The agreements include a long-term land lease agreement for the plant as well as long-term leases on existing storage tanks at IMTT.

With this second facility our production capacity will grow by almost 150 percent from existing levels. This expansion reflects our view that the fundamentals within the North American biodiesel sector have evolved due to the mandated minimum volumes such that long-term demand exists for quality product from reliable suppliers, like BIOX.

IMTT is an ideal partner for our next facility. We have been working with them for more than five years using their Bayonne terminal as a distribution and blending site for product produced in Hamilton. Based on that long-standing relationship, we have already conducted the early stage planning for this next facility including the design tie-ins and site specifications prior to signing these agreements. We are now proceeding ahead with the detailed planning and permitting phase with the expectation that construction will be completed in December 2013.

—Kevin Norton, CEO of BIOX

The IMTT terminal at New York Harbor is a 600-acre facility within which BIOX has secured 3.5 acres for its second plant. New York Harbor is a major petroleum distribution hub. The selection of this site is consistent with BIOX’s strategy to locate facilities adjacent to large scale petroleum storage and diesel distribution infrastructure as well as users of petroleum diesel and blenders of biodiesel in order to minimize transportation costs to them.

BIOX estimates the cost of the facility will be $60 million which includes the core process area, infrastructure, utilities, engineering and indirect cost. BIOX believes that its current financial resources combined with its future cash flow from operations and debt financing should be sufficient to enable it to construct and commission the second BIOX facility.