REG starts $31 million upgrade of US biodiesel refinery

US biofuels producer Renewable Energy Group (REG) has commenced a $31 million (€28.6 million) upgrade of its Danville, Illinois, biodiesel refinery

The refinery, with the production capacity of 45 million gallons, will be made capable of distilling biodiesel to eliminate impurities and produce a pure form of biomass-based diesel that exceeds industry quality standards, according to REG.

Other scheduled work includes pre-treatment capacity improvements, as well as storage, logistics and other optimisation enhancements.

Fifth Third Bank will finance up to $12 million of the project cost and an existing loan facility will be extended to December 2017.

REG bought the Danville biorefinery in 2010. The current project is the company’s sixth major enhancement of such plant since late 2012.