Canadian renewable energy company BIOX Corporation has temporarily shut the biodiesel production plant in Hamilton, Ontario, due to unfavorable market conditions.
Production is expected to recommence after an analysis of the biodiesel market conditions such as production volumes and pricing, including trading liquidity.
Meanwhile, operations will continue unhindered at the recently commissioned stand-alone glycerin refinement system.
BIOX Corporation CEO Kevin Norton said the company’s balance sheet was able to manage short-term setbacks.
"Our proprietary technology is one of the lowest cost biodiesel production platforms in the industry, however based on the EPA reported production volumes that have resulted in depressed prices and the volatility within the RIN (Renewable Identification Numbers) market, we believe that temporarily suspending biodiesel production at our Hamilton facility is the responsible decision.
"We remain confident in the long-term fundamentals of the broader biodiesel market, specifically given the 28 percent increase in the mandated minimum volume of biomass-based diesel for 2013, and we expect to resume production in due course," he added
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By GlobalDataRecently, the US Environmental Protection Agency (EPA) had published the report on country’s biomass-based diesel production through 30 September 2012.
The report reveals that production of such biodiesel exceeded Renewable Fuel Standard 2 (RFS2) minimum volume by 90%. According to the EPA, volumes display a temporary supply/demand imbalance.
Present market conditions have also affected BIOX’s plans to construct a second facility in New York Harbor, which now stands postponed.
