US REG may buy biodiesel refinery from bankrupt Nova Biosource

21 October 2009 19:52  [Source: ICIS news]

HOUSTON (ICIS news)--US biodiesel major Renewable Energy Group (REG) is negotiating to buy a 60m/gal year biodiesel refinery from bankrupt competitor Nova Biosource, the company confirmed on Wednesday.

Iowa-based REG would pay an undisclosed amount of money for Nova’s Seneca refinery in Illinois and assume more than $36m (€24m) in Nova’s debt as part of the deal, according to a filing with the US Securities and Exchange Commission (SEC).

According to the filing, the deal was originally expected to be finished by 15 October. An REG spokeswoman said the two parties were still negotiationing certain provisions.  

Texas-based Nova operated three refineries in Illinois, Iowa and Wisconsin. The company, which reported total debts of $111m and assets of $110m, filed for bankruptcy in March after European tariffs blocked access to a crucial market for US biodiesel sales.

REG is the largest biodiesel supplier in the US. Its nine refineries have a combined production capacity of more than 300m gal/year, according to the company website.

($1 = €0.67)

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By: Ben Lefebvre
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