Biox signs definitive agreements to build 26 MMgy biodiesel plant
Biox Corp. announced that it has signed definitive agreements with International-Matex Tank Terminals to secure the site and related infrastructure for the construction of its second biodiesel production facility. Biox’s second facility will have a 100 MMly capacity (26.4 Mmgy), 50 percent larger than its existing facility in Hamilton, Ontario. The new facility will be located within the IMTT terminal in Bayonne, N.J., at New York Harbor. The agreements include a long-term land lease agreement for the plant as well as long-term leases on existing storage tanks at IMTT.
"With this second facility our production capacity will grow by almost 150 percent from existing levels,” said Kevin Norton, CEO of Biox. “This expansion reflects our view that the fundamentals within the North American biodiesel sector have evolved due to the mandated minimum volumes such that long-term demand exists for quality product from reliable suppliers, like Biox. IMTT is an ideal partner for our next facility. We have been working with them for more than five years using their Bayonne terminal as a distribution and blending site for product produced in Hamilton. Based on that long-standing relationship, we have already conducted the early-stage planning for this next facility including the design tie-ins and site specifications prior to signing these agreements. We are now proceeding ahead with the detailed planning and permitting phase with the expectation that construction will be completed in December 2013."
The IMTT terminal at New York Harbor is a 600-acre facility within which Biox has secured 3.5 acres for its second plant. New York Harbor is a major petroleum distribution hub. The selection of this site is consistent with Biox’s strategy to locate facilities adjacent to large-scale petroleum storage and diesel distribution infrastructure as well as users of petroleum diesel and blenders of biodiesel in order to minimize transportation costs to them.
Biox estimates the cost of the 100 MMly facility will be $60 million, which includes the core process area, infrastructure, utilities, engineering and indirect cost. Biox believes that its current financial resources combined with its future cash flow from operations and debt financing should be sufficient to enable it to construct and commission the second Biox facility.
As part of its expansion plans, Biox continues to actively pursue additional potential locations for future facilities, which involves consideration of a number of criteria including availability of infrastructure and service providers, potential strategic partnerships, logistics and other market factors.
Biox is a renewable energy company that designs, builds, owns and operates biodiesel production facilities. It currently owns and operates a biodiesel production facility in Hamilton, Ontario, Canada, with a nameplate capacity of 67 MMly (17.7 MMgy). Biox has an innovative, proprietary and patented production process that is capable of producing the highest quality, renewable, clean burning and biodegradable biodiesel fuel utilizing a variety of feedstocks, from pure seed oils to animal fats to recovered vegetable oils, with no change to the production process. Biox’s biodiesel fuel meets North American (ASTM D6751) quality standards. The company is Canada's largest biodiesel producer and is focused on building, owning and operating a network of commercial-scale biodiesel production facilities in jurisdictions where clearly defined renewable fuel standard policies exist.