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10 MARCH 2016 | FUEL OIL NEWS | www.fueloilnews.com FUELS EIA NE WS REG TO ACQUIRE SANIMAX BIODIESEL PLANT Renewable Energy Group, Inc. announced that it signed an asset purchase agreement with Sanimax Energy, LLC to acquire Sanimax's 20-million-gallon biodiesel refinery in DeForest, Wis. Under the asset purchase agreement, REG will pay Sanimax approximately $11 million in cash and will issue 500,000 shares of REG common stock in exchange for the biorefinery and related assets. REG will also pay Sanimax up to an additional $5 million in cash over a period of up to seven years after closing based on the vol- ume of biodiesel produced at the plant, which will be re-named REG Madison, LLC. Sanimax operates a grease process- ing facility at the same location, although that facility is not part of the acquisition. Closing of the transaction is subject to cus- tomary closing conditions. "With growing biomass-based diesel volumes in the U.S., REG is continuing its growth as well," said Daniel J. Oh, REG president and CEO. "This plant will add to our network of lower-cost, lower-carbon intensity, multi-feedstock biorefineries. Having a dependable feedstock supplier co-located next door should provide an opportunity for additional cost savings and logistical advantages. We have done business with Sanimax and the Couture family for many years and look forward to a continuing prosperous relationship." "This agreement is in line with our business plan to improve focus on our core businesses," said Martin Couture, Sanimax's president and CEO. "We are pleased that our biodiesel employees will have an opportunity to pursue their career with an industry leader. This is a reflection of the excellent work they have achieved over the past several years. Sanimax looks forward to continuing its excellent business relationship with REG as a shareholder and a reliable feedstock supplier." The biorefinery is located just north of Madison, Wis. and began production in 2007. Using the same REG patented and proven high free fatty acid processing tech- nology as the company's Seneca, Ill. plant, it produces biodiesel from lower cost feed- stocks including yellow grease, rendered animal fats, and inedible corn oil in addi- tion to refined vegetable oils. The facility has both truck and rail capabilities. Upon closing of the transaction, REG will have 11 active North American bio- mass-based diesel refineries in seven states: Iowa (3), Illinois (2), Texas (2), Louisiana, Minnesota, Washington and Wisconsin (1 each) with a combined nameplate produc- tion capacity of 452 million gallons. WESTMOR INDUSTRIES, LLC. PURCHASES ADVANCED TANK SYSTEMS, INC. Westmor Industries, LLC, recently acquired Advanced Tank Systems, Inc. to create an extended network of fuel-handling prod- ucts and services. Aside from providing their customers with an extended product portfolio, the companies have strengthened their purchasing power, expanded ser- vice capabilities and improved lead times with united manufacturing efforts. The companies also benefit from each other's experienced management who encour- age new product innovation with greater efficiencies, less maintenance and more uptime. Advanced Tank will be re-branded as Westmor Industries. EXXONMOBIL, RENEWABLE ENERGY GROUP TO RESEARCH BIODIESEL FROM CELLULOSIC SUGARS ExxonMobil announced an agreement with Renewable Energy Group, Inc. to study the production of biodiesel by fer- menting renewable cellulosic sugars from sources such as agricultural waste. The agreement is between ExxonMobil Research and Engineering Company and REG's Life Sciences subsidiary. Terms were not disclosed. REG has developed a patented technol- ogy that uses microbes to convert sugars to biodiesel in a one-step fermentation process similar to ethanol manufacturing. The ExxonMobil and REG Life Sciences research will focus on using sugars from non-food sources. " T h i s r e s e a r c h i s j u s t o n e w a y ExxonMobil is working to identify poten- tial breakthrough technologies to reduce greenhouse gas emissions, increase energy supplies and realize other environmental benefits," said Vijay Swarup, vice presi- dent of research and development at ExxonMobil Research and Engineering Company. "The science is extremely complex, but we hope to identify new affordable and reliable supplies of energy for the world that do not have a major impact on food supplies." "REG has a long history of innovation in the production of advanced biofuels from lower-carbon, waste feedstocks," said Eric Bowen, REG vice president and head of REG Life Sciences. "We look forward to this collaboration with ExxonMobil to advance our proprietary cellulosic sugar fermentation technology and capitalize on the combined power of cellulosic sugars and microbial fermen- tation to revolutionize the production of ultra-low carbon, cleaner burning advanced biofuels." Through the research, the two com- panies will be addressing the challenge of how to ferment real-world renewable cellulosic sugars, which contain multiple types of sugars, including glucose and xylose, but also impurities that can inhibit fermentation. "As we research renewable energy supplies, we are exploring future energy options with a reduced environmental impact," Swarup said. "Our first challenge is to determine technical feasibility and potential environmental benefits during the initial research. If the results are posi- tive, we can then take the next step and explore the potential to expand our efforts and explore scalability." " R E G i s c o n s i s t e n t l y e x p l o r i n g promising lower-cost, lower-carbon feedstocks," Bowen said. "The research we are conducting with ExxonMobil in this program supports our entire Life Sciences product offering, creating the opportunity for lower cost production of lower carbon specialty chemicals, fuels and other products."