Renewable Energy Group Inc. is closing its 15 MMgy biodiesel plant in New Boston, Texas, which the company acquired in 2012. REG is closing the multifeedstock facility due to “challenging business conditions and continued federal policy uncertainty, most notably the long-lapsed federal biodiesel tax credit,” the company stated.

Scott Hedderich, REG’s executive director of corporate affairs, told Biodiesel Magazine that the plant is not being dismantled, and the company will eventually consider selling the asset.   

“We truly appreciate all the efforts of our team and those that support our New Boston plant,” said Brad Albin, REG vice president of manufacturing. “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.”

REG is working with plant employees to relocate those who wish to remain with the company.

“This closure comes today as a result of the poor economics over the past 18 months resulting in large part from the uncertainty surrounding the biodiesel tax credit,” said Cynthia J. Warner, REG president and CEO. “Despite significant bipartisan support, Congress’ inaction on this value-added incentive has led to unsustainable market conditions.”