Imperium Renewables, Inc. announced the closing of its sale of Imperium’s assets, including Imperium Grays Harbor, LLC, to Renewable Energy Group.
REG paid Imperium USD 15.0 million in cash and issued 1.675 million shares of REG common stock in exchange for substantially all of Imperium’s assets, including the 100-million gallon nameplate biodiesel refinery and terminal at the Port of Grays Harbor, Wash., U.S.A. For two years post-closing, Imperium may receive up to USD 0.05 per gallon for biodiesel produced and sold at Grays Harbor. REG assumed USD 5.2 million of Imperium’s debt from Umpqua Bank, which has agreed to provide the newly-named REG Grays Harbor, LLC with an additional loan capacity of up to USD 5.0 million to fund capital expenditures and improvements at the facility. In addition, Imperium retained its net working capital value of approximately USD 25 million.
Based in Seattle, Imperium Renewables began developing proprietary technology and processes in the production of biodiesel in 2004. Imperium Grays Harbor, LLC is one of the largest biodiesel facilities in the U.S.A. It started operations in August 2007 in Hoquiam, Wash. This industry leading facility is capable of producing up to 100 million gallons of biodiesel annually.