Renewable Energy Group® acquires Tellurian Biodiesel, Inc. and American BDF, LLC
Acquisitions improve national biodiesel producer’s access to used cooking oil supply
LOS ANGELES, CALIFORNIA -- JULY 20, 2010 -- The nation’s leading biodiesel producer and marketer today announced two acquisitions and assumption of a used cooking oil supply agreement that helps the quick-service restaurant industry and the entire nation move closer to achieving clean energy goals.
Renewable Energy Group® (REG®), headquartered in Ames, Iowa, is acquiring Tellurian Biodiesel, Inc., a California-based biodiesel company and marketer, and American BDF, LLC (ABDF). ABDF— a joint-venture owned by Golden State Service Industries, a wholly-owned subsidiary of Golden State Foods of Irvine, Calif.; Restaurant Technologies Inc. (RTI) of Eagan, Minn.; and Tellurian Biodiesel—previously focused on building a national array of small biodiesel plants that would convert used cooking oil into high quality, sustainable biodiesel.
The acquisition connects RTI’s national used cooking oil collection system —with more than 16,000 installations —with REG’s national network of proven, commercial-scale biodiesel manufacturing facilities in order to produce high performing, clean liquid fuel.
“Turning used cooking oil into biodiesel at REG’s network of manufacturing facilities is another good outlet for our customers’ waste products to power a simple, green, and safe solution for fueling our nation’s progress toward clean energy goals,” explained RTI Chief Executive Officer, Jeff Kiesel.
Analysts have long looked to used cooking oil as an excellent low-carbon feedstock source for the biodiesel industry. “Just by gaining access to this nationwide system of used cooking oil collection depots, REG has the potential, over time, to replace more than a half million barrels of imported crude oil with sustainable, domestically produced biodiesel,” explained REG Vice President, Supply Chain Management, Dave Elsenbast.
Leaders involved in the deal cite reduction of dependence on imported oil as just one of the many benefits of this new relationship. “REG’s plans and capabilities to turn waste cooking oil into green house gas-reducing biodiesel is another sustainable solution that we can share with our customers,” said Golden State Service Industries President, Bill Sanderson. “This is a wonderful example of a commercialized, national sustainable biofuel platform that our customers can really get behind.”
REG’s processing capabilities and reputation for quality played a decisive role in the acquisition decision, Tellurian’s former Chief Executive Officer, Eric Bowen explained. “From its inception, Tellurian was focused on creating high quality fuel from waste feedstocks. With this acquisition, we are able to greatly accelerate the implementation of our plans by building upon REG’s proven capabilities,” Bowen said.
Used cooking oil will augment REG’s current national, multi-feedstock procurement program that supplies the company’s commercial-scale biodiesel facilities. The REG network has a combined annual production capacity of more than 200 million gallons. Finished biodiesel will be marketed and distributed under Renewable Energy Group’s REG-9000TM branded biodiesel platform to petroleum distributors and refiners nationwide.
For more information please contact:
|Renewable Energy Group®
Alicia Clancy, Corporate Affairs
|Restaurant Technologies, Inc. (RTI)
|Golden State Foods
|Tellurian Biodiesel, Inc.
For more information, go to the REG press release.