REG Puts Illinois Biodiesel Plant Back to Work

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Researched by Industrial Info Resources (Sugar Land, Texas)--Investor-owned Renewable Energy Group Incorporated (Ames, Iowa) and subsidiary REG Seneca LLC (Seneca, Illinois) have resumed production at the former Nova Biosource Fuels plant in Seneca, Illinois.

The original plant was built in 2006 and was shuttered in 2008 during a struggling time in the biodiesel market. REG acquired the plant in April of this year for an estimated $68 million and performed renovation and upgrades to equipment and technology. The 60 million-gallon-per-year plant is now back online, putting 38 eager employees back to work.

The plant utilizes flexible feedstock material, including cooking oil, animal fat and other vegetable oils. The plant is configured with three 20 million-gallon-per-year biodiesel process units, a glycerin-refining system, raw material and finished-product storage tanks, as well as unloading and loading for rail, car and truck.

REG is the largest biodiesel producer in the United States, producing 212 million gallons of biodiesel annually at seven production facilities. The company has been struggling with margins since the $1 tax credit expired at the end of 2009. Whether the credit will be reinstated remains uncertain.

Since that time, the company has reduced staff by 45% and has reduced production throughput at remaining operational facilities. Idling production at the companies plants in Newton and Ralston in Iowa resulted in the release of 22 employees. Many biodiesel producers in the country have been struggling, as well forcing layoffs and idling plant production.

REG has plants in Ralston (shuttered), Newton, Wall Lake, Farley and Washington in Iowa and additional plants in Houston, Texas, and Danville, Illinois.

Industrial Info's Ethanol Database provides a comprehensive outline of all current development activities in the emerging alternative fuels market. This database covers 177 ethanol plants in operation and 530 plants under development. It also covers 145 operational biodiesel plants and 245 biodiesel plants under development.

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