USA: Expanded Biofuel Production Renewable Energy Group Acquires Sanimax Energy's Biodiesel Refinery
The North American producer of biofuels Renewable Energy Group has acquired Sanimax Energy’s biodiesel refinery located in DeForest, Wisconsin. Read about the details of the transaction.
Ames/Iowa – Renewable Energy Group has paid Sanimax $11 million in cash and issued 500,000 shares of REG common stock in exchange for the biorefinery and related assets. REG may also pay Sanimax up to an additional $5 million in cash over a period of up to seven years after closing, based on the volume of biodiesel produced at the plant. The biodiesel plant with a 20 million gallon nameplate capacity has been renamed and is now called REG Madison.
“We are very pleased to have successfully closed this transaction in a short amount of time and are already producing REG-9000 biodiesel at the plant,” said Brad Albin, REG Vice President, Manufacturing.
The biorefinery is located just north of Madison, Wisconsin and began production in 2007. Using the same REG patented and proven high free fatty acid processing technology as the Company’s Seneca, Illinois plant, REG Madison produces biodiesel from lower cost, lower carbon intensity feedstocks including yellow grease, rendered animal fats, and inedible corn oil in addition to refined vegetable oils.
This is the first Wisconsin plant for REG, which now owns and operates 11 active biomass-based diesel refineries in seven states with a combined nameplate production capacity of 452 million gallons annually.