Renewable Energy Group has received approval from a Mississippi court to purchase certain equipment at the KiOR Columbus production facility.
Under the approved asset purchase agreement, the subsidiary, REG Synthetic Fuels. paid US$1.5 million, plus certain expenses related to equipment preparation, to acquire various physical assets at the Columbus, MS plant, including a 12-million gallon hydrotreating unit, distillation column and tankage.
“These are quality assets we were able to purchase for a very good value,” said Brad Albin, Vice President, Manufacturing. “We plan to re-locate and utilize the equipment for future advanced biofuel or renewable chemical projects.”
Texas-based KiOR, spent US$200 million to set up a biofuel plant designed to convert wood chips to fuel. The project has stopped operating since late 2013. KiOR’s parent company, which is based in California, has filed for Chapter 11 bankruptcy reorganization. The Mississippi unit is not included in the bankruptcy proceedings.
KiOR still owes the state of Mississippi approximately US$69 million in loans.