BIOX signs definitive agreements for construction of a 100 million litre biodiesel production facility in New York Harbor
TSX symbol: BX
TORONTO, June 4, 2012 /CNW/ - BIOX Corporation (BIOX) (TSX: BX), a renewable energy company that designs, builds, owns and operates biodiesel production facilities, today announced that it has signed definitive agreements with International-Matex Tank Terminals (IMTT) to secure the site and related infrastructure for the construction of its second biodiesel production facility. BIOX's second facility will have a 100 million litre capacity per annum, 50 percent larger than its existing facility in Hamilton, Ontario. The new facility will be located within the IMTT terminal in Bayonne, New Jersey, at New York Harbor. The agreements include a long term land lease agreement for the plant as well as long term leases on existing storage tanks at IMTT.
"With this second facility our production capacity will grow by almost 150 percent from existing levels. This expansion reflects our view that the fundamentals within the North American biodiesel sector have evolved due to the mandated minimum volumes such that long-term demand exists for quality product from reliable suppliers, like BIOX," said Kevin Norton, CEO of BIOX Corporation. "IMTT is an ideal partner for our next facility. We have been working with them for more than five years using their Bayonne terminal as a distribution and blending site for product produced in Hamilton. Based on that long-standing relationship, we have already conducted the early stage planning for this next facility including the design tie-ins and site specifications prior to signing these agreements. We are now proceeding ahead with the detailed planning and permitting phase with the expectation that construction will be completed in December 2013."
The IMTT terminal at New York Harbor is a 600 acre facility within which BIOX has secured 3.5 acres for its second plant. New York Harbor is a major petroleum distribution hub. The selection of this site is consistent with BIOX's strategy to locate facilities adjacent to large scale petroleum storage and diesel distribution infrastructure as well as users of petroleum diesel and blenders of biodiesel in order to minimize transportation costs to them.
BIOX estimates the cost of the 100 million litre facility will be $60 million which includes the core process area, infrastructure, utilities, engineering and indirect cost. BIOX believes that its current financial resources combined with its future cash flow from operations and debt financing should be sufficient to enable it to construct and commission the second BIOX facility.
As part of its expansion plans, BIOX continues to actively pursue additional potential locations for future facilities, which involves consideration of a number of criteria including availability of infrastructure and service providers, potential strategic partnerships, logistics and other market factors.
About BIOX Corporation
BIOX is a renewable energy company that designs, builds, owns and operates biodiesel production facilities. BIOX currently owns and operates a biodiesel production facility in Hamilton, Ontario, Canada with a nameplate capacity of 67 million litres per year. BIOX has an innovative, proprietary and patented production process that is capable of producing the highest quality, renewable, clean burning and biodegradable biodiesel fuel utilizing a variety of feedstocks - from pure seed oils to animal fats to recovered vegetable oils with no change to the production process. BIOX's high quality biodiesel fuel meets North American (ASTM D-6751) quality standards. BIOX is Canada's largest biodiesel producer and is focused on building, owning and operating a network of commercial scale biodiesel production facilities in jurisdictions where clearly defined renewable fuel standards policies exist.
Certain statements in this press release constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of BIOX, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward-looking statements. These statements reflect BIOX's current views regarding future events and operating performance, are based on information currently available to BIOX, and speak only as of the date of this press release. These forward-looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Those assumptions and risks include, but are not limited to, the fact that BIOX's results of operations and business outlook are highly dependent on a mix of legislation and producer payment programs and tax credits and upon commodity prices, which are subject to significant volatility and uncertainty. Many factors could cause the actual results, performance or achievements of BIOX to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including factors described in this press release and those discussed in BIOX's publicly available disclosure documents, as filed by BIOX on SEDAR (www.sedar.com) except as updated herein. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, BIOX does not intend and does not assume any obligation to update these forward-looking statements.
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