North America’s largest biodiesel producer Renewable Energy Group (REG) has announced an investment of $825m to expand its Geismar, Louisiana biorefinery.
Expected to be completed in late 2023, the expansion project will increase the capacity of Geismar renewable diesel plant to 340 million gallons per year.
The Geismar refinery was the first renewable diesel plant built in the US.
After acquiring the plant in 2014, REG expanded its initial 75-million gallon nameplate facility up to 90-million gallons per year.
Currently, the plant has a capacity to produce 250 million gallons of renewable diesel annually.
“REG Geismar has proven to be a tremendous asset for our company and is a natural site for increasing production of our lower carbon renewable diesel,” said Cynthia (CJ) Warner, President & CEO of REG.
Louisiana Governor John Bel Edwards has announced support for the expansion of the Geismar facility with the inclusion of an incentive package.
The incentive package consists of comprehensive workforce support and tax incentives.
Construction on the expansion of the Geismar plant is expected to begin in mid to late 2021.
Bel Edwards said: “Louisiana is recognized as a global leader in energy.
“That’s an accomplishment we take great pride in, especially as we pursue lower greenhouse gas emissions through our Climate Initiatives Task Force. Attracting investments like REG’s low-carbon project shows Louisiana can be both an energy leader and a climate leader.”
REG is a major producer of renewable diesel, operating 13 biorefineries in the US and Europe.
In 2019, the company produced 495 million gallons of cleaner fuel delivering over 4.2 million metric tons of carbon reduction.