Newton Independent
Renewable Energy Group, the Ames-based company that acquired the struggling Central Iowa Energy biodiesel plant in Newton in two years ago, reported today that revenue for the second quarter was $271.9 million, an increase of 39 percent compared to revenues of $196.3 million for the same period a year ago.
The largest producer of biodiesel in the United States produced 43 million gallons of biodiesel in the second quarter of 2012, up 30 percent compared to 33 million gallons in the same period a year ago. REG sold 54 million gallons of biodiesel in the second quarter, a 63 percent increase compared to the second quarter of 2011.
"As expected, our growth continued in the second quarter of 2012," said Daniel J. Oh, president and CEO of REG. "Our gallons sold rose significantly, as did revenue. We expanded our distribution capabilities and progressed in planned upgrades to our fleet of biorefineries. We are optimistic about our strategic position, as we continue to execute our strategy of feedstock diversity and expand our domestic distribution footprint."
The year-over-year increase in gallons sold was primarily due to increased production capacity online and an increase in biodiesel demand compared to the same period a year ago as pertroleum-fuel refiners and importers sought to meet their renewable volume obligations to purchase biomass-based diesel under the Renewable Fuel Standard 2 program. It specifies the consumption of 1 billion gallons of biodiesel in 2012, compared to 800 million in 2011.
The press release announcing REG's second quarter results, which were released following the close of markets today, can be read here.
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