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Americas Biodiesel Renewable Diesel

Canadian biofuel producer faces bankruptcy

Foam Lake, Saskatchewan-based biodiesel producer and distributor Milligan Biofuels has entered into receivership, according to company clients and local media reports.

The Canadian biofuel producer, who rose to prominence in the industry as a consumer of off-grade canola, boasted an annual production capacity of 5.3mn gal (20mn litres), while utilizing more than 50,000 tonnes of canola.

In 2016, the growing worldwide demand for renewable diesel led Milligan Biofuels to begin expansion efforts, including drop-in biofuel production, and discussions of capacity maturation up to 66mn gal annually (250mn litres).

Today, however, the company faces an impending bankruptcy, following an Alberta courts granted application to public lender Alberta Treasury Branches. The Canadian financial institution, who owns a $6mn mortgage on the Foam Lake facility as well as an operating loan, stated that the application was filed due to the need to swiftly protect its interests.

Currently, four Canadian biodiesel producers are listed as either legacy or Tier 1 applicants under the California Air Resource Boards (CARB) certified LCFS pathway program. Fuel producers ADM and Biox, at their Alberta and Ontario facilities, presently remain the lone facilities to utilize a canola feedstock, posting an average Carbon Intensity (CI) of between 51.33-54.97gCO23/MJ.

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