Mar 15 2013
Global Clean Energy Holdings, Inc. today announced that it has acquired Sustainable Oils, LLC, a global leader in Camelina genetics and production.
The acquisition includes 100% ownership interest of Sustainable Oils and the ownership of the key intellectual property and operational assets. Camelina is the only non-food based crop approved by the EPA as an advanced biofuel, which includes renewable jet fuels, for RIN generation.
The acquisition increases GCEH's portfolio of non-food based feedstocks to include EPA and FDA approved Camelina, a stress-tolerant oil seed that can be grown in many regions of the United States, Canada, Europe as well as many other areas around the world. The acquisition provides GCEH with all commercial rights to Sustainable Oils' extensive intellectual property portfolio, including the patents for elite varieties of Camelina, an expansive inventory of breeding stock, certified seed production and supply capacity, an existing product portfolio and product pipeline, breeding facilities, equipment and many years of know-how. Sustainable Oils generated more than $20 million of revenues during the past four years from its Camelina operations, including the sale of Camelina oil for use as jet fuel.
Sustainable Oils is a global leader in the technology and operations necessary for commercial production and marketing of Camelina seeds, EPA approved oil and FDA approved animal feed. Camelina is a hardy, non-food based biofuels feedstock with a history of verified yields, low input requirements and the only novel crop with USDA, EPA and FDA regulatory approvals. More than 100,000 acres of Camelina have been grown across the United States alone, with over 20 million acres available in North America for potential production that would not compete with food crops.
"This is a very significant and strategic acquisition for GCEH," said Richard Palmer, President & CEO of Global Clean Energy Holdings. "Integrating SusOils into the Global Clean Energy family represents another step in the planned growth of this company into a diversified multi-crop, renewable feedstock producer. This will allow us to generate revenue and profits much faster and to significantly expand our operations in the United States and in Europe. The accretive value to GCEH from the intellectual property portfolio alone is enormous. Based on our internal estimates and assumptions, we expect that our Camelina based sales can exceed $60 million over the next three years. To say the least, we are very excited about taking this important next step in the growth of this company and building shareholder value."
The acquisition will also create opportunities for Sustainable Oils' growers and existing business partners. The company has successfully contracted camelina production in 10 states and Canadian provinces, and has conducted testing in 40 states and provinces, as well as Australia, New Zealand, Spain Portugal, Ukraine, Italy and Saudi Arabia.
Scott Johnson, President of Sustainable Oils, said, "The entire team at Global Clean Energy is an ideal match for SusOils. By leveraging Global Clean Energy's existing business structures and relationships, we anticipate a very steep growth curve for our business. It gives us the capacity to rapidly supply large volumes of Camelina oil and meal into the U.S. and world markets. I am very enthusiastic to be part of the Global Clean team."
"We have worked with both companies and commend the acquisition of Sustainable Oils by Global Clean Energy," said Vice President of Global Business Development & Policy for Boeing Commercial Airplanes, Billy Glover. "This agreement is a positive indicator that the aviation biofuel sector is generating momentum. Sustainable Oils was instrumental in obtaining EPA's recent approval of Camelina oil under the Renewable Fuels Standard for RIN generations. As a proponent of Camelina and non-food based bioenergy sources for sustainable biofuel generation, we look forward to working with the collective team in the future."
"Global Clean Energy and Sustainable Oils have been great to work with, having supplied Honeywell with non-food based feedstocks for the production of our renewable diesel and jet fuel," said Jim Rekoske, Honeywell UOP's Vice President and General Manager of Renewable Energy and Chemicals. "We look forward to continuing and expanding our relationship, and expect the combination of skills from this acquisition to rapidly lead to significant advances for sustainable biofuel feedstocks."
Global Clean Energy Holdings acquired Sustainable Oils, LLC and the related assets from Targeted Growth, Inc., a Washington based crop biotechnology company focused on developing products with enhanced yield and improved quality for the agriculture and energy industries, and the other minority owner of Sustainable Oils for 40,000,000 shares of GCEH's common stock, and a $1,300,000 secured promissory note. GCEH acquired Sustainable Oils subject to certain operating liabilities accrued in Sustainable Oils prior operations.
The above revenue estimates are based on internal plans and the assumption that we will be able to continue Sustainable Oils' prior operations and relationships, the estimated synergistic contribution of GCEH's infrastructure and operational resources, the estimated commercial impact of the EPA's February 2013 approval of Camelina as a biodiesel feedstock, and the expectation that we will be able to consummate the pending financing transactions that will allow us to rapidly expand the Camelina operations.