Methes finalizes biodiesel supply agreements with US clients
Methes Energies International Ltd. recently announced that it has finalized agreements with U.S. clients to supply more than $6 million of biodiesel, including Methes Energies’ share of the expected biodiesel blenders tax credit, by Sept. 30. If the tax credit is reinstated retroactively, a majority of it claimed by Methes Energies’ clients will be transferred to Methes Energies.
The agreements require shipment of approximately 1.4 million gallons of biodiesel over this period beginning this month. Methes Energies did not want to commit to longer-period shipments in “a sometimes volatile market,” the company said.
“Production is currently going very well and we’ll be ramping up very quickly over the next few weeks,” said Nicholas Ng, president of Methes Energies. “We’ve locked in our feedstock price as well as our selling price for the next three months. We see some upside moving forward so we are comfortable with a three‐month0-at-a-time strategy with the volume committed in these agreements. We are also in a great position to move more biodiesel on the spot market where we believe we can make more money.”