As per the agreement, REG would pay Tyson approximately $18m in cash at closing of the transaction and up to $35m in future payments tied to production volume at the Geismar biorefinery over a period of up to 11 and a half years.

REG has also agreed to repay approximately $12m of Dynamic Fuels’ indebtedness to Tyson at closing.

In December 2013, REG agreed to acquire Syntroleum, a 50-50 joint venture between Tyson and Dynamic, and the latest deal is contingent upon the completion of that $41.8m transaction.

With the two purchases, REG would have full ownership of Dynamic and its biodisel plant located at Geismar in Louisiana.

Built in 2010, the Geismar plant has an annual production capacity of 75 million gallons of biodiesel.

REG president and CEO Daniel J. Oh said, "Upon closing, this is another milestone for REG in growing our core advanced biofuels business."

"It gives us the opportunity to further expand our production capacity into new product lines, while growing our overall advanced biofuel manufacturing capability, and bringing on other renewable chemical applications," J. Oh added.

The Louisiana Public Facilities Authority provided a $100m funding in Gulf Opportunity Zone Bonds for the development and construction of the Geismar biorefinery.

Closing of the transaction is subject to REG’s replacement of the letter of credit that Tyson Foods obtained to support issuance of the bonds or completion of a financing sufficient to refinance the bonds prior to 31 December 2014 on terms acceptable to REG.

REG would seek to use existing cash on hand and/or one or more financing vehicles, including public or private debt or equity, to satisfy this condition.

Closing is also conditioned on satisfaction of other customary closing conditions.