World Energy buys major US renewable jet fuel producer

Advanced biofuel producer World Energy has completed the purchase of a number of assets from Delek US Holdings. These include Delek’s interests in renewable jet and diesel producer AltAir Paramount.

World Energy has also acquired the Paramount Petroleum Refinery and adjacent tank farm from Delek, as well as ‘most’ of its California pipeline assets, according to a statement.

AltAir’s 63-acre, 45 million gallon per year renewable jet fuel and renewable diesel production facility, located in Paramount, California, is included in the purchase. The facility boasts 1.7 million barrels of product storage capacity, a truck rack with 28,000 bpd of throughput capacity, rail storage for up to 70 rail cars, and pipelines stretching over 71 miles connecting the facility to southern Californian distribution hubs such as Long Beach.

Based in Boston, World Energy is one of the US’ largest advanced biofuels suppliers. It operates biodiesel manufacturing plants in Houston, Texas; Natchez, Mississippi; Rome, Georgia and Harrisburg, Philadelphia.

“This acquisition places us in the heart of the growing California cleaner fuels market by adding to our platform the world’s first renewable jet refinery and one of only three US renewable diesel plants,” said Gene Gebolys, World Energy’s CEO.

“Our move into California, into renewable jet/diesel technology, and into expanding our downstream distribution capabilities are important next steps in our effort to establish a reliable coast to coast supply presence for growing blended biofuel customers.” Gebolys continued.

“We look forward to being a great corporate citizen in Paramount and to making ever larger contributions to the nation’s quest for cleaner renewable fuels.”

 

Positive signs for biodiesel in California

The move comes amid growing interest in California from biofuels producers in the wake of the state’s Low Carbon Fuel Standard (LCFS). The legislation is designed to encourage the use of cleaner, low-carbon fuels in the state. Under the Standard, biodiesel has one of the best carbon scores, deemed to offer greenhouse gas emissions of between 50% and 81%.

In late February, Western Iowa Energy purchased the idled Argon biodiesel facility in Watsonville, CA. Explaining the decision, Western Iowa Energy’s president Brad Wilson said: “The LCFS has made California the epicentre for biodiesel demand, and that drove our decision to expand outside of Iowa.”