Renewable Energy Group, Inc. (NASDAQ:REGI) leadership expressed
appreciation for, and support of, the increased U.S. biomass-based
diesel volumes announced today by the Environmental Protection Agency.
Under the final Renewable Volume Obligation (RVO) rule issued by EPA,
the minimum standard for biomass-based diesel will grow over the next
two years from 1.73 billion gallons in 2015 to 1.90 billion gallons in
2016 and 2.00 billion gallons in 2017. The 2015, 2016 and 2017 volumes
represent increases from the EPA’s proposed rule. The agency also
retroactively finalized the volume for 2014 at 1.63 billion gallons.
Additionally, the minimum standard for the advanced biofuel category
under the final RVO is 2.88 billion ethanol-equivalent RINS for 2015 and
3.61 billion ethanol-equivalent RINS for 2016.
“We asked EPA for two things in this process—longer-term certainty and
growth for biomass-based diesel--this final rule provides both,” said
Daniel J. Oh, President and CEO. “This supports a solid, positive growth
trajectory for biomass-based diesel over the next two years,
particularly when you consider that this was a 1 billion gallon industry
less than four years ago.”
“This final rule is supportive of the growth strategy of our company. We
owe a great deal of gratitude and thanks to our country’s advocates at
the EPA, within the Administration and on Capitol Hill for not giving up
and getting this long-awaited rule finalized.”
REG increased its industry-leading production capacity this year with
its recent acquisition of the biodiesel refinery in Grays Harbor,
Washington. REG’s active biorefineries in the U.S. now have a combined
nameplate capacity of 432 million gallons annually. Further, the company
also has a majority stake in German biodiesel producer, Petrotec, which
has another 55 million gallons of capacity at two plants.
“This increased final RVO provides a solid foundation for REG to
continue growth,” Oh said.
About Renewable Energy Group
Renewable Energy Group, Inc. is a leading North American advanced
biofuels producer and developer of renewable chemicals. REG utilizes a
nationwide production, distribution and logistics system as part of an
integrated value chain model to focus on converting natural fats, oils
and greases into advanced biofuels and converting diverse feedstocks
into renewable chemicals. With 11 active biorefineries across the
country, research and development capabilities and a diverse and growing
intellectual property portfolio, REG is committed to being a long-term
leader in bio-based fuels and chemicals.
For more than a decade, REG has been a reliable supplier of advanced
biofuels which meet or exceed ASTM quality specifications. REG sells
REG-9000™ biomass-based diesel to distributors so consumers can have
cleaner burning fuels that help diversify the energy complex and
increase energy security. REG-9000™ biomass-based diesel is distributed
in most states in the US. REG also markets ultra-low sulfur diesel and
heating oil in the northeastern and midwestern US. For more information
on REG visit our website at www.regi.com.
Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 as
amended, including statements regarding the future growth of each of the
minimum standard for biomass-based diesel and the minimum standard for
the advanced biofuel category, and the expected growth and growth
strategy of REG in North America and internationally. These
forward-looking statements are based on current expectations, estimates,
assumptions and projections that are subject to change, and actual
results may differ materially from the forward-looking statements.
Factors that could cause actual results to differ materially include,
but are not limited to our financial performance, including revenues,
cost of revenues and operating expenses; government programs,
policymaking and mandates relating to renewable fuels; the availability,
future price and volatility of feedstocks; the future price and
volatility of petroleum; our liquidity and working capital requirements;
anticipated trends and challenges in our business and competition in the
markets in which we operate; our ability to successfully implement our
acquisition strategy and integration strategy; progressing facilities
currently under development to the construction and operational stages,
including planned capital expenditures and our ability to obtain
financing for such construction; our ability to protect proprietary
technology and trade secrets; the development of competing alternative
fuels and energy services; our risk management activities; product
performance, in cold weather or otherwise; seasonal fluctuations in our
business; our current products as well as products we are developing;
and other risks and uncertainties described from time to time in REG's
quarterly report on Forms 10-Q for the period ended September 30, 2015,
annual report on Form 10-K for the year ended December 31, 2014 and
other periodic filings with the Securities and Exchange Commission. All
forward-looking statements are made as of the date of this press release
and REG does not undertake to update any forward-looking statements
based on new developments or changes in our expectations.
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