Tesoro acquires Virent to commercialise new biofuels technology

Petroleum products refiner Tesoro Corp. has agreed to acquire renewable fuels and chemicals company Virent to support Virent's success in bringing biofuels technology to commercial scale.

Virent's BioForming technology can convert sugars and other biomass derived feedstocks into renewable petrol blendstocks and aromatics, which are fully compatible with existing fuel infrastructure and current vehicle warranties in the US.

Virent's aromatics product can also be used for renewable chemicals, most notably para-xylene, a key component in polyester.

CJ Warner, executive VP of operations at Tesoro, said the company plants to “provide resources and expertise to support the scale-up and commercialisation” of the BioForming technology.

Tesoro's renewable fuels strategy is to foster the development of high-quality, lower-carbon, renewable feedstocks and blendstocks that can either be co-processed in existing refineries or blended seamlessly with traditional fuels.

The company believes it is important to commercialise new technologies that meet stakeholder expectations and regulatory requirements by producing renewable fuels that do not compromise product quality.

"With this acquisition, Tesoro intends to foster more rapid commercialisation of Virent's renewables technology, which could uniquely position the company with an improved means of future regulatory compliance, as well as potential licensing opportunities," said Warner.

Tesoro will operate Virent as a wholly owned subsidiary, which will be located in Madison, Wisconsin.

Included in the acquisition are existing collaboration agreements, all licenses, a significant intellectual property portfolio, and pilot and demonstration facilities.

Tesoro plans to continue and cultivate Virent's existing business partnerships and relationships in order to support its mission.

The transaction is expected to close by the end of September.