Newton Independent

REG Newton extends loan agreement one year

Newton Independent

Ames-based Renewable Energy Group announced today its REG Newton loan with AgStar Financial Services was extended for one additional year.

REG Newton entered into the debt agreement with AgStar in conjunction with its 2010 acquisition of the assets of Central Iowa Energy, LLC.

The master loan agreement entered on March 8, 2010 has had its maturity date extended until March 8, 2014.

"We're pleased that the lender syndicate saw fit to extend this note in a routine manner," said REG Chief Financial Officer Chad Stone.

All other items involved in REG's acquisition of the assets and liabilities of the 30-million gallon per year biorefinery in Newton remain the same.

 

REG reports record profits

Newton Independent

Ames-based Renewable Energy Group, which operates a biodiesel biorefinery in Newton, last week reported record profits of $29.5 million in the fourth quarter of 2011 comparted to $5.5 million in the same quarter the year before.

The company generated $267 million in revenues for the quarter compared to $70 million for the fourth quarter of 2010.

For the full year, REG reported earnings of $107 million in 2011 compared to just $8 million in 2010.

Revenues for 2011 were $824 million, a 281 percent increase over 2010.

"Biodiesel demand is growing due to the implementation of Renewable Fuel Standard 2," said Daniel Oh, president and CEO of REG. "We are building a business with competitive advantages that can meet this demand. Going into 2012, we believe we are well-positioned as the leading producer of biodiesel from low cost feedstocks in the U.S."

In January, REG completed an IPO of shares of common stock where it sold 7.2 million shares at $10 each. In addition, REG established a five-year $40 million working capital line of credit with Wells Fargo that replaced an existing $10 million line.

REG's record profits come just two years after the company was forced to idle the Newton plant after biodiesel tax credits lapsed.

REG acquired the 30-million-gallon-per-year Newton biodiesel plant in 2010 in an asset purchase agreement approved by unit holders of the former Central Iowa Energy group.

Elevance acquires Mississippi biofuels plant

Newton Independent

An Illinois company that last year said it had "put on hold" development of a biorefinery pilot project at the Newton biodiesel plant announced on Tuesday that it has acquired a biofuels facility in Mississippi with plans to convert it to a biorefinery and derivatives operation.

Elevance Renewable Sciences of Bolingbrook, Ill., announced that it had acquired the Delta BioFuels facility in Natchez, Miss., with plans to undertake a multiphase project that will involve investment of more than $225 million and the creation of 165 full-time jobs over the next five years, in addition to 300 construction jobs.

"We are pleased to be coming to southwest Mississippi to build our first North American manufacturing facility," said K'Lynne Johnson, CEO of Elevance. "We plan on deploying Elevance's innovative technology here to bring competitive manufacturing and high-value jobs back to the United States. These operations will complement our joint venture with Wilmar International in Asia and expand our global footprint. By building biorefineries in multiple geographies, we are responding to our customers' demands for innovative environmentally friendly products in a cost-effective and scalable way."

The Mississippi Development Authority worked with the company and local officials to help facilitate the project. Through the Mississippi Industry Incentive Financing Revolving Fund, MDA provided assistance for upgrades at the Natchez/Adams County Port, as well as a $25 million loan to Elevance. Additionally, the county provided assistance for upgrades to the port to support the project.

Elevance manufactures specialty chemicals from natural oils using a Nobel Prize-winning technology called olefin metathesis that creates ingredients for use in personal care products, detergents, fuels and lubricants.

In late 2009, Elevance announced plans to work REG, the Ames-based company that bought out the former Central Iowa Energy biodiesel plant in Newton, on a project to create a biorefinery. However, a year ago the project was put on hold over private financing issues. Company officials said today they do "not have any near term plans" for the Newton facility.

Natchez area officials were excited today about the news.

Newton biodiesel plant gets federal funding

Newton Independent

Seven Iowa biodiesel plants, including the one in Newton, will receive a total of more than $1.3 million in federal funds appropriated in the 2008 farm bill to help support the production and use of advanced biofuels.

Renewable Energy Group, Newton, the former Central Iowa Energy biodiesel plant, will receive $80,571.13 through the Bioenergy Program for Advanced Biofuels, a program administered by the U.S. Department of Agriculture.

