REG to close Texas biorefinery
Citing poor plant economics and the lack of a Biodiesel Tax Credit, Renewable Energy Group, Inc. has announced plans to close its New Boston, Texas, biorefinery.
“We truly appreciate all the efforts of our team and those that support our New Boston plant,” Brad Albin, vice president of Manufacturing, said. “They significantly improved safety, demonstrated capacity, yield, quality, and costs. However, these improvements could not overcome the unfavorable economics of the plant relative to our other options for ongoing focus and forward investment.”
The company is currently working with plant employees on relocation opportunities within the production network.
“This closure comes as a result of the poor economics over the last 18 months resulting in large part from the uncertainty surrounding the Biodiesel Tax Credit,” Cynthia J. Warner, REG president and CEO, said. “Despite significant bipartisan support, Congress’ inaction on this value-added incentive has led to unsustainable market conditions.”
REG officials said the firm leads the energy industry transition to sustainability by transforming renewable resources into high-quality, cleaner fuels – noting it is an international producer of cleaner fuels and North America’s largest producer of biodiesel.
REG solutions are alternatives for petroleum diesel and produce significantly lower carbon emissions, per officials, adding it utilizes an integrated procurement, distribution, and logistics network to operate 14 biorefineries domestically and in Europe.
