Under the supply agreement, Green Grease will provide feedstock for Imperial’s biodiesel operations in Middletown, for two years.
e-Biofuels, a subsidiary of Imperial, will operate the company’s Middletown biodiesel operations.
Imperial, through Augsburg Energy, will start hedging its biodiesel fuel production during the period of the supply contract.
The hedging approach allows Imperial to secure its gross margins in the production of biodiesel.
Imperial president Jeffrey Wilson said the opportunity to offset risk and protect the company’s gross margins on biodiesel production through Augsburg Energy’s multi-faceted hedging approach removes a significant exposure variable and permits the company to increase production and revenue aggressively.
Augsburg Energy is a commodity trading advisor and NFA member firm that offers hedging of any position and protects clients’ exposure in alternative energy, other commodities and financial.
Imperial is an energy company headquartered in Evansville, Indiana.
