June 11, 2014

Renewable Energy Group Completes Dynamic Fuels Acquisition

Renewable Energy Group, Inc. announced recently that its wholly-owned subsidiary, REG Synthetic Fuels, LLC, has completed  its acquisition of the remaining 50% ownership interest in Dynamic Fuels, LLC, previously owned by Tyson Foods, Inc. 

As a result of last Tuesday’s closing of its purchase of substantially all of the assets of Syntroleum Corporation and the closing of this transaction with Tyson, REG now takes full ownership of Dynamic Fuels’ 75-million gallon nameplate capacity renewable diesel biorefinery in Geismar, Louisiana.

Tyson and Syntroleum formed Dynamic Fuels in 2007 as a 50/50 joint venture.  Completed in 2010, the facility is the first large-scale renewable diesel biorefinery built in the U.S. and will now be known as REG Geismar, LLC.

“Closing these transactions enables our entry into the renewable diesel market in a significant way,” said Daniel J. Oh, Renewable Energy Group, Inc. President and Chief Executive Officer.   “We are excited about the opportunity to offer new products to our customers, while building on our core competencies in research, engineering, production, and distribution of advanced biofuels.  We look forward to bringing the Geismar biorefinery online and work to do so has begun.”

REG paid Tyson approximately $16.5 million in cash at closing and retired approximately $13.5 million of Dynamic Fuels’ indebtedness to Tyson.  REG has also agreed to make up to $35 million in future payments to Tyson tied to product volumes at the Geismar biorefinery over a period of up to eleven and a half years.  REG intends to use proceeds from its recent $143,750,000 convertible senior notes offering to either replace the letter of credit that Tyson Foods obtained to support the biorefinery’s $100 million in Gulf Opportunity Zone Bonds, issued through the Louisiana Public Facilities Authority, or to redeem these bonds.

Most of the employees at Dynamic Fuels, LLC are expected to join the company as part of the renamed REG Geismar, LLC.

May 22, 2014

Renewable Energy Group To Acquire Tyson Foods’ Ownership Stake In Dynamic Fuels

Renewable Energy Group, Inc. has reached an agreement with Tyson Foods, Inc. to acquire Tyson’s 50% ownership position in Dynamic Fuels, LLC, the companies announced today.

Completion of the transaction with Tyson Foods, which is contingent upon the closing of REG’s December 2013 announced agreement to acquire substantially all of the assets of Syntroleum Corporation, would give REG full ownership of Dynamic Fuels and its 75-million gallon per year nameplate capacity renewable diesel biorefinery in Geismar, Louisiana. Tyson and Syntroleum formed Dynamic Fuels in 2007 as a 50/50 joint venture. The Geismar facility, completed in 2010, was the first large scale renewable diesel biorefinery built in the U.S.

“Upon closing, this is another milestone for REG in growing our core advanced biofuels business,” said Daniel J. Oh, REG President & CEO. “It gives us the opportunity to further expand our production capacity into new product lines, while growing our overall advanced biofuel manufacturing capability, and bringing on other renewable chemical applications.”

“Selling our interest in Dynamic Fuels to REG provides capital for Tyson to redeploy into other opportunities,” said Andrew Rojeski, Vice President-Renewable Energy for Tyson Foods. “REG is a long-term customer of ours, buying fats, oils and greases to make renewable fuel, and we hope to continue that relationship.”

Under the terms of the agreement, an REG subsidiary would acquire Tyson Foods’ 50% membership interest in Dynamic Fuels by paying Tyson approximately $18 million in cash at closing and up to $35 million in future payments tied to production volume at the Geismar biorefinery over a period of up to eleven and a half years. REG will also fund repayment of approximately $12 million of Dynamic Fuels’ indebtedness to Tyson at closing.

A portion of the development and construction of the Geismar biorefinery was funded by $100 million in Gulf Opportunity Zone Bonds, issued through the Louisiana Public Facilities Authority. Closing of the acquisition from Tyson Foods is conditioned on REG’s replacement of the letter of credit Tyson Foods obtained to support issuance of the bonds or completion of a financing sufficient to refinance the bonds prior to December 31, 2014 on terms acceptable to REG. REG may seek to use existing cash on hand and/or one or more financing vehicles, including public or private debt or equity, to satisfy this condition. Closing is also subject to satisfaction of other customary closing conditions.

REG currently owns eight operating biodiesel refineries in Iowa, Illinois, Minnesota and Texas that have a combined annual nameplate production capacity of 257 million gallons. With the addition of the Geismar facility, the company’s total advanced biofuel annual nameplate production capacity would increase to 332 million gallons.

May 15, 2014

Joule Achieves ASTM Compliance for Sustainable Diesel And Jet Fuel

Joule today announced that itsSunflow®-D and Sunflow®-J products meet the standards of the American Society for Testing and Materials (ASTM) for diesel and jet fuel, respectively. Joule products achieve all accepted standards for fuel performance, and they may also improve quality of the finished fuel blends, as demonstrated by the test results.

