EIA: US Ethanol Stocks Flat

REG Expands California Footprint With Amber Resources Buy

OAKHURST, N.J. (DTN) -- Renewable Energy Group, Inc. has acquired southern California-based Amber Resources, LLC, d/b/a Sawyer Petroleum, and its affiliated entities, M.O. Dion & Sons and Amber Petroleum Products.

Amber Resources is a full-service distributor of diesel, gasoline, lubricants, other transportation fuel components, industrial services, and additives.

With this deal, REG adds eight locations in southern California, including distribution centers and three cardlock sites. REG will continue business operation from these locations, providing customers with uninterrupted services and an enhanced clean fuel product offering.

This acquisition builds upon REG's downstream participation, growing the company's footprint in one of the most renewable-focused regions in the world. Amber Resources will add over 60 million gallons a year of diesel sales to the company's portfolio and a significant lubricants busines as a Shell® Prestige distributor. The deal is expected to be immediately accretive to earnings and in line with the company's targeted internal rate of return.

"This deal is a strategic move for REG that enables us to build upon our platform of direct sales, positioning us to capture full value chain margins and drive commercial optimization, while helping our customers achieve their decarbonization goals," said Cynthia Warner, REG president and CEO. "REG provides clean fuels that reduce carbon now, and adding the Amber Resources products and services line to our network expands our low carbon fuel sales opportunities in California."

This announcement adds to recent news regarding REG's growing downstream business. Most notably, REG has received commitments to supply biofuels for both rail and marine operations. In addition, REG recently announced a partnership with Booster Fuels, a tech-enabled mobile fueling company.

"This acquisition is the next big step in our full value chain strategy, and we are thrilled about the future and the opportunity to expand our downstream offerings," said REG Senior Vice President, Sales and Marketing Bob Kenyon.