Renewable Energy Group, Ames, Iowa, completed the purchase of a 30-million gallon per year capacity biodiesel plant in Mason City, Iowa, formerly owned by Soy Energy, LLC.
Former Soy Energy, LLC unit holders approved the sale in a vote Monday, July 29. Pursuant to the purchase agreement, REG acquired the biorefinery for $11 million in cash and the issuance of a $5.6 million promissory note. Due to a post-closing adjustment, the note was reduced to $5.1 million.
“We are very pleased to bring REG Mason City into our fleet of biorefineries because it helps us move forward with our growth strategy,” Daniel Oh, REG President and CEO, said in a statement. “We are happy to be restoring jobs to the community and look forward to working with local businesses as we work to re-open the plant.”
REG plans to repair and re-start the facility using soybean oil and low free fatty acid feedstocks by the end of the year. The acquisition brings the company’s total annual production capacity to 257 million gallons. REG now owns and operates eight active biorefineries. REG Mason City, LLC joins the company’s nearby plants in Newton and Ralston, Iowa and Albert Lea, Minnesota. REG also owns active plants in Illinois and Texas.
REG has begun the hiring process and expects to employ 15 to 25 full-time employees in family wage jobs when the plant is re-started.
Renewable Energy Group is a biodiesel producer with a nationwide distribution and logistics system. Utilizing an integrated value chain model, Renewable Energy Group is focused on converting natural fats, oils and greases into advanced biofuels. It has more than 255 million gallons of owned/operated annual production capacity at biorefineries across the country.
For more than a decade, REG has been a supplier of biodiesel that meets or exceeds ASTM quality specifications.