Renewable Energy Group

Last updated
Renewable Energy Group, Inc.
Company type Subsidiary
Nasdaq: REGI
Industry Renewable energy industry
PredecessorWest Central Cooperative
Founded2006 (2006) [1]
Headquarters Ames, Iowa, United States
Key people
Cynthia Warner, President & CEO [2]
Products Biodiesel
RevenueDecrease2.svg $2.135 billion (2020) [3]
Decrease2.svg $122.813 million (2020) [3]
Total assets Decrease2.svg $1.461 billion (2020) [3]
Number of employees
900+ (US), 126 (Intl) (2017) [1]
Parent Chevron Corporation
Website www.regi.com

Renewable Energy Group is a biodiesel production company headquartered in Ames, Iowa. The company operates 12 biorefineries and a feedstock processing facility. [4] As of 2018, the company is a Fortune 1000 corporation. [5]

Contents

History

Renewable Energy Group began in 1996 as the biodiesel division of West Central Cooperative [6] [7] with the construction of a plant in Ralston, Iowa. In 2006, the company separated from West Central and moved its headquarters to Ames. [8]

In 2013, the company acquired Tulsa-based biofuels company Syntroleum Corporation amid that company's struggles for profitability. [9] In 2015 it acquired the assets of Grays Harbor, Washington-based biodiesel company Imperium Renewables. [10]

On February 28, 2022, the company announced they would be acquired by the California-based oil company Chevron Corporation. [11] On June 13, the acquisition was completed. [12]

Leadership

Upon separation from West Central, the initial CEO of the company was Jeff Stroburg, succeeded in 2011 by Daniel Oh. [8] After Oh's abrupt and unexpected resignation in 2017, Reginald Howard became interim CEO, and was replaced in 2018 by Cynthia Warner. [13] [2]

Plant explosions

In June 2001, the predecessor company's InterWest facility in Ralston exploded, leaving one man in critical condition. [14] [15]

The company's biofuels production facility in Geismar, Louisiana suffered from explosions in April and September 2015. [16] As a result of this explosion, Renewable Energy Group was cited with three "willful" safety violations and was fined $70,000 by OSHA. [17]

Related Research Articles

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Biofuel is a fuel that is produced over a short time span from biomass, rather than by the very slow natural processes involved in the formation of fossil fuels such as oil. Biofuel can be produced from plants or from agricultural, domestic or industrial biowaste. Biofuels are mostly used for transportation, but can also be used for heating and electricity. Biofuels are regarded as a renewable energy source. The use of biofuel has been subject to criticism regarding the "food vs fuel" debate, varied assessments of their sustainability, and possible deforestation and biodiversity loss as a result of biofuel production.

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Syntroleum Corporation was a United States company engaged in development and commercialization of proprietary gas to liquids (GTL) and coal to liquids (CTL) processes known jointly as the Syntroleum Process. Renewable Energy Group acquired the company on June 3, 2014.

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The United States produces mainly biodiesel and ethanol fuel, which uses corn as the main feedstock. The US is the world's largest producer of ethanol, having produced nearly 16 billion gallons in 2017 alone. The United States, together with Brazil accounted for 85 percent of all ethanol production, with total world production of 27.05 billion gallons. Biodiesel is commercially available in most oilseed-producing states. As of 2005, it was somewhat more expensive than fossil diesel, though it is still commonly produced in relatively small quantities.

Biofuel is fuel that is produced from organic matter (biomass), including plant materials and animal waste. It is considered a renewable source of energy that can assist in reducing carbon emissions. The two main types of biofuel currently being produced in Australia are biodiesel and bioethanol, used as replacements for diesel and petrol (gasoline) respectively. As of 2017 Australia is a relatively small producer of biofuels, accounting for 0.2% of world bioethanol production and 0.1% of world biodiesel production.

Grays Harbor Biodiesel Plant is the second largest biodiesel production facility in the United States, with an annual capacity of 100 million US gallons (380,000 m3) per year. The facility is sited on a 12-acre (49,000 m2) parcel of land at the Port of Grays Harbor, Washington.

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Biogasoline is a type of gasoline produced from biomass such as algae. Like traditionally produced gasoline, it is made up of hydrocarbons with 6 (hexane) to 12 (dodecane) carbon atoms per molecule and can be used in internal combustion engines. However, unlike traditional gasoline/petroleum based fuels, which are mainly composed from oil, biogasolines are made from plants such as beets and sugarcane or cellulosic biomass- substances normally referred to as plant waste.

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An aviation biofuel is a biofuel used to power aircraft and is a sustainable aviation fuel (SAF). The International Air Transport Association (IATA) considers it a key element in reducing the environmental impact of aviation. Aviation biofuel is used to decarbonize medium and long-haul air travel. These types of travel generate the most emissions, and could extend the life of older aircraft types by lowering their carbon footprint. Synthetic paraffinic kerosene (SPK) refers to any non-petroleum-based fuel designed to replace kerosene jet fuel, which is often, but not always, made from biomass.

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References

  1. 1 2 "FORM 10-K". Securities and Exchange Commission. Retrieved 6 March 2019.
  2. 1 2 "Renewable Energy Group Names Cynthia Warner President, CEO". Transport Topics. 10 December 2018. Retrieved 6 March 2019.
  3. 1 2 3 "Annual Report 2020". Renewable Energy Group. Retrieved 4 April 2020.
  4. "About REG". Footer Border Renewable Energy Group, Inc. Retrieved 6 March 2019.
  5. "Renewable Energy Group". Fortune. Retrieved 6 March 2019.
  6. Mika, Dan (3 Nov 2017). "REG marks 10 years". Ames Tribune. Retrieved 6 March 2019.
  7. "West Central Coop: Adding Value for 75 Years". Midwest Partnership. Retrieved 6 March 2019.
  8. 1 2 Enabling a Cleaner World: The History of Renewable Energy Group, 1995-2015. Renewable Energy Group, Inc. 2017. pp. 64–75. ISBN   978-0-9978284-0-5 . Retrieved 6 March 2019.
  9. Walton, Rod (19 December 2013). "Syntroleum Corp. being acquired by Renewable Energy Group". Tulsa World. Retrieved 6 March 2019.
  10. González, Ángel (4 August 2015). "Imperium Renewables biodiesel plant sold to Iowa company". Seattle Times. Retrieved 6 March 2019.
  11. "Chevron Announces Agreement to Acquire REG".
  12. "Chevron Completes Acquisition of Renewable Energy Group".
  13. Mika, Dan (5 July 2017). "REG CEO unexpectedly resigns". Ames Tribune. Retrieved 6 March 2019.
  14. "Man injured in plant explosion in critical condition". The Rock Island Dispatch-Argus. Associated Press. 20 June 2001. Retrieved 6 March 2019.
  15. Heman, Butch (20 June 2001). "One Injured in InterWest Explosion" (PDF). Daily Times Herald. Retrieved 6 March 2019.
  16. Mitchell, David (10 September 2015). "Medical conditions upgraded for burn victims in Renewable Energy Group plant explosion". The Advocate. Retrieved 6 March 2019.
  17. Mitchell, David (16 March 2016). "OSHA fines Geismar plant $70,000 over September explosion that injured four". The Advocate. Retrieved 6 March 2019.