Business

Cape Cod Biofuels signs new distribution partnership

Cape Cod Biofuels, a company that converts used cooking oil into biofuel, announced a new partnership with an oil distributer Monday.

The Sandwich company collects used cooking oil from more than 700 New England restaurants and turns the liquids into biofuel at a production facility. The biofuel is then resold to another company that sells it to local industries.

Under the new agreement, Catania-Spagna Corporation of Ayer will supply the biofuels company with fresh soy and canola oils to sell to the restaurants that provide the used oil, according to a statement released by Cape Cod Biofuels.

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Ed Miles, a spokesman for company, said the arrangement brings the business full circle.

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Restaurants that buy the new oil will receive a discount per case and can pay based on the market value of the used oil Cape Cod Biofuels collects from them.

Bill Reilly of Catania-Spagna lauded the partnership as “a natural fit.”

Taryn Luna can be reached at taryn.luna@globe.com.