Renewable Energy Group expands its Geismar plant to increase renewable diesel capacity

HOUSTON (ICIS)–Renewable Energy Group (REG) will be expanding its Geismar, Louisiana plant to increase total renewable diesel production capacity from 90m gallons/year to 340m gallons/year, the renewable fuels company said on Thursday.

REG first announced plans for expansion in 2020, and now this project is being combined with an original plant improvement project. Both projects are in the construction phase.

“This improvement and expansion project is a strategically advantaged growth project and will position REG to continue our leadership in the renewable fuels industry,” said REG President and CEO, Cynthia Warner.

“The push from investors and regulatory leaders for lower-carbon solutions is being met with greater pull from sustainability-minded consumers who want to reduce their carbon profiles now,” she added.

The project will involve upgrades to the Geismar site in addition to an expansion located adjacent to the existing facility. The new improvements will enhance marine logistics that will help the global trading of feedstock and fuel.

The project is estimated to cost $950m and will be mechanically complete by 2023, with full operability in 2024.

The company estimates that the fuel produced at the site will reduce CO2 emissions by up to 2.8m tonnes.

REG’s renewable diesel is made from animal fats, corn oil, recycled cooking oil and vegetable oils. The oils and fat are treated with hydrogen to produce renewable diesel.

Biodiesel is also made with oils and fats, but it relies on a different chemical route. Through a chemical process called transesterification, those oils and fats are converted into fatty acid methylesters (FAME).

(adds details about renewable diesel, paragraph 8)
(adds details about biodiesel, paragraph 9)