Renewable Energy Group's Acquisition of U.S. Biodiesel Group
Iowa-based Renewable Energy Group® has received regulatory approval to complete the previously announced acquisition of a biodiesel production facility in Houston, Texas and a liquid storage terminal in California. Construction of the biodiesel facility is complete and Renewable Energy Group slated biodiesel production start-up on July 7.
REG Houston will be utilized under a newly signed manufacturing agreement, which will allow the 35 MGY facility to run at or near full capacity. Under the contract, REG will manage production operations and ensure the finished biodiesel exceeds ASTM quality specifications. Soybean oil is expected to be the primary feedstock under the agreement.
The facility includes an on-site laboratory, raw material and finished product storage as well as truck, rail, deepwater and pipeline access.
With the completion of the acquisition, all former U.S. Biodiesel Group employees at the Houston facility remain there as part of the Renewable Energy Group staff.