Home News SG Preston to build $400 million renewable diesel plant in Ohio

SG Preston to build $400 million renewable diesel plant in Ohio

Fuels and chemicals

The plant should be completed by 2017 and have an annual production capacity of 120 million gallons.

REW Staff August 6, 2014

SG Preston (SGP), a Philadelphia-based biofuels company, is planning a $400 million renewable diesel plant in Ohio. The company plans to develop a 120 million gallon renewable diesel facility in Lawrence County, Ohio. The SGP South Point facility will have total investment of $400 million, create 100 permanent jobs and be the world's largest purpose-built producer of renewable diesel upon completion, estimated to occur in 2017, according to the company.

According to the company’s website, SG Preston is a fully integrated developer and operator of sustainable bioenergy fuelstocks, products and waste-to-bioenergy systems worldwide.

A key component of the facility's development is the licensing by SGP of advanced process technology that has been successfully proven at commercial scale at other locations, it says. This advanced technology converts waste feedstock into renewable diesel, which is chemically identical to petroleum-based diesel and can be used as a drop-in replacement in vehicles with no modifications. Moreover, this technology allows SGP to customize its biofuel offering by adjusting fuel characteristics to meet various operating environments (extreme cold or heat) of the end user without diluting energy content in the fuel blend. This technologically advanced process also delivers lifecycle reduction in greenhouse gas emissions compared with diesel from petroleum.

Other partners in the project include the Lawrence County Economic Development Council, which is investing 62 acres in land and other incentives. The Appalachian Partnership for Economic Growth and JobsOhio were also instrumental in securing the investment and technology to play a role in the future of southern Ohio.

"For SG Preston, this is an important milestone and part of a larger vision of partnering with leading, global refining technology partners and local communities to develop a portfolio of renewable diesel and renewable jet fuel refineries targeting 1.2 billion gallons per year, or 20 percent of the federal RFS2 biomass-based mandate for biofuels," says R. Delbert LeTang, CEO of SGP. "We see a blue sky opportunity to deliver customized, renewable fuel to government, the petroleum industry and other private users throughout the United States and we look forward to partnering with the people of southern Ohio to build new industries and new economic opportunity."

"This project will be of significant economic importance to southern Ohio, bringing long-term employment and income to the region," says Bill Dingus, executive director of Lawrence County Economic Development Council. "We look forward to supporting the development of new energy technologies and passing on the benefits of commerce and cleaner air to local residents."

Pre-engineering studies for the facility are expected to begin in September 2014, with commercial operations targeted for 2017. The South Point facility will have the capacity to produce 120 million gallons annually, SG Preston says in a statement.

Details of the project financing were not disclosed.


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