Methes Energies International Ltd. (MEIL) Leveraging Unique Business Model for Competitive Edge

Methes Energies International is a provider of a suite of products and services to biodiesel fuel producers. The renewable energy company also offers compact, fully automated continuous flow biodiesel processors that are capable of running a wide range of feedstocks.

For biodiesel processors, Methes Energies International offers two models: the Denami 600 and the Denami 3000. They come in two sizes and are capable of producing up to 1.3M gallons (5M liters) and 6.5M gallons (25M liters) respectively per year of ASTM quality biodiesel. Since they are small and modular, these models are easily incorporated and then oriented for strengthened production value.

Methes Energies International currently markets and sells biodiesel fuel that it produces at its showcase production facility in Mississauga, Ontario, Canada, as well as its 13 MGY facility in Sombra, Ontario, to customers in the U.S. and Canada. At its Mississauga facilities, the company is capable of production of 55 million liters of biodiesel per year.

For a strong competitive edge, Methes Energies International operates according to a business model that it says is unlike any in the biodiesel industry. When it sells a client one of its biodiesel fuel processors, the company extends a comprehensive layer of client support and assistance. This client support structure consists of multiple elements, including: guidance and active involvement in helping the client set up its facility, such as obtaining permits and government incentives, and ensuring compliance standards and a site layout are in place; assistance with day-to-day operations via providing all inputs needed for biodiesel production; management of the client’s sales of its biodiesel production; and more. Backed by the support of a full-time remote online monitoring system, Methes Energies International stands out for its clear commitment to client success.

In the United States, Methes Energies International has a strong, established customer base. In 2013, a U.S. mandate required use of about 1.3 billion gallons of biodiesel, and the industry in the United States produced around 1.9 billion gallons. In Canada, where Methes Energies International’s subsidiary, Methes Energies Canada Inc. is located, there has been a proposed regulation to the Environment Registry that would set a minimum mandate of 2% biodiesel beginning sometime this season in 2014. The mandate would then require an increase to 4% biodiesel in 2016. Methes Energies International CEO Michael Laporte noted the market opportunity that the mandate would create.

In an article published earlier this year, Laporte said that the mandate would create a strong market opportunity in Ontario for Methes Energies International and other area-based biodiesel refiners. Large fuel companies looking to minimize their logistics and transportation costs would likely be turning to these providers for biodiesel. Laporte signified his confidence in the strength of this possible development, opining that he believes “that there is a bright future” for biodiesel refiners.

Methes Energies International has received a deposit from Aruba-based Antilla Energy VBA for one of its new Denami 600 units. Methes Energies International has started manufacturing the unit and anticipates that this is the first of several units that Antilla Energy VBA will be ordering.

For more information about Methes Energies International, visit: www.Methes.com

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