Renewable Energy Group is investing at least $825 million of capital to expand its renewable diesel refinery in Geismar, the Baton Rouge Area Chamber announced today in conjunction with Gov. John Bel Edwards and REG CEO Cynthia “CJ” Warner.
The planned biorefinery expansion will more than triple REG’s renewable fuel capacity in Geismar, from 90 million gallons per year to over 340 million gallons annually. Moreover, the project will create 60 new direct jobs with an average salary of $45,000, plus benefits, while Louisiana Economic Development also estimates another 321 new indirect jobs will result from the expansion, bringing a total of 381 new jobs to the Capital Region.
To secure the project, which has been in the works since June, the state offered the company an incentive package that includes the LED FastStart program and a $5 million performance-based grant, payable in equal installments over five years, to offset infrastructure costs. The company is also expected to use the state’s Quality Jobs and Industrial Tax Exemption Programs.
In a prepared statement, Warner says REG Geismar is a “natural site” for increasing production of its lower carbon renewable diesel. REG, which acquired the refinery from Dynamic Fuels in 2014, has become the nation’s largest biodiesel producer, operating 11 biodiesel refineries in the U.S. and Germany. Biorefineries differ from petroleum fuel refineries in that they use recycled cooking oils, animal fats and other non-fossil feedstocks instead of crude oil, the outcome being a cleaner-burning fuel with a lighter impact on the atmosphere.
“We are very pleased that REG has chosen to invest in their renewable diesel facility here in Geismar, expanding a product line that reduces tailpipe emissions and decreases the carbon footprint,” says Ascension Parish President Clint Cointment in a prepared statement. “Additionally, the planned marine and rail infrastructure upgrades will allow for supplementary shipping methods, reducing the number of trucks on local roadways.”
REG anticipates beginning construction in mid-to-late 2021 and completing the project in late 2023, with the majority of new employees hired that year.
