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1 Copyright ® 2007 Renewable Energy Group, Inc. REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

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Page 1: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

1Copyright ® 2007Renewable Energy Group, Inc.

REG EMPORIA BIODIESEL PLANTPresented by

Kent Heermann, CEcD

Page 2: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

2Copyright ® 2007Renewable Energy Group, Inc.

Page 3: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

PO Box 128

406 First Street

Ralston, IA 51459

888-REG-8686

www.regfuel.com

Renewable Energy Group, Inc.

Page 4: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

4Copyright ® 2007Renewable Energy Group, Inc.

Biodiesel basics

•Biodiesel is made with a chemical process - Transesterification

•Produced to industry specs – ASTM 6751

•Can be run in diesel engines without modification

Triglyceride MethanolBiodiesel

Glycerin

Page 5: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

5Copyright ® 2007Renewable Energy Group, Inc.

Advantages of biodiesel

• Emissions• Sulfur emissions essentially eliminated with B100

• Carbon monoxide, particulate matter reduced

• Positive performance attributes• Lubricity

• Utilized in Ultra-Low Sulfur Diesel situations• Replacement for lubricating additive

• Positive energy balance• 3.24 BTU produced from 1 BTU of energy• Locally refined from local feedstocks

Page 6: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

6Copyright ® 2007Renewable Energy Group, Inc.

Safety in biodiesel•Biodegradable

• Biodegrades as fast as sugar• Biodiesel blends accelerate biodegradability of petroleum

diesel fuel

•Non-toxic• Table salt (NaCL) is nearly 10 times more toxic• 24 Hour human patch test - Less irritation than 4%

soap/water solution

•Conductivity• Increases conductivity lost with ULSD • Safety in tank fills and loading

Page 7: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

7Copyright ® 2007Renewable Energy Group, Inc.

Safety in biodiesel

•Flash point• Biodiesel > 260 degrees Fahrenheit vs. petroleum based

diesel at 125 degrees Fahrenheit

• Safer to store and handle than petroleum diesel fuel

•Environmentally friendly• Reduced manufacturing “waste”

– Alcohol used in process recaptured and reused– Water used in process recaptured and reused– Glycerin used in pharmaceuticals, cosmetics, fertilizer, and animal

feed additive

Page 8: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

8Copyright ® 2007Renewable Energy Group, Inc.

REG biodiesel plant overviewTank Farm

Production Facility

Office

Loadout & Receiving

Pre-treatment

Laboratory

Railcar area

Page 9: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

9Copyright ® 2007Renewable Energy Group, Inc.

Inside the Ralston facility

Page 10: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

10Copyright ® 2007Renewable Energy Group, Inc.

Western Iowa EnergyWall Lake, Iowa

Tank Farm

Production Area

Pre-treatment area

Page 11: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

11Copyright ® 2007Renewable Energy Group, Inc.

About REG’s 60 MGY plants

•EPA “Minor Emitter” status

•No ear protection required in the plant

•No scent

•Products unloaded and shipped via truck and rail• Estimates call for rail service three times a week

– Includes cars being brought in and sent out

– Six to seven cars could be filled each day

Page 12: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

12Copyright ® 2007Renewable Energy Group, Inc.

Full-service biodiesel company

Page 13: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

13Copyright ® 2007Renewable Energy Group, Inc.

Page 14: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

14Copyright ® 2007Renewable Energy Group, Inc.

Technology and construction

•Commercial scale, state-of-the-art plants• 30 or 60 million gallons per year (MGY)

• Continuous flow, patented technology

•Turnkey plant includes• Process design and engineering

• Process hazard management and procedures

• Structural, mechanical, and electrical engineering

• Computerized process controls

• Heat tracing of piping and vessels

• Chemist / laboratory setup

Page 15: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

15Copyright ® 2007Renewable Energy Group, Inc.

Page 16: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

16Copyright ® 2007Renewable Energy Group, Inc.

Production•ASTM D6751 Standards

• 16 point industry test• Includes flashpoint, water and sediment, viscosity• REG’s biodiesel meets 24 point test

•Certificate of Analysis• Every biodiesel lot sold has a CofA• Lists specifications

•BQ-9000 Accredited Producers• Quality standard program• Consistently and efficiently produce high quality biodiesel• Voluntary program

Page 17: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

17Copyright ® 2007Renewable Energy Group, Inc.

Page 18: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

18Copyright ® 2007Renewable Energy Group, Inc.

Procurement and risk management

•Commodity risk management

•Direct strategic partnerships with key feedstock suppliers

•Long-term supply planning

• Input negotiations and procurement

• In Emporia that means • Soybean oil

• Animal fats

Page 19: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

19Copyright ® 2007Renewable Energy Group, Inc.

