20 July 2010 16:29 [Source: ICIS news]
HOUSTON (ICIS news)--US biodiesel major Renewable Energy Group (REG) has bought a waste-grease biodiesel refinery and entered into a supply agreement with a national cooking oil supply chain, the company said on Tuesday.
REG said it completed the acquisition Tellurian Biodiesel, a California-based refinery capable of turning used cooking oil into renewable fuel.
In addition, REG would form a supply agreement with American BDF (ABDF), which owns more than 16,000 used cooking oil collection installations in the US.
“By gaining access to this nationwide system of used cooking oil collection depots, REG has the potential, over time, to replace more than a half-million barrels of imported crude oil,” said Dave Elsenbast, REG's vice president of supply chain management.
REG declined to disclose how much biodiesel it expected to make from waste grease or the terms of the deal. Tellurian representatives did not immediately respond to a phone call and e-mail requesting comment.
REG, based in Ames, Iowa, produces biodiesel and markets the renewable fuel for other refiners. Its network has a total capacity of 200m gal/year.
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