Biodiesel producer to be purchased in US
Renewable Energy Group (REG) has entered into an asset purchase agreement to acquire all assets of biodiesel producer Syntroleum.
Syntroleum is based in Oklahoma, has produced Fischer-Tropsch gas-to-liquids and renewable diesel fuel technologies and has 101 patents issued or pending. It also owns a 50% interest in Dynamic Fuels, a 75 million gallon renewable diesel production facility based in Louisiana.
The terms of the transaction call for Syntroleum to receive 3,796,000 shares of REG common stock, subject to reduction in the event the aggregate market value of the stock to be issued would exceed $49 million (€35.8 million) or if the cash transferred to REG is less than $3.2 million.
‘Syntroleum and Dynamic Fuels represent an attractive entry path for REG into renewable diesel,’ says REG CEO Daniel Oh. ‘They have also invested substantial resources in their bio-synfining technology, which enables the economical conversion of lipid-based biomass into diesel and jet fuel.’
REG, headquartered in Iowa, owns and operates eight active biodiesel refineries across four states with a combined nameplate production capacity of 257 million gallons.