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Gov. Blagojevich announces $19.8 million in support for Danville biodiesel plant that will save
hundreds of jobs
Support reaffirms state's commitment to East Central Illinois
biodiesel facility
CHICAGO - In furthering Illinois national leadership as a renewable biofuels producer, Governor Rod R. Blagojevich today announced that Blackhawk Biofuels, LLC has completed its purchase of a new 45 million gallon per year biodiesel plant in Danville. The $19.8 million in state-backed support will leverage $25 million in private funding by the new owner to complete construction of the facility and upgrade technology.
The significant investment we're making in the Danville plant will produce home-grown biodiesel from crops grown on Illinois farms, boost America?s energy independence, keep people working, and spur economic development throughout east central Illinois, said Gov. Blagojevich. This project is a key component of my aggressive energy independence plan to reduce the state's dependence on foreign oil and fight global warming.
The improvements to the biodiesel plant, managed by Renewable Energy Group (REG), will enable it to produce biodiesel from animal fats as well as soybean oil, making it one of only a handful of plants nationwide with this capability. This ability will help ensure the plant's profitability, create 15 new jobs and secure more than a hundred jobs at the Danville facility and the adjacent soy crushing plant, as well as approximately 75 construction jobs.
In continued support of the Danville plant, the Governor's Office reaffirmed its commitment of financial assistance guaranteed by the state through the Illinois Finance Authority (IFA). The Governor also provided $4.8 million in Opportunity Returns grants to construct the new plant through the Illinois Department of Commerce and Economic Opportunity (DCEO) and the Illinois Department of Transportation.
The IFA is charged by Gov. Blagojevich with fostering economic development across Illinois by using its financing programs to support the needs of local communities. We are doing just that in Danville, said IFA Executive Director Kym M. Hubbard. By supporting this project, we are increasing the opportunity for this plant to open on schedule, operate profitably, and create and retain jobs.
Gov. Blagojevich recognizes that one of the most critical ways we can address the problem of global warming is by making renewable fuels an integral component of our energy portfolio. I am pleased that we are able to support Blackhawk and ensure the creation and retention of hundreds of good paying jobs while improving the environment and creating new markets for Illinois biofuels, said DCEO Director Jack Lavin.
We thank Gov. Blagojevich and his administration for making it possible to finalize this purchase in today's market conditions. Our investment in the Danville plant and the upgrade of its process technology will strengthen the investment already made in Danville and will contribute to Illinois goal of market leadership in renewable fuels, said Blackhawk Biofuels Chairman Ron Mapes.
Blackhawk Biofuels will partner with Renewable Energy Group to operate the facility. REG, a leading biodiesel producer and marketer, will operate the Danville facility and market the plant's biodiesel. Biodiesel production is expected to begin as early as this fall.
We expect this plant will become a premier facility within the REG network, said Renewable Energy Group Chief Operating Officer Daniel Oh. The plant has a secure raw material source, a skilled and motivated workforce, and an efficient distribution network. The planned upgrades will further enhance its market advantages.
"It will be great to finally see this plant operational. The impact in our region will be substantial in terms of economic opportunity. The impact on our future also will be significant as this plant turns Illinois agricultural leadership into Illinois biodiesel leadership. I thank Gov. Blagojevich for continuing his support of this project," said State Senator Michael Frerichs (D-Danville).
"This plant had the potential of being mothballed due to market conditions, like many biodiesel facilities around the country. I join hundreds of families in the Danville area in thanking the Governor and the new owners for saving our plant and the jobs made possible by this plant's long-term success," said Danville Mayor Scott Eisenhauer.
"We are pleased that Blackhawk and REG were able to come to an agreement that will benefit the entire region by providing steadier plant production and hundreds of good paying jobs," said Don Ritter, president of the Danville Building and Construction Trades Council. Completion of this facility will also capitalize on Illinois tremendous soybean production by providing local soybean growers with a market for their crops and help sustain an already prosperous agricultural industry. I want to thank Gov. Blagojevich for helping to make this project a reality."
Blackhawk Biofuels, LLC to complete and operate biodiesel plant in Danville, Ill.
FREEPORT/DANVILLE, Ill. May 15, 2008 -- Blackhawk Biofuels, LLC announced today that it has completed the acquisition of assets of a 45 million gallon per year biodiesel production facility under construction in Danville, IL.
The Danville project was acquired from Biofuels Company of America, LLC. Financing for the acquisition and completion of the project is being provided by Blackhawk, Fifth Third Bank and Renewable Energy Group, Inc. (?REG?).
The project, which is adjacent to a soybean oil processing facility operated by Bunge North America, was originally designed to produce high quality biodiesel using vegetable oils exclusively. However, a significant enhancement by Blackhawk will upgrade the plant's process technology to allow alternative feedstocks, such as animal fats, to be utilized in biodiesel production. This will allow Blackhawk to select feedstocks which are price competitive and which enhance the operating characteristics of the fuel.
