REG Acquires Amber Resources and is Acquired by Chevron
Christensen Acquires Yorkston Oil
HollyFrontier Closes Sinclair Acquisition
Marathon, Neste Sign Renewable Diesel JV
Kum & Go Coming to Idaho

REG ACQUIRES AMBER RESOURCES AND IS ACQUIRED BY CHEVRON

LONG BEACH, CA. — In what can only be described as a cascade of acquisitions, Renewable Energy Group, Inc. (REG) has acquired Amber Resources, LLC of Long Beach, CA., including its its affiliated companies, Sawyer Petroleum, M.O. Dion & Sons and Amber Petroleum Products in a deal announced in January. The purchase price for that deal was not disclosed.

Then, at the end of February, Chevron announced they would acquire REG for $3.15 billion in an all-cash deal.

"REG was a founder of the renewable fuels industry and has been a leading innovator ever since," said Chevron Chairman and CEO Mike Wirth, announcing the acquisition of REG. "Together, we can grow more quickly and efficiently than either could on its own."

Included in the deal are REG's 11 bio-based diesel plants; nine in the United States and two in Germany, including a production facility in Washington state. The company's production capacity was just over half a million gallons: 651 million gallons in 2020.

After closing of the acquisition, Chevron's renewable fuels business, which will retain the name Renewable Fuels - REG, will be headquartered at REG's current headquarters in Ames, Iowa.

REG President and CEO Cynthia Warner is expected to join Chevron's Board of Directors.

"Our employees' hard work and dedication have built a fantastic renewable fuels company and made this transaction possible," said Warner. "We look forward to joining Chevron's team."

REG officials had been looking to strengthen their vertical integration. Speaking at the WPMA Convention, REG Executive Director of North American Sales Todd Ellis explained, "We are looking at the full value chain required to get our products to the marketplace. We have an agreement with GoodFuels to supply and develop sustainable marine, the Canadian National Railway to meet ESG goals. They're not going to electrify. Liquid fuels are the future.

"We signed a deal with Booster, a tech-enabled energy delivery service. They're in the Bay Area and deliver directly to the consumer."

Ellis noted that they were "extremely excited to work with Amber Resources. We couldn't have found a better partner in terms of values, culture, work ethic, and team. We are just starting that integration."

REG had just acquired Amber's eight locations in Southern California, including distribution centers and three cardlock sites. REG officials said they planned continue business operations from these locations.

Employees at Amber Resources and its affiliated companies said they were continuing business as usual while the acquisitions were being completed.

With the addition of Amber Resources' diesel, gasoline, lubricants, fuel components, and additives business, REG had added over 60 million gallons/year of diesel sales to the company's portfolio "and a significant lubricants business as a Shell Prestige distributor."

"Amber Resources has a long history of delivering an outstanding customer experience in Southern California," said Matt Cullen, former owner of Amber Resources, announcing the deal. "Joining with Renewable Energy Group is a natural next step for our business as customers look for renewable solutions."

The acquisition of Amber Resources was "a strategic move for REG," said Warner. "REG provides clean fuels that reduce carbon now, and adding the Amber Resources products and services line to our network expands our low carbon fuel sales opportunities in California."

"This acquisition is the next big step in our full value chain strategy," said Bob Kenyon, REG Senior Vice President, Sales & Marketing, "and we are thrilled about the future and the opportunity to expand our downstream offerings."

It is unclear whether Chevron will continue to maintain REG's downstream assets or if it will focus on increasing its renewable fuels production capacity. Chevron had stated a goal of increasing its renewable fuels production capacity to 100,000 barrels per day by 2030.

CHRISTENSEN ACQUIRES YORKSTON OIL

RICHLAND, WA. — Christensen Inc., the Richland, WA.-based distributor, has acquired Yorkston Oil Company of Bellingham, WA. The purchase price on the deal, which was completed in December, was not disclosed.

Included in the acquisition are Yorkston's Commercial Fuel Network cardlock sites, as well as its book of business distributing fuel, heating oil, lubricants, and marine fuels to branded retail sites, independent stations in the Northwest.

The operations of Yorkston have been consolidated into Christensen's offices and rebranded to the Christensen name.

Founded in 1939, Yorkston Oil Co., had operated as a family owned, third generation company. When looking at a sale, the family said they were seeking "to find a partner who exemplified their values and would continue to serve their customers with the same family-first approach."

"This acquisition represents a strategic investment that supports our planned growth in renewable fuels, retail fuel, lubricants, and other industrial fluids," said Tony Christensen, president and CEO of Christensen Inc., announcing the deal.

"Through extending our geographical reach, this acquisition enhances our ability to deliver economically and environmentally sustainable solutions to customers in northwestern Washington and surrounding states," he added.

