US biodiesel refinery REG Grays Harbor receives $5m credit facility from Umpqua Bank

US biodiesel specialist REG Grays Harbor has secured an additional $5 million (€4.5m) credit facility from Umpqua Bank to fund further capital expenditures and improvements for its 100 million gallon nameplate biodiesel refinery.

The company is a wholly-owned subsidiary of Renewable Energy Group (REG) and also has terminal operations at the Port of Grays Harbor near Hoquiam, Washington.

REG secured an initial $5 million non-revolving credit facility from Umpqua when the company acquired the biorefinery in August 2015. Of that line of credit, $4.5 million was used for capital improvements at the facility through July 2016.

"This new credit facility gives REG Grays Harbor additional capital to further enhance the plant's capabilities and other continuous improvement projects," said Chad Stone, REG Chief Financial Officer. "We appreciate the confidence Umpqua Bank has shown in REG more specifically in the operations at Grays Harbor, and we are grateful for Umpqua's support."

"We are very pleased with the Grays Harbor team and the biorefinery's contribution to our network during its first year with REG," said Derek Winkel, general manager at REG Grays Harbor.

Officials at Umpqua also welcomed the investment. "We have enjoyed our relationship with REG Grays Harbor as a corporate banking partner and are happy to be a part of the company's growth," said Richard Cabrera, executive vice president at Corporate Banking for Umpqua Bank.

He added: "Not only is the company a vibrant member of our business community, but also a role model for innovation by providing socially conscious and environmentally friendly renewable fuel. We value our association with REG Grays Harbor and look forward to our continued contribution to its success."

The Grays Harbor facility is REG's largest biorefinery and one of 11 biomass-based diesel plants across the United States that make REG the leading North American producer of advanced biofuel with a total nameplate capacity of 452 million gallons annually.