26 October 2012 20:22 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--BIOX Corporation temporarily suspended biodiesel production its Hamilton plant in Ontario, Canada, as a result of US market conditions, the Canadian biofuels producer said on Friday.
The company said it would monitor market conditions, including biodiesel production volumes as well as trading liquidity and pricing, to determine when to resume production at the 67m litre/year plant.
BIOX also said it cut 17 jobs on a temporary basis.
BIOX said it would continue to operate a recently commissioned stand-alone glycerine refinement system to upgrade crude glycerine in inventory.
Market conditions were also affecting impacting the construction timeline for BIOX’s second biodiesel plant in New York Harbor.
BIOX has deferred procurement of certain long-lead time, capital-intensive components and reduced its project planning team related to the construction of the New York Harbor facility, the company said.
The company said in June that it planned to build a 100m litre/year (26m gal/year) biodiesel plant in Bayonne, New Jersey, at the New York Harbor.
Production in the US biodiesel market remains moderated amid uncertainty over the future of the $1/gal federal tax exemption and continued concerns over the Renewable Identification Numbers (RINs) fraud issue.
Soy Energy, which has a 30m gal/year biodiesel plant in Iowa, said this week it would temporarily suspend production and Iowa’s largest biodiesel producer, Renewable Energy Group, also has warned investors that it will report a loss for the current quarter, citing a drop in the value of RINs used by oil companies to meet federal renewable fuel mandates.
Biodiesel is an alternative fuel, produced from renewable resources. The most commonly used feedstocks are rapeseed, soy and palm oil.
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