REG breaks ground on $950M expansion project

In Louisiana, Renewable Energy Group, Inc. hosted a groundbreaking ceremony on Wednesday to celebrate the start of construction on the company’s improvement and expansion project at REG Geismar. The project will take 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.

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 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.