Attis Industries Inc., a diversified innovation and technology holding company today, has entered into a definitive asset purchase agreement with Sunoco LP to acquire and operate its corn ethanol plant and grain malting operation in Fulton, NY.

Total consideration for the divestiture is $20 million in cash. The transaction is subject to regulatory clearances and customary closing conditions and is expected to close in the first quarter of 2019. Attis expects to finance the transaction with non-dilutive financing.

Attis’ management team has a long-standing relationship with Sunoco and the operational team in place at the Fulton, NY ethanol facility. For Attis, the key to the success of this transaction is the 10-year offtake agreement for the ethanol produced which creates valuable stability for Attis as it plans its capital improvement strategy for the facility. The improvements made at the facility over the next 24 months will create the first of its kind, major renewable energy campus.

Included within the acquisition is the 1886 Malt House—a direct beneficiary of incentives designed to promote the local farm to brewery industry. In 2013, New York created a farm brewery law to provide licenses only to those farmers whose beer is made primarily from locally grown farm products. Under this program, the Malt House will receive some tax-exempt status and contribute to the $4 billion per year craft brewery business in the state of New York.

Partnership with Novozymes. Earlier this month, Attis announced it will collaborate with Novozymes A/S for renewable fuel production. Under this relationship, Novozymes has committed to supplying the enzymes required by Attis to convert its pulp into sugar at all of its planned biorefineries. Novozymes has a broad portfolio of biotechnology to support commercial cellulosic biofuels production, and the ability to ramp up production as needed in an effort to support Attis’ growth plans.

Attis has successfully converted the pulp extracted from its patented biomass processing into high yields of sugar using Novozymes’ proprietary enzyme cocktails. These successful results have validated the planned business model at Attis’ biorefineries. The partnership will focus on improving value, yields, and process efficiencies. The sugars that will be produced using Novozymes’ proprietary enzymes will, in turn, be used to manufacture cellulosic ethanol and help contribute to a growing market for cellulosic biofuels under the EPA’s Renewable Fuel Standard.

Attis and Novozymes’ initial collaboration will focus on optimizing the value of the biotechnology utilized in the Attis process, enabling Attis to meet the growing demand for advanced biofuels. The current Renewable Fuel Standard calls for the production of 16 billion gallons of cellulosic biofuels by the year 2022, however, the renewable fuel industry has not been consistently able to produce 1 billion gallons on an annual basis.

Attis believes this is a tremendous market opportunity where with the combination of Attis’ patented biomass processing technology and Novozymes’ proprietary enzymes it can forge a new standard for renewable fuel production in the US.