MONTREAL – Enerkem Inc., a Montreal-based waste-to-biofuels and chemicals company, has struck a deal to sell methanol produced at its plant in Edmonton to Methanex Corp. (TSX: MX), the world’s largest supplier of the industrial chemical.
Financial terms of the deal, announced Wednesday, were not revealed.
“The access to Methanex Corporation’s worldwide distribution network coupled with our ability to produce methanol from non-recyclable waste represents a timely opportunity for Enerkem in the development of its commercial activities”, said Vincent Chornet, the company’s president and CEO.
“Our proprietary technology platform allows for the production of renewable fuels and chemicals, including methanol, which we can sell as an end-product or convert into cellulosic ethanol.”
Vanessa James, vice-president of North American marketing and logistics, said the Vancouver company is “pleased to add another supply source for our North American customers and to be working with Enerkem to develop markets for renewable methanol.”
“Methanol is a viable and economic alternative fuel and, when produced from waste. It is an important step towards broader acceptance in a number of markets.”
Methanol is used in many industrial and everyday consumer products.
Enerkem Alberta Biofuels LP, the Montreal company’s Edmonton subsidiary, is expected to initially produce and sell methanol. Later it plans to produce cellulosic ethanol from methanol with a capacity of 36 million litres a year.
Montreal-based Enerkem converts municipal solid waste and other non-recyclable waste into chemical-grade syngas, and then methanol, ethanol and other chemical intermediates.
The company has both a pilot and a commercial demonstration plant in Quebec and is building its first waste-to-biofuels plant in Edmonton. It also has plans to develop similar operations in the U.S. and Canada that will convert municipal solid waste into biofuels and chemicals.
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