Other plants receiving funding are:

• Renewable Energy Group, Ames - $695,014.53
• Western Dubuque Biodiesel, Farley - $178,926.98
• Maple River Energy, Galva - $6,871.08
• Sioux Biochemical, Sioux Center - $9,847.05
• Western Iowa Energy, Wall Lake - $210,509.52
• Iowa Renewable Energy, Washington - $152,758.89

"Biofuels and renewable energy create jobs, lessen our dependence on foreign oil and help our environment," said Sen. Charles Grassley in an announcement on the awards issued Friday. "These projects can help grow this important industry in Iowa."

An additional $110,996 will go to five projects in Iowa in the form of study grants to determine the feasibility of renewable energy projects under the Rural Energy for America Program, including two in central Iowa.

Lutes Family Investment Group in Gilman will receive $24,995 to determine the feasibility of developing a wind farm in Marshall County.

Alternative Carbon Resources in Pella will receive $50,000 to determine the feasibility of using an industrial mixer to combine cellulosic waste materials with corn syrup and biodiesel to create a high BTU alternative fuel source.

Grants were also issued to companies in Cherokee, Cresco and Lamoni.

"Investments in renewable energy are critical to Iowa - and our nation's - future," said Sen. Tom Harkin. "Not only do they help to reduce our dangerous dependence on foreign oil and protect the air we breathe and the water we drink, they also create new job opportunities and boost our economy. I commend Secretary Vilsack and everyone at USDA for awarding this funding and implementing these critical programs that we worked so hard to include in the 2008 farm bill."

Elevance clarifies standing of Jasper County biorefinery project

Newton Independent

An Elevance Renewable Sciences spokesperson clarified comments late this afternoon on the Newton Independent story earlier today in regard to its biorefinery project at the Jasper County biodiesel plant.

"On behalf of Elevance Renewable Sciences, I would like to help clarify the piece you published today," said Anthea Holley, on behalf of Elevance. "Unfortunately, the response you received to your inquiry yesterday via email was sent from an unauthorized Elevance spokesperson. Here is the correct information to your inquiry.

"The Elevance biorefinery pilot project and research facility in Newton, Iowa has been put on hold and is expected to move forward in late 2010 or early 2011. Elevance is working with its partners to look for ways to enhance the project's configuration so that it can be an optimal site for our continued research and development in speciality chemicals."

Jasper County biorefinery project 'on hold indefinitely'

By PETER HUSSMANN

The inability to put together private financing has lead the companies looking to develop a biorefinery demonstration project at the former Central Iowa Energy biodiesel plant in Jasper County to scrap plans to move forward at the present time.

Late last year, Elevance Renewable Services of Bolingbrook, Ill., announced plans to work with Renewable Energy Group, the Ames-based firm that purchased the assets of Central Iowa Energy, and Technochem International to construct an $8.6 million biorefinery demonstration project that would convert renewable raw materials largely sourced from Iowa into petroleum replacement fuels for use in such products as cosmetics, candles, solvents, adhesives, disinfectants and high performance auto motor oil.

An Elevance representative said Thursday that the Illinois company was no longer working on the demonstration project in Iowa and it "is on hold indefinitely."

Officials with the Iowa Power Fund said the companies were unable to secure the private financing required as part of the department's $3.8 million grant to assist the project's development.

"The grant was contingent on their ability to come up with financing," said Brian Crowe, a program manager for the Iowa Power Fund. "It never came together."

REG and Elevance officials in March asked that the Iowa Power Fund board rescind the grant to finance the project. However, board members said they were willing to reconsider a grant should the financial situation change, believing in the merits of the project proposal.

"Steve Moline, AG's office, reported the representatives (of REG and Elevance) had met several times regarding the current contract," minutes from the March Iowa Power Board meeting state. "It was a mutual decision that the contract be terminated at this time due to the contingencies making it too difficult to continue.

"The board requested they continue to give the board regular updates regarding the project as long as progress is being made. The board encouraged them to come back to the board for contract negotiations when ready."

That, however, is unlikely. Late last month Elevance announced a joint venture with Wilmar International, one of Asia's largest agribusiness groups, to build a world scale biorefinery in Indonesia.

