American Refining Group, Inc. (‘ARG’) and Novvi LLC, a joint
venture of Amyris, Inc. (Nasdaq:AMRS), an integrated renewable
products company, and Cosan S.A., one of the largest corporations
in Brazil, with businesses in energy, and infrastructure including
lubricants, today announced that ARG has committed to a 33.3%
equity investment into the joint venture. Both Amyris and Cosan
will continue to hold share ownership stakes in Novvi, together
with ARG.
Novvi’s products and technology are recognized by the global
lubricant market to deliver the best sustainable, high-performance
solutions in a range of lubricant applications. ARG’s Bradford,
Pennsylvania refinery, founded in 1881, is the oldest continuously
operating refinery in North America.
“Our launch of Novvi’s synthetic base oils has been embraced by
manufacturers in a range of top-tier lubricant segments, across
both automotive and industrial applications,” stated Jeff Brown,
Novvi LLC’s CEO. “Our partnership with American Refining Group will
help accelerate our growth by providing the necessary resources to
ensure manufacturing, supply, and delivery capabilities to scale
our business for volume and to meet customer expectations.”
“ARG’s Bradford refinery was built on innovation and market
leadership in 1881, and today we are seeing a change in the
hydrocarbon economy, coupled with performance requirements in the
base oil industry. This is an opportunity for ARG to lead the
market once again – this time with a renewable product,” stated Tim
Brown, Chief Executive Officer, American Refining Group, Inc.
“When we explored the value and synergies, we were struck by
the enormous benefit to both companies. The potential benefits cut
across our base oil, finished lubricants, solvents, and drilling
fluids businesses.”
Tim Brown continued, “Furthermore, environmentally-conscious,
energy-efficient products have always been a core interest to ARG
and Novvi’s products allow that with Amyris's No Compromise®
performance.”
Greater energy efficiency and durability are key growth drivers
in high-performance base stocks and lubricants. Together, American
Refining Group and Novvi believe that a novel, performance-based,
technology platform that couples segment-specific, top-tier
performance with sustainable, bio-based feedstocks delivers against
the needs of the industry today and in the future.
“We are very pleased with ARG’s financial, technical and
commercial support of Novvi and their participation along with the
strong demand for Novvi technology enables us to significantly grow
into another billion dollar market for our farnesene technology,”
said John Melo, President and CEO of Amyris. “This agreement is the
first of several we expect this year where we are divesting from
non-core marketing activity while remaining key technology
developers and producers of high performance chemistry that is
remaking the world in a more sustainable way. And, with ARG’s
support, we have the opportunity in working together with Cosan to
more quickly expand the availability of renewable products into the
global markets for base oils and lubricants, which are expected to
reach $42 billion and $70 billion in size, respectively, by 2020*.
This market is yet another example of how Amyris’s farnesene is
able to support the growth of large and diverse markets.”
American Refining Group, Inc.
American Refining Group converts hydrocarbon feedstocks into
high-quality waxes, lubricant base oils, gasoline and fuels, as
well as a wide variety of specialty products. ARG’s
state-of-the-art blending and packaging facilities – located in
Bradford, PA -- are capable of producing a full spectrum of
finished lubricant products. ARG’s total commitment to quality is
proven through our packaging plant and refinery being both ISO
9001:2008 and Made in USA certified; ARG’s was the
first refinery to earn the coveted Made in USA
certification. See more details on ARG at http://www.amref.com.
Novvi LLC
Novvi LLC is the market leader in renewable oils and is a joint
venture of Amyris, Inc., American Refining Group, Inc., and Cosan
S.A. Industria e Comercio. Novvi produces targeted hydrocarbon
molecules from plant sugar for automotive, industrial, marine, and
construction applications at unbeatable economics. Novvi designs
the best oils ever built to meet the demands of the advanced
machine world. Learn more at www.Novvi.com.
Amyris, Inc. Forward-Looking Statements
This release contains forward-looking statements, and any
statements other than statements of historical facts could be
deemed to be forward-looking statements. These forward-looking
statements include, among other things, statements regarding future
events (such as the expected growth of Novvi’s business as a result
of the ARG investment, the potential benefits of the investment to
ARG, Amyris and Novvi, expected divestments of non-core marketing
activity, expanded availability of renewable products into the
global base oil and lubricant markets, and the expected future
market size for base oils and lubricants) that involve risks and
uncertainties. These statements are based on management’s current
expectations and actual results and future events may differ
materially due to risks and uncertainties, including, among other
things, the company’s liquidity and ability to fund operating and
capital expenses, timing and execution risks associated with
manufacturing, potential delays or failures in development,
production and commercialization of products, Amyris’s reliance on
third parties to achieve its goals, and other risks detailed in the
“Risk Factors” section of Amyris’s quarterly report on Form 10-Q
filed on May 10, 2016. Amyris disclaims any obligation to update
information contained in these forward-looking statements whether
as a result of new information, future events, or otherwise.
Amyris and No Compromise are registered trademarks of Amyris,
Inc. All other trademarks are the property of their respective
owners.
* According to independent market research firms
MarketsandMarkets (March 1, 2016) and Grand View Research (January
28, 2015), respectively.
Media Contacts:
For Novvi:
William R Downey, Senior VP, Business Development
downey@novvi.com
+1-917-214-8063
For American Refining Group:
Sara Furlong, Executive Communications Coordinator
sfurlong@amref.com
+1-814-368-1395
For Amyris, Inc.
Peter DeNardo, Director, Investor Relations and Corporate Communications
investor@amyris.com
pr@amyris.com
+1-510-740-7481
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