Renewable Energy Team (REG) has actually accepted obtain a biodiesel refinery from Sanimax Energy which will certainly be an enhancement to the business’s expanding fleet of lower-cost, lower-carbon biorefineries.
Both the business have actually tattooed a possession acquisition contract to this impact.
Under the concurred terms, REG will certainly pay near $ 11m in money as well as will certainly release 500,000 shares of REG ordinary shares for the 20 million gallon biodiesel center in DeForest, Wisconsin.
Making use of REG copyrighted and also tried and tested high totally free fat handling innovation the center generates biodiesel from reduced expense feedstocks consisting of yellow oil, provided pet fats, as well as not fit to eat corn oil along with fine-tuned veggie oils.
REG head of state and also Chief Executive Officer Daniel J. Oh claimed: “With expanding biomass-based diesel quantities in the United States, REG is proceeding its development too.
” This plant will certainly include in our network of lower-cost, lower-carbon strength, multi-feedstock biorefineries. Having a trustworthy feedstock provider co-located following door need to supply a chance for added expense financial savings and also logistical advantages. We have actually worked with Sanimax as well as the Couture household for several years and also eagerly anticipate a proceeding thriving connection.”
After closing of the purchase, REG will certainly have 11 energetic biomass-based diesel refineries in 7 states consisting of Iowa, Illinois, Texas, Louisiana, Minnesota, Washington as well as Wisconsin with a consolidated nameplate manufacturing ability of 452 million gallons.
REG additionally consented to pay Sanimax an added $ 5m in cash money over a duration of as much as 7 years after shutting based upon the quantity of biodiesel created at the plant.
The plant will certainly be re-named as REG Madison.
Image: Renewable Energy Group is adding the 20 million gallon Sanimax biodiesel plant to its growing fleet of lower-cost, lower-carbon biorefineries. Photo: courtesy of REG.
CTBR – Biofuels News