The commercial scale manufacturing facility will begin with a capacity of approximately 400 million pounds with the capacity to expand to 800 million pounds. It is being constructed in Wilmar's new integrated manufacturing complex in Surabaya, Indonesia. The biorefinery is expected to come on line in 2011.

Another Iowa biodiesel plant shuts down

By PETER HUSSMANN

Employees of Western Iowa Energy, the Wall Lake biodiesel facility that rejected Renewable Energy Group's takeover bid earlier this year, notified its workers last Thursday that it was immediately idling its operation and laying off half its staff due to the lapse of the biodiesel tax credit.

"The failure of Congress to pass the Biodiesel Blenders Tax Credit continues to negatively impact the entire biodiesel industry," Bill Horan, president of the board, wrote to employees and industry stakeholders. "Due to the continued lapse of the biodiesel tax credit, Western Iowa Energy continues to suffer from significantly limited sales and reduced sales forecasts. Due to these market conditions, we have made the difficult decision to idle our facility (warm idle).

The company laid off 15 full-time employees with 13 remaining. Officials plan to monitor its operational status on a weekly basis.

Western Iowa joins the ranks of a number of other biodiesel operations in the state that have ceased operations due to the lapse of the biodiesel tax credit at the end of last year. Its reinstatement is before Congress.

Late last month, Renewable Energy Group announced that it was idling its Newton plant, as well as its facility in Ralston. Since Jan. 1, 45 percent of REG's biodiesel employees have been laid off due to the loss of the blenders credit.

Last month, REG acquired control of Central Iowa Energy in Newton after shareholders voted in favor of the move. REG also merged with a facility in Danville, Ill., as part of a consolidation effort of operations it had managed.

Shareholders of the 30 million gallon per year Wall Lake biodiesel production facility rejected REG's acquisition attempt. However, REG continues to manage the operations of the facility but that agreement expires early next month.

Newton biodiesel plant idled, workers laid off

Newton Independent

Renewable Energy Group has shut down its Newton biodiesel plant, along with another in Ralston, Iowa, and laid off 22 workers, Biodiesel Magazine is reporting today.

The workers were laid off on March 29 and March 30 due to the continued lapse of the biodiesel tax credit.

The magazine reports that since Jan. 1, REG and its independent network plants have laid off 45 percent of their staff "as a direct result of the tax credit lapse." Those not laid off have taken pay cuts.

On March 31, the magazine reports, REG Chairman and CEO Jeff Stroburg sent a letter to U.S. Rep. Sander Levin, chairman of the House Ways and Means Committee, calling the situation "dire."

"It is with great urgency that I contact you," Stroburg writes, "Demand for biodiesel is extremely limited because our customers are no longer taking the risk of purchasing biodiesel without the tax credit. Manufacturing plants have idled. This dire situation is occuring not only in Iowa, but all over the country."

Extension of the biodiesel tax credit, which expired Dec. 31, is contained in legislation approved by the Senate in early March but awaits action by the House Ways and Means Committee. Congress does not return from its Easter break until April 12.

REG acquired the 30-million-gallon-per-year Newton biodiesel plant last month in an asset purchase agreement approved by unit holders of the former Central Iowa Energy group in February. REG is the largest biodiesel business in the U.S.

A Facebook page, Reinstate the Biodiesel Blenders' Tax Credit, has been set up.

Newton plant preparing to become biorefinery showcase

Newton Independent

Biodiesel Magazine tells of the efforts under way at Renewable Energy Group's Newton, Iowa biodiesel plant to turn the facility into a biorefinery showcase.

The April issue focuses on REG's work with Elevance Renewable Sciences and project builder Technochem to "co-locate an olefin metathesis demonstration unit with the existing plant for production of a diverse line of biochemicals, renewable jet fuel and enhanced biodiesel."

The magazine notes that contract negotiations between the parties continue.

Derek Winkel, the Newton plant's manager, is quoted in the article about the importance of the project for Newton and its possibility to create more jobs.

REG assumed all of the assets of the former Central Iowa Energy biodiesel facility earlier this month.

You can read the article here.

REG owned, managed biofuel plants receive $1.6 million in federal incentives

Newton Independent

Renewable Energy Group and third-party plants it manages in Iowa have been awarded more than $1.6 million by the Iowa Department of Agriculture to advance biofuel production.

