Renewable Energy Group Announces Closure Of Houston Biodiesel Plant

Feedstock Processing And Leasing Challenges Lead To Plant Closure

Renewable Energy Group Inc. (REG) announced the closing of its 35 million gallon (132 liter) per year nameplate capacity facility located near Houston.

REG acquired and commissioned the plant in 2008 and has been operating it since. “We have made the decision not to renew the lease for our REG Houston biorefinery, which would have imposed an uncompetitive fixed cost on the plant,” said REG President and CEO Cynthia ‘CJ’ Warner. “The plant has run very well but has always been relatively challenged due to its leasing agreement coupled with a lack of REG’s hallmark multi-feedstock processing capability.”

The company is currently working with plant employees on relocation opportunities within the production network. The company will completely shut down the Houston plant in November 2021. “It is never an easy decision to shut down a plant,” said Warner. “We greatly appreciate the team at REG Houston for their dedication to safety and operational excellence. Within our larger system, we remain focused on executing our growth strategy and we will continue to work with our existing customers and vendors to provide clean fuel solutions that are delivering meaningful carbon reduction today.”