REG buys biorefinery in Georgia

Nov 19, 2012 - US biodiesel producer Renewable Energy Group (NASDAQ:REGI), or REG, today said it had acquired a biorefinery in Georgia with an annual capacity of 15 million gallons (56.8 million litres) for cash and in-kind consideration of about USD 2.6 million (EUR 2m).

The former BullDog Biodiesel facility is located near Atlanta and was designed to produce biodiesel from various feedstocks, including used cooking oil. It will now operate as REG Atlanta LLC.

This is REG's second acquisition in the past three weeks. At the end of October, the company bought an idle 15 million gallon-per-year biodiesel facility in Texas. REG says that since 2008, it has acquired 10 biodiesel-related businesses or plants. President and chief executive Daniel Oh said the company was focused on strategically growing its footprint of biodiesel facilities.

The former BullDog Biodiesel plant has run intermittently since January 2008. REG tolled it in the April 2011-April 2012 period to support its biodiesel sales in the southeastern part of the US. BullDog stopped operating in April due to poor market conditions and the need of upgrades to improve efficiency. REG plans to repair and upgrade the plant but has not yet set a date for its restart.

(USD 1.0 = EUR 0.783)

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