Orion Energy Partners L.P., GCM Grosvenor and Voya Investment Management have entered a capital partnership with Bakersfield Renewable Fuels (BKRF).
BKRF is a special purpose vehicle wholly owned by Global Clean Energy Holdings Inc. (GCE), which was created to purchase an existing refinery in Bakersfield, Calif. BKRF will retool a portion of the refinery into a renewable diesel (RD) bio-refinery. The project will use GCE’s camelina oil as well as traditional biofuel feedstocks such as waste fats, oils and greases to produce RD and other renewable products (liquid propane, naphtha). RD is 100% sustainable and can reduce greenhouse gas (GHG) emissions by up to 80% when compared to conventional diesel. The project’s output will be sold under a long-term offtake agreement with a multinational oil major.
Design, engineering and construction is supported by a consortium of leaders in the downstream and renewable fuels industry. The primary work will be conducted by union trades through a local Bakersfield EPC contractor, ARB Inc., a Primoris Services Corp. subsidiary.
“GCE is thrilled to partner with Orion Energy, GCM Grosvenor and Voya as we embark on this exciting new venture,” says Richard Palmer, CEO of Global Clean Energy Holdings. XANNONCE
“Despite challenging market conditions, with the support and creativity of our financing partners we will have the necessary resources to make the project a success and deliver meaningful economic and environmental benefits to the region,” he adds.
Latham & Watkins LLP acted as legal counsel to Orion Energy. Akin Gump Strauss Hauer & Feld LLP acted as legal counsel to GCM Grosvenor and Voya. King & Spalding acted as legal counsel to GCE and TroyGould acted as acquisition counsel and corporate counsel to GCE.
Photo: Global Clean Energy Holding’s Investor Relations web page