Partnerships with industry leadersBunge (NYSE:BG)•Worlds largest oilseed processor, seller of bottled vegetable oil to consumers, and corn dry miller

•Provides REG feedstocks, logistics, and site opportunities

ED&F Man•Operates worldwide bulk liquids storage facility business, focused on the chemical and commodity markets

•19 facilities in North America with annual shipping of 5 million tons of liquid product

West Central Cooperative•Founder of REG and equity investor•One of largest US farming cooperatives

•One of earliest members of National Biodiesel Board

Todd & Sargent•Leading engineering and construction firm in feed, grain, pet food, flour, oilseed, and biodiesel

•Exclusive relationship with REG to build biodiesel plants

Page 20: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

20Copyright ® 2007Renewable Energy Group, Inc.

Page 21: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

21Copyright ® 2007Renewable Energy Group, Inc.

Operations management

REG will operate the 60 MGY biodiesel plant in Emporia• On-site training for new employees

• Safety procedures and training outlined by REG’s EHS staff

• Real-time process monitoring from anywhere in the world

•Feedstock and finished product testing

•Some management services from REG headquarters• Information technology

• Human resources

• Accounting

Page 22: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

22Copyright ® 2007Renewable Energy Group, Inc.

Page 23: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

23Copyright ® 2007Renewable Energy Group, Inc.

Sales and marketing

•Biodiesel marketed nationwide

•By 2010, network production capacity expectations

• 640 million gallons

• 15 production facilities

•Direct customers• Distributors

• Refineries

• Terminals

Page 24: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

24Copyright ® 2007Renewable Energy Group, Inc.

Sales & Marketing

REG Has Built A National Distribution System

Distributors/ CustomersTerminals

Page 25: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

25Copyright ® 2007Renewable Energy Group, Inc.

REG sales & marketing network

•Currently marketing 27% of all US biodiesel produced

•Distribution through some of US’s leading terminal-operators

•REG’s commercial scale facilities, production expertise and BQ-9000 Accreditation meet customers’ demands for consistent quality, quantity and supply assurance

•A recognizable branded product, SoyPOWER®, has been ensuring customers high quality, on-time delivery and steady supply

•REG distribution advantages

•Lower transportation costs than other producers

•Long-term contracts and high volume allowed REG to negotiate advantageous turns

•In a tight market, REG established itself as a reliable supplier

•17 regional dispersed blending terminals

Page 26: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

26Copyright ® 2007Renewable Energy Group, Inc.

Page 27: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

27Copyright ® 2007Renewable Energy Group, Inc.

Experience and expertise

•REG history• Methyl ester production as a way to add value to soybean

oil in 1990s• West Central began producing and marketing biodiesel in

1996• Began designing and building plants for others• West Central invested biodiesel into Renewable Energy

Group, Inc. in 2006

•Leadership• National Biodiesel Board • National Biodiesel Accreditation Committee• ASTM membership• Iowa Renewable Fuels Association

Page 28: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

28Copyright ® 2007Renewable Energy Group, Inc.

Renewable Energy Group network

In Production In Construction Pre-Construction

• Renewable Energy Group Ralston, Iowa 12 MGY• SoyMor Glenville, Minnesota 30 MGY• Western Iowa Energy Wall Lake, Iowa 30 MGY• Central Iowa Energy Newton, Iowa 30 MGY• Iowa Renewable Energy Washington, Iowa 30 MGY• Western Dubuque Biodiesel Farley, Iowa 30 MGY

• East Fork Biodiesel Algona, Iowa 60 MGY

• Renewable Energy Group New Orleans 60 MGY

• Renewable Energy Group Emporia, Kansas 60 MGY

• Heartland Biodiesel Rock Port, Missouri 30 MGY

• Victory Renewable Fuels Lyon County, Iowa 30 MGY

• Blackhawk Biofuels Freeport, Illinois 30 MGY

• Renewable Energy Group Cairo, Illinois 60 MGY

Page 29: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

29Copyright ® 2007Renewable Energy Group, Inc.

Page 30: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

30Copyright ® 2007Renewable Energy Group, Inc.

Page 31: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

31Copyright ® 2007Renewable Energy Group, Inc.

Page 32: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

PO Box 128

406 First Street

Ralston, IA 51459

888-REG-8686

www.regfuel.com

Page 33: Copyright ® 2007 Renewable Energy Group, Inc. 1 REG EMPORIA BIODIESEL PLANT Presented by Kent Heermann, CEcD

33Copyright ® 2007Renewable Energy Group, Inc.

Kent Heermann CEcDRegional Development Association of East Central Kansas

719 Commercial StreetEmporia, KS 66801620-342-1600x16

[email protected]