Blackhawk Biofuels to acquire 45 Mgy Illinois biodiesel plant from Biofuels of America
In Illinois, Blackhawk Biofuels will acquire a 45 Mgy biodiesel plant in Danville owned by Biofuels of America. Fifth Third Bank and Renewable Energy Group will provide debt financing for the acquisition, and REG will mange the facility on behalf of Blackhawk. The new ownership will convert the existing plant from soybean oil to a multi-feedstock model.
Last week, Renewable Energy Group cancelled its $150 million IPO, citing poor market conditions. The company had hoped to use proceeds from the IPO to fund one-third of the construction costs of 180 Mgy in new production capacity at three locations. The company has two 60 Mgy plants under construction in Louisiana and Kansas, owns a 12 Mgy plant, and operates three other plants for other owners with a 120 Mgy capacity.
In January, Imperium Renewables canceled its planned IPO due to “unfavorable market conditions.” The company had planned a $345 million IPO in May that would have financed the construction of three new biodiesel plants, including a $90 million project with Hawaiian Electric.
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