In the United States (US) Global Clean Energy Holdings, Inc. (GCEH), a vertically integrated renewable fuels company, has announced that it has is advancing its renewable diesel production through an agreement with ExxonMobil Corporation (ExxonMobil), one of the largest publicly traded international energy companies, which will invest US$125 million with an option to acquire up to 25 percent equity stake in the company.
Please reload the page
Do you want to read the whole article?
- Six editions per year
- Full access to all digital content
- The E-magazine Bioenergy international
- And more ...
The investment, outlined in filings with the US Securities and Exchange Commission (SEC), will help Global Clean Energy Holdings grow its proprietary camelina business in key farming regions in the United States (US) and accelerate expansion into Europe and South America.
This strategic investment by ExxonMobil is transformational for GCE and will enable the rapid expansion of our proprietary camelina business. It also demonstrates the long-term commitment of both organizations to develop ultra-low carbon, nonfood-based feedstocks, and advanced biofuels. Throughout our four years working together, ExxonMobil has actively supported our feedstock deployment efforts in multiple US growth regions, said Richard Palmer, CEO of Global Clean Energy Holdings.
Leading producer of camelina
GCEH subsidiary Sustainable Oils Inc is a leading global producer of camelina, a fast-growing, nonfood oilseed crop planted during fallow rotations by farmers without impact to their primary crops.
Based on analysis of California Air Resources Board (CARB) data, renewable diesel from various non-petroleum feedstocks can reduce life-cycle greenhouse gas (GHG) emissions by approximately 40 percent to 80 percent compared to petroleum-based diesel used in engines on the road today.
We are investing in a number of technologies and initiatives that can reduce greenhouse gas emissions from vital sectors of the global economy, and are progressing lower-emission fuels to help industries like heavy transportation, marine, and aviation. Our agreement with GCEH is an example of how we are leveraging our significant resources, technology, and capabilities to deliver more renewable fuels to help customers reduce their emissions said Ian Carr, President of ExxonMobil Fuels and Lubricants Company.
GCEH has an existing commercial agreement with ExxonMobil for more than 4 million barrels of drop-in renewable diesel from GCEH’s California biorefinery, which is on track to begin production later this year.
GCEH was represented by investment banks Stifel Financial Corp. and Raymond James; financial advisor Ocean Park, and King & Spalding LLP acted as outside counsel. The investment has expected financial closing by the end of February 2022, following a customary HSR review.
The investment includes an additional US$40 million in equity and debt by GCEH’s existing lenders led by Orion Infrastructure Capital for a total investment of US$165 million.