Methes Energies International Ltd.
(NASDAQ: MEIL) is a renewable energy company offering a collection of products
and services to biodiesel fuel producers. Since 2004, the company has worked to
produce biodiesel commercially from versatile sources. Using cutting-edge
technologies and an innovative business model, Methes has grown into a
respected player in the biodiesel industry, remaining at the forefront of the
market through the production of consistently high quality fuel.
The company markets and sells
biodiesel fuel produced at its showcase production facility, as well as its 13
MGY facility, in Ontario, Canada. In 2013, Methes placed its first Denami 3000
processor into production, allowing the company to produce up to 6.5 million
gallons of biodiesel per year. This increase in capacity helped the company
ship over 1.3 million gallons of biodiesel from its primary production facility
in 2014.
In recent months, changes to
regulations and proposed initiatives surrounding the biofuel industry have
placed Methes in a strong position to realize continued growth moving forward.
In December, the company welcomed the reinstatement of the biodiesel tax
incentive, also known as the Blender’s Tax Credit (BTC). With its renewal, the
BTC provides a $1.00 per gallon tax credit to the first fuel blender of a
volume of biodiesel that contains at least one-tenth of one percent
petroleum-based diesel fuel.
“We are pleased with the
reinstatement of the BTC,” stated Nicholas Ng, President of Methes. “This will
result in us getting back approximately $1 million for biodiesel sold in 2014.”
In June, the U.S. Environmental
Protection Agency (EPA) announced the details of a proposal to establish
Renewable Volume Obligation (RVO) for biodiesel as part of the Renewable Fuel
Standard (RFS). This proposal, which will be finalized later this year, will
establish increased minimum volumes for biodiesel production in coming years.
Although the proposal is subject to public comment and alterations before its
execution, the initiative could open the door for significant growth for Methes
moving forward.
“We applaud and thank the EPA
for their renewed and strong commitment to the biodiesel industry,” continued
Ng. “This is very positive news for the industry… and should pave the way for a
healthy biodiesel market in the coming years.”
Through a combination of
regulatory benefits and continued expansion of market share, Methes has made
major strides towards realizing sustainable shareholder returns in recent
months. During the first quarter of 2015, the company recorded strong financial
results, achieving outright profitability for the period. In the coming months,
Methes is in a formidable position to build on these impressive results. With
its recently expanded offerings, which will now include Epoxidized Soybean Oil
(ESO) and Natural Polyol, the company will look to continue growing its market
share and investor returns into the future.
For more information, visit
www.methes.com
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