(SOMBRA, ON) – A potential deal between Forge Hydrocarbons and BIOX could have a new renewable diesel fuel processing facility at a site near Sombra in Lambton County. The plant will use technology developed by Forge, but will be operated by BIOX, a biodiesel producer.
The agreement between the two companies will have Forge leasing up to four acres for the construction of a new, 25 million litre capacity, renewable diesel production facility. It is estimated the project will cost Forge $25 million and, as reported by the Sarnia Observer, employ 15 to 25 staff.
Forge is a relative newcomer to the market, a spin-off of technology invented by Dr David Bressler at the University of Alberta. Its proprietary Lipid-to-Hydrocarbon technology, reports the Minnesota Green Chemistry Forum, “… produces drop-in hydrocarbons such as renewable diesel, jet fuel, and gasoline as well as other hydrocarbons … The LTH process does not require the use of expensive catalysts nor hydrogen and the output meets or exceeds petroleum standards, requiring no special infrastructure, additional processing, or chemical or biological modification.”
Currently Forge is conducting preliminary engineering with the intent to determine the site’s suitability. Other details, including commercial terms and an operational agreement between the two companies, remain to be finalized.
Forge is also in the process of finalizing financing.
BIOX has 287.5 million litres of biodiesel fuel production capacity at plants in Sombra as well as Houston, TX, and Hamilton. It says its patented production process allows it to produce the highest quality, renewable, clean burning, and biodegradable biodiesel fuel utilizing a variety of feedstocks; from pure seed oils to animal fats to recovered vegetable oils.
This is all executed with no change to the production process.
The project is one of four economic developments announced by Sarnia-Lambton County so far this year, which makes it a powerhouse in creating jobs, about 845, and attracting new investment in the area of $135 million.
The other announcements include a $100 million greenhouse for Greenhill Produce, expected to create up to 300 jobs, and a pilot factory to allow Ubiquity Solar to manufacture advanced photovoltaic solar energy silicon. The Ubiquity project could generate 500 jobs over the next five years.
BIOX itself is also creating 20 jobs through the refurbishment of an existing biodiesel plant expected to come on line in a few months. Its co-partnered plant with Forge could be operational in late 2018.