World Energy Acquires AltAir and Adjacent Paramount Oil Refinery in $72M Deal, Enabling Potential Expansion of Renewable Jet/Diesel Production

21 March 2018 - World Energy, one of America’s largest suppliers of biodiesel, has acquired AltAir Fuels and the surrounding 63-acre refinery in Paramount, CA. The $72 million deal also includes a significantly sized tank farm, rail storage, and distribution and pipeline assets connecting the facility to major California hubs. At present, AltAir Fuel produces 40+ million gallons of renewable fuels per year from a portion of the Paramount site, including diesel, jet, and gasoline blending components, using Honeywell UOP conversion technology and a fraction of the site’s hydroprocessing infrastructure. Feedstocks for the facility include fats, oils, and greases sourced from the region. This acquisition creates World Energy’s fifth renewable fuel manufacturing plant and their first on the west coast. Their other plants are located in Houston, TX, Natchez, MS, Rome, GA, and Harrisburg, PA.

World Energy’s acquisition of AltAir Fuels and the remainder of the refinery provides the opportunity to significantly expand the Paramount facility’s renewable fuel production capacity by using hydrotreating and other refinery infrastructure at the site that has gone unutilized for some time. CAAFI’s Executive Director, Steve Csonka, says, “Our hats are off to Bryan Sherbacow, for his commitment to working in this space, and for his support of the sustainable alternative jet fuel (SAJF) needs of the aviation industry. We hope the execution of this deal enables Bryan to realize his previously communicated vision to expand production capacity of renewable fuels at this site by 3 to 5 times. We further hope his experience in working with the aviation community results in a greater level of engagement by the new World Energy management team in evaluating expansion of SAJF production generally, since several fuel users are seeking additional supply in the next several years, while awaiting other producers’ production sites to come online.”

CAAFI notes that AltAir Fuels, since March of 2016, have collaborated with various fuel distributors to provide fuel to multiple entities for regular use by airlines and business aviation, as well as several demonstration and research activities.

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