Chevron biofuels business Renewable Energy Group (REG) will receive a $100mn bond allocation from the state of Louisiana to help fund an expansion of its Geismar renewable diesel (RD) plant.
The expansion will increase the Geismar facility's nameplate capacity to 29,600 b/d, up from 7,800 b/d currently, making it the third largest US renewable diesel refinery, according to Argus estimates.
Newly elected governor Jeff Landry signed the bond allocation at the Louisiana Mid-Continent Oil and Gas Association's (LMOGA) annual meeting in New Orleans, as he pledged support for the state's oil and gas industry.
Chevron REG declined to clarify whether the state allocated funds were in the form of a grant or a loan.
Chevron purchased REG last year for $3.15bn cash.
