Pretty good deal when you’ve got someone who will buy your entire inventory for three years. That’s what Virginia-based International Coastal Biofuels is facing with a letter of intent from Eco-Energy, Inc. to buy a total 90 million gallons of biodiesel over the next three years from ICB’s Wilmington, NC biodiesel plant… a refinery hasn’t even started producing yet!
This press release posted on MarketWatch.com has details:
In the Letter of Intent, Eco-Energy, Inc. states that it will purchase 30 Million gallons of biodiesel per year, for a length of three years from the first day of actual biodiesel production. Additionally, Eco-Energy, Inc. will be responsible for all logistics and transportation.
“This relationship with Eco-Energy, Inc. provides us with an additional certainty that our revenues are only limited by how fast we can get our production plant operational,” stated Jim Cooper, CEO of International Coastal Biofuels, Inc.
Now, I might be a little off when I say it will be all of ICB’s production for the next three years. The company is in negotiations to build a second refinery in South Carolina. Pretty good idea to look at expansion when you’ve already got your projected production sold.