Renewable Energy Group (REGI) announced that it has signed a purchase agreement to acquire a 30-million gallon per year capacity biodiesel plant from Soy Energy, LLC.
The company stated that pursuant to the agreement, it will acquire the Mason City, Iowa biorefinery for $11 million in cash and the issuance of a $5.6 million promissory note to Soy Energy.
Commenting on the Mason City plant, the company said it was originally built to process highly refined raw materials in 2006, was purchased by Soy Energy in 2010 and upgraded to utilize a larger variety of raw materials including animal fats and used cooking oil. The plant was idled in mid-2012 due to market conditions and manufacturing challenges.
REG said it plans to repair then re-start the refinery and further upgrade the plant in the future. The acquisition would increase REG's biodiesel production capacity to 257 million gallons annually.
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