Camber Energy to acquire renewable diesel plant in Nevada
Camber Energy, Inc. (NYSE American: CEI), based in Houston, Texas, U.S.A. announced that it is acquiring 100% interest in New Rise Renewables Reno, LLC, which is in the process of constructing and bringing into commercial operations a processing plant located near Reno, Nevada, designed to produce renewable diesel fuel.
The New Rise Renewables Reno plant, located in Tahoe-Reno Industrial Center in Storey County, Nevada, was developed by retrofitting an existing fuel plant.
The estimated production capacity of the plant, once operational is ⁓ 43,000,000 gallons per year.
Phillips 66 is under contract to supply all of the feedstock for New Rise Renewables Reno and will purchase 100% of the renewable diesel product for use and sale in the state of California.
The membership interest in New Rise Renewables Reno, LLC is currently owned by RESC Renewables Holdings, LLC.
As of August 2022, the primary plant has been completed, and a pre-treatment and energy recovery system, designed to increase output and operational efficiency, is supposed to be fully operational in early 2023.
The purchase price is USD750 million, less liabilities and indebtedness, which are estimated to be approximately USD251 million, subject to final determination and adjustment.
Camber’s obligation to close the transaction is conditional on a number of items set out in the Membership Interest Purchase Agreement. There is no guarantee the conditions will be satisfied. If the closing has not occurred by May 31, 2023 or it becomes apparent that the closing conditions will not be obtained by such date, either party may terminate the agreement.
On November 18, 2021, Camber Energy’s majority-owned subsidiary, Viking Energy Group, Inc. entered into an agreement to acquire New Rise Renewables, LLC from RESC Renewables Holdings, LLC for USD300 million. The purchase price was revised on December 22, 2021and the latest terms dictate that the aggregate amount to be paid shall be USD300 million plus any production Increase, subject to any adjustments. The transaction was expected to close no later than January 31, 2022.