Eslinger Biofuels signs $48 million deal with STX Group, plans for major expansion

Photo: Eslinger Biofuels

California has lost more than 300,000 barrels per day of refining capacity since 2020.

Into that gap steps Eslinger Biofuels, a 5-million-gallon-per-year (mgy) vertically integrated biodiesel refinery with big plans for expansion.

The Fresno-based, California Air Resources Board-certified biorefinery announced April 7 a landmark five-year, $48 million offtake and credit-monetization agreement with STX Group, one of the world’s leading environmental-commodities firms, with offices across 13 markets globally.

Under the agreement, STX Group assumes exclusive forward-purchase rights across Eslinger Biofuels’ full compliance-credit stack, comprising D4 renewable identification number (RIN) credits under the federal Renewable Fuel Standard, California Low Carbon Fuel Standard credits, and 45Z clean fuel production credits, generating an estimated $9.3 million in annual gross credit revenue at current market rates.

STX Group’s commitment to a five-year exclusive with a domestic B100 biodiesel producer signals growing institutional conviction that California’s compliance-credit market, backed by the federal RFS and 45Z, represents a durable, long-term asset class.

“This agreement gives us the institutional infrastructure to operate at the scale the market demands,” said Jeremy Eslinger, the president and CEO of Eslinger Biofuels. “California’s clean-fuel supply has a structural problem. Eslinger Biofuels is built to be part of the solution, and STX Group is the right partner to take us there.”

A competitive moat few producers can match

According to Eslinger Biofuels, few biodiesel producers in North America can make the claim it can—complete, direct control over feedstock quality and carbon intensity from collection through refining.

Eslinger Biofuels’ ultra-low carbon used cooking oil (UCO) feedstocks are sourced through a wholly owned supply chain spanning California, Nevada and Arizona, enabling the company to consistently generate the maximum federal and state compliance credits available per gallon.

Eslinger Biofuels’ premium-grade, distilled B100 meets CARB specifications, the most demanding diesel standards in North America, serving over-the-road transportation, commercial fleet, marine and aviation markets, according to the company.

Established customers such as TA Travel Centers reflect the integrity of the company’s supply chain and the consistency of its product, Eslinger Biofuels stated.

Institutional platform, state recognition, 2028 growth roadmap

Eslinger Biofuels’ integrated model spans feedstock sourcing, refining and terminal distribution, capturing value at every point in the clean-fuel supply chain.

STX Group will lead the forward purchase and monetization of Eslinger Biofuels’ D4 RINs, LCFS credits and 45Z credits, providing structured market access and reach into the deepest compliance-credit markets available. 

EcoEngineers has been retained to administer Eslinger Biofuels’ D4 RIN Quality Assurance Program, ensuring full regulatory compliance as volumes scale.

The California Energy Commission has affirmed Eslinger Biofuels’ strategic role in the state’s clean-energy infrastructure through grants totaling $7.1 million.

A $6 million award funded Eslinger Biofuels’ core refinery buildout.

A $1.2 million grant is currently funding a 1-megawatt solar energy and electric-vehicle (EV) charging installation at the Fresno terminal, advancing the site toward its vision as a fully integrated clean-energy hub for the Central Valley.

This new agreement with STX Group is the first phase of a multitiered relationship, the company stated. 

Eslinger Biofuels has confirmed a 2028 facility expansion to be executed through technology and licensing partnerships with a leading front-end engineering design (FEED) engineering firm.

The expansion will add renewable diesel and sustainable aviation fuel (SAF) production* while maintaining full B100 biodiesel output, according to Eslinger Biofuels.

At scale, the Fresno terminal will serve as the leading inland clean-fuel port for the Central Valley and to supply the West Coast markets, the company stated.

“The 2028 expansion is the realization of a vision we have held since the beginning,” Eslinger said. “A complete energy hub for Central California, delivering B100 biodiesel, renewable diesel and sustainable aviation fuel from a single, world-class inland facility, now backed by one of the world’s most respected environmental-commodities firms.”

Editor’s Note: Eslinger told Biobased Diesel Daily® that the expansion will add 12 mgy to 15 mgy of renewable diesel and SAF production capacity.