The awards were given through the USDA's Office of Rural Development in its Bioenergy Program for Advanced Biofuels.

"It's great to see the Department of agriculture working with these Iowa biofuel companies to help lessen our dependence on foreign oil by continuing to develop advanced biofuels here at home," said Sen. Charles Grassley, R-Iowa, in a press release today announcing the awards.

Central Iowa Energy of Newton, now known as REG Newton after shareholders voted to consolidate with REG, was awarded $114,239.69 in economic incentives. REG Ralston and REG Houston will receive more than $727,000.

Three third party plants managed by REG also received awards. Iowa Renewable Energy in Washington was granted more than $216,000 in incentives and Western Dubuque Biodiesel received more than $253,000. Western Iowa Energy in Wall Lake, whose shareholders voted down REG's consolidation plan, will receive more than $298,000.

Three other biofuel companies in Iowa - Maple River Energy in Galva, Riksch Biofuels in Crawfordsville and Sioux Biochemical in Sioux Center - receive approximately $25,000 combined of the total $1,644,242.64 in economic incentives.

Also today, REG announced that its recent consolidation of the biodiesel plant in Newton and another in Danville, Ill, now make the company the largest wholly-owned biodiesel manufacturing business in North America with total capacity of 122 million gallons a year. You can read that release here.

Western Iowa Energy says no to REG sale

Newton Independent

Unit holders of Western Iowa Energy in Wall Lake voted against Renewable Energy Group's proposal to purchase the biodiesel facility, one of three struggling plants the Ames-based firm was in negotiations to buy.

The negative vote of its shareholders went against the recommendation of its board of directors.

Last week, unit holders of Central Iowa Energy, the financially-troubled Newton biodiesel plant, agreed to sell virtually all of the company's assets and liabilities to REG as part of an asset purchase agreement first proposed last May.

Members of Blackhawk Biofuels in Danville, Ill., also agreed to a sale. All three entities are managed by REG.

Since its inception in 2007, Central Iowa Energy has incurred loses totaling $14.9 million.

Central Iowa Energy unit holders agree to sale to REG

By PETER HUSSMANN

Unit holders of Central Iowa Energy, the financially-troubled Newton biodiesel plant, agreed on Wednesday to sell virtually all of the company's assets and liabilities to Renewable Energy Group of Ames as part of an asset purchase agreement first proposed last May.

In addition, unit holders of the company that has lost $14.9 million from operations since commencing biodiesel production in 2007 have agreed to dissolve the company as soon as reasonably practicable following the completion of the sale.

More than 80 percent of the share votes cast approved the proposals, according to a Securities and Exchange Commission filing issued after the close of the markets today.

Under the consolidation agreement, REG will assume essentially all of Central Iowa's assets in exchange for the distribution of 4.4 million shares of common stock and 164,000 shares of preferred stock in the new company being formed by the consolidation. However, plans call for shares to be used to satisfy outstanding claims owed by Central Iowa with proportionate distribution of the new company's shares made only after those claims are satisfied. Upon closing, Central Iowa unit holders will hold in aggregate 1.2 percent of the new company's preferred stock and 11.8 percent of its common stock shares.

In addition to assuming control of Central Iowa, REG is also involved in proposals to assume control of two other biodiesel plants, Western Iowa Energy in Wall Lake and Blackhawk Biofuels in Danville, Ill. REG currently manages the operations of all three plants. REG hopes to have all the agreements in place by the end of February.

The Iowa Power Fund recently approved a $3.8 million grant that will aid Elevance Renewable Sciences, an Illinois company working in conjunction with REG, to add test technology to the Newton biodiesel plant to turn feedstock oils and animal fats into specialty chemicals and jet fuels.

The state grant is in addition to a $2.5 million U.S. Department of Energy grant previously announced for development of the pilot project at the Newton plant.

A copy of the release on the asset purchase sale posted on the Central Iowa Energy Web site can be read here.  

Central Iowa shareholders vote today on consolidation plan; losses mount

By PETER HUSSMANN

Unit holders voting today on Central Iowa Energy's planned consolidation with Renewable Energy Group and the Newton company's subsequent dissolution and liquidation were greeted with more bad financial news coming within the company's first quarter financial statement.

