Renewable Energy Group to install pretreatment capacity at German biodiesel facility

Renewable Energy Group on Feb. 17 said it would add pretreatment capacity at its Emden, Germany, biodiesel refinery in order to process some of the hardest-to-convert feedstocks into renewable fuel feed.

"This project will enhance the REG Emden and REG Oeding's ability to produce renewable fuel from a wider variety of feedstocks, including 'Generation 3' advanced feedstocks as defined under the Renewable Energy Directive (RED) II," the company said in a statement.

The European Union's RED II initiative set a target to ensure that 32% of the group's energy consumption by 2030 came from renewable sources as it looks to reduce greenhouse gases emissions.

"The RED II policy incentivizes waste and advanced feedstocks as Europe continues to emphasize decarbonization efforts," the company's statement said. "REG currently produces approximately 50 million gallons, or 167kMT per year, of biodiesel at its two German biorefineries, delivering carbon reduction impact in Europe, notably with on-road transportation and maritime customers."

European biodiesel prices have been rising, with FAME 0 RED barges in the northwest European oil hub of Amsterdam-Rotterdam-Antwerp averaging $1,742.25/mt so far for the week beginning Feb. 13, up from the $1,708.61/mt for the week earlier, S&P Global Platts assessment data shows.

REG said it has all required construction permits and the project is expected to be completed in the second half of 2023, with startup by year-end.

REG's Emden plant, where the pretreatment plant will be built, currently produces up to 27 million gal/year of biodiesel. Its North Sea harbor location bordering the Netherlands gives it direct access to European and US export markets.

The REG Oeding facility is inland about 130 miles south of Emden and can produce 23 million gal/year of biodiesel.

REG acquired the bio-based diesel plants in Germany in 2017 and has since opened a global trading office in Amsterdam for sourcing feedstocks and selling co-products and fuels.