Renewable Energy Group Inc. announced it has completed the $20 million acquisition of approximately 82 acres of land at and in close proximity to its Geismar, Louisiana, biorefinery from Lion Copolymer.

The purchase includes land REG previously leased for its Geismar operations and approximately 62 additional acres in parcels adjacent to and near the facility. The company plans to improve and utilize the new acreage to support existing production capacity and future expansion opportunities. The purchase of the previously leased property will save REG approximately $35 million in future lease payments through 2033.

“Owning the land at REG Geismar saves money and provides longer-term certainty while the additional acreage opens up a wide range of opportunities to optimize and potentially expand our proven renewable hydrocarbon diesel platform,” said Daniel J. Oh, president and CEO of REG.

Some of the expansion and optimization projects REG is currently exploring include:

-Increasing the plant’s nameplate capacity by 37 million gallons through upgrades;

-Increasing the plant’s nameplate capacity by 10 million gallons through the installation of new equipment;

-Improving rail logistics at the site to reduce transloading and storage fees and increase access to growing West Coast LCFS markets; and

-Providing maritime access for greater volume shipments to premium markets.

A video highlighting the current and potential future optimizations at REG Geismar can be viewed on the company’s YouTube Channel here.

REG is also evaluating a number of other sites for expansion of the company’s renewable hydrocarbon diesel production capacity, including on or near REG’s plants in Seneca, Illinois, and Grays Harbor, Washington, in addition to other locations.

REG Geismar is a 75 MMgy biorefinery that produces renewable hydrocarbon diesel, along with renewable naphtha and LPG. The plant had been running on average at or above nameplate capacity since October, which is a record for the facility. REG recently announced that it will begin changing the catalyst bed this week. During that turnaround, REG will perform additional upgrades and improvements that are expected to extend the catalyst lifespan up to a year.