More layoffs at Imperium as 100 Mgy biodiesel plant struggles

In Washington state, Imperium Renewables has announced a new round of layoffs, affecting corporate staff, just as a storm of protest erupted in Hawaii over Imperium’s switch to supplying biodiesel to Hawaii Electric from its Grays Harbor, WA plant instead of constructing a new biodiesel plant in Hawaii. The Seattle Post-Intelligencer is reporting that “only a handful” of corporate staff remain.

Imperium background

In Washington state, a former Imperium Renewable employee has sued the company for as much as $12 million in back payments, punitive damages and attorney’s fees. The suit alleges that Kenneth Orr was dismissed after earning more than $58 million for the company trading commodities, in order to avoid an expensive series of bonus payments on the proceeds from trading. Imperium, in its response, noted that it experienced cash difficulties in 2007, and Orr was laid off after the company concluded it needed to free up capital by ceasing commodities trading activity.

Imperium Renewables slashed its workforce early this year in a cost-cutting move. The biodiesel maker did not make more details available about job losses, but said that operations at its 100 Mgy plant in Grays Harbor were not affected.

Just before Christmas, Martin Tobias resigned as CEO of Imperium, which closed a $113 million venture capital round in 2007 as well as securing a $100 million bank debt financing, but had not closed a planned $345 million IPO. Imperium is backed by Paul Allen, co-founder of Microsoft, where Tobias formerly was employed before joining Imperium. Imperium founder John Plaza was named interim CEO and director Nancy Floyd was named chairman.

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.

Imperium had been instrumental not only in developing its own strategy, but had provided initial funding for Propel Biofuels in the form of a loan. Propel announced a goal in April of installing its biodiesel fuel equipment at 20 stations in Washington, Oregon and California. Currently, the company has eight sites in Washington state in the permitting stage.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Imperium lays off 24; says cuts needed for survival in face of economy, Europe tariff, feedstock prices

In Washington state, Imperium Renewables said that it would lay off 24 workers at its 100 Mgy biodiesel plant in Grays Harbor, citing economic conditions, feedstock costs and biodiesel prices as facto...

Washington state railroad to make its own biodiesel

In Washington State, Tri-City & Olympia Railroad has established a subsidiary, Green Diesel, to make biodiesel for the railroad. The subsidiary has established a 1 Mgy research plant in Richland that ...

Imperium sells 5 Mgy Seattle Biodiesel plant to General Biodiesel

In Washington state, Imperium Renewables announced that it has sold its former 5 Mgy Seattle Biodiesel refinery to General Biodiesel, a Seattle-based start up, for an undisclosed amount. Imperium CEO ...

Imperium Renewables receives BQ-9000 biodiesel certification; 100 Mgy Grays Harbor plant is largest plant to certify

In Washington state, struggling biodiesel producer Imperium Renewables reported yesterday that it has received BQ-9000 certification for fuel produced at the 100 Mgy canola-based biodiesel plant in Gr...

More troubles at Imperium with Hawaii contract in the balance

In Washington state, trouble at Imperium Renewables worsened as the nation's largest biodiesel plant, currently shut down, faces the prospect of losing its largest potential customer, Hawaiian Electri...

Tobias resigns as CEO of Imperium in shock departure; led $113 million VC financing for world’s largest biodiesel plant

In Seattle, Martin Tobias resigned as CEO of Imperium Renewables, the owner of the world's largest operating biodiesel facility, the 100 Mgy plant at Grays Harbor, WA. The company did not discuss reas...