In a Securities and Exchange Commission filing late Tuesday, Central Iowa reported a net loss of $653,237 for the three-month period ending Dec. 31, 2009. Since beginning production in 2007, the biodiesel manufacturer has recorded total losses of $14,982,729, the SEC filing states.

Like financial reports before, the company continues to be hurt by the lack of available cash to independently produce biodiesel. It's only production for the quarter came under a tolling agreement with REG Marketing. For the quarter, the company produced 2.8 million gallons of biodiesel, just 39 percent of its nameplate 30-million-gallon-a-year capacity.

Under the consolidation agreement, REG will assume essentially all of Central Iowa's assets in exchange for the distribution of 4.4 million shares of common stock and 164,000 shares of preferred stock in the new company being formed by the consolidation. However, plans call for shares to be used to satisfy outstanding claims owed by Central Iowa with proportionate distribution of the new company's shares made only after those claims are satisfied. Upon closing, Central Iowa unit holders will hold in aggregate 1.2 percent of the new company's preferred stock and 11.8 percent of its common stock shares.

Until Central Iowa is dissolved and its existence is terminated after closing the asset purchase agreement, REG has agreed to pay "certain mutually agreeable ongoing costs" related to Central Iowa Energy for a period of up to six months.

The filing notes that Jasper County could force the company to pay the $745,000 cost of bringing sewer lines to the facility due to its default on the private redevelopment agreement provisions regarding job creation, timely filing of an annual report and payment of property taxes. Late last year Central Iowa paid its first half property tax payment in the amount of approximately $130,000. The financial report notes the company does not have cash on hand to pay the obligation should the county seek its allowable remedies.

The company is also in noncompliance with the Iowa Department of Economic Development on repayment of a $300,000 zero interest loan ($292,400 is still owed) and a $100,000 forgivable loan, again for not meeting job creation criteria. The company fell 14 percent short of its job creation requirement and owes the IDED $14,000 on the forgivable loan.

In addition to assuming control of Central Iowa, REG is also involved in proposals to assume control of two other biodiesel plants, Western Iowa Energy in Wall Lake and Blackhawk Biofuels in Danville, Ill. REG currently manages the operations of all three plants. REG hopes to have all the agreements in place by the end of February.

Shareholders to vote next week on Newton biodiesel plant's consolidation with REG

By PETER HUSSMANN

Investors in Newton's biodiesel plant, Central Iowa Energy, will meet next Wednesday to vote on a plan to consolidate its operations with Renewable Energy Group, one of three consolidations the Ames-based company and largest supplier of biodiesel in the U.S. hopes to have completed by the end of the month.

Shareholders will vote on the proposed consolidation with Renewable Energy and Central Iowa's subsequent dissolution and liquidation at a special meeting on Feb. 17. The actions take separate votes of the shareholders.

Under the plan, REG will assume essentially all of Central Iowa's assets in exchange for the distribution of shares in the new company being formed by the consolidation. However, plans call for shares to be used to satisfy outstanding claims owed by Central Iowa with proportionate distribution of the new company's shares made only after those claims are satisfied.

At least one outstanding claim has now been satisfied. On Dec. 31, Central Iowa paid its delinquent September county tax bill of $123,721 plus $5,567 in accrued interest.

In addition to assuming control of Central Iowa, REG is also involved in proposals to assume control of two other biodiesel plants, Western Iowa Energy in Wall Lake and Blackhawk Biofuels in Danville, Ill. REG currently manages the operations of all three plants.

Since beginning production in 2007, Central Iowa has lost $14.3 million from operations.

Newton biodiesel plant unitholders hear presentation on consolidation with REG

By PETER HUSSMANN

Unitholders of Central Iowa Energy, the financially-struggling Newton biodiesel plant, met at Newton Senior High School Wednesday evening to hear a presentation on the proposal to consolidate the company with Renewable Energy Group of Ames.

Under the plan, REG will assume essentially all of Central Iowa's assets in exchange for the distribution of shares in the new company being formed by the consolidation. However, plans call for a portion of the shares to be used to satisfy outstanding claims owed by Central Iowa with distribution made to untholders only after those claims are satisfied.

