Canadian Biomass Magazine

Features Biodiesel Biofuels
Methes Energies enters historic feedstock agreement

August 28, 2014, Las Vegas, Nev. - Methes Energies International Ltd. announced that it has entered into a feedstock credit facility with a major provider of credit to the renewable fuels industry (the "Lender"), which will provide Methes all the feedstock that is required to run at full current capacity (1 million gallons per month or approximately 40 railcars per month).


August 28, 2014
By Canadian Biomass

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August 28, 2014, Las Vegas, Nev. – Methes Energies
International Ltd. announced that it has entered into a feedstock credit
facility with a major provider of credit to the renewable fuels industry (the
"Lender"), which will provide Methes all the feedstock that is
required to run at full current capacity (1 million gallons per month or
approximately 40 railcars per month).

 

The agreement will also allow Methes to fulfill future
orders for biodiesel that it receives from its customers that have been
approved by the credit department of the Lender.

 

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Methes has also established a feedstock hedging account with
the Lender to protect its margins against market price fluctuations. The Lender
is a subsidiary of a Fortune 500 company, which trades in a number of
commodities and the group has important connections in the biodiesel industry.
The new credit facility replaces Methes' preexisting $1.5 million credit
facility.

 

Nicholas Ng, President of Methes, said, "Our new
feedstock facility is a significant step forward for Methes. The amounts
available to us will be driven solely by sales of biodiesel and will allow us
to move to full production with confidence that the feedstock will be
available. Establishing an ongoing relationship with this Lender is important
for the future growth of Methes since it has experience and connections in the
biodiesel industry that complement and enhance our own strengths. We are very
pleased that we could establish this critical new relationship. This is the
first time that the Lender has provided such a facility for a Canadian
biodiesel producer."


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