Money

Atlantic Biodiesel assumes control of Welland plant

By The Tribune

Great Lakes Biodiesel in Welland is now owned by Atlantic Biodiesel, a subsidiary of Luxembourg-based Heridge SARL. (GREG FURMINGER/Tribune Staff)

Great Lakes Biodiesel in Welland is now owned by Atlantic Biodiesel, a subsidiary of Luxembourg-based Heridge SARL. (GREG FURMINGER/Tribune Staff)

A multimillion-dollar biodiesel plant in Welland now has officially switched hands.

Atlantic Biodiesel announced this week that it has received full and final approval to immediately begin managerial operations of the $50-million former Great Lakes Biodesel facility in Dain City.

Atlantic Biodiesel is a new subsidiary of Luxembourg-based Heridge SARL, which won GLB’s assets in a recent bankruptcy auction.

Michael Paszti has assumed the role of chief operating officer of the subsidiary struck to operate the Welland plant.

“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,” the company said in a news release issued Wednesday.

“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. With the support of the community and various levels of government, Atlantic Biodiesel will fulfil 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.”

No other statement were being made by the company at this time.

The Welland plant now has the capability of producing 170 million litres of biodiesel annually and employs 16 people

In early October, the plant went into receivership as a result of court action by Heridge, which said in court it was only repaid half of a $20-million loan used to get the Welland plant off the ground in 2012.

According to court documents and a former employee, Great Lakes Biodiesel was unable to become financially viable largely because it couldn’t secure $65 million in federal funding it was expected to get through Natural Resource Canada.

Welland Mayor Frank Campion has said he plans to put pressure on the federal government to reinstate some green energy funding.

 

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