albin, REG’s VP of manufacturing.

“We welcome the newest members of our team at REG Madison and are proud to be a part of the DeForest community.”

Most of the biodiesel employees have agreed to stay on with REG at the refinery, which is located just north of Madison, Wisconsin and began production in 2007.

Using the same patented high free fatty acid processing technology as REG’s Seneca, Illinois plant, REG Madison produces biodiesel from lower cost, lower carbon intensity feedstocks, including yellow grease, rendered animal fats, and inedible corn oil in addition to refined vegetable oils.

The newly purchased facility has both truck and rail capabilities.

This is the first Wisconsin plant for REG, which now owns and operates 11 active biomass-based diesel refineries in seven US states with a combined nameplate production capacity of 452 million gallons annually.





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