Heridge forms Atlantic Biodiesel to manage former GLB plant

By Ron Kotrba | February 04, 2015

The former Great Lakes Biodiesel plant in Welland, Ontario, Canada, has new ownership after GLB lender Heridge S.a.R.L.’s stalking horse bid won the assets from a recent bankruptcy auction. Heridge formed the subsidiary Atlantic Biodiesel Corp. to manage operations in Welland.

The senior leadership team of Atlantic Biodiesel issued a statement Feb. 4. “We are pleased to announce that Atlantic Biodiesel has received full and final approval to immediately begin managerial operations of the Welland biodiesel plant.” 

Michael Paszti has also joined the Atlantic Biodiesel team as chief operating officer. “Michael is a seasoned expert in the Canadian biodiesel sector, and he is a welcome addition to our new team,” the company stated. “We are strongly committed to the facility’s success and Michael will be an integral, on-the-ground team member whose priority will be to quickly get operations up and running to full capacity.” 

Company spokesperson Randi Rahamim told Biodiesel Magazine that Atlantic Biodiesel intends to get the plant running as soon as possible, but that the timing depends on reinstatement of a Canadian federal subsidy under a program known as ecoENERGY for Biofuels. Rahamim said the subsidy was not offered to the plant’s previous owners. The program was designed to support ethanol and biodiesel producers with fixed, declining rates from 2008 through 2017. In fiscal year 2008, the subsidy for biodiesel was 26 cents per liter. This year it drops to 6 cents per liter.

“Welland is our home, and Atlantic Biodiesel is focused on continued engagement with local elected and community officials as we work to renew discussions with the federal government,” the company stated. “With the support of the community and various levels of government, Atlantic Biodiesel will fulfill its goal of becoming a world-class producer of biodiesel fuel targeting the unique needs of the Canadian fuels complex, and play a critical part in provincial and federal greenhouse gas reduction efforts.”

According to bankruptcy court papers, Heridge S.a.R.L. loaned Great Lakes Biodiesel $20 million to build the plant but was never fully repaid. The company submitted what’s referred to as a stalking horse bid and now owns the assets. Information on the stalking horse asset purchase agreement can be found here

The facility features Desmet Ballestra production technology suited to process canola or soybean oil into ASTM-spec biodiesel, 8.5 million liters of on-site storage capacity and a rail/truck terminal to service 12 to 14 railcars per day. The total site includes more than 16 acres of land.

 

 
 
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