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Biodiesel Refinery Renewable Energy Group Announces $31 Million Upgrade of Danville Biorefinery

| Editor: Tobias Hüser

Renewable Energy Group (REG) will invest $31 million to upgrade and enhance the Company’s Danville biodiesel refinery in the U.S. state Illinois. The most notable upgrade will be the addition of biodiesel distillation capabilities to the 45-million gallon nameplate capacity biorefinery.

Construction work already under way at Renewable Energy Group's 45-million gallon biodiesel refinery in Danville, Illinois. The improvements will include distillation capabilities along with storage, logistics and transportation enhancements.
Construction work already under way at Renewable Energy Group's 45-million gallon biodiesel refinery in Danville, Illinois. The improvements will include distillation capabilities along with storage, logistics and transportation enhancements.
(Picture: Business Wire)

Danville/USA – Besides the biodiesel distillation capabilities, REG is planning pretreat capacity improvements, along with storage, logistics and other optimization enhancements. “Enhancing the capabilities here, as we have done at several of our other plants, can allow REG to provide greater volumes of lower cost, lower carbon, higher quality advanced biofuel to our customers that increases energy security, food security and environmental benefits for North America,” said Daniel J. Oh, President and CEO of REG.

The distillation process removes impurities and leaves behind a pure form of biomass-based diesel that far exceeds industry quality standards, while meeting REG’s more rigorous REG-9000 specifications. The fuel also performs better in colder temperatures. “These upgrades increase this biorefinery’s strong and healthy appetite for lower cost, waste feedstocks which are sourced locally and regionally from our supply chain partners,” said Brad Albin, Vice President, Manufacturing of REG.

Fifth Third Bank will reinvest in the REG Danville facility by financing up to $12 million of the cost of the project. The existing loan facility, which was nearly paid off, will provide additional funds and the term will be extended to December 2017. REG acquired the Danville biorefinery in 2010. The plant currently employs 34 full-time workers and the upgrade project will utilize an additional 80 to 100 full-time contract workers.

The Danville project marks the sixth major biorefinery enhancement in the U.S. REG has undertaken since late 2012, following completed upgrades at their Albert Lea, Seneca, Mason City and Newton biodiesel plants and ongoing improvements at the Company’s renewable hydrocarbon diesel biorefinery in Geismar.

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