Iowa firm to acquire full control of shuttered Geismar biofuels plant

Following an announcement in December that it would acquire a 50% stake in a shuttered renewable diesel production facility in Geismar from Tulsa, Oklahoma-based Syntroleum Corp., Ames, Iowa-based Renewable Energy Group Inc. announced today that it has also secured an agreement with Springdale, Ark.-based Tyson Foods Inc. to acquire the other 50% stake in the plant. The deal announced today is contingent upon the earlier announced deal closing, but when both are completed, REG will own the entire plant—which previously made fuel from animal fat and has reportedly not been in operation since the fall of 2012. “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,” says REG President and CEO Daniel Oh in a prepared statement. Under the terms of the agreement with Tyson, an REG subsidiary will pay the company 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 11.5 years. REG will also fund repayment of approximately $12 million of Dynamic Fuels’ indebtedness to Tyson at closing
Source – Greater Baton Rouge Business Report