In Iowa, Renewable Energy Group completed its acquisition of substantially all the assets of Imperium Renewables, Inc, paying $15.0 million in cash and issuing 1.675 million shares of REG common stock in exchange for substantially all of Imperium’s assets, including the 100-million gallon nameplate biodiesel refinery and terminal at the Port of Grays Harbor, WA. For two years post-closing, Imperium may receive up to $0.05/gallon for biodiesel produced and sold at Grays Harbor. REG assumed $5.2 million of Imperium’s debt from Umpqua Bank, which has agreed to provide the newly-named REG Grays Harbor, LLC with an additional loan capacity of up to $5.0 million to fund capital expenditures and improvements at the facility. In addition, Imperium retained its net working capital value of approximately $25 million.
Most of Imperium’s employees have agreed to stay on with REG. The Grays Harbor location includes 18 million gallons of storage capacity and a terminal that can accommodate feedstock intake and fuel delivery on deep-water PANAMAX class vessels as well as possessing significant rail and truck transport capabilities. A formal grand opening will be announced at a later date.
“We are excited to now offer high-quality REG-9000 biomass-based diesel produced at Grays Harbor to better serve new and existing customers along the west coast and other low-carbon fuel markets, ” said REG President and CEO Daniel J. Oh. “The transition at Grays Harbor has been seamless so far thanks to the dedicated team at Imperium who we are now proud to have as members of the REG family.”