Two companies plan to build inter-terminal pipeline connecting their facilities in Hamilton, Ont.
TORONTO—Renewable energy firm BIOX has signed an agreement to supply biodiesel to oil and gas giant Shell Canada.
According to the Oakville, Ont., firm, the two companies plan to build an inter-terminal pipeline connecting their facilities in Hamilton, Ont., in order to supply the fuel to help Shell meet its renewable fuels target.
“This agreement provides Shell Canada access to a secure, stable supply of renewable content for our diesel with the most efficient logistics possible,” Shell Canada business development lead Esther Atere said in a statement.
“As well, it will assist Shell Canada in achieving the federal mandate of two per cent renewable content in diesel fuel and heating distillate oil requirements.”
BIOX’s Hamilton, Ont., biodiesel refinery is located adjacent to Shell’s distribution terminal.
The pipeline connecting the two facilities is expected to be completed by late 2013.
Shell and BIOX will share the project cost.
Costs were not disclosed.
Canadian law requires renewable content in diesel fuel and heating distillate oil.
“This agreement is a great example of how the renewable fuels industry can work with the petroleum industry,” BIOX CEO Kevin Norton said.