Renewable Energy Group, a biodiesel producer and marketer, on July 20 announced two acquisitions and assumption of a used cooking oil supply agreement.

REG, which is based in Ames, Iowa, is acquiring Tellurian Biodiesel, Inc., a California-based biodiesel company and marketer, and American BDF, LLC (ABDF). ABDF is a joint-venture owned by Golden State Service Industries, a subsidiary of Golden State Foods of Irvine, Calif.; Restaurant Technologies Inc. (RTI) of Eagan, Minn.; and Tellurian Biodiesel. ABDF previously focused on building a national array of small biodiesel plants that would convert used cooking oil into high quality, sustainable biodiesel.

According to a news release, the acquisition of ABDF connects RTI’s national used cooking oil collection system-which has more than 16,000 installations—with REG’s national network of proven, commercial-scale biodiesel manufacturing facilities in order to produce high performing, clean liquid fuel.

“Turning used cooking oil into biodiesel at REG’s network of manufacturing facilities is another good outlet for our customers’ waste products to power a simple, green, and safe solution for fueling our nation’s progress toward clean energy goals,” explained RTI Chief Executive Officer, Jeff Kiesel.

Analysts have long looked to used cooking oil as an excellent low-carbon feedstock source for the biodiesel industry.

“Just by gaining access to this nationwide system of used cooking oil collection depots, REG has the potential, over time, to replace more than a half million barrels of imported crude oil with sustainable, domestically produced biodiesel,” explained Dave Elsenbast, REG’s vice president for supply chain management.

REG’s processing capabilities and reputation for quality played a decisive role in the acquisition decision, Tellurian’s former CEO Eric Bowen explained.

“From its inception, Tellurian was focused on creating high quality fuel from waste feedstocks. With this acquisition, we are able to greatly accelerate the implementation of our plans by building upon REG’s proven capabilities,” Bowen said.

Used cooking oil will augment REG’s current national, multi-feedstock procurement program that supplies the company’s commercial-scale biodiesel facilities. The REG network has a combined annual production capacity of more than 200 million gallons. Finished biodiesel will be marketed and distributed under REG’s REG-9000 branded biodiesel platform to petroleum distributors and refiners nationwide.