Organization, Presentation, and Nature of the Business

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Presentation, and Nature of the Business

ORGANIZATION, PRESENTATION, AND NATURE OF THE BUSINESS

Renewable Energy Group, Inc. (the "Company" or "REG") is a company focused on providing cleaner, lower carbon transportation fuels. Today, the Company principally generates revenue as the leading North American advanced biofuels producer with a nationwide distribution and logistics system. The Company participates in each aspect of bio-based diesel production, from acquiring feedstock, managing construction and operating bio-based diesel production facilities, to marketing, selling and distributing bio-based diesel and its co-products. To do this, REG utilizes its nationwide production, distribution and logistics system as part of an integrated value chain model to focus on converting natural fats, oils and greases into advanced biofuels.

As of December 31, 2021, the Company owns and operates eleven biorefineries, with nine locations in North America and two locations in Europe, which includes eleven operating bio-based diesel production facilities with aggregate nameplate production capacity of 470 million gallons per year ("mmgy"). Ten of these plants are “multi-feedstock capable” which allows them to use a broad range of low carbon feedstocks, such as distillers corn oil, used cooking oil and inedible animal fats in addition to vegetable oils, such as soybean oil and canola oil. In September 2021, the Company announced the closure of the Houston, Texas biorefinery. Production at this facility ceased in November 2021. The Houston plant's nameplate capacity was 35 mmgy.

On December 30, 2021, the Company acquired Amber Resources LLC, M.O. Dion & Sons, Inc., and Amber Petroleum Products, Inc., (collectively "Amber Resources"). This acquisition allows the Company to continue to advance its downstream strategy. The Amber Resources acquisition provides the Company with the facilities to deliver its products to end customers at 8 fuel distribution locations including 3 cardlock locations. For more information on Amber Resources and the acquisition, see "Note 3 - Acquisitions".

The bio-based diesel industry and the Company’s business have benefited from certain federal and state incentives. The federal biodiesel mixture excise tax credit (the "BTC") was retroactively reinstated on February 9, 2018 for the year 2017 and on December 20, 2019 for the years 2018 and 2019. The BTC has also been extended through December 31, 2022.