California Here I Come: World Energy’s Audacious $72M Acquisition of AltAir and the Paramount Oil Refinery
by Jim Lane (Biofuels Digest) The Paramount Deal: World Energy takes off with audacious $72M acquisition of AltAir and the Paramount oil refinery — In Massachusetts, World Energy has acquired renewable jet and diesel producer AltAir Paramount, and its Paramount Petroleum refinery assets, both collocated in Paramount, CA, as well an adjacent tank farm and most of Delek’s California pipeline assets, from Delek US Holdings, for $72 million in total consideration.
It’s the first time ever that a biofuels enterprise has acquired a well-known petroleum refinery. Sign of changing times (though there have been noted conversions by petroleum refiners of individual refineries, e.g. Eni’s switchover in Venice, Italy to renewables).
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World Energy is one of the largest and longest serving advanced biofuel suppliers in North America. Founded in 1998, the company now has more than 245million gallons of biodiesel and jet fuel production capacity, Verified Q-RINs, BQ-9000 quality, fleets services with delivered diesel blends from B99 to B5, glycerin & fatty acids, and engineering services. The company operates biodiesel manufacturing plants in Houston, TX, Natchez, MS, Rome, GA, Harrisburg, PA, and now Paramount, CA.
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AltAir, which converted the Carinata oil into jet fuel, operates the world’s first commercial-scale renewable jet fuel plant at the AltAir Paramount refinery in Paramount, Calif. The plant produces 35 million gallons per year of renewable fuels, including Honeywell Green Jet Fuel, using Honeywell’s UOP Renewable Jet Fuel process, which produces fuels that are chemically identical to petroleum-based fuels. Delivery of the fuel to the aircraft is provided by supply partner World Fuel Services from Miami, Florida.
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“This acquisition places us in the heart of the growing California cleaner fuels market by adding to our platform the world’s first renewable jet refinery and one of only three US renewable diesel plants,” said Gene Gebolys, World Energy’s CEO. “Our move into California, into renewable jet/diesel technology, and into expanding our downstream distribution capabilities are important next steps in our effort to establish a reliable coast to coast supply presence for growing blended biofuel customers.” he continued, “We look forward to being a great corporate citizen in Paramount and to making ever larger contributions to the nation’s quest for cleaner renewable fuels.”
“Supported by the frameworks of the national Renewable Fuel Standard and California’s Low Carbon Fuels Standard programs, AltAir converted a struggling petroleum refinery to one of the country’s most important renewable fuel refineries, while preserving and converting approximately 100 jobs to the green economy,” said Bryan Sherbacow, AltAir co-founder. “I am proud to have led the development of AltAir, excited to have facilitated this transaction with World Energy and am thrilled to join the company’s executive leadership team to make an even bigger impact in California, North America and beyond.”
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Vandewater Capital Holdings, the lead investor and controlling shareholder of AltAir Fuels from its inception in 2013 until Delek acquired a controlling stake in October of 2015, brought AltAir from concept to a leading refinery of renewable fuels. Describing AltAir’s track record, Jason Aintabi, Vandewater’s founder, and previous Chairman and CEO of Altair, said, “We are very proud of what we were able to accomplish here. Altair is a globally recognized facility that has helped pioneer an era of impact investment in America’s energy future. Our sustainable fuels are proudly used by the Department of Defense, United Airlines, UPS as well as other prominent companies.”
The Bottom Line
It’s a masterstroke. An entry into hydrocarbon fuel markets to match what REG has been aiming at — while getting a leadership position on the big opportunities in California and in the aviation biofuels market with a proven producer of low-cost fuels. It’s been a bravura run for AltAir — with little of the fanfare that’s attended to companies like Solazyme and Amyris, AltAir got it done. And now — a bravura acquisition that shakes of the world of renewable hydrocarbon fuels well, as President Trump might say, big league. READ MORE
World Energy acquires AltAir biojet, renewable diesel assets (Biodiesel Magazine)
World Energy acquires AltAir’s world-first commercial scale renewable jet fuel refinery (GreenAir Online)
