MissionIR would like to highlight
Methes Energies (
NASDAQ: MEIL). The company uses its own proprietary technology to produce high-quality biodiesel processors and systems to capitalize on the growing demand for renewable energy, surging energy prices, and the value of biodiesel as a practical and realistic long-term replacement for conventional diesel fuel. The company’s processors are flexible and can use a variety of virgin vegetable oils, used vegetable oil and rendered animal fat feedstock, allowing operators to take advantage of feedstock buying opportunities. Methes Energies also markets and sells high-quality biodiesel fuel produced at its 1.3 MGY (5 MLY) showcase production facility in Mississauga, Ontario, and at it’s 13 MGY (50 MLY) facility in Sombra, Ontario, to customers in the U.S. and Canada.
In the company’s news,
Methes Energies subsidiary, Methes Energies Canada, Inc., was mentioned by Paul Morden, a writer for the Sarnia Observer. On February 2, Mr. Morden wrote of the formation of Ontario Biodiesel Association, a provincial organization dedicated to the promotion of production and use of biofuel in Ontario, Canada. In the article, Mr. Morden made note of Methes Energies International’s subsidiary, Methes Energies Canada Inc., joining the organization as a founding member. It was noted that the association had been formed on the heels of key Ontario decision-makers considering the merits of a mandate for “at least 2% of [Ontario’s] diesel com[ing] from renewable sources.”
Mr. Michel Laporte, CEO of Methes Energies International, made note of nationwide promotional efforts by the Canadian Renewable Fuels Association on behalf of alternative and renewal fuels. He mentioned the value of Ontario Biodiesel Association building on top of those efforts, strengthening provincially-based public discourse and awareness of the benefits of biodiesel fuel usage.
Laporte also said that the association had been making progress in its talks with key provincial government officials. At the time of the article, association representatives and provincial government officials had already engaged in several discussions, and a meeting in Toronto had been scheduled very close to the article’s publish date. The discussions had arisen from the government of Ontario’s declared intention to consult with the biodiesel industry on mandated biodiesel use in the province. Previously, in November 2013, Mr. Morden noted, “the government [had] posted a proposed regulation to the Environment Registry that would set a minimum mandate of 2% bio-diesel beginning this spring, and growing to 4% in 2016.”
Methes Energies International bills itself as “an innovative, best-in-class company providing a suite of biodiesel solutions targeted at large- and small-scale biodiesel producers, as well as entrepreneurs seeking the independence of producing their own fuel.” In the article, Mr. Morden mentions Methes Energies International’s operation of facilities in Sombra and Mississauga, where it currently has the capacities to produce 55 million liters of biodiesel on a yearly basis. The company also has a customer base in the United States, where “there is a strong mandate requiring [biodiesel’s] use.” In 2013, “the U.S. mandate required use of 1.3 billion gallons of biodiesel, and the industry produced about 1.9 billion gallons.”
Having assurance from the Environment Ministry that the industry’s input would be considered before any further steps were taken, Laporte noted that the mandate could create a market opportunity in Ontario for Methes Energies International and other area biodiesel refiners. The advantage of their immediate accessibility would be ideal for large fuel companies looking to cut down on logistics-related and transport-related costs. “’This is our backyard, and we’re much closer to where the demand’s going to be,” Laporte said.
A mandate requiring 2% usage would largely be in the confines of Methes Energies International and other biodiesel refiners’ capacity for meeting demand. But a mandate for 4% would create bigger market opportunities for the companies, encouraging further operations expansion at biodiesel facilities and greater industry involvement.
Laporte commented the value of such a development, opining that “[w]e do believe there is a bright future.”
Mr. Morden’s article can be found at: http://www.theobserver.ca/2014/02/07/provincial-association-forms-to-promote-renewable-fuel
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