A renewable diesel and jet fuel refinery in Paramount has been sold to Boston-based biofuel producer World Energy as part of a deal reportedly worth $72 million.
The Paramount refinery was the core asset of renewable jet and diesel producer AltAir Paramount LLC, which also owned an adjacent tank farm. AltAir had been owned by Delek U.S. Holdings of Brentwood, Tenn.
The sale to World Energy, announced on March 19, also included Delek’s pipeline network in California. In total, according to industry publication Biofuels Digest, the sale was for $72 million.
The Paramount refinery includes a 63-acre complex consisting of a 45 million gallon per year renewable jet/renewable diesel production facility, 1.7 million barrels of product storage and a truck rack with 28 thousand barrels per day of throughput capacity. Also included in the deal was rail storage for up to 70 rail cars, and pipelines stretching over 71 miles connecting the facility to major southern California distribution hubs, including Long Beach.
“This acquisition places us in the heart of the growing California cleaner fuels market by adding to our platform the world’s first renewable jet refinery and one of only three US renewable diesel plants,” Gene Gebolys, World Energy’s chief executive, said in a statement. “We look forward to being a great corporate citizen in Paramount and to making ever larger contributions to the nation’s quest for cleaner renewable fuels.”
AltAir co-founder Bryan Sherbacow said in a statement that the sale was a culmination of a multi-year turnaround effort.
“Supported by the frameworks of the national Renewable Fuel Standard and California’s Low Carbon Fuels Standard programs, AltAir converted a struggling petroleum refinery to one of the country’s most important renewable fuel refineries, while preserving and converting approximately 100 jobs to the green economy,” Sherbacow said. “I am proud to have led the development of AltAir, excited to have facilitated this transaction with World Energy and am thrilled to join the company’s executive leadership team to make an even bigger impact in California, North America and beyond.”
Economy, education, energy and transportation reporter Howard Fine can be reached at firstname.lastname@example.org. Follow him on Twitter @howardafine.