Allegro Biodiesel to buy stake in US terminal

19 February 2008 22:15  [Source: ICIS news]

HOUSTON (ICIS news)--Allegro Biodiesel plans to acquire a minority share in the sole liquid terminal at the port of Alexandria in the US state of Louisiana, the company said on Tuesday.

Darrell Dubroc and Tim Collins, directors and executives of Allegro, are members of the controlling investor group, having been permitted by Allegro to participate in exchange for the waiver of certain compensation rights. Other details of the financial transaction were not disclosed.

The joint venture will acquire, develop and operate the terminal as part of a strategic move to reduce transport costs for feedstock, finished biodiesel and other fuels, Allegro said in a statement.

Upon development of the terminal, Allegro will be able to move feedstock and biodiesel through the port, which is located approximately 20 miles from (32 km) Allegro's Pollock biodiesel plant on the Red River.

The joint-venture has signed a long-term, 40-year lease of property with the Alexandria Port Authority, and it plans to acquire 22 acres of adjacent land with existing liquid terminal infrastructure, including 5m gal (19m litres) of tank storage and a fuel rack.

The agreement contains a call option for Allegro to purchase 100% of the venture's equity interests not already owned, though if this option is not exercised, the investor group will be entitled to purchase Allegro's interest.

Allegro expects to close the transaction within several days, the company said.

For more on biodiesel visit ICIS chemical intelligence

For some independent thinking on biofuels bookmark Simon Robinson's Big Biofuels Blog

By: John Waggoner
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