Bye Bye Biodiesel: EQM Technologies & Energy Sells Biodiesel Plant To Dalek Renewables
Cincinnati-based EQM Technologies & Energy, Inc (EQTE :OTCQB) is exiting the biodiesel business as it has agreed to sell it’s only production plant in Cleburne, TX to Delek Renewables (DK :NYSE) for $5.3 million.
It appears that the Tennessee-based Delek is getting a deal on the plant that produces 12 million gallons of biodiesel per year as more recent biofuel production plants have cost in the in hundreds of millions to build. Delek is planning on spending an additional $3 million to improve the plant.
EQM could have been backed into a corner as Delek was the plant’s only customer. In addition, EQM’s market capitalization is at a miniscule $8.5 million.
With its newfound capital, EQM plans to pay off debt while focusing on their environmental services business.
Shares of Delek Holdings US were up 4.3 percent in afternoon trading.