REG finishes upgrades to Iowa biodiesel refinery

Renewable Energy Group has completed the upgrades to its 30-million gallon nameplate biorefinery in Newton, Iowa, which allows the plant to produce an even higher purity biomass-based diesel from a wider variety of raw materials.

REG broke ground on the $13.2 million project in February and completed it in November, four months ahead of schedule and on budget.

In addition to the production process upgrades, a further $2.6 million was invested to expand storage capacity by 2 million gallons and enhance logistics, for a total investment of $15.8 million.

“Enhancing REG Newton’s distillation and processing capabilities strengthens our lower-cost, multi-feedstock biomass-based diesel business and provides customers with more fuel options both in the Midwest and nationwide,” said Daniel J. Oh, REG president and CEO. “This plant was already a high performing facility that deserved additional investment and I am confident the return on investment will be rapid.”

The project provides Newton with production capabilities similar to those at the REG Albert Lea biorefinery.

The upgraded process, including distillation, removes impurities and leaves behind a very pure form of biomass-based diesel. The final product far exceeds industry quality standards, while meeting REG’s more rigorous REG-9000 specifications. The fuel also performs better in colder temperatures.

“These improvements allow REG Newton to provide customers with the highest quality end product at a full 30 million gallons a year utilization rate for a wide array of raw materials, including inedible corn oil,” said Brad Albin, REG's vice president of manufacturing. “This increased feedstock flexibility drives demand for local feedstock suppliers, enabling them to keep their products in the region.”

REG now owns 10 operational biorefineries in six states, including two other Iowa plants in Ralston and Mason City.