STREATOR, Ill. (DTN) -- Renewable Energy Group said in a news release this afternoon it completed the purchase Tuesday (7/30) of a 30-million-gallon per-year capacity biodiesel plant in Mason City, Iowa, formerly owned by Soy Energy, LLC.
Former Soy Energy, LLC unit holders approved the sale in a vote Monday (7/29). REG purchased the biorefinery for $11 million in cash and a $5.1 million promissory note.
"We are very pleased to bring REG Mason City into our fleet of biorefineries because it helps us move forward with our growth strategy," said Daniel Oh, REG president and CEO. "We look forward to working with local businesses as we work to re-open the plant."
REG plans to repair and restart the facility using soybean oil and low free fatty acid feedstocks by the end of the year. The acquisition brings the company's total annual production capacity to 257 million gallons. REG now owns and operates eight active biorefineries. REG Mason City, LLC joins the company's nearby plants in Newton and Ralston, Iowa, and Albert Lea, Minn. REG also owns active plants in Illinois and Texas.
Renewable Energy Group, based in Ames, Iowa, is a North American biodiesel producer with a nationwide distribution and logistics system with 257 million gallons of nameplate annual production capacity.
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