Biodiesel solutions provider
Methes Energies was recently featured in a Seeking Alpha article highlighting
several key points as to why the company is poised for a “big year,” taking
into consideration the overall biodiesel market and factors specific to Methes
Energies.
To read the full article
visit: http://seekingalpha.com/article/1996251
Rise in biodiesel production
The U.S. is the largest
market for biodiesel, representing 67 percent of global advanced biofuel
products, positioning Methes Energies in a prime segment of the renewable
energy market.
“Currently, Methes Energies
does indirectly benefit from RIN credits since it does market biodiesel in the
U.S. However, in 2014, the company will import biodiesel through its own
subsidiary, Methes Energies USA Ltd, which will market biodiesel in the U.S.
This will remove the intermediary which will improve the company’s margins.”
Methes Energies’ record
biodiesel shipments
Methes Energies has two
manufacturing facilities in Canada with combined capacity of 14.3 mgy.
“The Sombra facility began
its commercial production in November 2012, and in October last year, the
company shipped out a record 18 rail cars carrying over 485,000 gallons from
this facility. This was the highest monthly shipment for Methes Energies. The fourth
quarter, ending November 30, 2013, was the best production quarter for Methes
Energies, with figures surpassing the entire production for fiscal-year 2012.”
Expansion plan of Methes
Energies
In 2013, Methes Energies
initiated an expansion plan with the end-goal to double the capacity of one of
its facilities by November 2014.
“Methes Energies operated
with a net loss of $3.9 million in fiscal-year 2012. With the doubling of
capacity, Methes Energies will have the potential to generate $104 million in
revenue. The $104 million was determined by taking 26 mgy as total capacity and
an average price of $4 per gallon. Assuming the overall expenses remain
constant, Methes Energies will near profitability in 2014.”
Diversifying towards
non-biodiesel
Methes Energies last year
set out to diversify its revenue streams by signing a letter of intent to
acquire the assets of OTC Technologies, which will equip Methes Energies with
the know-how to convert several types of biomass into syngas and expand its technology
portfolio, among other advantages.
“What significantly
differentiates Methes Energies from other biodiesel producers is its ability to
provide biodiesel manufacturing equipment and customized turnkey solutions to
small and medium biodiesel producers. … This diversification sets Methes
Energies apart from other biodiesel companies. Given its increased biodiesel
production, expansion into the Cellulosic biofuels market and the emerging
revenue stream as a single source provider of biodiesel manufacturing equipment
and services to other producers, Methes Energies is poised for a big year.”
For more information visit
www.methes.com
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