Christensen officials noted that the acquisition of Yorkston was "one of three strategic moves" completed in 2021.

Last year, the company bought a 50,000 square foot warehouse with rail and 30 bulk storage tanks in Portland, OR. The company also acquired a four acre property in Seattle, WA., with a 50,000 square foot warehouse nearby loading terminals.

With over 500 employees, Christensen officials note they have "grown eight times faster than the industry average" adding "in the years ahead, Christensen's growth will accelerate, as they intensify their focus on building a sustainable legacy focusing on being socially sustainable, economically sustainable, and environmentally sustainable."

HOLLYFRONTIER CLOSES SINCLAIR ACQUISITION

DALLAS, TX. — HollyFrontier Corporation and Holly Energy Partners have completed their acquisition of Sinclair Oil Corporation and Sinclair Transportation Company from The Sinclair Companies.

The combined companies are now known as HF Sinclair Corporation, effective as of March 14.

"The completion of our transactions and the launch of HF Sinclair marks the start of the next phase of our company's history," stated Mike Jennings, serving as the CEO of HF Sinclair. "We are moving forward as a more diverse, downward integrated business with scale that is positioned to drive growth and capital returns to our shareholders."

He added, "I am honored to welcome the talented Sinclair team to our organizations and I look forward to working closely with them to capture the significant growth and value-creation opportunities ahead at both HF Sinclair and HEP."

The combined company will now operate seven refineries in the Pacific Northwest, Rocky Mountains, and Mid-Continent/Southest as well as three renewables production facilities.

The HF Sinclair marketing business will feature the Sinclair brand with 300-plus distributors and more than 1,300 independent wholesale branded sites located across 30 states.

The company will also produce and market lubricants sold under the Petro-Canada Lubricants, Sonneborn, Red Giant Oil and HollyFrontier Specialty Products brands.

Ross Mathews, the former Chairman and CEO of Sinclair Oil Corporation has been appointed to the HF Sinclair Board of Directors. Mark Peterson, the former president of Sinclair Transportation Company, has been appointed to the Holly Logistics Services Board of Directors.

HF Sinclair will be based in Dallas with offices in Salt Lake City, UT.

MARATHON, NESTE SIGN RENEWABLE DIESEL JV

MARTINEZ, CA. — Marathon Petroleum and Neste Corporation have announced a 50/50 joint venture to produce renewable diesel in Marathon's Martinez, CA., refinery.

The Martinez Renewable Fuels Project will convert the refinery from traditional feedstocks and diesel production to the alternative fuel. Production of the renewable diesel is expected to come online in the second half of 2022, depending on permitting.

The facility is planned to reach its full annual capacity of 730 million gallons by the end of 2023.

"This is a very important step in our renewables growth strategy execution," said Peter Vanacker, Neste's President and Chief Executive Officer, announcing the joint venture. "The location of the facility is in the middle of the growing renewable fuel market in California. The partnership will further strengthen our footprint in the United States, as we will have a broad value chain that covers feedstock sourcing to renewables production and sales in the US.

"We are thrilled to partner with Marathon," continued Vanacker. "We both share an ambition in offering more high-quality, lower-emission renewable products, thus helping customers to achieve their sustainability goals."

Neste has pledged to invest approximately $1 billion in the Martinez Renewable Fuels Project, half of the anticipated costs to convert the refinery, and will hold a 50% interest in the Project, with production output to be split evenly between Marathon and Neste.

Both Neste and Marathon will be responsible for feedstock sourcing for the joint venture. Marathon will operate the refinery, and each partner will be responsible for marketing the products under their own brand.

The Martinez refinery has been idled since 2020.

KUM & GO COMING TO IDAHO

BOISE, ID. — Kum & Go has announced they will enter the Idaho market with plans to open 20 to 25 stores in the Boise area over the next five years.

"Kum & Go is excited to introduce a fresh perspective to the idea of immediate consumption in Boise," said Kum & Go CEO Tanner Krause, announcing the company's expansion. "We're committed to leveraging the latest technology, products, and innovation to deliver the quality, value and service our customers deserve every day."

Kum & Go had already announced a westward expansion in 2021, with plans to open 30 new convenience stores in the greater Salt Lake City, UT.-area. The first Utah stores are expected to open this year and continue over the next five years.

"We're thrilled to introduce the Mountain West region to the Kum & Go brand with this move into Boise," stated Niki Mason, senior vice president of store development. "Boise's rich history, culture, and rapid growth align with our long-term plans for expansion and continued store enhancement.

"We're excited to start serving and connecting with the Boise community."

Kum & Go is based in Des Moines, IA., with over 400 c-stores in 11 states including Colorado, Montana, and Wyoming in the West.

Originally published in the April 2022 issue of O&A Marketing News.
Copyright 2022 by KAL Publications Inc.