US advanced biofuels company REG to purchase Geismar land

US advanced biofuels producer Renewable Energy Group announced that it has reached an agreement to acquire approximately 82 acres of land at its Geismar, Louisiana biorefinery from Lion Copolymer. 

REG has agreed to purchase the land it has leased for its Geismar operations, as well as more than 61 adjacent acres, which the company plans to improve and utilize to support existing production capacity and future expansion opportunities.  REG Geismar, LLC will pay Lion Copolymer $20 million for the acquisition.  The lease will be terminated at closing.

The transaction is expected to reduce REG's operating costs and create opportunities for expansion at Geismar, a 75-million gallon annual nameplate capacity renewable hydrocarbon diesel biorefinery that also produces renewable naphtha and renewable liquefied petroleum gas.  

"This acquisition is consistent with REG's tactic of expanding the footprint of its biorefineries in preparation for complementary activities," said Daniel J. Oh, President and CEO. "With the recent increase in production at REG's Geismar site and the growing market demand for renewable hydrocarbon diesel, we believe now is the right time to evaluate capacity expansion opportunities."

REG is evaluating a number of other sites for expansion of the company's renewable hydrocarbon diesel production capacity, including REG's plants in Seneca, Illinois and Grays Harbor, Washington, in addition to other West Coast locations.  

"We expect the evaluation process for renewable hydrocarbon diesel expansion to proceed according to our strategic decision-making process," said Brad Albin, REG Vice President, Manufacturing. "This includes an analysis of economic viability, logistics, feedstock availability, market demand, financing options and state and local support."