REG buys biodiesel plant to increase portfolio

US-based Renewable Energy Group (REG) has completed the purchase of a 30 million gallon per year capacity biodiesel plant in Iowa, formerly owned by Soy Energy.

Soy Energy unit holders approved the sale in a vote on 29 July. Pursuant to the purchase agreement, REG acquired the biorefinery for $11 million (€8.3 million) in cash and the issuance of a $5.6 million promissory note. Due to a post-closing adjustment, the note was reduced to $5.1 million.

‘We are pleased to bring REG Mason City into our fleet of biorefineries because it helps us move forward with our growth strategy,’ said Daniel Oh, REG CEO.

REG plans to repair and re-start the facility using soyabean oil and low free fatty acid feedstocks by the end of the year. The acquisition brings the company’s total annual production capacity to 257 million gallons and it now owns and operates eight active biorefineries.

REG has begun the hiring process and expects to employ up to 25 full-time employees.