, Farm Journal Business & Crops Online Editor
Three commercial-scale biodiesel plants in Iowa and Illinois will now become one. Renewable Energy Group (REG) announced this week it will consolidate three plants – Western Iowa Energy; Central Iowa Energy, LLC; and Blackhawk Biofuels, LLC.
"We believe this proposed consolidation brings greater economies of scale, streamlined central management of complex logistics and decision]making processes, and enhanced risk]management opportunities,” said Daniel J. Oh, Renewable Energy Group president and chief operating officer, in a news release. "By more efficiently managing our business and strengthening distribution channels, REG will continue to partner with obligated parties of the RFS in order to reduce our nation's reliance on foreign oil.”
The consolidating plant specifics:
- Western Iowa Energy: a 30 MGY facility in Wall Lake, Iowa
- Central Iowa Energy, LLC: a 30 MGY facility in Newton, Iowa
- Blackhawk Biofuels, LLC: a 45 MGY facility in Danville, Ill.
Jeff Stroburg, Renewable Energy Group's chairman and CEO, said demand by major petroleum distributors and oil refiners were a major factor in the decision to consolidate the plants.
The consolidated company, Renewable Energy Group, will be owned by the current members of the three acquired companies and current REG investors, including Bunge North America, ED&F Man, Natural Gas Partners, NGP Energy Technology Partners, US Renewables Group and West Central Cooperative.
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