Green Grease Solutions to supply feedstock to e-Biofuels
August 31, 2011
BY Erin Voegele
Imperial Petroleum Inc. has executed a Letter of Engagement with feedstock supplier Green Grease Solutions LLC to secure a two-year supply of feedstock for its Middletown, Ind., biodiesel plant, which is operated by its wholly-owned subsidiary e-Biofuels LLC. According to information released by Imperial Petroleum, as part of the agreement the company will begin hedging its biodiesel fuel production during the period of the supply contract in order to secure its gross margins in the production of biodiesel. This will be done through Augsburg Energy LLC, a commodity trading advisor and NFA member firm. Augsburg Energy is a sister company to Green Grease Solutions.
"We are very excited to strengthen our relationship with our primary feedstock supplier–Green Grease Solutions LLC—and to secure a longer term feedstock supply agreement for our biodiesel operations,” said Jeffrey Wilson, president of Imperial Petroleum. “The arrangement with Green Grease Solutions demonstrates its confidence in our growing biofuels business and our mutual commitment to the future expansion opportunities for both companies. Furthermore, the opportunity to offset risk and protect our gross margins on biodiesel production through Augsburg Energy's multifaceted hedging approach removes a significant exposure variable and permits the company to increase production and revenue aggressively."
Green Grease Solutions is a supplier of feedstocks for a variety of industries, including biodiesel. The company supplied recycled grease and virgin oil as well as blends or emulsions of the two. “Green Grease’s focus is serving the renewable energy biodiesel market—and the ethanol industry, actually—with sustainable feedstock,” said Joseph Furando, Green Grease’s senior vice president of sales and marketing. “What I think distinguishes [our company] from its competition is that not only does it have a legacy of a decade’s worth of recycling and being in the renewable, green recycling environment, it also brings a rigor that you find in feedstock for the animal feed or feedstock supply for the soap and lotion industry.”
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According to Furando, the agreement Imperial Petroleum has formed with his company will allow them to have access to a dependable supply of feedstock that is ratable and at a relatively fixed price. We help them with market forecasting, hedging feedstock, and getting feedstock at the best price,” he said. “We take care of all of that for them, [including] analyzing crop reports and metrological reports. We’re all over what is happening in the country. In fact, we’re all over what is happening globally. If we get a spot opportunity from Argentina for soybean oil, we’ll finance the whole deal for our clients and bring that product into [the U.S.].”
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