PBF Energy and Eni Sustainable Mobility announce closing of St. Bernard biorefinery partnership
Published by Bella Weetch,
Editorial Assistant
Hydrocarbon Engineering,
PBF Energy Inc. and Eni Sustainable Mobility (ESM) have announced the closing of a 50-50 joint venture (JV) partnership in SBR, an operating biorefinery co-located with PBF's Chalmette Refinery in Louisiana, US. PBF's affiliate contributed the biorefinery and other assets comprising the business to SBR and ESM’s affiliate has committed to make capital reimbursements and contributions totalling US$835 million to PBF, of which US$431 million was paid at closing. The remainder of the total consideration will be contributed by ESM upon start-up of the pre-treatment unit (PTU). An additional US$50 million in contingent consideration will be paid by ESM subject to the achievement of certain project milestones.
CEO of ESM, Stefano Ballista, said: "Closing the St. Bernard Renewables biorefinery 50% acquisition and creating a dedicated joint venture together with PBF confirms the relevance of biofuels in ESM, which is already running two biorefineries in Italy. It is a further step on the path to decarbonise transports, including hard-to-abate sectors such as heavy duty. The closing will enable ESM to increase its refining capacity from 1.1 million tpy to over 1.6 million tpy and to enter in the most relevant markets in line with its goal to reach over 3 million tpy by 2025 and more than 5 million tpy by 2030.”
PBF President, Matthew Lucey, said: "Closing this strategic partnership with ESM demonstrates our commitment to delivering diversified sources of energy to our customers, while lowering the carbon intensity of the products we manufacture. The SBR biorefinery will benefit from PBF and ESM's complementary strengths and expertise. We are excited about our partnership with ESM and look forward to reaching full operations at SBR."
Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/30062023/pbf-energy-and-eni-sustainable-mobility-announce-closing-of-st-bernard-biorefinery-partnership/
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