Canada’s BIOX to resume biodiesel production at Hamilton plant
22 January 2013 13:29 [Source: ICIS news]
TORONTO (ICIS)--BIOX plans to resume biodiesel production at its facility in ?xml:namespace>Hamilton near Toronto later this month as the market outlook in the US has improved, the Canadian renewable fuels firm said on Tuesday.
BIOX suspended production at the 67m litre/year plant last October.
The company said the decision to restart production was driven by an increase in the mandated US minimum volume requirement for biomass-based diesel to 1.28bn gallons for 2013, a 28% increase from the 2012 requirement.
In addition, the passage of the American Taxpayer Relief Act reinstates the US biodiesel tax incentive, retroactive from 1 January 2012 through to 31 December 2013, the company said. The tax incentive provides parties that blend biodiesel with petroleum diesel with a $1.00 refundable tax credit for each gallon of biodiesel blended in the US.
"The improvements in US biodiesel market have provided us with sufficient confidence in the market outlook to resume production,” said BIOX CEO Kevin Norton.
“We believe these improvements should support higher values for biodiesel based on the new 2013 compliance period, the increased minimum volume requirement of 1.28bn US gallons and the reinstatement of the US biodiesel tax incentive," Norton added.
Additional reporting by Leela LandressBy: Stefan Baumgarten+1 713 525 2653
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