Renewable Energy Group, Inc. (REG) has expressed appreciation for, and support of, the increased US biomass-based diesel volumes announced by the Environmental Protection Agency (EPA).
Under the final Renewable Volume Obligation (RVO) rule issued by EPA, the minimum standard for biomass-based diesel will grow over the next two years from 1.73 billion gal. in 2015 to 1.90 billion gal. in 2016 and 2.00 billion gal. in 2017. The 2015, 2016 and 2017 volumes represent increases from the EPA’s proposed rule. The agency also retroactively finalised the volume for 2014 at 1.63 billion gal. Additionally, the minimum standard for the advanced biofuel category under the final RVO is 2.88 billion ethanol-equivalent RINS for 2015 and 3.61 billion ethanol-equivalent RINS for 2016.
“We asked EPA for two things in this process – longer term certainty and growth for biomass-based diesel – this final rule provides both,” said Daniel J. Oh, President and CEO. “This supports a solid, positive growth trajectory for biomass-based diesel over the next two years, particularly when you consider that this was a 1 billion gal. industry less than four years ago.”
“This final rule is supportive of the growth strategy of our company. We owe a great deal of gratitude and thanks to our country’s advocates at the EPA, within the Administration and on Capitol Hill for not giving up and getting this long awaited rule finalised.”
REG increased its industry leading production capacity this year with its recent acquisition of the biodiesel refinery in Grays Harbor, Washington. REG’s active biorefineries in the US now have a combined nameplate capacity of 432 million gal./y. Further, the company also has a majority stake in German biodiesel producer, Petrotec, which has another 55 million gal. of capacity at two plants.
“This increased final RVO provides a solid foundation for REG to continue growth,” Oh said.
Adapted from press release by Rosalie Starling