The company will also issue $5.6 million promissory note to Soy Energy to purchase 30-million gallon per year capacity biodiesel plant located in Mason City, Iowa.
Soy Energy’s president and CEO Jeff Oestmann stated: "Renewable Energy Group’s offer provides the best value for Soy Energy unit holders while helping unit holders achieve their mission for promoting economic development in the area."
Following the acquisition, the company is planning to resume the operations at the plant and further its production rate.
REG president and CEO Daniel J. Oh noted: "The Soy Energy plant is strategically positioned within the REG network of plants to meet regional and national demand for lower carbon, clean burning biodiesel."
With Mason City plant, REG has increased its production capacity to 257 million gallons annually. It also owns biodiesel refineries in five US states, including Newton and Ralston, Iowa and Albert Lea, Minnesota.
