- 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 requirements."
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
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