Renewable Energy Group: Biofuels Digest’s 5-Minute Guide

November 19, 2012 |

Renewable Energy Group is North America’s largest biodiesel manufacturer and marketer. Utilizing an integrated supply chain model, Renewable Energy Group is focused on converting triglycerides into advanced biofuels. With more than 212 million gallons of owned/operated annual production capacity REG is a proven partner in the distillate marketplace.

Address:

416 S. Bell Ave, Ames IA 50010

Founded:
Biodiesel business dates to 1996; Renewable Energy Group was incorporated in 2006 as a spin‐off of its predecessor company, West Central.

Major Investors
• West Central and affiliated entities
• Natural Gas Partners
• US Renewables Group •
Bunge North America, Inc.

Type of Technology(ies)
Integrated biorefinery process technology

Feedstocks:
• Commercialized: Animal fats (pork, beef, poultry), Inedible corn oil, Used cooking oil, Vegetable oils (soybean, canola)
•Development/Research State – Algae, Camelina, Jatropha

Fuel Type:
Biodiesel

Co-products
• Glycerin (three grades)
• Free fatty acid
• Soapstock
• Oleolipids

3 Top Past Milestones

Completed 2012 IPO.

1. Consolidated leading position in biodiesel industry.
a. Central Iowa Energy, LLC (February 2010)
b. Blackhawk Biofuels, LLC (February 2010)
c. Nova Biosource Fuels 60 MGY biodiesel facility (April 2010) SEC 8‐K filing
d. Tellurian Biodiesel, Inc. (July 2010)
e. American BDF (a joint venture of Golden State Foods, Restaurant Technologies
Inc. and Tellurian Biodiesel) (July 2010)
f. ARES Corporation’s Clovis New Mexico 15 MGY biodiesel facility
(Sept. 2010), which included an $8mm strategic investment by ARES

2. Awarded multi‐month contract for B100 with Hawaiian Electric Power Cooperative to fuel electric power generation

3. Published “Feedstock and Biodiesel Characteristics Report” available for industry use and download outlining the conversion of more than 30 commercial and novel feedstocks into ASTM specification biodiesel. Approx. 5,000 downloads to date.

Future Milestones

1. Expand into additional renewable fuels and renewable chemicals markets
2. Build upon market leadership through strategic acquisitions of existing biodiesel plants
3. Complete the 60 MGY REG New Orleans facility as fully integrated biorefinery
4. Raise growth‐oriented capital
5. Expand current pilot algae to fuel/chemical to small‐scale demonstration

Business Model:
Producer and marketer of renewable fuels and chemicals

Competitive Edge(s):

• Processing technology resulting in advanced fuel quality
• Nationwide marketing distribution
• Industry collaboration and partnership
• Experienced and expert management team

Distribution, Research, Marketing or Production Partnerships or Alliances

As largest biodiesel producer and marketer in North America, with a well established reputation for quality and reliability, REG sees significant growth opportunity fueled by the implementation of RFS2. REG leads the industry in its U.S. biodiesel distribution network having sold biodiesel in every state except Alaska.

REG is able to process the widest array of commercially available feedstocks and has aggressively converted the majority of its biodiesel production assets into waste feedstock biodiesel facilities. REG has also partnered with low cost waste feedstock providers to provide large, consistent, reliable volumes of waste feedstock, which is indexed to the energy markets rather than the agricultural markets, enabling REG to more effectively manage commodity risk for itself and its customers.

Research • General Atomics DARPA Algae‐to‐Jet Fuel Project Team Member • Battlefield Clutter: Waste‐to‐Energy Program through General Atomics • Locomotive biodiesel engine performance testing in collaboration with Interstate
Railroad and Kansas University

Stage
Renewable Energy Group is the largest commercial producer of biodiesel in North America. We are also a partner/commercialization vehicle for new fuels and renewable chemicals being developed by others.

Company website

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Category: 5-Minute Guide

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