Blackhawk Biofuels LLC has acquired a 45 MMgy biodiesel production facility under construction in Danville, Ill., from Biofuels Co. of America LLC.
As part of the signed agreement, Renewable Energy Group Inc. is providing financing in the form of a convertible loan to Blackhawk. Also participating in the financing is Fifth Third Bank.
“Renewable Energy Group Inc. is proud to partner with Blackhawk Biofuels on the purchase and management of this facility,” said Nile Ramsbottom, president of REG. “The opportunity to add production capacity for high quality biodiesel from the Blackhawk facility to the REG network is significant. This is an excellent business and growth opportunity for Renewable Energy Group, Inc. and through our investment, demonstrates our continued commitment to, and confidence in, the biodiesel industry.”
REG will manage facility operations and staff at the Danville facility, procure feedstocks and market the biodiesel as part of a management, operations and services agreement with Blackhawk Biofuels. The facility, which is located adjacent to a soybean crushing facility owned by Bunge North America, was designed to exclusively use vegetable oil; however Blackhawk Biofuels and REG will upgrade the plant’s process technology to allow for multiple feedstocks. “Located on the Indiana/Illinois border, Danville is a strategic location of choice for us to continue building our nation’s biodiesel future,” added REG’s Chief Operating Officer, Daniel J. Oh. “Upgrades to the facility will further enhance the plant’s market advantages. We expect Danville to become a premier facility in the REG network focused on our marketing capabilities in Illinois, Indiana and Ohio.”
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The state’s continued commitment for the Danville facility includes financial support in the form of a state credit enhancement from the Office of Illinois Governor Blagojevich and the Illinois Finance Authority. Biodiesel production at the plant is expected to begin as early as this fall, Oh added. “As the facility brings on employees for family wage, skilled, green collar jobs, we appreciate Governor Blagojevich's continued support of this facility and the community," he said.