Methes Energies International Ltd. (MEIL) Inks Agreements fo
Methes Energies International Ltd. (MEIL) Inks Agreements for Over $6 Million of Biodiesel Supply
Today before the opening bell, renewable energy company Methes Energies reported its finalization of agreements with U.S.-based clients to supply them with more than $6 million worth of biodiesel by September 30, 2014. The amount includes Methes Energies’ portion of the expected blenders’ tax credit. Methes Energies anticipates the agreements as the beginning of a strong, long-term business relationship with the clients.
The agreements require Methes Energies to ship approximately 1.4 million gallons of biodiesel in this period, starting around June 23, 2014. They also cover the potential reinstatement of the Biodiesel Blender’s Tax Credit, or a tax of $1.00 paid per gallon in the United States. If the tax credit is reinstated retroactively, the majority of the tax credit claimed by Methes Energies’ clients will be transferred to Methes Energies.
Nicholas Ng, President of Methes Energies, said, “Production is currently going very well and we’ll be ramping up very quickly over the next few weeks. We’ve locked in our feedstock price as well as our selling price for the next 3 months. We see some upside moving forward so we are comfortable with a 3-month at the time strategy with the volume committed in these agreements. We are also in a great position to move more biodiesel on the spot market where we believe we can make more money.”
For more information, visit: www.methes.com
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