Paul Morden, The Observer
May 27, 2015
Methes Energies is on the hunt for customers for two soybean-based products the company would like to begin manufacturing at its idle bio-diesel plant near Sombra.
The company says it plans to initially convert approximately 20% of the plant’s capacity to produce epoxidized soybean oil and natural polyol.
Methes began making bio-diesel fuel from used cooking oil and other renewable feedstocks at its Holt Line site in 2013 to sell into the U.S. market, but laid off part of its workforce and paused production in late 2014 when demand dropped.
Both bio-based products it wants to begin making there can be used in the place of fossil fuel chemicals. Epoxidized soybean oil is used in the production of polyvinyl chloride plastics, and natural polyol is used in the production of paints, coatings, castings as well as insulating foams.
“What we’re really doing right now is letting people know that we have those products that we could produce,” said Methes president Nicholas Ng.
Methes Energies has retained Omni Tech International to lead market development for both products.
Ng added he’s not aware of anyone else currently producing them in Canada.
But Methes Energies said in a press release that demand has been growing in North America and the combined market is estimated at more than $1 billion.
“Since we’re put out the press release we’ve had a lot of interest,” Nge said.
“Companies we didn’t think would call us are calling us on both the products.”
Ng said the growing demand for the two products isn’t necessarily driven by their “green” status.
“The performance of the natural polyols, in some cases, can be better than the petroleum product,” he said.
“The green aspect is nice but, at the end of the day, we are going to focus on performance of the product, and also to be competitively priced with the existing options out there.”
The Sombra plant already has equipment needed to make the new products and the switch over is expected to be able to happen “fairly quick,” Ng said.
“There’s no construction needed, just a few piping changes here and there, and then we can get it converted over.”
Currently, the company is focused on marketing and developing the new products, Ng said.
He added it may “optimistically” be later this year, or into 2016, before the Sombra plant sees “solid production” of the new projects.
There are currently approximately eight staff maintaining the Sombra site, but that number would grow when production of the new products begins, Ng said.
While it isn’t currently profitable for Methes to produce bio-diesel in Sombra, Ng said he believes strongly that once the U.S. settles the issue of renewable fuel volume obligations, and when renewable fuel mandates are fully in place in Canada, “we will start producing bio-diesel again.”
The two new products will complement the plant’s bio-diesel production, which can also use soybean oil.
“What we’re really doing it just adding additional capability on-site,” Ng said.
“If all three markets are doing well, we would be producing and marketing all three products.”
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