Tue 21 Jan 2020, 12:42 GMT

Bunker One enters strategic alliance with Vertex Energy


Bolsters position in the US with exclusive off-take deal for very-low-sulphur fuels.


Bunker One logo.
Image credit: Bunker Holding
Danish physical supplier Bunker One has entered into a strategic alliance and agreement with Nasdaq-listed Vertex Energy Inc in a move designed to strengthen the marine fuel specialist's position in the United States.

The accord sees Bunker One become a leading investor in the Houston firm's shares via a non-dilutive equity investment.

Additionally, the tie-up provides Bunker One with an exclusive off-take of Vertex's very-low-sulphur fuels and components, whilst enabling Vertex to continue expanding its marine fuel production capacity to support Bunker One's future growth.

Discussing how the alliance will enable Bunker One to meet the low-sulphur needs of its clients in the United States, Carlos Torres, Global Head of Physical at Bunker One, remarked: "This is a great example of the efforts we have been working on for the last couple of years to ensure we can support our customers in the best way possible as the industry transition into the IMO 2020 0.5% sulphur cap implementation. To comply with the new regulations it has become more important for customers to buy fuels from physical suppliers that are vertically integrated. The agreement with Vertex Energy solidifies Bunker One's position as a vertically integrated supplier of marine fuels in the USA. I am very pleased with the agreement which makes an excellent foundation for our US operations moving forward."

Peter Zachariassen, Global Director, Bunker One, said: "This is another major step in demonstrating a strong commitment to our customers, our counterparties and the entire industry. In the short history of Bunker One, we have shown determination not only to expand but to develop and strengthen our relationship with our partners. Investing and focusing on vertical integration are also important statements and a clear manifestation that in Bunker One we walk the talk. We want to push the boundaries, challenge and improve the bunkering dynamics in our industry. And we want a consistent focus on quality in all aspects of the supply chain."

Bunker One says it has tripled the number of physical supply locations since its launch two years ago (in February 2018). In the United States alone, the company supplies in Alabama, Texas, Louisiana, Mississippi, Florida and Gulf of Mexico offshore.

The bunker seller also delivers in Jamaica, Trinidad, Uruguay, Brazil, Colombia, Sweden, Germany, Denmark, Faroe Islands, the North Atlantic, Israel and Singapore.

Vertex Energy is a specialty refiner of alternative feedstocks. The company recycles industrial waste and off-specification chemical products.

In particular, Vertex focuses on recycling used motor oil and is one of the largest processors of used motor oil in the U.S. The Texas outfit also specializes in fuel oil, pyrolysis gasoline (Pygas), gasoline blendstock and base oil.


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