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.”

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.