REG acquires Bulldog Biodiesel; 2nd plant acquisition in 3 weeks
In its second acquisition in the past three weeks, Renewable Energy Group Inc. announced the purchase of a 15 MMgy biodiesel production plant near Atlanta, formerly Bulldog Biodiesel. The multifeedstock facility, which will operate as REG Atlanta LLC, is located in Ellenwood, Ga., 11 miles southeast of Atlanta with easy access to major Southeast transportation routes. REG acquired the former BullDog Biodiesel operation for cash and in-kind consideration of approximately $2.6 million. No stock was issued related to the deal.
“Renewable Energy Group is focused on strategically expanding our footprint of biodiesel production facilities,” said REG President and CEO Daniel J. Oh. “Once repaired, upgraded and restarted the REG Atlanta facility will offer us additional long-term capacity to meet high-demand diesel markets across the Southeast.”
The company has not yet set a production date for the restart of the former BullDog Biodiesel facility, which has run intermittently since January 2008.
REG tolled the facility from April 2011 through April 2012 to support REG’s biodiesel sales in the Southeast. BullDog ceased operations in April due to a combination of poor market conditions and upgrades needed to make the facility more efficient.
“Our team has demonstrated a successful model for integrating new technologies into our network and upgrading facilities to utilize lower cost raw materials,” said REG Vice President of Manufacturing, Brad Albin. This refinery was designed to produce biodiesel from a variety of feedstocks, including used cooking oil.
Since 2008, Renewable Energy Group has acquired 10 biodiesel-related firms or production facilities. Most recently, on Oct. 26, REG acquired a 15 MMgy biodiesel facility in New Boston, Texas, slated to begin production in the first quarter of 2013.
Renewable Energy Group is a leading North American biodiesel producer with a nationwide distribution and logistics system. Utilizing an integrated value chain model, Renewable Energy Group is focused on converting natural fats, oils and greases into advanced biofuels. With more than 225 million gallons annual production capacity at biorefineries across the country, REG is a proven biodiesel partner in the distillate marketplace. For more than a decade, REG has been a reliable supplier of biodiesel that meets or exceeds ASTM quality specifications. It sells REG-9000 biodiesel to distributors so Americans can have cleaner burning fuels that help lessen dependence on foreign oil. REG-9000-branded biodiesel is distributed in nearly every state in the U.S.