Renewable Energy Group, Inc. has secured financing of up to $20 million from First Midwest Bank for the $24-million capacity-expansion project at the company’s Ralston, Iowa biodiesel refinery. The upgrade project, announced last November, is expected to increase the annual nameplate capacity of the Ralston biorefinery from 12 million to 30 million gallons.
This would match the capacity at the company’s other Iowa biorefineries in Mason City and Newton.
This investment shows our continued confidence in biodiesel for the long-term.—Chad Stone, Chief Financial Officer
Iowa Senate File 2309, which was signed into law last year by Gov. Terry Branstad at REG’s Newton biorefinery, extends the existing 2 cents per gallon biodiesel production tax credit for seven years beginning 1 Januar 2018. In that year, the new law also adjusts the current retail incentive for fuel containing a minimum 5% biodiesel blend (B5) to 3.5 cents per gallon and creates a new 5.5 cents per gallon incentive for blends of B11 or more.
First Midwest Bank has also been involved in financing for REG Newton.
REG has grown from its beginnings in Ralston 21 years ago into North America’s largest biomass-based diesel producer. The company now owns 14 active biorefineries in the United States and Europe with a combined annual nameplate capacity of 502 million gallons.