ExxonMobil invests in Global Clean Energy Holdings to advance renewable diesel production, camelina expansion
February 10, 2022 By Global Clean Energy Holdings
Global Clean Energy Holdings, Inc. is advancing its renewable diesel production through an agreement with ExxonMobil, which will invest $125 million with an option to acquire up to a 25 per cent equity stake in the company. The investment, outlined in filings with the U.S. Securities and Exchange Commission, will help Global Clean Energy grow its proprietary camelina business in key farming regions in the United States and accelerate expansion into Europe and South America.
“This strategic investment by ExxonMobil is transformational for GCE and will enable the rapid expansion of our proprietary camelina business. It also demonstrates the long-term commitment of both organizations to develop ultra-low-carbon, nonfood-based feedstocks and advanced biofuels,” said Richard Palmer, CEO of Global Clean Energy Holdings. “Throughout our four years working together, ExxonMobil has actively supported our feedstock deployment efforts in multiple U.S. growth regions.”
GCE’s Sustainable Oils subsidiary is the leading global producer of camelina, a fast-growing, nonfood oilseed crop planted during fallow rotations by farmers without impact to their primary crops. Based on analysis of California Air Resources Board data, renewable diesel from various non-petroleum feedstocks can reduce life-cycle greenhouse gas emissions by
approximately 40 per cent to 80 per cent compared to petroleum-based diesel used in engines on the road today.
“We are investing in a number of technologies and initiatives that can reduce greenhouse gas emissions from vital sectors of the global economy, and are progressing lower-emission fuels to help industries like heavy transportation, marine and aviation,” said Ian Carr, president of ExxonMobil Fuels and Lubricants Company. “Our agreement with GCE is an example of how we are leveraging our significant resources, technology and capabilities to deliver more renewable fuels to help customers reduce their emissions.”
GCE has an existing commercial agreement with ExxonMobil for more than four million barrels of drop-in renewable diesel from GCE’s California biorefinery, which is on track to begin production later this year.
GCE was represented by investment banks Stifel and Raymond James; financial advisor Ocean Park, and King & Spalding LLP acted as outside counsel. The investment was executed on Feb. 02, 2022, with an expected financial closing by the end of February 2022, following customary HSR review. The investment includes an additional $40 million in equity and debt by GCEH’s existing lenders led by Orion Infrastructure Capital for a total investment of $165 million.
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