Methes Energies completes first US biodiesel sales transaction
Methes Energies International Ltd. announced completion of its first biodiesel transaction in the U.S. The transaction included the import of biodiesel from its Sombra, Ontario, facility where its wholly owned U.S. subsidiary was the importer of record and the generator of renewable identification numbers (RINs).
This is the first time that Methes directly generated U.S. revenues. In the past, biodiesel produced at its Sombra facility was sold to brokers and intermediaries that would import the biodiesel into the U.S. and resell the biodiesel to obligated parties and fuel distributors. With Methes now having the ability to import biodiesel to the U.S. and itself generate RINs, Methes can sell directly to U.S buyers, capitalize on new opportunities and improve its margins.
“This is another step forward for Methes and part of our plan to capitalize on more opportunities in the U.S.,” said Nicholas Ng, president of Methes Energies. “This is the first time that Methes directly generated U.S. revenues and U.S revenues will now start playing a much larger role in our overall growth strategy and enable us to expand our footprint in several states in the U.S. As for production in Sombra, things are going very well with more feedstock showing up tomorrow. In fact, we will be receiving our largest shipment by rail ever, a total of 12 railcars or over 2 million pounds of oil.”