The informational meeting was held in advance of a meeting set for Feb. 17 where Central Iowa unitholders will be asked to vote on the proposed consolidation with Renewable Energy and Central Iowa's subsequent dissolution and liquidation. The actions take separate votes of the shareholders.

A Securities and Exchange Commission filing today  outlined information provided to Central Iowa unitholders at Wednesday's meeting. REG officials were on hand to provide an overview of the current state of the biodiesel industry, its strategy to continue as a leading manufacturer, marketer and distributor of biofuels and specialty chemicals, the benefits of the consolidation from an operations and management standpoint, cost advantages, access to capital and how the new operation would be structured.

An updated business-combination transaction communication concerening the consolidation was filed this afternoon. 

In addition to Central Iowa's proposed consolidation with REG, plans call the Ames-based company to consolidate with two other biodiesel plants, Blackhawk Biofuels of Danville, Ill, and Western Iowa Energy of Wall Lake. Each of the company's are currently independently owned and governed but are managed by Renewable Energy Group.

The big news of the evening, however, was likely the Environmental Protection Agency's decision on Wednesday saying that soybean produced diesel counted as an advanced biofuel, a move that is expected to provide a boost to the struggling industry. Congress is also expected to act early this year to revive the $1-a-gallon tax credit on biodiesel production, a benefit that expired at the end of last year.

Since going on-line in 2007, Central Iowa Energy has lost $14.3 million from operations.

REG plans informational presentations with unitholders of Western Iowa Energy and Blackhawk Biofuels today. A meeting with REG shareholders on the consolidation plan is set for Saturday.

REG already has plans to retrofit the Newton biodiesel plant into a biorefinery demonstration facility. With the help of a $3.9 million grant from the Iowa Power Fund, REG plans to collarborate with Illinois-based Elevance and Technochem to demonstrate the ability to convert existing biodiesel facilities with bolt-on technology to produce diversified bio-chemical products, such as jet fuel, through the use of Iowa feedstocks.

You can read about the December announcement of the grant award here.

Central Iowa Energy to hold informational meeting on proposed consolidation, liquidation

By PETER HUSSMANN

Shareholders of Central Iowa Energy, the financially-troubled Jasper County biodiesel plant, are being invited to an informational meeting early next month to hear details on the planned consolidation of the company with Renewable Energy Group of Ames.

In a Securities and Exchange Commission filing entered following the close of business on Friday, Central Iowa noted that it has set a special meeting for 6:30 p.m. on Wednesday, Feb. 3, at Newton High School to allow shareholders an opportunity to hear details on the proposed transaction. Representatives of REG, as well as CIE's financial advisers, will be on hand to give a presentation. Time will be allowed for shareholders to ask questions, the filing said.

The filing also stated that shareholders will vote on the proposed consolidation with Renewable Energy and Central Iowa's subsequent dissolution and liquidation at a special meeting on Feb. 17. The actions take separate votes of the shareholders.

Under the plan, REG will assume essentially all of Central Iowa's assets in exchange for the distribution of shares in the new company being formed by the consolidation. However, plans call for the shares to be used to satisfy outstanding claims owed by Central Iowa with distribution made only after those claims are satisfied.

In addition to assuming control of Central Iowa, REG is also involved in proposals to assume control of two other biodiesel plants, Western Iowa Energy and Blackhawk Biofuels.

Friday's SEC filing also included notification of REG's filing of a registration statement that included a definitive proxy statement. The proxy will be mailed to CIE shareholders in the near future.

The 300-page plus proxy statement includes a termination fees provision that would require Central Iowa Energy to pay REG $1 million in cash within 10 days should the agreement be terminated due to CIE's board of directors changing its favorable recommendation on the consolidation. Reverse termination fee provisions are also included favoring CIE shareholders.

Since its inception in 2007, Central Iowa Energy has lost $14.3 million from operations.

Consolidation of Newton biodiesel plant with REG going slower than expected

By PETER HUSSMANN

Unit holders of Newton's biodiesel plant were told a recent mailing they received seeking taxpayer identification information as part of Central Iowa Energy's consolidation with REG was sent prematurely and should be disregarded, a letter from the plant's general manager states.

