AMES, IA- 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.