Biofuels producer signs agreement to acquire Imperium’s assets.
Renewable Energy Group, Inc. (REG) and Imperium Renewables, Inc. have announced that they have signed an asset purchase agreement under which REG would acquire substantially all the assets of Imperium, including a 100-million gallon nameplate capacity biomass-based diesel refinery and deepwater port terminal at the Port of Grays Harbor, Washington.
Under the terms of the agreement, REG will pay Imperium $15 million in cash and issue 1.5 million shares of REG common stock in exchange for substantially all of Imperium’s assets.
In addition to these payments, REG will pay either $1.75 million in cash or 175,000 shares of REG common stock at closing as elected by REG.
“Bringing the Imperium assets and their team into the REG network is a tremendous addition to our business,” says REG President and CEO Daniel J. Oh. “As we combine our companies, we will expand the reach of REG along the West Coast, including production and distribution. We already sell into these markets as they have responded to the call for more clean, advanced biofuels through low carbon fuel standards. This will enable REG to be more efficient and timely in our delivery and improve our supply assurance. We look forward to working with Imperium’s experienced staff and plant employees, maintaining operational activities at Grays Harbor, and becoming active members of the community working with the Port of Grays Harbor and the cities of Hoquiam and Aberdeen.”
“We hope our facility will help them continue to grow and diversify biofuel production and sales both locally and around the region,” says John Plaza, president and CEO of Imperium Renewables.
Based in Ames, Iowa, REG is a North American producer and marketer of biomass-based diesel, with 10 active biorefineries across the U.S. and a nationwide production, distribution and logistics system. The company’s production operations focus on converting natural fats, oils and greases into advanced biofuels and converting diverse feedstocks into renewable chemicals.
Seattle-based Imperium Renewables began developing proprietary technology and processes in the production of biodiesel in 2004. The Grays Harbor refinery began operation in August 2007 in Hoquiam, Washington, and is designed for advanced biofuel production, storage and transport from southern California to western Canada.
The 100-million gallon nameplate capacity biorefinery will be renamed REG Grays Harbor, LLC. The facility includes 18 million gallons of storage capacity and a terminal that can accommodate feedstock intake and fuel delivery on deep-water Panamax class vessels as well as possessing significant rail and truck transport capability.
REG supplies biofuels that meet or exceed ASTM quality specifications. Its REG-9000 biomass-based diesel is designed as a cleaner burning fuel that helps diversify the energy complex and increase energy security. REG-9000 biomass-based diesel is distributed in most states in the US. REG also markets ultra-low sulfur diesel and heating oil in the northeastern and midwestern US.