Shareholders of Central Iowa had been asked to return W-9 forms to Registrar and Transfer Company, the transfer agent hired by REG to assist with its consolidation with CIE. However, the letter dated Friday states, the transfer company sent the forms without the consent of either Central Iowa or REG.

"We hereby advise you to ignore the forms and discard the letter," Central Iowa plant manager Derek Winkel wrote in a letter filed with the Securities and Exchange Commission on Monday. "This information will be requested at the appropriate time at a later date. We apologize for the confusion that this premature mailing may have created."

Winkel goes on to note that the consolidation of Central Iowa with REG is still progressing, "albeit at a slower pace (than) was originally thought."

The SEC still needs to approve the registration statement and joint proxy statement for the proposed consolidation, Winkel said. Once approved, an informational meeting will be scheduled with Central Iowa unit holders and a special member meeting will be set to consider and vote on the proposed consolidation transaction.

Since Central Iowa Energy's start in April 2007, the company has generated net losses of $14.3 million.

Elevance gets Power Fund grant for project at Newton biodiesel plant

Newton Independent

The Iowa Power Fund recently approved a $3.8 million grant that will aid Elevance Renewable Sciences in adding technology to the Newton, Iowa biodiesel plant to turn feedstock oils and animal fats into specialty chemicals and jet fuels.

The state grant is in addition to a $2.5 million U.S. Department of Energy grant previously announced for development of the pilot project at the Newton plant.

Working in conjunction with Renewable Energy Group, the firm in the process of an asset purchase of Central Iowa Energy, the biorefinery will convert renewable raw materials largely sourced from Iowa into petroleum replacement fuels for use in such products as cosmetics, candles, solvents, adhesives, disinfectants and high performance motor fuels.

The Newton Independent previously wrote about the U.S. Department of Energy grant here.

A post on Elevance's blog gives more information on its plans for the use of various feedstocks.   

Elevance's plan for Newton biodiesel plant further explained

Newton Independent

This news report gives further detail on Elevance Renewable Science's plan to build a test facility on to the Jasper County biodiesel plant currently in the process of being taken over by REG. The Illinois company, which recently received a $2.5 million federal grant and is seeking state of Iowa financial assistance, plans to turn chicken fat into jet fuel. You can read it here.

The Iowa Economic Development Board is being asked at its meeting later this week to assign its agreements with Central Iowa Energy to REG to allow the asset purchase of the biodiesel plant to move forward.

County supervisors assured biodiesel plant will pay back taxes

By PETER HUSSMANN

The Jasper County Board of Supervisors today said they have been assured by representatives of Central Iowa Energy, the beleaguered biodiesel plant in the process of being acquired in by Renewable Energy Group, that the company will pay nearly $130,000 it owes in back property taxes once the asset purchase agreement is complete.

The issue arose today as the board voted to approve a resolution that authorizes the execution of an assignment and assumption agreement by and between Central Iowa Energy and REG Newton that continues the provisions provided in the redevelopment agreement entered into as the facility was being constructed in late 2006.

Under the terms of the agreement entered into in November 2006, Central Iowa Energy agreed to build a 30 million gallon a year biodiesel plant with a total investment of $38 million in return for the county's cost of constructing $745,000 in sewer improvements to the site. REG Newton, the new company acquiring the assets of Central Iowa, agrees to abide by the terms of the agreement, including a minimum assessment agreement used to pay the cost of the sewer improvements.

In an end-of-year fiscal year report filed with the federal Securities and Exchange Commission in late November, the company reported that as of the middle of November, the company had yet to pay approximately $123,000 in property taxes due at the end of September. With interest, the outstanding tax bill now stands at $129,288.

The supervisors said today that they have received assurances the outstanding tax bill will be paid. The supervisors said money generated from the closure of the transaction with REG Newton will be used to pay the outstanding debt. The payment is expected before the end of the year, the supervisors said.

The county also agreed to a subordinating its financial interest under the terms of the redevelopment agreement to AgStar Financial Services, the lending institution that purchased the interests of Central Iowa Energy's former lender, F&M Bank.

Central Iowa Energy has generated net losses of $14.3 million since beginning operations in April 2007. For the fiscal year ended in September 2009, the company reported year-long losses of $7.9 million.