By Myke Feinman
DTN Refined Fuels Reporter
STREATOR, Ill. (DTN) -- Renewable Energy Group said Thursday it paid off long-term debt obligations against its 60-million-gallon-per-year biodiesel production plant in Seneca, Illinois.
REG Seneca, LLC retired its outstanding long-term debt obligation of $34.5 million on Dec. 21 with cash generated from operations since April 2010.
"When we acquired Seneca, we believed the restrictive debt structure was appropriate because the plant was purchased out of bankruptcy," stated Daniel J. Oh, REG president and CEO.
Oh said as REG Seneca came online and its production technology was proven, the natural cash flow generated from the biorefinery allowed REG to pay off the debt.
"This debt repayment makes it more likely that we will be able to grow our business, implement new refining technologies, and grow our employee base," Oh added.
REG is the largest North American biodiesel producer with a nationwide distribution and logistics system and biodiesel capacity to produce more than 225 MMGY.
Myke Feinman can be reached at email@example.com