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Neste to acquire US UCO collection and aggregation firm

Neste to acquire US UCO collection and aggregation firm
Neste strengthens US feedstock supply with the agreed acquisition of Crimson Renewable Energy Holdings LLC subsidiaries (photo courtesy Neste).

Finland-headed oil refiner and renewable products major Neste Oyj has announced that it has agreed to acquire the used cooking oil (UCO) collection and aggregation business and related assets in the United States (US) from Crimson Renewable Energy Holdings, LLC.

According to a statement, the transaction includes shares in SeQuential Environmental Services, LLC, and Pure, LLC, as well as a UCO processing plant in Salem, Oregon (OR).

Crimson Renewable Energy Holdings and its SeQuential subsidiaries are the largest producers of ultra-low carbon biodiesel in the western United States and one the largest used cooking oil (UCO) and grease trap collection companies on the West Coast.

Crimson is one of only a handful of companies in the US that operates the process from beginning to end on a large scale: collecting UCO and other waste oils, refining it into biodiesel, and refueling fleets, fuel stations, and various equipment in our local and regional communities.

The transaction, the value of which has not been disclosed, is subject to the fulfillment of customary closing conditions and regulatory approval.

This acquisition further strengthens Neste’s presence and operations in the United States. We continue to execute our renewables growth strategy by expanding our renewable raw materials sourcing platform to the US West Coast, which is also a location for our upcoming renewable diesel production joint operation in Martinez, California, and a key market for serving our customers. Together with Mahoney Environmental, this business will form a nationwide UCO collection and aggregation network. I look forward to welcoming the professional team and high-quality operations to contribute to Neste’s activities in North America, said Matti Lehmus, President and CEO of Neste.

Covers West Coast

Through the transaction, Neste is acquiring a leading UCO collection and recycling business on the US West Coast, covering the collection, logistics, and storage of UCO in California (CA), Oregon (OR, and Washington (WA).

Together with the previous acquisitions of Mahoney Environmental and Agri Trading in the United States, IH Demeter in the Netherlands, and Walco Foods in Ireland, the transaction continues to enhance Neste’s global raw materials sourcing platform and support Neste’s aim to serve the customers with the growing global need for renewable products.

I want to thank our SeQuential team for their invaluable efforts and contribution to building a leading UCO collection and aggregation business on the US West Coast. Joining Neste is a great opportunity for that team to develop its UCO business and operations further with a leading manufacturer of renewable fuels, said Harry Simpson, President, and CEO of Crimson Renewable Energy Holdings.

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