USD Partners has announced that the partnership has entered into a terminal services agreement with a newly-formed subsidiary of US Development Group, USD Clean Fuels. The terminal services agreement has an initial term of five years with a target commencement date of December 1, 2021.

Chief financial officer, Adam Altsuler, said: “Total capital associated with the opportunity is approximately $1.8 million, which we intend to fund from cash flows from operations.

“We are excited to announce this very accretive opportunity at the partnership. This opportunity is incremental to our existing ethanol business at West Colton and is projected to generate additional adjusted EBITDA of approximately $2.0 million per year at the partnership over the five-year term.”

The agreement provides for the inbound shipment of renewable diesel on rail and the outbound shipment of the product on tank trucks to local consumers. Futhermore, with the execution of the terminal services agreement, the partnership entered into a marketing agreement with USDCF granting USDCF the right to market and develop renewable diesel growth projects at the West Colton terminal.

For more information visit www.usdpartners.com

30th June 2021