REG acquires US renewable diesel firm Syntroleum
Renewable Energy Group (REG) has closed its acquisition of substantially all of the assets of Syntroleum, the company announced on Wednesday.
Syntroleum advised REG on Tuesday that a majority of its shareholders had voted to approve the asset sale to REG. Shortly after the Syntroleum stockholders meeting, officials from the two companies completed the transaction, which included the issuance of 3,493,613 shares of REG common stock to Syntroleum.
The assets acquired from Syntroleum include a 50% ownership interest in Dynamic Fuels, which owns a 75 million gal/year nameplate capacity renewable diesel biorefinery located in Geismar, Louisiana. REG has a separate pending agreement with Tyson Foods to acquire the remaining interests in Dynamic Fuels.
Most of the employees at Syntroleums headquarters in Tulsa, Oklahoma, will join REG as part of the newly-formed REG Synthetic Fuels.
We are very pleased to bring new advanced biofuel technologies into the REG portfolio of products that will expand our biomass-based diesel business and launch us into new customer segments, said Daniel J. Oh, CEO of Renewable Energy Group. We welcome the newest members of our team in Tulsa to REG Synthetic Fuels.
Syntroleum pioneered renewable diesel fuel and Fischer-Tropsch gas-to-liquids technologies and built a large IP portfolio, including 186 patents issued or pending, which REG will now own.
Headquartered in Ames, Iowa, REG owns and operates nine active biorefineries in five US states and distributes biodiesel through a national network of distribution terminals.
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