Additionally, Vertex Energy has entered into a new working-capital facility with existing liquidity provider, Macquarie Group’s commodities and global markets business, to supply the necessary liquidity for securing feedstock for renewable diesel production.
After a two-week period of downtime related to fixing the feedstock-pumping system after it suffered a failure in early May, repair and reinstallation operations have been successfully completed.
Start-up procedures were completed before Memorial Day and the company reported May 31 that the renewable diesel facility achieved initial production May 27.
“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 Energy. “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.”
Vertex also announced the entry into a renewable supply and offtake agreement 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 agreement were filed with the U.S. Securities and Exchange Commission.
“Today, we mark a significant development milestone in our pursuit of excellence and innovation,” said Benjamin P. Cowart, CEO of Vertex Energy. “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 begin commercial sale of renewable diesel in June, after receiving required certifications for renewable identification number (RIN) credits from U.S. EPA.
