Property, Plant and Equipment-Net

12 Months Ended

Dec. 31, 2013

Property Plant And Equipment [Abstract]

Property, Plant and Equipment-Net

6. PROPERTY, PLANT AND EQUIPMENT—NET

Property, plant and equipment—net consisted of the following (in thousands):

	December 31, 2013			December 31, 2012
Plant equipment	$	25,918		$	18,670
Building and improvements		5,514			5,478
Lab equipment		6,445			5,808
Leasehold improvements		2,659			2,665
Computer equipment and software		3,387			2,681
Furniture and fixtures		603			589
Land		430			430
Automobiles		49			49
Construction in progress		6,378			2,129
Total		51,383			38,499
Less: accumulated depreciation and amortization		(11,294	)		(6,274	)
Property, plant and equipment—net	$	40,089		$	32,225

Construction in progress as of December 31, 2013 related primarily to the Peoria, Clinton and Galva Facilities and other plant equipment not yet placed in service as of that date, and construction in progress as of December 31, 2012 related primarily to the Peoria manufacturing facility and plant equipment not yet placed in service as of that date.

The Company capitalized $0.3 million of interest costs associated with plant equipment at its Peoria manufacturing facility for the year ended December 31, 2012. There were no interest costs associated with plant equipment that were capitalized for the years ended December 31, 2013 and 2011.

Depreciation and amortization expense was $5.1 million, $3.5 million and $1.7 million for the years ended December 31, 2013, 2012 and 2011, respectively.

In March 2011, the Company entered into an agreement to purchase a development and commercial production facility with multiple 128,000-liter fermenters, and an annual oil production capacity of over 2,000,000 liters (1,820 MT) located in Peoria, Illinois for $11.5 million. Concurrent with the purchase transaction, the Company sold back certain equipment to the seller for $0.3 million. This transaction closed in May 2011, and the Company paid for the aggregate purchase price with available cash and borrowed $5.5 million under a promissory note, mortgage and security agreement from the seller. See promissory note terms in Note 11. In March 2013, the Company paid in full the outstanding principal on this promissory note. The Company began initial fermentation operations in the facility in the fourth quarter of 2011 and commissioned its first integrated biorefinery in June 2012 under its DOE program. The fair value of the assets on the purchase date was $10.9 million, which was allocated to plant equipment, building and improvements and land based on their relative fair values. These assets are classified in the table above under plant equipment, building and improvements and land as of December 31, 2013 and 2012.