Chevron Corp. has completed its purchase of Iowa-based Renewable Energy Group Inc. (REG).
Completion of the transaction follows REG shareholders’ approval of the proposed merger agreement at the renewable diesel producer’s May 17 annual meeting, Chevron and REG said in releases.
Closing follows Chevron’s announcement earlier in the year that it would purchase REG in an all-cash deal valued at $3.15 billion as part of Chevron’s broader aim to grow its renewable fuels production capacity to 100,000 b/d by 2030, as well as bring additional feedstock supplies and pretreatment infrastructure into its system (OGJ Online, Feb. 28, 2022).
To remain headquartered in Ames, Iowa, REG is working to complete a 250-million gal/year capacity expansion and improvement project now under way at its existing 90-million gal/year renewable diesel refinery in Geismar, Ascension Parish, La. (OGJ Online, Nov. 3, 2021).
Estimated at an overall cost of about $950 million, the Geismar improvement and expansion project remains on schedule to reach mechanical completion by 2023, with full commissioning of the expanded plant to follow in 2024.
Fuel produced at REG’s expanded Geismar plant will reduce carbon dioxide emissions by up to 2.8 million tonnes/year, or the equivalent to greenhouse gas emissions from 7.1 billion miles driven by average passenger vehicles, according to the operator.