ROME and PARSIPPANY,
N.J., June 28, 2023 /PRNewswire/ -- Eni
Sustainable Mobility Spa and PBF Energy Inc. (NYSE: PBF) today
announced the closing of a 50-50 joint venture partnership in St.
Bernard Renewables LLC (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
Eni Sustainable Mobility's affiliate has committed to make capital
reimbursements and contributions totaling $835 million to PBF, of which $431 million was paid at closing. The remainder
of the total consideration will be contributed by Eni Sustainable
Mobility upon start-up of the pre-treatment unit ("PTU"). An
additional $50 million in contingent
consideration will be paid by Eni Sustainable Mobility subject to
the achievement of certain project milestones and performance
criteria.
"Closing the St. Bernard Renewables biorefinery 50%
acquisition and creating a dedicated joint venture together with an
important US industrial partner as PBF confirms the relevance of
biofuels in Eni Sustainable Mobility, which is already running two
biorefineries in Italy, and it is
a further step on the path to decarbonize transports, including
'hard to abate' sectors such as heavy duty" said CEO of
Eni Sustainable Mobility Stefano Ballista. "The closing will
enable Eni Sustainable Mobility to immediately increase its
refining capacity from 1,1 to over 1,6 million tons/year and to
enter in the most relevant markets in line with its goal to reach
over 3 million tons/year by 2025 and more than 5 million tons/year
by 2030, by contributing to Eni strategy to achieve carbon
neutrality by 2050 through the reduction of the emissions generated
during the entire products life cycle".
"Closing this strategic partnership with Eni Sustainable
Mobility, a global leader in biorefining, demonstrates our
commitment to delivering diversified sources of energy to our
customers, while lowering the carbon intensity of the products we
manufacture," said PBF President Matthew Lucey. "The SBR biorefinery
will benefit from PBF and Eni's complementary strengths and
expertise. We are excited about our partnership with Eni and
look forward to reaching full operations at
SBR."
SBR Operational Update
The St. Bernard Renewables
biorefinery has commenced operations with production of commercial
product beginning in June. The PTU is mechanically complete and its
start-up is expected in the coming weeks. SBR is currently targeted
to have processing capacity of about 1.1 million tonnes/year of raw
materials, with full pretreatment capabilities. It will produce
mainly HVO Diesel (Hydrotreated Vegetable Oil, commonly known as
'renewable diesel' in North
America), with a production capacity of 306 million gallons
per year. The biorefinery is using the Ecofining™ process developed
by Eni in cooperation with Honeywell UOP.
SBR will operate as an independent entity with feed procurement
and product distribution managed by a dedicated team working on
behalf of the St. Bernard Renewables joint venture. While the
partnership is set to benefit from its co-location with PBF's
Chalmette refinery through a
variety of shared services, the operations and ownership of the
existing Chalmette refinery will
not be affected by the formation of the new partnership.
Forward-Looking Statements
Statements in this press
release relating to future plans, results, performance,
expectations, achievements and the like are considered
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include, but are not limited to, the statements
regarding the SBR joint venture transaction in whole, part or at
all. These forward-looking statements include, without limitation,
the company's expectations with respect to the potential joint
venture's post-transaction plans, objectives, expectations and
intentions with respect to future earnings and operations of SBR.
These forward-looking statements involve known and unknown risks,
uncertainties and other factors, many of which may be beyond the
company's control, that may cause actual results to differ
materially from any future results, performance or achievements
expressed or implied by the forward-looking statements. Factors and
uncertainties that may cause actual results to differ include but
are not limited to the risks disclosed in the company's filings
with the SEC. All forward-looking statements speak only as of the
date hereof. The company undertakes no obligation to revise or
update any forward-looking statements except as may be required by
applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE: PBF) is
one of the largest independent refiners in North America, operating, through its
subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New
Jersey and Ohio. Our
mission is to operate our facilities in a safe, reliable and
environmentally responsible manner, provide employees with a safe
and rewarding workplace, become a positive influence in the
communities where we do business, and provide superior returns to
our investors.
PBF Energy is also a 50% partner in the St. Bernard Renewables
joint venture focused on the production of next generation
sustainable fuels.
Eni Sustainable Mobility
Eni Sustainable Mobility is
the Eni company dedicated to sustainable mobility. The company is
vertically integrated along the entire value chain to provide
gradually decarbonized services and products that support the
energy transition and accelerate the path to net zero emissions
throughout their entire life cycle. The company incorporates
existing bio-refining and biomethane assets, including the
Venice and Gela bio-refineries,
and oversees the development of new projects, including the
biorefineries in Livorno (Italy)
and Pengerang (Malaysia) which are
currently under evaluation. Eni Sustainable Mobility also
incorporates a network of over 5,000 sales points in Europe to market and distribute a number of
energy carriers, among them fuels of organic origin including HVO
(Hydrogenated Vegetable Oil) and biomethane, as well as hydrogen
and electricity, in addition to other products such as bitumen,
lubricants and fuels. Eni station network also support Eni's other
mobility-related services such as the Enjoy car sharing service,
food services and stores close to Eni's retail outlets. Eni
Sustainable Mobility is directly controlled by Eni, which holds
100% of its share capital.
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SOURCE PBF Energy Inc.