Renewable Energy Group, Inc. announced Oct. 6 it plans to undertake a capacity expansion of its Geismar, La., biorefinery by 250 million gallons annually to 340 million gallons per year.

This announcement follows a thorough review and site selection process. Construction should begin in mid to late 2021 with target mechanical completion date in late 2023.

REG expects the expansion will require approximately $825 million in capital investment and is committed to supporting jobs and economic development in the communities in which it operates. Louisiana’s Governor John Bel Edwards announced his support for this project with the inclusion of an incentive package that contains comprehensive workforce support and tax incentives.

REG Geismar was the first renewable diesel plant built in the US and was acquired by REG in 2014. REG made additional improvements to the plant, taking its initial 75-million gallon nameplate facility up to 90-million gallons per year of demonstrated capacity.

Renewable diesel is a 100% renewable, drop-in fuel alternative to diesel fuel. Renewable diesel has seen strong demand particularly in regions focused on lowering carbon emissions in transportation fuels.