Vertex Energy Announces Commercial Production Of Renewable Diesel And Entry Into Working Capital Facility For Renewable Diesel Business
05/31/2023
Vertex Energy, Inc. (NASDAQ: VTNR) ("Vertex" or the "Company"), a leading specialty refiner and marketer of high-quality refined products, today announced the successful completion of the startup procedures for its renewable diesel conversion project at its Mobile, Alabama, refining facility. Additionally, the Company announced that it has entered into a new working capital facility with existing liquidity provider, Macquarie Group’s Commodities and Global Markets business (“Macquarie”), to supply the necessary liquidity for securing feedstock for renewable diesel production.
Commercial Production of Renewable Diesel Now Underway
After a two-week period of downtime related to the previously disclosed repairs on the feedstock pumping system, repair and reinstallation operations have been successfully completed. Startup procedures were completed last week and the Company is pleased to report that the renewable diesel facility has achieved initial production as of May 27, 2023.
"We are grateful for the dedication and hard work put in by our team and contractors to successfully execute this conversion project in a safe and timely manner," said James Rhame, Chief Operating Officer at Vertex, who stated further, "It is a great achievement to see our project transition from concept to production, and we couldn't have done it without the focus and coordination of everyone involved."
Renewable Supply and Offtake Agreement with Macquarie
Vertex also announced the entry into a Renewable Supply and Offtake Agreement (“RSOA”) with existing liquidity provider, Macquarie for the liquidity needs required to acquire feedstock inventory and monetize renewable diesel and regulatory credits for its renewable diesel facility. The new working capital facility is similar in nature to the existing Supply and Offtake Agreement in place with Macquarie used to monetize Vertex's crude oil feedstock and products needs on the conventional side of the business. The terms of the RSOA were filed with the SEC in a Current Report on Form 8-K concurrently with this release.
"Today, we mark a significant development milestone in our pursuit of excellence and innovation," said Benjamin P. Cowart, CEO at Vertex, who stated further, "Our team's exceptional achievements have propelled us forward, and we are proud to share this momentous occasion with our stakeholders who have stayed committed in the journey alongside us. This not only marks a historic accomplishment for this site and for Vertex, but for the great State of Alabama."
Stroock & Stroock & Lavan LLP acted as legal advisor to Vertex with respect to the transaction. The Company plans to commence the commercial sale of renewable diesel in June 2023, after receiving required EPA certifications for Renewable Identification Numbers.
Vertex Energy, Inc. (NASDAQ: VTNR) ("Vertex" or the "Company"), a leading specialty refiner and marketer of high-quality refined products, today announced the successful completion of the startup procedures for its renewable diesel conversion project at its Mobile, Alabama, refining facility. Additionally, the Company announced that it has entered into a new working capital facility with existing liquidity provider, Macquarie Group’s Commodities and Global Markets business (“Macquarie”), to supply the necessary liquidity for securing feedstock for renewable diesel production.
Commercial Production of Renewable Diesel Now Underway
After a two-week period of downtime related to the previously disclosed repairs on the feedstock pumping system, repair and reinstallation operations have been successfully completed. Startup procedures were completed last week and the Company is pleased to report that the renewable diesel facility has achieved initial production as of May 27, 2023.
"We are grateful for the dedication and hard work put in by our team and contractors to successfully execute this conversion project in a safe and timely manner," said James Rhame, Chief Operating Officer at Vertex, who stated further, "It is a great achievement to see our project transition from concept to production, and we couldn't have done it without the focus and coordination of everyone involved."
Renewable Supply and Offtake Agreement with Macquarie
Vertex also announced the entry into a Renewable Supply and Offtake Agreement (“RSOA”) with existing liquidity provider, Macquarie for the liquidity needs required to acquire feedstock inventory and monetize renewable diesel and regulatory credits for its renewable diesel facility. The new working capital facility is similar in nature to the existing Supply and Offtake Agreement in place with Macquarie used to monetize Vertex's crude oil feedstock and products needs on the conventional side of the business. The terms of the RSOA were filed with the SEC in a Current Report on Form 8-K concurrently with this release.
"Today, we mark a significant development milestone in our pursuit of excellence and innovation," said Benjamin P. Cowart, CEO at Vertex, who stated further, "Our team's exceptional achievements have propelled us forward, and we are proud to share this momentous occasion with our stakeholders who have stayed committed in the journey alongside us. This not only marks a historic accomplishment for this site and for Vertex, but for the great State of Alabama."
Stroock & Stroock & Lavan LLP acted as legal advisor to Vertex with respect to the transaction. The Company plans to commence the commercial sale of renewable diesel in June 2023, after receiving required EPA certifications for Renewable Identification Numbers.
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