The exact price that Gulf Hydrocarbon will be paying for Methes’s biodiesel will remain confidential for commercial reasons. However, it can be mentioned that this one will be floating equal to the sum of the regional ultra low sulfur diesel price per gallon.
Under the agreement, Methes Energies has the right to reserve up to 10% of its monthly biodiesel production toward supplying its other clients. The term of the agreement is for one year, at which time an automatic renewal will apply, unless it is terminated by either party upon a 30 days notice to that effect.
Nicholas Ng, director of business development at Methes Energies International, said: We are extremely pleased to have reached an agreement with Gulf Hydrocarbon that provides for a win-win situation for both parties, as well as some peace of mind for us moving forward. With such an agreement in place, Methes Energies will be able to focus on not only producing more biodiesel, but also furthering the sales of our biodiesel processor, the Denami 600.
