- Joint Development Project Will Connect Hamilton Facilities by Pipeline
TSX symbol: BX
TORONTO, March 27, 2013 /CNW/ - A supply agreement to send biodiesel to
Shell Canada Limited (Shell Canada) by an inter-terminal pipeline from
BIOX Corporation (BIOX) (TSX: BX) will help Shell Canada achieve its
renewable fuels target.
BIOX's Hamilton biodiesel refinery is located immediately adjacent to
the Shell distribution terminal which allows for a pipeline to be
installed connecting the two facilities. The connection is expected to
be completed by late 2013. The project costs to connect the two
facilities will be shared by the two parties. Costs were not disclosed.
"This agreement provides Shell Canada access to a secure, stable supply
of renewable content for our diesel with the most efficient logistics
possible," said Esther Atere, Shell Canada Business Development Lead.
"As well, it will assist Shell Canada in achieving the federal mandate
of 2% renewable content in diesel fuel and heating distillate oil
BIOX's Hamilton facility has a nameplate capacity of 67 million litres
per year. Currently, essentially all of its biodiesel production is
sold into the United States. As part of its contribution to the
connection project, BIOX will be constructing a tank on its site to
inventory product specifically for Shell's use.
"This agreement is a great example of how the renewable fuels industry
can work with the petroleum industry," said Kevin Norton, Chief
Executive Officer of BIOX. "Shell is investing in its distribution
terminal to blend renewable content in diesel and we are investing
alongside them to deliver biodiesel in the most efficient manner
possible, through a pipe across the property line."
Law in Canada requires renewable content in diesel fuel and heating
distillate oil. BIOX Canada Limited is registered under the Canadian
Environmental Protection Act as a renewable fuel producer and as such
its production qualifies as renewable content.
About Shell Canada Limited
Shell has been operating in Canada since 1911 and employs approximately
8,000 people across the country. A leading manufacturer, distributor
and marketer of refined petroleum products, Shell Canada Limited
produces natural gas, natural gas liquids and bitumen, and is Canada's
largest producer of sulphur. Shell Canada Limited is one of Canada's
oil sands developers and operates the Athabasca Oil Sands Project on
behalf of the joint venture partners.
About BIOX Corporation
BIOX is a renewable energy company that owns and operates a biodiesel
production facility in Hamilton, 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. Such statements relate to, among other things, the impact
of the extension of the biodiesel tax incentive in 2013, and BIOX's
long-term expectations for the biodiesel market in light of current
market conditions. 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.
SOURCE: BIOX Corporation
For further information:
Shell Canada Limited
Shell Media Relations
Phone: 1 (877) 850-5023
Please provide both your email and phone number as some queries will only be answered via email.
Executive Vice President & CFO
Phone: (905) 337-4970
Phone: (416) 815-0700 ext. 238