Camber Energy to purchase renewable diesel plant in Nevada

By Erin Voegele | January 24, 2023

Camber Energy Inc. on Jan. 23 announced it has entered an agreement to purchase a renewable diesel plant located in Reno, Nevada. The facility, known as New Rise Renewables Reno, has a nameplate capacity of 43 MMgy. A wholly owned subsidiary of Camber had previously announced an agreement to purchase the plant.

Documents filed with the U.S. Securities and Exchange Commission indicate that Camber Energy has entered into a membership interest purchase agreement with RESC Renewables Holdings LLC to acquire all of the membership interests of New Rise Renewables LLC, which owns all of the membership interests in New Rise Renewables Reno LLC. These companies are in the process of constructing and commencing operations at the facility.

The purchase price is expected to be $750 million, less the amount of outstanding liabilities and indebtedness of the acquired companies, which are estimated to be approximately $251 million. Under the agreement,  Camber Energy is to pay at least $100 million within 30 days of the plant becoming commercially operational or the closing date, whichever is later. Additional payments are to be made following the achievement of certain production and sales goals for renewable diesel produced by the plant.

The transaction is subject to numerous conditions, including Phillips 66 not exercising a right of first refusal to acquire the plant, and the plant achieving commercial operations. If the closing does not occur by May 31, 2023, either party may terminate the agreement.

The renewable diesel facility was previously subject to a separate acquisition agreement. Viking Energy Group Inc. in December 2021 announced it had entered into a membership interest purchase agreement to acquire the companies developing the Reno plant. That transaction was not completed. According to information released by the companies, Viking Energy Group is currently a wholly owned subsidiary of Camber Energy.

The facility commenced operations in mid-2022. Greater Commercial Lending in August announced the facility was officially launching operations. According to that statement, GCL helped assemble the loan package that made the project possible. Information released by GCL also indicated that financing for the project was guaranteed by the USDA via its 9003 loan guarantee program. Phillips 66 is expected to supply feedstock for the facility and purchase 100 percent of the renewable diesel produced at the plant, according to GCL’s statement.