TORONTO — Renewable energy company BIOX Corporation announced it is partnering with Forge Hydrocarbons Corporation to explore construction of a new 25-million-litre nameplate capacity renewable diesel production facility in Sombra, Ont.
Sombra is located south of Sarnia on the St. Clair River. A BIOX media statement issued March 16 noted that the proposed transaction with Forge contemplates Forge leasing up to four acres at an existing BIOX site for the construction of the new facility this spring. Forge will be responsible for obtaining funding for the project, which Forge estimates to be approximately $25 million in order to bring the facility into production.
Subject to entering into definitive agreements with Forge, BIOX would operate and manage production at the facility. The project would use Forge technology.
BIOX acquired an existing 50-million-litre production facility at the Sombra site, together with 25 acres of land, in June 2016. The biodiesel facility is currently undergoing upgrades and BIOX expects to commission the facility in time to capture a portion of the Ontario biodiesel blending season during the third quarter of 2017.
Forge is currently conducting preliminary engineering to determine the site's suitability for the new facility. An agreement to co-locate is subject to, among other things, a successful outcome from the pre-engineering work, Forge securing the necessary funding and an agreement on commercial terms between BIOX and Forge as it relates to the land lease and operations agreement.
Renewable diesel and biodiesel are both produced from fats and oils. Renewable diesel is a diesel molecule that can be "dropped in" to existing distillate fuels while biodiesel is a methyl ester that requires proper blending with diesel fuels, the BIOX release explains.
BIOX owns and operates 287.5-million litres of nameplate biodiesel production capacity at plants located in Houston, Texas and two sites in southern Ontario.