REG to acquire majority ownership of Germany's Petrotec AG

December 9, 2014

BY Renewable Energy Group Inc.

Renewable Energy Group Inc. and IC Green Energy Ltd. announced Dec. 9 that REG, through a wholly owned subsidiary, will acquire ICG’s majority equity ownership position in German biodiesel producer Petrotec AG. Closing of the transaction is expected before year end.

ICG, Israel Corporation’s vehicle for investing in the alternative energy market, formally accepted an offer from REG European Holdings B.V. on Dec. 9 to purchase ICG’s 69 percent equity ownership in Petrotec AG for $20.9 million, or $1.235 per share, to be paid in newly issued REG shares valued at the 30 trading day volume-weighted average for the day prior to signing. The REG subsidiary will also purchase ICG’s loan to Petrotec AG in the amount of approximately $15.4 million. In the next several weeks, REG European Holdings B.V. intends to make a cash tender offer for all other Petrotec shares at a price no less than the value per share to be received by ICG.

“REG’s investment in Petrotec is a natural extension of our business strategy, which should enable us to better capture value from international trade flows and to participate in European biofuel markets,” said Daniel J. Oh, REG president and CEO. “Petrotec’s people, culture, business model and technology are similar to ours at REG. We look forward to working with the Petrotec team as REG expands its business into Europe and further delivers the key benefits of our international industry—energy security and diversity, environmental stewardship and food security.”

Advertisement

Advertisement

Petrotec is a fully integrated company utilizing more than 15,000 collection points to gather used cooking oil (UCO) and other waste feedstocks to produce biodiesel at its two biorefineries in Emden and Oeding, Germany. Petrotec’s nameplate production capacity is 55.5 million gallons (185,000 MT) per year, produced predominantly from UCO. Petrotec’s collection service, treatment processes and biorefineries are certified by both German and European regulators. Its biodiesel is compliant with EU standard EN 14214 and is one of the most sustainable biofuels marketed in Europe.

Advertisement

Advertisement

Related Stories

More than 1.76 billion renewable identification numbers (RINs) were generated under the Renewable Fuel Standard in January, down from 1.91 billion generated during the same period of 2024, according to data released by the U.S. EPA on Feb. 20.

Read More

The U.S. EPA on Feb. 20 released updated small refinery exemption (SRE) data showing that 13 previously denied SRE petitions for Renewable Fuel Standard compliance years 2021 and 2022 are being reconsidered. No new SRE petitions were filed.

Read More

OMV Petrom has announced the start of construction for a sustainable aviation fuel (SAF) and renewable diesel (HVO) production unit at the Petrobrazi refinery in Romania. The new facility will have an annual capacity of 250,000 tons.

Read More

CVR Energy Inc. released fourth quarter financial results on Feb. 18, reporting reduced renewable diesel production. The company also said it is pausing development of SAF capacity pending clarity on government subsidies.

Read More

The U.S. EIA reduced its forecast for 2025 biodiesel production in its latest Short-Term Energy Outlook, released Feb. 11. The forecasts for renewable diesel production and the production of other biofuels, including SAF, were maintained.

Read More

Upcoming Events

Sign up for our e-newsletter!

Advertisement

Advertisement