A ray of hope in a dismal financial market came in the form of $100 million bonds for a firm planning to get things up and running again in St. Charles Parish.
Renewable Energy Group halted construction last year on its $80 million bio-diesel plant at the International Matex Tank Terminals site in St. Rose after an attempt to secure the $100 million Gulf Opportunity Zone Bond allocation originally fell through.
“It was very disappointing when we had to halt construction,” Daniel Oh, chief operating officer said. “Under the former governor’s administration, we weren’t able to secure the bonds we needed in a timely manner, but with the assistance of St. Charles Parish officials and a new governor in office we were awarded the bonds this month.”
Oh says St. Charles Parish President V. J. St. Pierre, Director of Economic Development Corey Faucheux, and Sen. Joel Chaisson assisted in getting the bond allocation this time around.
“We have invested $47 million into the project so far,” he said. “Overall, the markets are starting to get better.”
Oh says once lenders start to invest in the project, he hopes to have the plant complete and opened by next summer.
REG was approved for $100 million of Go Zone Bonds last May, but by the time the bonds were brought to market, the company couldn’t compete with the rising costs associated with starting up the business.
REG, which produces and sells vegetable oil-based biodiesel, says the plant would employ 25 permanent workers and 100 temporary construction workers.
Once constructed, the plant’s port access will allow for the movement of raw materials and finished biodiesel products through various transportation outlets.
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