BIOX Corporation (BIOX) will supply biodiesel to Shell Canada Limited via an inter-terminal pipeline. 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. As well, it will assist Shell Canada in achieving the federal mandate of 2% renewable content in diesel fuel and heating distillate oil requirements.—Esther Atere, Shell Canada Business Development Lead
BIOX’s Hamilton facility has a nameplate capacity of 67 million liters (17.7 million gallons US) 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. 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.—Kevin Norton, Chief Executive Officer of BIOX
Canadian law 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.