Biox buys Methes Energies Canada biodiesel plant for $4.5 million

In Canada, Hamilton, Ontario-based biodiesel producer Biox Corp. announced it has acquired a 13.2 million gallon nameplate capacity biodiesel facility in Sombra, Ontario, from Methes Energies Canada Inc. for $4.5 million.

The Sombra facility is located on a 21-acre facility near Sarnia, Ontario, with excellent logistics, including on-site rail. Originally constructed in 2009, the facility has not achieved nameplate capacity due to working capital and market challenges, and is currently not in production. The company will expend an additional CAN$5 million over the next 12 months on upgrades to the facility that will improve the facility’s efficiency and enable the use of a broader range of feedstock, specifically lower carbon intensity feedstocks, such as animal fats and recycled cooking oils. The purchase price and capital upgrades will be funded through a combination of cash on hand and are in discussions for a CAN$1.8 million mortgage on the facility.