In Canada, Biox Corp. announced that in connection with its acquisition earlier this year of a 50 million liter per year (13.2 MMgy) biodiesel facility in Sombra, Ontario, the company has obtained a CAD$1.8 million (USD$1.38 million) credit facility from Farm Credit Canada. The credit facility is secured by a mortgage on the facility in Sombra, Ontario, is for a term of one year and bears interest at a rate of 4.75 percent per annum.
The Sombra facility is located on a 21-acre facility near Sarnia, Ontario, with excellent logistics, including on-site rail. Originally constructed in 2009, the facility has not achieved nameplate capacity due to working capital and market challenges, and is currently not in production. The funds from the credit facility form part of the company’s anticipated expenditure of an additional CAD$5 million over the next nine months for upgrades to the facility that will improve the facility’s efficiency and enable the use of a broader range of low carbon intensity feedstocks, such as animal fats and recycled cooking oils. The company expects the facility to be in production in time for the 2017 blend season in Ontario, during the second quarter of calendar 2017.