Renewable Energy Group Buys LS9

STREATOR, Ill. (DTN) -- Renewable Energy Group, Inc. said in a news release Wednesday, Jan. 22, it has acquired renewable chemical technology developer LS9, Inc. for $61.5 million.

"This acquisition is a major step in realizing REG's strategy to expand into the production of renewable chemicals and other products," said Daniel J. Oh, REG president and CEO. "The industrial biotechnology platform and robust patent portfolio LS9 has been building will now be combined with REG's proven production and commercialization capabilities to accelerate the commercial introduction of renewable chemicals to meet increasing customer demand for sustainable products."

LS9's technologies harness the efficiency of the fatty acid metabolic pathway of microorganisms and are expected to produce a range of renewable chemicals for large, diverse markets such as detergents and personal care, as well as renewable fuels. LS9's technology platform can utilize diverse feedstocks including conventional corn and cane sugars, low-cost crude glycerin from biodiesel production, and cellulosic sugars. REG said LS9 is a cornerstone investment for REG Life Sciences, which also plans to develop adjacent and complementary fermentation technologies.

Most of the LS9 team, including the entire research and development group, will join the newly named REG Life Sciences, LLC, which will operate out of LS9's headquarters in South San Francisco, Calif.

"LS9 is a leader in developing technology for the next generation of chemicals and fuels to be produced from renewable feedstocks rather than petroleum," said Vinod Khosla, founding partner of Khosla Ventures and an investor in LS9. "REG's proven capabilities, track record for execution, and access to lower cost feedstock make it an ideal partner to commercialize LS9's technology."

REG, headquartered in Ames, Iowa, owns and operates eight active biodiesel refineries in four states with a combined nameplate production capacity of 257 million gallons annually and distributes biodiesel through a national network of distribution terminals, distributors and customers.

LS9, Inc. is a technology leader in the commercial development of a growing portfolio of sustainable products to meet the needs of chemical and fuel markets worldwide since 2005. The company owns and operates a demonstration production facility in Okeechobee, Fla.

(BM/AG)

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