Canada-based biodiesel producer Biox Corp. is exploring co-locating a renewable diesel production facility next to the 50 MMly (13.2 MMgy) biodiesel plant it purchased from Methes Energies last year in Sombra, Ontario. The biodiesel plant, which sits on 25 acres, is currently undergoing upgrades. Biox anticipates commissioning of the upgraded biodiesel plant third quarter this year.

Biox is working with Forge Hydrocarbons Corp. in a deal that would lease Forge up to four acres on-site for construction of a 25 MMly (6.6 MMgy) renewable diesel plant using Forge’s technology. Biox stated Forge would be responsible for obtaining project funding, which is estimated at $25 million. Biox would operate and manage production of renewable diesel on-site.

Forge is conducting preliminary engineering to determine the site’s suitability for this project, which is expected to be completed this spring. The agreement to co-locate is subject to the outcome of this preliminary engineering report and other conditions.

Biox stated it believes the two fuels—biodiesel and renewable diesel—represent complementary compliance pathways for any obligated parties and broadens the sales and marketing offerings.