Renewable Energy Group starts $31M upgrade of Danville, IL biorefinery
In Illinois, Renewable Energy Group announced that it will invest $31 million to upgrade and enhance the Company’s Danville, Illinois biodiesel refinery, and broke ground on the improvement project.
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. 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.
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 80-100 full-time contract workers. The Danville project marks the sixth major biorefinery enhancement REG has undertaken since late 2012, following completed upgrades at their Albert Lea, MN, Seneca, IL, Mason City and Newton, IA biodiesel plants and ongoing improvements at the Company’s renewable hydrocarbon diesel biorefinery in Geismar, LA.
“REG Danville already has a proven record of success as part of our network of multi-feedstock biorefineries,” said Daniel J. Oh, President and CEO. “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.”
Category: Fuels
