In May 2020, Richard Palmer, founder and chairman of Global Clean Energy Holdings, acquired an aging oil refinery in California with plans to convert it into a plant to process camelina seeds for biofuels. ExxonMobil invested $150 million into GCEH and agreed to purchase 100 million gallons of camelina-blended fuels. However, cost overruns and delays during the pandemic caused Exxon to back out of their agreement and sue GCEH for alleged mismanagement.
Despite the setbacks, GCEH remains confident that the Bakersfield refinery will be operational by midyear, producing 9,000 barrels per day. Federal and state tax credits will help offset costs, with demand for biofuels increasing due to California’s low carbon fuel standards. GCEH is also exploring other options for feedstocks if they are unable to source enough camelina.
Camelina is seen as a promising crop for biofuels due to its efficiency and low carbon intensity. Farmers like Darren Sackman and Steve McIntosh have had success growing camelina in Montana, with the plant requiring minimal resources and improving soil quality. Jerry Hatfield, an agronomist, believes camelina cultivation could surge to over 1 million acres in the next few years.
Exxon’s lawsuit against GCEH in Delaware Chancery Court raises questions about the company’s management and potential takeover. GCEH acknowledges Exxon as a valuable stakeholder and resource, but the outcome of the lawsuit could have significant implications for the company’s future. Other major stakeholders in GCEH include Jeff Skoll’s investment company and Delek Energy, the original seller of the Bakersfield refinery.
Despite challenges and legal disputes, Palmer and GCEH remain committed to their vision of creating low-carbon, sustainable fuels from camelina seeds. The success of the Bakersfield refinery and the growth of the biofuels industry will depend on overcoming hurdles and securing stable partnerships in the evolving energy landscape.
