REG completes $34.5 million upgrade project at Danville plant

Renewable Energy Group Inc. marked the completion of $34.5 million in upgrades and enhancements of its Danville, Illinois, biorefinery Oct. 4 with a ribbon-cutting ceremony and visit by U.S. Rep. John Shimkus, R-Illinois.

The upgrades include the addition of biodiesel distillation and other manufacturing upgrades, which will allow the 45 MMgy biorefinery to use a wider array of lower carbon intensity feedstocks. The project also included logistical improvements such as an additional truck loadout, new warehouse and office space, and the acquisition and integration of approximately 13 million gallons of biofuel and feedstock storage from the neighboring Bunge facility, which will significantly improve year-round production and storage capabilities at REG Danville and within REG’s logistics system. Additionally, REG acquired property surrounding the plant complex to increase its footprint from eight to nearly 30 acres.

“This is a culmination of more than two years of work not just within REG, but also with our contractors, our longtime lending partner Fifth Third Bank, the city of Danville, Vermillion County, and local residents,” said Daniel Oh, REG president and CEO. “We now have a stronger REG Danville that can produce high-quality, lower carbon intensity biofuel from a wider variety of crude raw materials in a part of the country where they are abundant.”

Area civic and business leaders and contractors involved in the project joined REG leadership and staff for the ribbon-cutting ceremony. Among the speakers was Rep. Shimkus, a senior member of the House Energy & Commerce Committee and longtime biodiesel advocate.

“Biodiesel adds value to the economy and it helps improve the environment, supports jobs throughout the supply chain and strengthens our energy security,” Shimkus said.

REG acquired the Danville biorefinery in 2010 from Blackhawk Biofuels LLC. It is one of the company’s 11 biomass-based diesel refineries across the U.S. that have a combined nameplate production capacity of 452 MMgy, making REG the leading producer of advanced biofuels in North America.

A video on the Danville upgrades, part of a series celebrating REG’s 10-year anniversary as an independent company, can be viewed at the company’s website.