TSX symbol: BX
TORONTO, Jan. 22, 2013 /CNW/ - BIOX Corporation (BIOX) (TSX: BX), a renewable energy company that owns and operates Canada's largest biodiesel production facility, today announced that it will resume biodiesel production at its Hamilton facility this month after temporarily suspending production last October. The Company has recalled operational employees and it is building feedstock inventory levels in preparation for the start of production, which it anticipates within one week.
"The improvements in U.S. biodiesel market have provided us with sufficient confidence in the market outlook to resume production. We believe these improvements should support higher values for biodiesel based on the new 2013 compliance period, the increased minimum volume requirement of 1.28 billion U.S. gallons and the reinstatement of the U.S. biodiesel tax incentive," said Kevin Norton, Chief Executive Officer of BIOX. "Based on these improvements and discussions with our customers we have contracted for sufficient product at this stage to resume production on an ongoing basis."
The new calendar year sets off changes within the U.S. biodiesel market under the expanded Renewable Fuel Standard, RFS-2. The mandated minimum volume requirement for biomass-based diesel increases to 1.28 billion U.S. gallons in 2013, a 28 percent increase from the 2012 requirement.
In addition, the passage of the American Taxpayer Relief Act reinstates the U.S. biodiesel tax incentive, retroactive from January 1, 2012 through to December 31, 2013. The tax incentive provides parties that blend biodiesel with petroleum diesel with a US$1.00 refundable tax credit for each U.S. gallon of biodiesel blended in the U.S.
About BIOX Corporation
BIOX is a renewable energy company that owns and operates Canada's largest biodiesel production facility, 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 resumption of biodiesel production at BIOX's Hamilton facility, 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:
Executive Vice President & CFO
Phone: (905) 337-4970
Phone: (416) 815-0700 ext. 238