Aaron Equipment Company in conjunction with Reich Brothers and Phoenix Equipment Corporation recently acquired the BP Verenium Biofuels plant including over 40 acres of real estate and equipment located in Jennings, LA. The group plans to first offer the plant in its entirety and then piece meal to the buying public. Consisting of a full plant made up of hundreds of individual pieces of equipment and components, the liquidation marks Aaron Equipment’s expansion into the trendy biofuels equipment market after eight decades of providing new, used and reconditioned processing equipment to other industries. The sale offers a unique opportunity to save money while getting into or extending one’s reach in the sustainable fuels game.
According to a Global Industry Analysts, Inc. market trends report, “Global consumption for Biofuels is projected to reach US$57.8 billion gallons by 2020.” With sustainability on everyone’s minds these days, the growing demand for biofuels as alternatives to fossil fuels represents a solid business opportunity. Relatively inexpensive to process, biofuels pose a low-cost entry point. The one barrier to that entrance is automated equipment cost.
A former biofuels business, the plant was a joint venture between BP and Verenium, which is now part of the BASF Group. It was built to validate various technology platforms for application in all types of biofuel business segments. Although the plant assets have an original cost of $98 million dollars, through the liquidation sale, buyers will be able to secure them for a fraction of that cost.
According to Aaron Equipment, all equipment in the liquidation sale is available for inspection on site by appointment. This Liquidation will continue through the end of the year. Among the equipment up for sale are 316 stainless steel fermenters, 316 stainless steel tanks, stainless steel reactors, shells, tubes, screw presses, decanter centrifuges and hydrolyzers, spiral and plate heat exchangers and an unused DAF system. Full details about all 114 items included in the sale can be found online at Aaron Equipment Company’s website.
BP Biofuels North America acquired in 2010 Verenium’s cellulosic biofuels business, including the Company’s facilities in Jennings, LA and San Diego, CA for $98.3 million. Verenium retained its commercial enzyme business, including its biofuels enzymes products and had the right to develop its own lignocellulosic enzyme program. Verenium also retained select R&D capabilities, as well as rights to access select biofuels technology developed by BP using the technology acquired from Verenium.