Biofuel Briefs
REG to Invest $31M to Upgrade Danville Biodiesel Plant
STREATOR, Ill. (DTN) -- Renewable Energy Group, Inc. announced Friday, July 17, that it will invest $31 million to upgrade the company's Danville, Illinois, biodiesel refinery.
The majority of the upgrade entails adding biodiesel distillation capabilities to the 45-million gallon a year capacity biorefinery. Other planned upgrades include pretreat capacity improvements along with storage, logistics and other optimization enhancements that will allow the refinery to have multiple feedstock capability.
"REG Danville already has a proven record of success as part of our network of multi-feedstock biorefineries," said Daniel J. Oh, president and CEO of the company.
He added, "Enhancing the capabilities here as we have done at several of our other plants can allow REG to provide greater volumes of lower cost, lower carbon, higher quality advanced biofuel to our customers that increases energy security, food security and environmental benefits for North America."
Brad Albin, vice president for manufacturing at the company, said the upgrades will increase this plant's strong and healthy appetite for lower cost, waste feedstocks which are sourced locally and regionally from our supply chain partners.
The Danville project marks the sixth major biorefinery enhancement REG has undertaken since late 2012. REG acquired the Danville plant in 2010.
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REG is a biodiesel and renewable diesel producer with 10 active biorefineries across the country.
UNICA: Brazil's Ethanol Production, Sales Higher in June
NEW YORK (DTN) -- The Union of Sugarcane Industry Association, Brazil's largest trade group for sugarcane and ethanol producers, said in a report on Wednesday, July 8, that 2.5 billion liters of ethanol were sold in the country's South-Central region during the month of June, up 35% from June 2014.
The increase in sales was due to rising demand, with 60% of the sales hydrous ethanol sold to domestic consumers, said the report, and added that hydrous sales doubled from a year ago.
"The increased demand for hydrous ethanol expanded in the Central-South in June," said Padua Rodrigues, UNICA technical director. "Consumption growth reflects the economic attractiveness of biofuels in most of the consumer market and reinforces the expectation of more sugarcane harvest."
The report also showed 2.0 billion liters of ethanol was produced during the second half of June after 1.67 billion liters of production during the first half of the month, totaling 3.67 billion liters for the entire month, up 1.2% from June 2014. The increase in production is due to rising demand.
The United States is among the countries that imports Brazilian ethanol.
George Orwel can be reached at george.orwel@dtn.com
Pacific Ethanol Buys Final 4% Stake in Plants for $3.8M
STREATOR, Ill. (DTN) -- Pacific Ethanol, Inc., said in a news release on Thursday, June 18, it acquired the final 4% ownership interest in PE Op Co., the sole owner of the Pacific Ethanol plants, bringing the company's total ownership interest in PE Op Co. to 100%.
The purchase price of the final 4% ownership interest was $3.8 million in cash. On an aggregate basis, the company purchased its 100% ownership interest in PE Op Co. for $60.8 million, or $0.30 per gallon of capacity.
"We achieved our major milestone of regaining 100% ownership of the Pacific Ethanol plants, which has been an important initiative for the company since June of 2010," said Neil Koehler, president and CEO.
"Our 100% ownership position improves our potential to generate net income and reduces administrative costs. It is valuable to have completed this process before we close the Aventine merger scheduled for July 1."
Pacific Ethanol Inc. is a California-based producer and marketer of ethanol and co-products, including wet distillers grains. The company owns and operates four ethanol production facilities, with an annual total capacity of 200 million gallons.
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