REG to Acquire Imperium Renewables
Cosby Sells Lubes Division to Van de Pol Enterprises
Nevada Announces Electric Highway Plans
PEI Publishes Generator and Stationary Engine Guidelines

REG TO ACQUIRE IMPERIUM RENEWABLES

AMES, IA. — Renewable Energy Group, Inc. has announced that it will acquire Seattle-based Imperium Renewables, Inc. for approximately $22 million.

Included in the deal, announced at the end of July, are "substantially all" of Imperium's assets, including its 100-million gallon capacity biomass-based diesel refinery, 18 million gallons of storage capacity, a terminal, and a deepwater port terminal at the Port of Grays Harbor, Washington.

"Bringing the Imperium assets and their team into the REG network is a tremendous addition to our business," said REG CEO Daniel Oh, announcing the deal. "As we combine our companies, we will expand the reach of REG along the west coast, including production and distribution.

"We already sell into these markets," he continued. "This will enable REG to be more efficient and timely in our delivery and improve our supply assurance. We look forward to working with Imperium's experienced staff and plant employees, maintaining operational activities at Grays Harbor, and becoming active members of the community working with the Port of Grays Harbor and the cities of Hoquiam and Aberdeen."

Under the terms of the agreement, REG will pay Imperium in cash and common stock as well as assume $5.2 million of Imperium's debt. In addition, for two years post-closing, Imperium may receive up to a $0.05/gallon payment for biomass-based diesel produced and sold.

"REG's growth over the last eight years has made them an industry leader and our biodiesel facility in Hoquiam will greatly expand their domestic production footprint and continued success." said John Plaza, president and CEO of Imperium Renewables. "We hope our facility will help them continue to grow and diversify biofuel production and sales both locally and around the region."

With the addition of the Imperium facility — to be renamed REG Grays Harbor, LLC — REG will operate 10 biorefineries across the United States.

The final closing of the deal is subject to regulatory and other approvals.

COSBY SELLS LUBES DIVISION TO VAN DE POL ENTERPRISES

SANTA FE SPRINGS, CA. — Cosby Oil Company, based here, has sold its lubricants division to Van de Pol Enterprises of Stockton, CA. The purchase price for the division was not disclosed.

Included in the deal were all of the assets of the business including the lubricant warehouse, oil storage, office, rolling stock, and customer assets. Five employees who were associated with lubricant sales for Cosby also were hired by Van de Pol as part of the transfer.

Van de Pol Enterprises will utilize the new location and distribution facilities to market Shell and Pennzoil-branded lubricants. With the acquisition of Trimen Oil Sales at the beginning of the year, as well as Cosby, Van de Pol Enterprises has expanded its marketing operations across the state of California.

Cosby Oil continues to own its fuels division, which will operate under the name of Cosby Fuels.

"We wanted to focus on fuels and the diversity of the fuels that are coming on the market," explained Larry Clanton, CEO of Cosby Oil. "It was a good fit and the timing was right."

He continued, "There are no changes within Cosby Oil as far as personnel and direction — other than we're now focused on fueling, not only in Southern California and Texas but nationwide."

Cosby Fuels will continue to operate its commercial fueling sites in Santa Fe Springs and San Diego, CA., as well as six fueling stations in the greater Dallas/Fort Worth area, and will remain part of the CFN and Voyager cardlock networks.

"Our primary focus, in some ways, has shifted to the state of Texas," noted Clanton.

With the addition of the Santa Fe Springs facility, Van de Pol will operate distribution centers in Sacramento, Stockton, Turlock, Merced, Fresno, Gardena, and Tranquility, CA.

NEVADA ANNOUNCES ELECTRIC HIGHWAY PLANS

CARSON CITY, NV. — The state of Nevada has announced plans to build the Nevada Electric Highway along U.S. Route 95 between Las Vegas and Reno.

The Nevada Electric Highway would place a network of charging stations along I-95, making it easier to drive the "sparsely populated, mostly desert route between Reno and Las Vegas with an electric vehicle," according to Nevada Governor Brian Sandoval.

In a press conference announcing plans for the charging stations, Sandoval said, "We've all driven this road before and have anxiety [even] with getting gas. Now we can have confidence to charge our electric vehicles and drive them from place to place [in Nevada]."

The Nevada Electric Highway is seen as a tip of the cap to Tesla Motors, which building a battery "gigafactory" outside of Reno. Tesla has purchased 3,000 acres of land in Storey County where it says they will build batteries, stationary backup batteries, and use it for other "industrial purposes." Tesla's investment in the plant is estimated at approximately $5 billion and Nevada's incentives in the facility are estimated at $1.3 billion.

Nevada plans to begin the Electric Highway initiative by opening five charging stations by November which will include two Level 2 chargers and one DC Fast Charger. The state says they are also "working with Tesla motors" to add Tesla fast chargers in Nevada.

There are currently 1,400 electric vehicles registered in Nevada.

PEI PUBLISHES GENERATOR AND STATIONARY ENGINE GUIDELINES

TULSA, OK. — The Petroleum Equipment Institute has published a new document, "Recommended Practices for the Design and Installation of Fueling Systems for Emergency Generators, Stationary Diesel Engines and Oil Burner Systems."

Designed for use by petroleum industry professionals, the document includes recommended practices for the design and installation of tanks, piping and auxiliary equipment for oil burners and stationary permanent systems that fuel diesel powered engines for pumps and generators.

PEI officials said the guidelines were written "in response to requests from architects, engineers, system operators, regulators, contractors, consultants, end users installing systems."

The document was authored by the PEI Generator Fueling System Installation Committee under the leadership of Tinamarie Smith of JD2 Environmental, Inc., and Roy Creley, Lakes Region Environmental Contractors. Members of the committee include Charles S. Allsopp, First Petroleum Services, Inc.; David J. Chrien, Service Station Equipment Co.; Dr. John V. Cignatta, Datanet Engineering, Inc.; Chris Collura, Guardian Fueling Technologies; Bill Duree, Fueling and Service Technologies, Inc.; Les Gray, Les Gray & Company; Arthur H. Hoffmann, A. H. Hoffmann, LLC; Steve Latimer, Mascott Equipment Company Inc.; Darren T. Painter, The Oscar W. Larson Co.; William Pierce, Vital Fuel Systems; Marshall D. Ryan, Unified Services of Texas, Inc.; and Tom W. Wyper, Wayne Perry, Inc.

The publication is available from the PEI for $40 for PEI members and $95 for non-members.

Originally published in the September 2015 issue of O&A Marketing News.
Copyright 2015 by KAL Publications Inc.