BIOX Scrubs Plans for New York Harbor Biodiesel Plant, Resumes Production in Hamilton, Ontario

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Researched by Industrial Info Resources (Sugar Land, Texas)--BIOX Corporation (TSX:BX) (Oakville, Ontario) has exercised its option to terminate its land lease agreement with International-Matex Tank Terminals (Baton Rouge, Louisiana). The companies had planned to construct a $60 million, 26.4 million-gallon-per-year biodiesel production facility in Bayonne, New Jersey, in the New York Harbor.

BIOX finalized a long-term land lease deal with International-Matex back in June 2012 that included to option to terminate the agreement. For more information, see June 7, 2012, article - BIOX Finalizes Agreement with International-Matex for Bayonne, New Jersey Biodiesel Plant Site.

Kevin Norton, the chief executive officer of BIOX, said: "We remain confident in the growth opportunities available to us in the market. However, 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."

However, following some improvements in the U.S. biodiesel market, BIOX has decided to resume production next week at its 67 million-liter-per-year biodiesel plant in Hamilton, Ontario. The plant has been idle since October of last year.

The New Year and the "fiscal cliff" concerns set off changes within the U.S. biodiesel market under the expanded Renewable Fuel Standard (RFS-2). The U.S. mandated minimum volume requirement for biomass-based diesel is set to increase to 1.28 billion gallons in 2013, a 28% increase from the 2012 requirement.

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