Chemicals company Aemetis acquires US-based Cilion
Fuels and renewable chemicals company Aemetis has acquired US-based Cilion, including a 55mgy ethanol production plant in Keyes, California.
With the acquisition of the Cilion, Aemetis plans to use the infrastructure of the plant to produce biofuels, renewable chemicals, ethanol and animal feed products as part of the development of the next generation bio refinery.
Eric McAfee, Aemetis chairman and CEO, said: "The acquisition of the Keyes plant accelerates our plan to expand this world-class ethanol production facility into a next-generation biorefinery capable of producing advanced renewable fuels and biochemicals."
Third Eye Capital, a senior lender to Aemetis, provided a $15m term loan and $18m working capital financing facility.
Arif Bhalwani, Third Eye Capital president and CEO, said Third Eye's substantial ongoing commitment to Aemetis demonstrates its belief in the high quality assets and first-class team built by Eric McAfee.
"The acquisition of the Keyes plant will allow Aemetis to accelerate the next phase of its renewable fuels and chemicals strategy," Bhalwani added.
In 2010 Aemetis entered into a multiyear project and lease agreement with Cilion to restart, upgrade and operate the Cilion biofuels plant.
As part of the agreement, Aemetis started and retrofitted the biofuels plant in April 2011 and operated it for more than a year.