As per the agreed terms, REG will acquire the Mason City plant for $11m in cash and the issuance of a $5.6m promissory note to Soy Energy.

Following the acquisition, the biodiesel production capacity of REG will increase to 257 million gallons per year.

The Mason City plant, built to process highly refined raw materials in 2006, was purchased by Soy Energy in 2010 and upgraded to employ a wide range of raw materials such as animal fats and used cooking oil.

The plant was idled in mid-2012 in response to market conditions and manufacturing challenges.

REG president and CEO Daniel J. Oh said that the Soy Energy plant is strategically positioned within the REG network of plants to meet the demand for lower carbon, clean burning biodiesel.