FBA assists online biofuels trading firm
Frazier, Barnes & Associates LLC announced today that it has been retained to provide exclusive biodiesel market commercialization services for the new U.S. Biofuels Exchange (US-BX). Formed to become the ultimate sales and procurement tool for the biodiesel industry, US-BX will transform the way biofuel product is purchased and sold, at home and abroad.
“The US-BX has created a true breakthrough that has been desperately needed in this industry,” said Pete Moss, FBA president. Sales and procurement of biofuel product can now be accomplished online with the touch of a button. “What I really like about this Internet technology is that it has the potential to significantly increase the liquidity of the biodiesel market and bring buyers and sellers together anonymously,” Moss added. FBA will focus on increasing the volume of biodiesel traded on the exchange.
The US-BX has completed a rigorous testing program and all trading capabilities are now activated. Sellers post the specifics of their product on the internet, much like eBAY, and buyers execute the purchase at their convenience. The US-BX is a “two-sided” exchange, meaning that sellers can post “lots for sale” and buyers can post “lots wanted.” Everything is done in real-time and all postings are free.
James Kaufman, managing director of the US-BX, said, “The US-BX provides a low-risk, low-cost method of conducting biofuel trades while complying with the complexities of the new RFS2 program. Exchange fees only occur when trades are executed—0.4 cents per gallon for ethanol and 0.6 cents per gallon for biodiesel. We are truly excited to be working with Frazier, Barnes & Associates to help us introduce our product into the marketplace. Their experience and knowledge in the biodiesel industry is vital to our continued success.”