BIOX, a renewable energy company, has entered into a definitive contract with International-Matex Tank Terminals (IMTT) to acquire the site and infrastructure associated with it in order to build its second biodiesel production facility.
The agreements will allow BIOX to use the storage tanks at IMTT and include a long term land lease agreement for the plant. The second facility of BIOX will be situated in New Jersey, at New York Harbor within the IMTT terminal, and is said to be 50 % larger size than its current site in Hamilton, Ontario, with a capacity of 100 million litre per annum.
Kevin Norton, CEO of BIOX, believes that the company’s second facility will cause an increase in the production capacity by 150%, and the construction will be completed in December 2013. Norton explains that the decision to partner with IMTT is because BIOX has already been using the Bayonne terminal as a blending and distribution site for products from their Hamilton facility. A precise planning and permitting phase is already underway for the new facility.
The 3.5 ac second facility is at close proximity with a major petroleum distribution hub consisting of large scale diesel distribution infrastructure and petroleum strorage, petroleum diesel users and biodiesel blenders as it is situated at the New York Harbor, thereby accomplishing BIOX’s strategy to cut transportation costs. Estimated cost of running the new facility would be $60 million. With the present financial resources together with future cash flow from debt financing and operations , BIOX is confident that the second facility can be easily set up.
Source: http://www.bioxcorp.com/
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