Biox terminates bio-diesel agreement with International- Matex Tank Terminals
Canada-based renewable energy company Biox has terminated an agreement with International- Matex Tank Terminals wherein the former was to build a 100-million-liter biodiesel plant in New York Harbor.
The decision will result in a $700,000 termination charge that will be recorded in the first quarter of 2013.
According to Biox, the ever changing market dynamics of the bio-diesel market made it imperative for the company to retract on its earlier agreement.
Biox CEO Kevin Norton said in a statement "Given the significant change in the biodiesel market dynamics since we announced the IMTT agreement in June 2012, terminating the land-lease agreement is the responsible decision.
"We also remain confident in the value of our Hamilton production facility, especially as we anticipate the market conditions in the U.S. biodiesel market will return to a rational balance between supply and demand."
The company currently operates a plant in Hamilton, Ontario, that makes fuel out of seed oils, animal fats and other sources.