USA: Plant Engineering Renewable Energy Holds Groundbreaking for Expanding, Upgrading Renewable Diesel Project
With an estimated project cost of 950 million dollars, Renewable Energy Group has plans to upgrade its existing Geismar renewable diesel project in Louisiana, USA as well as expand the project in order to produce 340 million gallons of renewable diesel per year.
Iowa/USA – Renewable Energy Group (REG) hosted a groundbreaking ceremony recently to celebrate the start of construction on the company’s improvement and expansion project at REG Geismar in Louisiana, USA. The project will take the total site production capacity from 90 million gallons per year to 340 million gallons per year, and bring more than 60 permanent jobs and up to 500 construction jobs to the area.
REG Geismar was the first renewable diesel production facility in the U.S. and was acquired by REG in 2014. Since that time, REG has been investing in the facility to improve safety, logistics and operational capabilities. REG first announced their plans for expansion of REG Geismar in 2020, and announced earlier this year that the project was being combined with an original plant improvement project, with both being advanced to construction phase. This groundbreaking marks the formal start of construction on the project.
Upon completion, the fuel produced at REG Geismar will annually reduce harmful CO2 emissions by up to 2.8 million metric tons, or the equivalent to greenhouse gas emissions from 7.1 billion miles driven by an average passenger vehicle.
“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 & CEO, Cynthia (CJ) 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. REG is helping lead the transition to cleaner, greener energy and this project is an exceptional example of that.”
The project will involve upgrades to the existing site, as well as an expansion that will be located adjacent to the existing site. Improvements will include enhanced marine logistics that will enable global trading of feedstocks and fuel. The company announced that the estimated project cost is 950 million dollars, and is expected to be mechanically complete by 2023 with full operability in 2024.
Upon completion, the fuel produced at REG Geismar will annually reduce harmful CO2 emissions by up to 2.8 million metric tons, or the equivalent to greenhouse gas emissions from 7.1 billion miles driven by an average passenger vehicle. REG received an incentive package from the state of Louisiana that contains comprehensive workforce support and tax incentives. The groundbreaking event included state and local lawmakers, as well as project partners and community members.