Biox Corp., a Toronto-based renewable energy company, ended an agreement with International-Matex Tank Terminals to build a 100-million-liter biodiesel plant in New York Harbor.
Biox will record a $700,000 termination charge in the first quarter, the company said in a statement today. Biox operates a plant in Hamilton, Ontario, that makes fuel out of seed oils, animal fats and other sources.
“Given the significant change in the biodiesel market dynamics since we announced the IMTT agreement in June 2012, terminating the land-lease agreement is the responsible decision,” Kevin Norton, chief executive officer, said in the statement. “We also remain confident in the value of our Hamilton production facility, especially as we anticipate the market conditions in the U.S. biodiesel market will return to a rational balance between supply and demand.”