REG will assume responsibility for the additional construction and will manage plant operations, procure feedstocks and market the biodiesel produced by the facility when it becomes operational. REG will provide a national biodiesel distribution network for Blackhawk.
"REG is proud to partner with Blackhawk on the financing, construction and management of this facility," said REG?s President, Nile Ramsbottom. "Our investment demonstrates our continued commitment to, and confidence in, the biodiesel industry."
The Office of Illinois Governor Rod Blagojevich reaffirmed the state's commitment to lend financial assistance to the Danville plant in the form of a credit enhancement provided by the Illinois Finance Authority.
"We thank Governor Blagojevich and his administration for working with us during a period of changing market conditions," said Blackhawk Chairman Ron Mapes. "Our investment in the Danville plant and in the upgrade of its process technology will strengthen the investment already made in this plant and will contribute to the Governor's goal of market leadership in renewable fuels for Illinois."
"Blackhawk Biofuels is dedicated to renewable fuels that reduce America's dependence on foreign oil," said Mapes. The Danville plant offers opportunities for Blackhawk," explained Mapes, "including the construction of production capacity at advantageous levels of equity and debt financing and the ability to acquire feedstock directly from a Bunge soybean crushing facility."
Mapes summarized Blackhawk's views by saying "We look forward to continuing our relationship with REG, beginning a soybean oil supply relationship with Bunge, the world's largest oilseed processor, and joining the Danville community."
Biodiesel production at the plant is projected to begin as early as this fall.
Leading biodiesel corporation listed on Inc. Magazines Top 500 companies
Renewable Energy Group, Inc. first biodiesel company to make list of fastest growing private companies in America
(Ralston, IA August 28, 2007) Renewable Energy Group, Inc. (REG) has been named one of the nations fastest growing private companies by Inc. Magazine.
REG was singled out as the first biodiesel company to make the Inc. 500 list and is the seventh fastest growing energy company nationwide, according to the September issue. REG comes in at number 200 overall with annual revenue of $178 million.
Renewable Energy Group, Inc. is growing because demand for biodiesel is growing. With more than 10 years of experience in biodiesel production, technology and marketing, our fullyintegrated approach to the fuel industry offers confidence for our customers and clients whether they do business in Washington state or Washington D.C., said REG Chairman and CEO, Jeff Stroburg, who has been overseeing the companys biodiesel business for nearly eight years. Our board of directors and employees strive each day to create and execute strategic relationships and business ventures which will help ensure our continued growth in this energy industry to help meet increased market demand for biodiesel.
In order to meet the growing demand for products and services, REG has increased personnel by 33 percent since August 2006. REGs services include biodiesel production, sales and marketing services, plant construction management, risk management and raw material procurement.
Renewable Energy Group, Inc. markets biodiesel through their national distribution infrastructure under the SoyPOWER brand.
Another publication taking note of the growing biodiesel industry is Business 2.0 magazine which, in their September issue, listed REG has one of 15 companies that will change the world. Listed as a "Disruptor" in todays marketplace, REG is described as a company likely to upend existing industries - and spawn new entrepreneurial opportunities.
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For more information contact Alicia Clancy at 712-667-3418 or Sara Taylor at 202-338-9555.
To learn more about Renewable Energy Group, Inc. please visit www.regfuel.com
About Inc. 500
The Inc. 500 is ranked according to percentage revenue growth from 2003 through 2006. To qualify, companies must have been founded and generating revenue by the first week of 2003, and therefore able to show four full calendar years of sales. Additionally, they had to be U.S.- based, privately held, and independent--not subsidiaries or divisions of other companies--as of December 31, 2006.
About biodiesel
Biodiesel is a clean burning alternative fuel, produced from, renewable resources. Biodiesel contains no petroleum, but it can be blended at any level with petroleum diesel to create a biodiesel blend. It can be used in compression-ignition (diesel) engines with little or no modifications. Biodiesel is simple to use, biodegradable, nontoxic, and essentially free of sulfur.
About Renewable Energy Group
Renewable Energy Group, Inc. is a biodiesel industry sales leader and is a full-service biodiesel company offering plant management, biodiesel production, sales and marketing services, plant construction management, risk management and raw material procurement. Renewable Energy Group, Inc. markets SoyPOWER biodiesel to fuel distributors and to customers in many industries including on-highway fleets, original equipment manufacturers, maritime, military, home heating and agriculture industries.
Renewable Energy Group, REG and SoyPOWER are registered trademarks of REG, Inc.
Release No. 0223.07 Contact: Keith Williams (202) 720-4623 Jay Fletcher (202) 690-0498
