Canadian biodiesel producer shuts down

Foam Lake, Saskatchewan based Milligan Biofuels has entered receivership, according to local media.

The biofuels producer was known for taking oilseeds destined for local farm pits and converting them into bioproducts, including biodiesel. Feedstocks included green, frost damaged and lower quality canola, according to 620ckrm.

Last week, an Alberta court granted an application from public lender Alberta Treasury Branches (ATB), which apparently pushed Milligan Biofuels ‘onto the road to potential bankruptcy’, reports The Western Producer. ATB holds a $6 million mortgage on the Foam Lake facility, as well as an operating loan and a letter of credit.

Reports differ on how many people were employed by the facility, with figures ranging from 25 to 45 people.

According to 620ckrm, Milligan Biofuels was no longer lincensed by the Canadian Grain Commission as of 6 August 2016. This means that producers were no longer protected by the Commission for any losses suffered. Nevertheless, The Western Producer notes that producers were hauling canola to the facility as recently as a few days before its closure.

The Milligan Biofuels facility is capable of processing more than 50,000 tonnes of canola into 20 million litres of biodiesel a year. The Western Producer notes that the company managing Milligan’s finances has suggested it will entertain offers to sell the facility as an on-going concern.