REG adds barge loading capability at Seneca biorefinery to enhance supply chain capabilities.
RENEWABLE Energy Group (REG) formally opened the latest enhancement to its 60 million gal. biorefinery in Seneca, Ill.: a new barge loading facility.
The Seneca barge facility, with a total upgrade cost of $4.5 million, marks the fourth announcement or completion of a major new project by REG in the last three months.
REG owns and operates eight biodiesel refineries in four states with a combined annual nameplate production capacity of 257 million gal.
"The Seneca plant is currently the largest. It's a 60 million gal. nameplate capacity that has multi-feedstock capability and very good logistics in one of the best states for biodiesel in the U.S.," said Brad Albin, REG vice president, manufacturing.
At the Nov. 15 ribbon-cutting ceremony, state and local officials and business leaders joined REG leadership to mark the occasion as well as witness the first barge shipment of 420,000 gal. of biodiesel from the facility, which is located by the Illinois River.
"Every full barge that leaves Seneca equates to about 65 truckloads of biodiesel or 17 railcars' worth," Albin said. "This not only increases efficiencies but expands the geography and customer base we can cover through the inland waterways system."
The barge loading facility will be supported by the addition of 2.5 million gal. of new terminal storage, which allows REG to bring biodiesel from other midwestern facilities and ship it down the waterway.
The new barge system gives the Seneca plant an additional shipping option, which could be beneficial to its customers located along the river.
"The barge berth at REG Seneca further enhances our lower-cost, efficient business model," said Daniel J. Oh, REG president and chief executive officer. "Adding more barge capabilities to our network of biorefineries and terminals across the country gives REG another capability for providing high-quality biodiesel to our existing and future customers. It allows us to move higher volumes at once."