“Today’s news marks an important milestone for our hydrocarbon fuel program,” said Dr. Dan Robertson, Chief Scientific Officer of Joule, who will discuss this and other Joule advancements today at the BIO World Congress on Industrial Biotechnology. “Joule has uniquely engineered pathways to produce pure alkane molecules, able to ‘drop in’ to finished blends in high concentrations without chemical upgrading. In demonstrating ASTM compliance, we have affirmed the value of these CO2-derived hydrocarbon fuels and paved the way for market adoption.”

ASTM test regimes address a number of critical fuel requirements, such as performance (e.g. cetane or octane, aromaticity, viscosity, etc.), engine wear, transportability and post-combustion air quality. The C11 alkane molecule which comprises Joule Sunflow-D and Sunflow-J was tested with the following results:

  • Joule Sunflow-D meets the ASTM D-975 standard for diesel in blend percentages of up to 50%.
    The product achieved a high cetane number of 80, improving with increased concentrations of the Joule molecule and indicating a positive trend for combustion quality. The finished blends demonstrated reduced sulfur oxide (SOx), nitrogen oxide (NOx) and volatile organic compounds (VOCs), thus improving the quality of conventional diesel.
  • Joule Sunflow-J meets the ASTM D-1655 standard for jet A/A1 fuel in blend percentages of up to 25%, complying with requirements for turbine performance, engine wear and air quality.

Renewable oils and fatty esters, such as biodiesel, require chemical upgrading before they can be blended with fossil fuels, and then only in low concentrations. In contrast, Joule produces alkane molecules that are inherently “blendable” with fossil fuels in high concentrations (up to 50%) – thus displacing more fossil-derived oil with no chemical upgrading required.

May 14, 2014

GreenShift Extends On-Going Service Contract with Sunoco

GS CleanTech Corporation today announced it has extended its on-going service contract with Sunoco Inc through the end of 2016. The contract calls for GS CleanTech to provide maintenance and corn oil yield enhancements for the Corn Oil Extraction System licensed to Sunoco at its Fulton ethanol plant.

Whit Davis, GreenShift’s Engineer in charge of the Sunoco account, said “we enjoy working with oil refiners who have ethanol assets. We see that they appreciate the renewable benefit ethanol provides the consumer and the environment as well as adding a different level of professionalism to the industry we at GreenShift so proudly serve.”

May 05, 2014

10 New E15 Stations Open In Wisconsin Due To Increasing Consumer Demand

In a boost to rural communities, Beaver Dam, Wis.-based United Cooperative is offering E15 (15 percent ethanol, 85 percent gasoline) at 10 stations throughout Wisconsin. United Cooperative introduced blender pumps at their Cenex convenience stores in Beaver Dam, Baraboo, Hustisford, Iron Ridge, Pickett, Poynette, Reedsburg, Watertown, and Wyocena.

The addition of these Wisconsin convenience stores bumps the total number of E15 stations to 75 in 12 states that offer the higher-level fuel blend to those with vehicles 2001 and newer. United Cooperative’s convenience stores also offer mid-level blends including E30 and E85, which are available for use in flex-fuel vehicles.

“United Cooperative understands the vital importance of choice in the transportation fuel market. The addition of blender pumps to these 10 stations give the people of Wisconsin access to E15, E30, and E85, all low-cost fuel options,” said Robert White, director of market development at the Renewable Fuels Association. “The expansion of E15 in Wisconsin is only the beginning as retailers continue to see the economic benefits of installing blender pumps and offering higher-level ethanol blends to their customers.”

David Cramer, United Cooperative president and chief executive officer, noted, “Ethanol-blended fuels like E15 are better for the environment, originate from locally-grown corn, and reduce our dependence on foreign oil. United Cooperative enjoys offering our customers multiple ethanol options at the pump and doing our part to support the American economy.”

E15 is the most tested fuel additive in the history of the Environmental Protection Agency (EPA). It was approved by the EPA for use in 2001 and newer vehicles after 6.5 million miles of testing. It was introduced into the market in July of 2012 and has been driven more than 65 million miles with no known cases of engine damage or misfueling.

Wisconsin United Cooperative Cenex convenience stores offering E15:

Baraboo Cenex
516 Ash St.
Baraboo, WI 53913

Baraboo Cenex
S3553 County Road BD
Baraboo, WI 53913

Beaver Dam Cenex
N7160 Raceway Road
Beaver Dam, WI 53916

Hustisford Cenex
326 W. Juneau St.
Hustisford, WI 53034

Iron Ridge Cenex
210 W. Pleasant St.
Iron Ridge, WI 53035

Pickett Cenex
6644 State Road 44
Pickett, WI 54964

Poynette Cenex
523 N. Hwy. 51
Poynette, WI 53955

Reedsburg Cenex
306 E. Main St.
Reedsburg, WI 53959

Watertown Cenex
821 N. Church St.
Watertown, WI 53098

Wyocena Cenex
123 Washington St.
Wyocena, WI 53969