Joule to merge with Red Rock Biofuels
Joule, the pioneer of liquid fuels from recycled CO2, and Red Rock Biofuels, a leading developer of renewable jet and diesel fuel biorefineries, announced their intent to merge. Joule is based in Bedford, Mass., U.S.A. Red Rock Biofuels is based in Fort Collins, Colo., U.S.A.
Red Rock adds a proven technology pathway to Joule’s own Helioculture technology and strengthens Joule’s platform for global supply of carbon neutral fuels. The transaction is expected to close in 30 days.
Red Rock Biofuels leverages a commercially proven Fischer-Tropsch technology to convert sustainably harvested biomass residues from forests and sawmills into jet fuel and diesel products. The company is poised to begin construction of its first refinery located in Lakeview, Ore., U.S.A. in early 2016. The project is supported by a USD 70 million grant from the U.S. Departments of Agriculture, Navy and Energy, and the company has entered into substantial offtake agreements with Southwest Airlines and FedEx for the fuel that will be produced.
“Joule’s proprietary platform provides a path towards carbon-neutral mobility and Red Rock Biofuels will add an immediate commercial capability to produce renewable diesel and jet fuel, complementing our unique direct pathway through direct conversion of CO2 to drop-in fuels,” said outgoing Joule President and CEO Serge Tchuruk.Tchuruk will be succeeded by Brian Baynes, a current board member of both Joule and Red Rock and partner at Flagship Ventures. Joule is privately held and has raised more than USD 200 million in funding, led by Flagship Ventures.
“We are excited to merge with Joule and enhance our biorefinery platform to include Joule’s innovative CO2 conversion technology and further reduce the carbon intensity of our renewable, drop-in jet and diesel fuels. Integrating Joule’s transformative technology into our platform positions the combined company for global development of low-carbon fuels,” said Terry Kulesa, Red Rock’s CEO.
As part of this merger and expansion of the commercial pathways, Joule has also restructured its business operations to streamline resources and focus on its two commercial pathways.
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