GreenHunter to acquire shipping infrastructure

By Erin Voegele | October 14, 2008
Web exclusive posted Oct. 29, 2008 at 11:01 a.m. CST

GreenHunter Biofuels LLC, a wholly owned subsidiary of Texas-based GreenHunter Energy Inc., announced Oct. 22 that it has purchased an option to lease 22 acres of waterfront property in Port Sutton, Fla. GreenHunter has nine months to determine if the company will lease the property.

If GreenHunter Biofuels chooses to lease the land, the first project is expected to be the construction of a biofuels terminaling facility. According to Jack Zedlitz, GreenHunter Energy's director of corporate communications, the terminaling facility would be equipped to handle finished biodiesel, biodiesel feedstock materials and other biofuels. Construction would begin once initial site work and permitting is completed. Additional plans for the site may include the construction of a biodiesel plant.

The property is owned by the Tampa Port Authority and has access to rail, truck, barge and deep-water ship transportation. GreenHunter Biofuels paid approximately $1 million in cash and GreenHunter Energy restricted common stock valued at $14.25 per share for the nine month lease option. An additional payment of $2 million in restricted common stock will be due within 18 months of closing. The property would be leased for a minimum of 40 years. GreenHunter would have the option to extend the lease an additional 40 years through four 10-year extensions.

GreenHunter has also executed a definitive agreement to acquire Louisiana-based L&L Holdings LLC, a marine-based diesel, methanol and lubricant supplier, along with its wholly owned subsidiary L&L Oil and Gas Services LLC. L&L has 17 facilities along the Gulf of Mexico coast in Louisiana and Texas, including deepwater terminaling assets in three locations. GreenHunter's acquisition of L&L also includes a 25 percent interest in Highland Marine LLC, a dedicated tug and barge operator to L&L which owns 10 tug boats and 14 barges.

In the acquisition, GreenHunter will pay $27.5 million in cash; the company is evaluating third-party proposals to finance the acquisition which is scheduled to close before the end of the year. Upon closing, GreenHunter will begin to integrate the company's biodiesel into L&L's distribution network.
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