MOSCOW (MRC) -- Governor John Bel Edwards and president and CEO Cynthia “CJ” Warner of Renewable Energy Group (REG) announced a minimum USD825 million capital investment by REG to expand its renewable diesel refinery in Geismar, Louisiana, said Hydrocarbonprocessing.
With the investment, REG will retain 66 existing jobs and create 60 new direct jobs with an average annual salary of $45,000, plus benefits. Louisiana Economic Development (LED) estimates the project will result in another 321 new indirect jobs, for a total of 381 new jobs in the capital region and surrounding areas.
"Louisiana is recognized as a global leader in energy,” Governor Edwards said. “That’s an accomplishment we take great pride in, especially as we pursue lower greenhouse gas emissions through our Climate Initiatives Task Force. Attracting investments like REG’s low-carbon project shows Louisiana can be both an energy leader and a climate leader." Built with Gulf Opportunity Zone bonds in Geismar a decade ago, the former Dynamic Fuels refinery was acquired by REG in 2014. In addition to the REG Geismar renewable diesel refinery, REG has become the largest biodiesel producer by volume in the U.S., operating 11 biodiesel refineries in the U.S. and Germany. The new project will more than triple REG’s renewable fuel capacity in Geismar from 90 MM gallons per year to more than 340 MM gallons annually.
"REG Geismar has proven to be a tremendous asset for our company and is a natural site for increasing production of our lower carbon renewable diesel,” Warner said. “The State of Louisiana and Ascension Parish have been great partners who encouraged us every step along the way as we developed our expansion plan. They truly understand the broad economic and environmental benefits that renewable fuels provide, and we look forward to our continued partnership with them as we undertake this project."
Biorefineries differ from petroleum fuel refineries, in that they use recycled cooking oils, animal fats and other non-fossil feedstocks instead of crude oil. The outcome is a cleaner-burning fuel with a lighter impact on the atmosphere. Biodiesel is often blended as a drop-in fuel, typically at concentrations of up to 20 percent without engine modifications, while the renewable diesel made at Geismar can be used as a 100 percent renewable drop-in fuel.
“We are very pleased that REG has chosen to invest in their renewable diesel facility here in Geismar, expanding a product line that reduces tailpipe emissions and decreases the carbon footprint,” Ascension Parish president Clint Cointment said. “Additionally, the planned marine and rail infrastructure upgrades will allow for supplementary shipping methods, reducing the number of trucks on local roadways."
LED began discussions with REG about a potential refinery expansion in June 2020. To secure the project, the State of Louisiana offered the company a competitive incentive package that includes the comprehensive workforce solutions of the nation’s No. 1 state workforce program, LED FastStart®, and a $5 million performance-based grant, payable in equal installments over five years, to offset infrastructure costs. In addition, REG is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs.
In Geismar, REG anticipates beginning construction of the biorefinery expansion in mid-to-late 2021 and completing the project in late 2023, with the majority of new employees hired that year.
Ethylene and propylene are feedstocks for producing PE and polypropylene (PP).
According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.
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