A supply agreement to send biodiesel to Shell Canada Ltd. by an interterminal pipeline from Biox Corp. will help Shell Canada achieve its renewable fuels target. Biox’s Hamilton, Ontario, biodiesel refinery is located immediately adjacent to the Shell distribution terminal, which allows for a pipeline to be installed connecting the two facilities. The connection is expected to be completed by late 2013. The project costs to connect the two facilities will be shared by the two parties. Costs were not disclosed.

“This agreement provides Shell Canada access to a secure, stable supply of renewable content for our diesel with the most efficient logistics possible,” said Esther Atere, Shell Canada Business Development Lead. “As well, it will assist Shell Canada in achieving the federal mandate of 2 percent renewable content in diesel fuel and heating distillate oil requirements.”

Biox’s Hamilton facility has a nameplate capacity of 67 million liters (17.7 million gallons) per year. Currently, essentially all of its biodiesel production is sold into the U.S. As part of its contribution to the connection project, Biox will be constructing a tank on its site to inventory product specifically for Shell’s use.

“This agreement is a great example of how the renewable fuels industry can work with the petroleum industry,” said Kevin Norton, CEO of Biox. “Shell is investing in its distribution terminal to blend renewable content in diesel and we are investing alongside them to deliver biodiesel in the most efficient manner possible, through a pipe across the property line.”