Global Clean Energy (GCEH) has acquired Alon Bakersfield Properties, a subsidiary of Delek US, in a deal worth $40m.
Alon Bakersfield Properties owns the Alon Bakersfield Refinery located in Bakersfield, California in the US.
With the completion of the deal, GCEH plans to retool the refinery to produce renewable diesel from various feedstocks, including GCEH’s patented fallow land crop varieties of camelina.
Global Clean Energy CEO Richard Palmer said: “We are thrilled to announce this exciting new venture in Bakersfield, California; a venture that leverages the region’s core competencies in agriculture and both traditional and alternative energy.
“We expect that this project will be a catalyst for economic development and will generate both direct and indirect job opportunities in Kern County and the region.”
Renewable fuels refinery to reduce greenhouse gas emissions
Global Clean Energy expects the fuels produced from the renewable fuels facility to result in significant reductions of greenhouse gas (GHG) emissions and local air pollutants.
The firm plans to complete retooling work at the refinery between 18 to 20 months.
Delek chairman, president and CEO Uzi Yemin said: “We are pleased to announce the sale of the last remaining assets located on the West Coast that were acquired through the Alon acquisition in 2017.
“The sale proceeds and the removal of liabilities from our books should help further strengthen our balance sheet while eliminating the annual expenses associated with that business.”
Last year, Delek US has agreed to acquire 15% stake in the Wink to Webster Pipeline joint venture formed by ExxonMobil, Plains All American Pipeline, and Lotus Midstream.
