Renewable Energy Group closes USD 16m buy of Iowa biorefinery
Aug 1, 2013 - US Renewable Energy Group Inc (NASDAQ:REGI), or REG, said yesterday it had wrapped up the USD-16.1-million (EUR 12m) purchase of a biodiesel plant in Mason City, Iowa, from Soy Energy LLC.
Earlier REG agreed to acquire the refinery, which has an annual capacity of 30 million gallons (113.6m litres), for USD 11 million in cash plus the issuance of a USD 5.6 million promissory note to the seller. Due to a post-closing adjustment, the note was reduced to USD 5.1 million.
The deal boosts REG's annual biodiesel production capacity to 257 million gallons. Together with the Mason City plant, the company owns eight active biodiesel refineries, it noted.
The new owner intends to repair and restart the biodiesel plant by the end of 2013. It intends to use soybean oil and low free fatty acid feedstocks there.
The refinery was closed in the middle of 2012 in response to market conditions and manufacturing challenges. It was built in 2006 and was originally designed to process highly refined raw materials. Soy Energy bought the facility in 2010 and upgraded it to use more raw materials including animal fats and used cooking oil.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.