Renewable Energy Group finishes buying Tulsa biofuels tech company

Source: By Donnelle Eller, Des Moines Register • Posted: Thursday, October 9, 2014

Ames-based Renewable Energy Group finished its purchase of Syntroleum Corp., a biofuels technology company in Tulsa, for nearly 3.5 million shares, the companies said.

A majority of Syntroleum shareholders today voted for the deal. Renewable Energy Group’s shares closed at $9.97 each, up 14 cents today.

Syntroleum will be owned by the Iowa biodiesel company’s subsidiary, REG Synthetic Fuels.

Among Syntroleum’s assets is 50 percent ownership of Dynamic Fuels, a 75 million gallon capacity renewable diesel biorefinery in Louisiana.

REG has a separate agreement pending with Tyson Foods to buy its interest in Dynamic Fuels for $18 million in cash and up to $35 million in future payments tied to production.

“We are very pleased to bring new advanced biofuel technologies into the REG portfolio of products that will expand our biomass-based diesel business and launch us into new customer segments,” said Daniel Oh, REG’s CEO.

Syntroleum pioneered renewable diesel fuel and gas-to-liquids technologies, building a large intellectual property portfolio that includes 186 issued or pending patents, REG said.

Most of the employees at Syntroleum’s Tulsa headquarters will join REG as part of the newly formed REG Synthetic Fuels, REG said.

REG announced last week it would sell $125 million in senior convertible notes to help restructure debt related to Dynamics Fuels’ purchase.