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Renewable Energy Group Inc. announced plans to expand capacity at its Geismar, La., renewable diesel refinery by between 250 million to 340 million gallons annually with construction expected to begin in 2021 with “mechanical completion” in 2023.

REG Geismar was the first renewable diesel plant built in the U.S., according to the Ames, Iowa-based company. REG acquired it in 2014, and made improvements to the plant, raising output to 90 million gallons per year from 75 million.

“This is an exciting milestone for our business as we continue to advance our drive to produce low carbon fuels at significant scale,” Cynthia Warner, CEO of REG, said in a statement.

Renewable diesel is a 100% renewable, drop-in fuel alternative to diesel fuel. Renewable diesel has seen strong demand, particularly in regions focused on lowering carbon emissions in transportation fuels.

REG operates 13 biorefineries in the U.S. and Europe. In 2019, it produced 495 million gallons of cleaner fuel delivering over 4.2 million metric tons of carbon reduction. — Transport Topics

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