Chevron acquires Geismar plant as part of Renewable Energy Group deal
Completion of the transaction followed REG shareholders' approval of the proposed merger agreement at the annual meeting May 17.
"We have brought together companies with complementary capabilities, assets, and customer relationships to make Chevron one of the leading renewable fuels companies in the United States,” Mark Nelson, executive vice president of Downstream and Chemicals for Chevron, stated in a news release.
Based in Ames, Iowa, REG began work last year on a $950 million expansion of its Ascension Parish renewable diesel production facility, which is the first of its kind in the country.
Chevron announced the deal in February, saying it wanted to buy REG to expand its biodiesel and renewable diesel capacity, according to reporting from sister newspaper the Des Moines Register.
REG has said it plans expand production at its renewable diesel plant in Geismar by nearly 278 percent. That plant will be able to produce 340 million gallons each year.