Canadian biodiesel maker Methes Energies will send more than $6 Million of biodiesel to clients in the U.S. by the end of September. This company news release says Methes Energies also will get the share of the expected biodiesel blender’s tax credit if it is renewed.
The agreements require shipment of approximately 1.4 million gallons of biodiesel over this period, commencing around June 23rd. Though these agreements are part of an expected longer term relationship, Methes Energies did not want to commit to shipments over a longer period in a sometimes volatile market.
The agreements also cover the potential reinstatement of the Biodiesel Blender’s Tax Credit (“BTC”) of $1.00 per gallon in the United States. In the event that the BTC is reinstated retroactively, a majority of the BTC claimed by Methes Energies’ clients will be transferred to Methes Energies.
Nicholas Ng, President of Methes Energies, said, “Production is currently going very well and we’ll be ramping up very quickly over the next few weeks. We’ve locked in our feedstock price as well as our selling price for the next 3 months. We see some upside moving forward so we are comfortable with a 3-month at the time strategy with the volume committed in these agreements. We are also in a great position to move more biodiesel on the spot market where we believe we can make more money.”
Methes Energies has refineries in Mississauga and Sombra, Ontario.