BIOX working with Forge Hydrocarbons to co-locate renewable diesel facility at Sombra Site
Friday, Mar 17, 2017
BIOX Corporation ("BIOX" or the "Company") (TSX: BX), a renewable energy company that owns and operates biodiesel production facilities, today announced that it is working with Forge Hydrocarbons Corporation ("Forge"), a private company, to explore the co-location of a renewable diesel production facility using Forge technology on the existing BIOX site in Sombra, Ontario.
BIOX acquired a 50 million litre nameplate capacity biodiesel production facility at the Sombra site, together with 25 acres of land, in June 2016. The biodiesel facility is currently undergoing upgrades and BIOX expects to commission the facility in time to capture a portion of the Ontario biodiesel blending season during the third quarter of calendar 2017.
The proposed transaction with Forge contemplates Forge leasing up to four acres at the site for the construction of a new 25 million litre nameplate capacity renewable diesel production facility. Forge will be responsible for obtaining funding for the project, which Forge estimates to be approximately $25 million in order to bring the facility into production. Subject to the entering into of definitive agreements with Forge, BIOX would operate and manage production at the facility.
Forge is conducting preliminary engineering to determine the site's suitability for the facility, which it expects to complete by the spring of 2017. An agreement to co-locate is subject to, among other things, a successful outcome from the pre-engineering work, Forge securing the necessary funding and an agreement on commercial terms between BIOX and Forge as it relates to the land lease and operations agreement.
Renewable diesel and biodiesel are both produced from fats and oils. Renewable diesel is a diesel molecule that can be "dropped in" to existing distillate fuels while biodiesel is a methyl ester that requires proper blending with diesel fuels. BIOX believes the two fuels represent complementary compliance pathways for any obligated parties and broadens the sales and marketing offerings.
For more information, please visit: http://www.bioxcorp.com/