REG Well-Positioned for Future Capacity Growth with Georgia Biorefinery Purchase
Acquisition of BullDog Biodiesel is second in past three weeks for nation's largest biodiesel producer
AMES, Iowa--(BUSINESS WIRE)-- In its second acquisition in the past three weeks, Renewable Energy Group® (Nasdaq: REGI) announced the purchase of a 15 million gallon-per-year biodiesel production plant near Atlanta, Georgia.
"Renewable Energy Group is focused on strategically expanding our footprint of biodiesel production facilities," said REG President and CEO, Daniel J. Oh. "Once repaired, upgraded and restarted the REG Atlanta facility will offer us additional long-term capacity to meet high-demand diesel markets across the Southeast." (Photo: Renewable Energy Group)
The multi-feedstock facility, which will operate as REG Atlanta, LLC, is located in Ellenwood, Georgia, 11 miles southeast of Atlanta with easy access to major Southeast transportation routes. REG acquired the former BullDog Biodiesel operation for cash and in-kind consideration of approximately $2.6 million. No stock was issued related to the deal.
"Renewable Energy Group is focused on strategically expanding our footprint of biodiesel production facilities," said REG President and CEO, Daniel J. Oh. "Once repaired, upgraded and restarted the REG Atlanta facility will offer us additional long-term capacity to meet high-demand diesel markets across the Southeast."
The company has not yet set a production date for the re-start of the former BullDog Biodiesel facility, which has run intermittently since January 2008.
REG tolled the facility from April 2011 through April 2012 to support REG's biodiesel sales in the Southeast. BullDog ceased operations in April 2012 due to a combination of poor market conditions and upgrades needed to make the facility more efficient.
"Our team has demonstrated a successful model for integrating new technologies into our network and upgrading facilities to utilize lower cost raw materials," said REG Vice President, Manufacturing, Brad Albin. This refinery was designed to produce biodiesel from a variety of feedstocks, including used cooking oil.
Since 2008, Renewable Energy Group has acquired ten biodiesel-related firms or production facilities. Most recently, on Oct. 26, 2012, REG acquired a 15 million gallon-per-year biodiesel facility in New Boston, Texas slated to begin production in the first quarter of 2013.
Renewable Energy Group® is a leading North American biodiesel producer with a nationwide distribution and logistics system. Utilizing an integrated value chain model, Renewable Energy Group is focused on converting natural fats, oils and greases into advanced biofuels. With more than 225 million gallons annual production capacity at biorefineries across the country, REG is a proven biodiesel partner in the distillate marketplace. For more than a decade, REG has been a reliable supplier of biodiesel which meets or exceeds ASTM quality specifications. We sell REG-9000® biodiesel to distributors so Americans can have cleaner burning fuels that help lessen our dependence on foreign oil. REG-9000® branded biodiesel is distributed in nearly every state in the U.S.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements about future market demand in the Southeast, the capability of the new facility to meet demand and our ability to integrate the new facility into our network. Actual results may vary materially due to a number of factors including, but not limited to, the risk that the Atlanta facility will not be able to be re-started, the risk of management distraction associated with bringing the Atlanta facility back online, as well as other risks that are detailed from time to time in REG's SEC reports. REG is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. Information contained in our website is not incorporated by reference in, or made part of this press release.
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Renewable Energy Group
Alicia Clancy, 515-450-9692 (m)
KEYWORDS: United States North America Georgia Iowa
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