- Jeffrey Stroburg, Chairman and CEO, Renewable Energy Group Inc.
Jeffrey Stroburg knew he was pushing the envelope when he decided to spin off one of the country’s largest farmer-owned cooperatives, West Central, into a biodiesel company. There were obvious areas of concern. Stroburg was introducing an unproven concept to create a fully integrated biodiesel organization in an untested biodiesel industry. The industry itself was still new and faced issues of having no federal support, little public awareness and an undefined position in the petroleum diesel marketplace. In fact, biodiesel was not yet even trading in the open market.
To launch Renewable Energy Group Inc. (REG), Stroburg sought help. He enlisted Daniel Oh to consult on the venture, and quickly realizing Oh’s extensive knowledge and insight into the business, Stroburg brought him on board as REG’s president and COO — with Stroburg as CEO and chairman.
REG’s growth can be largely attributed to Stroburg and Oh’s ability to leverage the company’s core competencies and build strong strategic partnerships with external companies. While the stretched market of the recent recession stifled the growth of other biofuel companies, Stroburg and Oh saw the opportunity for significant organic growth through acquisition. Part of their strategy has involved rapidly consolidating the biofuel industry. REG completed six acquisitions from 2006 and on, and in just the last year, the company was approached by 35 companies to form business partnerships. In 2011, the company is projected to see a twofold increase in revenue as a result of mergers or acquisitions.
Thanks to Stroburg and Oh’s creative approach to business partnerships, REG has the optimal platform to generate interest as a future development and commercialization partner for more renewable energy companies in the industry’s changing landscape. By combining their industry expertise and knowledge of current market data, they’ve successfully shifted REG’s business model from plant builder to North America’s largest biodiesel manufacturer and marketer.
How to reach: Renewable Energy Group Inc., (515) 239-8000 or www.regfuel.com
