GEISMAR, La. (AP) - Iowa-based Renewable Energy Group Inc. will buy Tyson Foods Inc.’s half of Dynamic Fuels LLC, a Geismar biofuels plant that makes diesel from animal fat.
The Advocate reports (https://bit.ly/RUy0hl ) Renewable will pay Tyson $18 million in cash and up to $35 million, with those payments tied to production over 11.5 years. Renewable will also pay Tyson $12 million that Dynamic Fuels owes to the food-processing giant.
The Geismar facility began as a $160 million joint venture between Tyson and Syntroleum Corp.
However, the plant has not operated since late 2012, when it shut down for a turnaround. But Syntroleum was reluctant to invest the $10 million needed to restart the facility. In January, Renewable announced it would acquire Syntroleum’s half of the Geismar facility in a stock deal valued at $40 million.
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Information from: The Advocate, https://theadvocate.com
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