January 22, 2013, Toronto, ON – BIOX Corporation announced that it will resume biodiesel production at its Hamilton facility this month after temporarily suspending production last October.
BIOX 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 BIOX’s CEO Kevin Norton. "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% 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.