A producer of biodiesel in Canada completes its first sale in the United States. Last month, we told you how Methes Energies achieved the important BQ-9000 quality standard and that the company planned to ship more than $6 million worth of biodiesel to the U.S. That transaction has now taken place with the imported of biodiesel coming from its Sombra, Ontario facility.
This is the first time that Methes directly generated U.S. revenues. In the past, biodiesel produced at its Sombra, Ontario 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 [Renewable Identification Numbers (RINs)], Methes can sell directly to U.S buyers, capitalize on new opportunities and improve its margins.
Nicholas Ng, President of Methes Energies, said, “This is another step forward for Methes and part of our plan to capitalize on more opportunities in the U.S. 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.”
The Methes refinery in Ontario is capable of producing 13 million gallons per year of biodiesel.